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 Principles of Information Systems
A ManagerialApproach
E dit ion
S e v e n th

RaLph M. Stair
Florida State UniversitY

GeorgeW. Reynotds
The!../niversityof Cincinnati

THOMSON
-=-+--
:

i ls l
AustratiaCanadaMexicosingaporespain UnitedKingdomUniiedStates
:
PART 1 An Ovrview 1
Chapter1 An Introduction
to InformationSystems2
Chapter2 Information
Systems in organizations46

PART 2 InformationTechnologyConcepts a7
Chapier3 Hardware: Input,Processing,
and0utputDevices 88
Chapter4 Software: Systems andApplication
Software 140
Chapter5 0rganizing DataandInformatlon J92
Chapter6 Tetecomm!nications andNetworks240
Chapter7 TheInternet,lntranets,
andExtranets 294
WortdViewsCasei Auslrallan FilmSiudroBenefits
lrom BroadbandNeiworks-and
Location3112
WorldViewsCEse, VirtualLearningEnvironrnentProvidesinslructron
FtexrbiUty
341,

PART 3 Businesa Informstion Systems 34?

ChapterI ELectronic
Commerce348
Chaptert Transaction
Processingand Enterprise
Resource PtanningSystems 398
Chapter10Intormation
andDecision SupportSystems 452
Chapter11SpeciaLized
BusinessInformationSystems:
AriificiatIntettigence,
Expert
Systems,VirtualReatity,
andotherSpeciaLized
Systems506
WortdViewgCa3s:KulLrLa.com:The TriaLs
andTnb1]lations
oJa SorlhAfrcan0nline
AirLine549

PART 4 SysterDsDevelopment 653

Chapter12 SystemsInvestigation
andAnatysls 554
Chapter13 SystemsDeslgn,lmplementat on,Maintenance,andReview610
WortdViewsCa5e: Brand{rn TrlrstDeveLops
MISCapabiLityfor lmproved
0pertrons
andServices664
WortdViewgCaga:Strategic Enlerprise
Management at InternatrcnalManriactuflng
Corporation
IIMCJ6d6

PA!,T 5 InformationSystoms in Business &nd Society 669

Chapter14 Security,
Privacy,
andEthicaLlssuesin InformatonSytemsandthe
Internet 670
WortdViawsCase: Etforisio B!ild E-Governmentandan lnformation
Society
in
Hurgary 122
Gtossary725
SubjectIndex 743
NameandCompany Index 753
 iir
"lry,i rl ::i l ::

Preface xxi

PART 1 An Overview 1
Chapter 1 An Introduction to Infotmation Systems 2
Boehringer Iugelheim, GMBH, Germany 3
Concepts5
Intormalion
DataVersusInfofmation5
TheCharacteristcs of Vatuabte
lfformaton 7
TheVat!eof lnformaton 7
Systemand ModetingConcpts 8
andConcepts9
SystemCon'rponents
SystemPerfofmanceandStandards11
VarabtesandParameters11
Systern
InformalionSystems @ work: DeltasingsaNewSongwilha FocusonInformation
Syslems 12
Modetinq a System l3
System? 15
Whatls an Information
np!t Processng.0utputFeedback15
Manuat andComputer zedInformaiion
Sysiems 16
ComputerBasednformation Systems 17
Bu5iness
Information
Systems 21
andMobiteCommerce 21
Etectronic
CardCustomers23
lssues:PhishingforVisa
Ethical.nd SocietaL
Processing
Transaciion SystmsandEnterprse Reso!rcePLann
ng 25
andDecison S!pportSyslems 26
information
Sysiems:
SpecatiredBusinessnformEtion Expert
Art f ciat ntetligence,
Systems,
andViriuatReatity29
SystemsDevetopment 32
Systems andAnatyss 33
InvestigEtion
SystemsDesgn In'rpLementation,
N.4a
nienanc,
andRevew 33
Information Businss,
Systemsin Society, andIndustry 33
Security,
Privacy,:ndEihicatLssus Systensandihe
in Information
lnternet 33
ComputerandInformationSystems Literacy 35
Systems
niormation of Business 36
in th FunctionaLA.eas
lnlormation
Systems in Industry 36
Casone:TyndaltFederalCrditUnionExptoresNewATM5ervi.5 42
CasTwo:Th Ouset Mary 2 and partner 43
casThree:MyFamitycomlorts lls Members 44
Ch*pter'2 Information Systems in Organizations 46
Whirlpool Cor'poration Worldwide, United Sta,tes 4?
Systems 48
andInlormalion
Organizations
 0rganizationatStructure
51
0rganizationaL
CuliureandChange 54
Reengineenng 57
Continuo!slmpfovement 58
Technotogy
Dilf!sion,Infusion,
andAcceptance59
TotaLQuatity 14anagement 59
0utsourcing, 0n-Demand Computing, andDownsizing60
EthicatandSocietatlssl/esrTheu.S. OffshoreOutsourcingDitemma 61
0rgafizatlons in a GLobatSociety 62
CompetitiveAdvantage63
Factors
ThatLeadFirmsto SeekCompetitive Advantage63
Strategic
PLanning for Competitrve
Advantage64
Performance-Basd InformetionSystems 5?
Productivliy68
Returnon InvestmentandtheValueof Informatjon Sysiems 68
InformationSystems@ Work:OneBeacon Focuseson InformationSystems 69
Risk 70
Careersin InformationSystems ?l
Rotes, FLrnciions,
andCareersin the tSDepartment72
TypicallSTittesandFunctions75
otherlS Careers 77
Ca5eone:Ingersotl-Randandthe 2lst Supplier 83
CaseTwo:The Benkof MontreatLearnsfrom past Mistakes 93
CaseThree:Shelt0it Saveswith ContingentWorktorceMan.gementSystem 84

PA.RT 2 Information Technologf,r Concepts 8?

Chapter Haxdwa"re: Input, Processing, and Output Devices 88
Porsche AG, Gennany 89
ComputerSystems:Integratingthe power ofTechnotogy t0
Hardware Components92
Hardware Components in Action 92
Processingand MemoryDevicesrpower,speed,andCapecity 93
ProcessingCharactefistics
andFunctions94
I,lemory
Characteristics
andFunctions98
L4uttiprocessing
100
SecondaryStorage 102
AccessMethods 103
Secondary Storage Devices 103
EnterpriseStorage 0prions 107
Inputand output Devices:the Gatewayto ComputerSystems 109
Characieristicsand
Functionaiity110
InputDevices111
InformationSystemr@ Work BanksWeighMoveto tmprovedCheck-Ctearing
Process 115
Ethic.l end5ocietatls5ue5:MedicationManagement
System5 117
0ulp!t Devices 118
 Speiat-Purpose InputandoutputDevices121
ComputerSystemTypes,Selecting, endUpgrading122
ComputerSystemTypes 122
SelectingandUpgrading ComputerSystems 126
Caseone!HiltonHotetslmplement3 -0n0" 13(
C.slvvo:t , S.PostOlficelnformationsy5temInitiatlYe I 35
Caselhreer Peoptesoft offert HoslingService3136
Chapter 4 goftwBro: gJl8tertrBa,lrd Applicatiol Softwa,r'e 14O
Jon6s L&rg Lasa.ll6, United Ststs 141
An ovediew of Software '14:)
Systems Software 143
AoDticationSoftware 143
Supporting Individuat,
GrouP, Goats 144
and0rqanizationat
SysiemsSoftwere145
operatingSystems 145
Currentoperatinq Systems 149
Workgroup operatingSystems 152
Enterprise0perating SYstems154
154
OperatingSystemsforSmattComputersandSpeciat-PurPoseDevices
utitityProgrems 156
Middteware 158
Apptic.tionSotrware 158
TypesandFunctions ofAPpLicationSoftware 158
Personat ADo Software 160
Iication
IntormltionSyatans@WorkTetsir.Benefit!fromE-Training for M.n.gers 161
WorkgroupAppticatio n Software 168
EnterpriseAppticationSoftware 169
Apptication Software Decision
for Information, andSpeciatized
Support,
Purposes171
PrograinmingL.nguages t71
TheEvotution of Programming Languages171
Setecting a Programming Language175
Softwarel$ues andTrends 176
Software Bugs 176
Copyrights andLicenses176
open-sourcSoftware 177
Shareware, Freewar, andPubticDomain Software 178
Muttiorganitational Software DeveLopment178
EthicatandSoalett l'.3ua.lW.lghinglhe Benefitsof openSoutce I 79
Software Upgrads180
Gtobat Software Support 180
C.seOne:PACS at NorthBronxHeatticerel{.twork I 86
CaseTwo:AtaskaAirtine! 0roP5Sabretor Speed 187
Casalhae6rUPs Provides Shlpping lfunsgernent to Customors188
Soflvrare
Chapter 5 Organlzing Data and Information 19p
DDB Worldwide, United gtates 1gS
DataMnagement 196
TheHierarchy of Data 196
DataEntities,
Attributes,
andKeys 197
TheTraditionaLApproachVersustheDatabaseApproach
198
Datallodeting andthe RetationatDatabaseModel 201
DataN4odeling201
TheRetationat
Database Modet 202
DetabaseM.nagementSy5temslDBMSl 206
overviewof DatabaseTypes 206
Providinga UserView 207
Creatingand [.4odifyinq
the Database 208
StoringandRetrieving
Data 210
l\4aniputating
DataandceneratingReports 211
DatabaseAdministration
213
PopuLarDatabaseManagementSystems 214
Speciat-Purpose
DatabaseSystems 215
Setecting
a DatabaseManagementSystem 215
usinqDatabaseswithotherSoftware217
Datab.5eApptication5217
LinkingtheCompany
Oatabaseto the Internei 217
IntormationSystems@Work! Web-BasedDBMSEhpowersCruiseLine
Per5onnet 218
DataWarehouses,DataI/arts,andData14ining219
EthicalandSocietetl9sue5!Th crowing Costof Data-Ret.tedRegut.tions 223
Businesslnteltigence224
Distributed0atabases 225
0ntineAnatyticatProcessing
l0LAPl 227
0penDatabase Connectivity
I0DBC) 228
0bjct-0rientedand0bject-Retationat
Database
l/anagement
Systems
229
Visuat,Audio,and0therDatabaseSystems 229
Case0ne: lmzilian cro(er GetsPer5onatwithCustome13 236
CaseT\flo!DBI'15UpgradeFecesEnployeopposition 23t
CaseTireertlyundaiShootsfor ft with ExecutiveDgl{S Z3g
Cha,ptr 6 Teleoommuricatlons and N66works 24O
TI.e Barillo Oroup, Ita\r 241
An overviewof Communicetion5 Systoms 2(3
Communications 243
Tetecommunications 244
Communication5Chennets 245
BasicCommunications Channel
Characteristics
245
Channet Bandwidth
andInformation-Carrying
Capacity 246
Typesof Media 246
 Modems 250
SpecialPurposef.4odems 250
Carriersandservices252
LocatExchangeCarrlers 252
LocatExchange
Competitive Carrers 253
Carriers 253
Long Distance
Switched Lines 254
andDedicated
Voce andDaiaConvefgence255
Phofeand0latng Services255
WATS 256
tsDt{ 255
T Carrer System 256
LineIDSLl 257
DigiiatSubscfiber
WiretessMobite 257
Networks 259
NeiworkTypes 259
NetworkTopotogy262
FiteServer,
Termnat-to-Host. Sysiems 263
andCtient/Servr
Networks 265
Interconnecting
CommunicationsProtocots265
Wiretess Protocots267
Communications
EthicaLaodSocietatlssus:Manufacturers and RetaitersGrapptwith RFIDand
Priua(y 270
NetworkSwlichinqD,"vces 271
Nelwork Basics 273
FI:< i. Pr ..p<q nf, qtr :tofl i a< ??1

CommunicatlonsSoftware 274
Tetecommunications Apptications 275
LinkingPersonatComputers andNetworks 275
to Mainframs
VoiceMaiL 276
276
DistribLrtion
EtectronicSofiware
Document
Etectronic Distribut
on 276
CatlCenters 276
Tetecommuting277
278
Videoconfe.ercing
systems@Work:Live,Work,
Information andPtayin Luxuryatthe Heliopotis
comptex 279
Data nterchange280
Etectronic
PubticNetworkSeruices281
FundsTransfer 281
Etectronic
Learning 283
Distance
Spciatized
Sysiems andServces 283
caseonerStop& shopcustomersMakea NewBuddY 289
CeseTwo:AppticationPerformanceMonitoringatJCPenney 290
case Thr6e:HospitatsTurn Burdeninio genefit 291
Chapter 7 fhe Intemet, Intranta, a d Extrenets 294
Colliers Intornational, USA 295
lJseend Functioningofthe Internet 2t7
Howthe Internet Works 299
EthicalandSocielaIlss!es: Enlrepreneurs Work to Lessenth GtobatDivid 301
Internet
Service Providers302
TheWortdWideWeb 304
WebBrowsers 307
SearchEngines 307
WebProqramming Languages309
Business
Usesof theWeb 310
Devetoping
WebContent 311
WebSeruices312
InternetandWebApplications 3!3
E-[.4ait
andlnstantMessaging313
InternetCettPhones
andHandhetdComputers316
CareerInformaiion
andJobSearching316
TeLnet andFTP 317
WebLos{Btosl 317
InformationSystems@Work:InsceneEmbassyChangesMrketing
Focuswith
Btogs 318
UsenetandNewsgroups319
ChaiRooms 320
InternetPhoneandVideoconferencing
Services 320
ContentStreamlng322
Shoppingon ihe Web 322
WebAuctlons 323
Music,Radio,andVideoon the Internet 323
ofliceon theWeb 324
InternetSitesln ThreeDimensons 324
FreeSoftwareand Servces 324
0therInternet
ServicesandApptications325
Inlranetsand Extranets 326
Netlssues 329
Managemeni lssues 328
Service
andSpeedlssues 328
Privacy,
Fraud,Sec!rity,andUna!thorized lnternetSites 329
Cage0ne: EastmanChemicatRevampswithWebServices 338
CasTwo:SentryInsuranceProvide9Se.ureVPNAccese 339
CaseIhree: BestWe9tern:Firgt lo ProvideFree Internet 340
Part 2 WorldViewsCase:AuslratianFilm Studio8entib from B.oadband
Netwo.ks-andLocation 342
Part 2 WorldView5Ca5e:Vlrtuat Leirning nvi.onmentProvidesInstrqction
Flexibitity 344
PAAT 3 Business Information Systems 347
Chapter 8 ElectroDicConrmerce 348
Sprini, United States; And Sony, Japan 349
An lntroductionto EteclronicCommerc 350
L4uttlstageModetfo. E-Commerce352
E Commerce Chatienges355
TheE Commerce SupptyChain 356
Busnessto Business lB2B)ECommerce357
Elhicaland Societatlssues:canadianPrescriptionDrugweb Sites 358
Business-to-ConsumerlB2CJE-Commerce 359
Consumer-to-Consumer tC2ClE Commerce359
E Commefce 359
Gtobat
MobiteCommerce 362
MobiteCommercein Perspective362
TechnoLogy
Neededfor MobiteCommerce362
Anytime
Anywhere, Apptcations Comrnerce 363
of MoblLe
E-Commrce Apptications 363
RetaitandWhotes:te 363
Manufacturing364
Mafketing 366
lnvestmentandF nance 367
Auctions 36t
TechnotogyIntrastructur 370
Hardware 370
WebServerSoftware 371
E-CommerceSofiware 372
E-Commerce Transacton Processing373
PaymentSy5tems 37l.
ELectronic
Layer 374
Secu.eSockets
InformationSystft6@ WorkrM.rkeling MetssearchEngine 375
Cash 376
Etectronic
Wattets 377
Etecironic
smart,Credit, andDebitCards 377
Cha.ge,
Threatsto E-Commerce 378
E and14-Commerce Incidents378
Property 379
Thefiaf Inttlectuat
Fraud 380
Invason of Consumer Prlvac)/382
strategie5tor succe55fuL E-commerc 383
Devetoping an EffectiveWebPresence384
PuttingUpa WebSite 384
BuitdingTrafficto Yo!f WbS le 385
afd lmprovngYourWebSite 385
L4aintalning
Case0neil2umiyaofJapan:E-Commer(e PostrChitd 392
Caselwor Dytan'5CandyBar Sweeten5
lts Sa[5with E-Commer<e 393
 CaseThree:RealEstate,com:
BuyingandSeltingHomesOntine 394
Chapter I Transaction Processing alld Enterprise Resource planning
SysterrB 39a
McDonald's, Uniied Stat66 999
An overviewof TrensactionProcessingSystemg 401
Traditionat
TransactionProcessingt\4ethods
andObjectives402
TransectionProcessingActivities40?
DataCottection 408
DataEditing 409
DataCorrection409
Datal,{aniputation
409
DataStorage 409
Document Production
andReports 410
ConlroIand Manegerl|entlssues 410
Business Continuity
Ptanning410
DisasterRecovery411
TfansactionProcessingSystem Audit 411
TIadition.l TrensaclionProcessingApptications 412
OrderProcessing
Systems 413
0rderEnrry 413
Eltica( andSocietetlssues:TPSSfor Everyone 415
SatesConfigufation
416
Shipment
Planning 417
ShipmentExecution418
lnventory
Controt 419
Invoicing420
Cu5tomerRetationshipl4anagement[CR[,11
421
RoutingandScheduting423
PurchasingSy5tems 424
InventoryControL 424
Purchase 0rderProcessjng424
Receiving426
AccountsPayabte 426
AccounlingSystems 428
Budget 428
AccountsReceivabLe
429
Payrott 430
AssetManagement432
GeneraL Ledger 432
Internationallssues 434
Different
Languages andCultures 434
Disparities
in Information
SystemInfrastfucture434
VaryingLawsandCustomsRutes 434
14ultipteCurrencies
435
Enterpri5eResour(ePlanning 636
 An Overview
of Enterprise Ptanning436
Resource
andDisadvantages
Advantages of ERP 438
InlormationSystems@ WorkrERPConsotidationOpensDoorsfor coltege
Lender 439
Caseone: BtueCro55glue ShitdCRMWin5glG Clj5tomers /.47
CaseTwo:LuxuryJtServiceDevetopsTPstoSpeedCustomersonThirWay {48
cese Three:Pointand Payin Japanwith KDDI 449

Chapter 10 Information and Docision Support Syatems 452

Liku-Masarnune Sake Brewing Co., Ltd, Japan 453
DerisionMaking.nd ProbtemSotving 455
o{ Pfobtem
Makingas a Component
0eclsion Sotving 455
ProgrammedVersusNonprogrammedDecisions 456
0pi mization, andHeursticApproaches457
Satisficing,
An overviewol ManagementInformationSyslems 458
Management nformation
Systemsin Perspective458
Inputsto a l4anagement System 459
lnformation
0utputsof a Managemeni System 460
Information
Characteristics of a Management System 463
Informaiion
Functionat Aspectsof the Ml5 464
Financiat Management Sysiems 465
Information
llanulacturingly'anagementlnformationSystems 467
14arketingManagementlnfofmationSystems i72
Inform.tion 5ystems@Workr A "TeytorMade"Informationand DecisionSupport
System 473
Management
HumanResou.ce Systenrs 476
Information
Information
0therManagement Systems 479
An overviewof DecisionSupportsystems 480
Characte.istlcs SupportSystem 481
of a Decision
ol a Decision
Capabitities System 482
SupPort
A Comparlson of DSSandl.4ls 484
of a DecisionSupportSystem 484
Components
TheDatabase485
TheModetBase 486
TheDiatogLrlvanager 486
GroupSupportSystems 485
sticsof a GSSThatEnhanc
Character l.'4akin9487
Declsion

GSSAtiernatives490
Execulivesupport Syslemi 491
EthicatandSocietetlssues:CEos'CattedtoAction'Reg.rding
Inlormation
security 492
SupportSystems
ExcLrtive in Perspeclive493
S!pportSystems 494
Capabtitiesof Executlve
case one: Sensorysystem5ProvideBettor-TastingProduct5forKraft 501
CasTwo:The Upsand Downsofthe LadderIndustry 502
 Ca5eThree:SanomaMagazinesFotLowsKey Performancelndicato15
to 5uccess
503
Chs,pter 11 Specialized Business Information Systems: Artificial Intelligence,
Expert Systems, Virtual Rea"lity, ar1d Other Specialired
Systems 5OG
Amazon.Com, United States 5OY
An ovefliw ofArtificiat Intettignce 509
Artificiatntetligence in Perspective509
TheNatureof ntettigence509
TheDifference Between NaturalandArtificiaL
Intettigence511
TheMajorBranchesof Artificiat
lntettigence512
ExpertSystems 513
Robotics513
VisionSystems 514
NaturatLanguageProcessing514
LearningSystems 516
NeuratNetworks 516
EthicalandSocietallsFue5:BiotogicatlyInspiredAtgorithmsFightTrroristsand
GuideBusinesses517
0therArtifciatlnteLlgenceApplications518
An overviewof ExpertSystems 519
ChafacteristicsandLimtationsof an ExpertSystem 520
Whento UseExpertSystems 521
Componentsof ExpertSystems 521
ThelfferenceEngine 524
TheExptanationFacitity 525
TheKnowLedge AcquisitionFacitity 525
TheUserlnterlace 525
ExpertSystemsDeveLopment
526

Participants
in Develop
ng andUs nq ExperiSystems 527
ExpertSystems Devetopment
TootsandTechniques527
ExpertSystems Devetopment
Atternaiives529
Apptcations
of ExpeftSyslems
andArt ficlalIntettigence530
Informationsystems@ work: MovingData-and Freighl-Efficienlty 531

VirtuaLRealily 533
lntedaceDevices 534
Fo.msofVirt!aLReatity535
V d!aLReatity
Applications536
0ther Speciatized
System5 538
ceseone:FrenchBurgundyWines: TheSweelSmetlofSuccess545
CaseTwo:ExperlSystemProviderSafelyin NuctearPowerPlants 546
Corp.Getse Le6sonin PredictiveAnatyti(5 547
CaseThreei BankFinancial
 Part3WortdViewsCase:Kulula-com:TheTriatsandTributationsofa SouthAfrican
online Airtine 549

PART 4 Systems Development 558

Chapter 12 SJrstems Investigation and Anelysis 554
BMW, GermanJr 555
An oyerviewof SystemsDevetopment 557
Participantsin SystemsDevetopment557
Systems
nitiating Devetopment559
Informaton Systems Planning
andAtigning
Corporate
andlS Goats 561
InformalionSystems@ work FaktaDesignsFinancial Managmentsystemto
SupportCorporateGoats 562
Objeciives
Estabtishing for Systems
DeveLopment564
Web EasedSystems Devetopment:TheInternei,
Intranets,
Extranets,
and
E-Commerce566
SystemsDevetopment andEnterprise ng
Reso!rcePLann 567
SyslemsDevetopmentLife Cycles 568
TheTraditionat
Systems DeveLopment
LifeCycte 569
Prototyping571
Devetopment.
RapidApptication JointApptication
AglLeDevetopment,
andotherSystems
Devetopment, DeveLopment
Approaches573
TheEnd-UserSystems LifeCycte 574
DeveLopment
and
outsoLrrcing 0n DemandComputing 575
Faclo15AffeclingSystemsDevelopmentSuccess 577
Degreeof Change 577
EthicalandSocietatlssues:Comptexity,Interoperabitity,and Controt 579
andStandards 580
0uaLity
TheCapabitity f,lodetICMMI 581
MatLrrity
Useof ProjectManagement
TooLs 582
Software
Useof Computer-Aided Engineering Toots 584
ICASEI
Devetopmeni585
0bjeci0rientedSystems
Systemslnvestigation 586
Initiating
SystemsInvestgation 586
Partlcipants Investigation586
in Systems
587
FeasibitityAnaiysis
588
0bjecF0fientedSystemslnvestigation
TheSystems Repod 588
Investigation
SystemsAn.lysis 589
GeneratConslderations 589
in Systems
Participants Anatysis 590
DataColiection 590
DataAnatysis 592
595
Req!iremntsAnatysis
598
0bject0rientedSystemsAnatysis
TheSystems
Anatysis
Report 598
 Caseone: HackensackUniversityMedicatCenterConsolidates Systemsfor Fast
InformationAcce5s 605
CasTwo.pepsiColmplmentsllew procu.ementSysteln
to MinimizeCosts 607
CaseThreerSegvrayStaysLight .nd imbtewith Outsour.ed
Systems 608
Chapter tA Systoms Deelglr, Implmont&tion, Mointotunce, a.trd Review 610
Tho Eome Depot, United Stateg atr
SystemsDesign 613
Logicatandphysical
Design 613
Infoh.tion Systems@ Work!AM GeneratDesigns
RFIDSystemforJust_in_Time
Deliveries 614
objectorientedDesign 618
tnterface
DesignandControts 619
DesignotSystemSecurityandControt 621
GeneratingSystemsDesignAtternatrves626
Evatuaiing
andSeLecting
a SystemDesign 620
EvatuationTechniques629
FreezingDesignSpecifjcations
630
TheContract 63i
TheDesignReport 631
Sy5temsthplementation 632
AcquiringHardwarefrom an tSVendor 632
AcquiringSoftware:Makeor Buy? 634
Acquiring
DatabaseandTeLecommunications
Systems 640
UserPreparation 641
l5 Personnet:
HjringandTraining 642
SitePreparation 642
oata Preparation 642
Instattetion 643
Testing 643
Start-Up 644
UserAcceptance 645
Systoms0perationand M.intenence 645
Reasonsfor f4aintenance 646
EthicatandSocietatl$ues: FindlngTrust in Cohputersystems
64?
Typesof l\4aintenance648
The Requestfor l4aintenance Form 648
PerformingMaintenance 648
TheFinanciat tmplications
of f4aintenance649
TheReLationship betweenl4aintenaneandDesjgn 650
Sy5temsReviev, 5S0
Typesof Reviewprocedures 651
Factors to ConsiderduringSystemsReview 65l
SystemPerformanceMeasurement 652
CaseOne:Metlife gelectsthe BestTechnologts
Aroundthe ctohe 65,
CaseTwo:The HudsonRiverperkTrtrst Tqrnsto constructionASp
660
 case Three:HaworthUpgradessupplychain Systems 661
CaserBrandonTrust DevetopsM15Capabilitytor lmproved
Part tWorld Vierrvs
0peralionsandServices 664
Part 4 WorLdViewsCase:StrategicEnterprile M.nagementat lntrnationEt
ManutarturingCorporationtlMCl 666

PART 5 Information Systems in Business and Society 669

Chapter 14 Security, Prlvs,cy, and Ethical Issues in Inlormation SJriems and the
Internet 670
Computer Assisted Passenger Prescreening System, United
States 671
CompuierWasteand Mistake5 673
ComputerWaste673
Computer-RelatedMistakes 673
EthicalandSocietatl55ues:CAN-SPAM: DeterrentorAcceterant? 674
PreventingComputer-Retated Wa5teand Mislakes 675
andProcedures 675
Poticies
Establlshing
Poticies
lmptementing andProcedures 676
Monitoring andProcedures 677
Poticies
andProcedures 677
Poticies
Reviewing
ComputerCrime 679
The Compuleras e Too[to CommitCrime 680
Cyberterforism 680
Theft 681
ldentity
The Computerastheobjectof Crime 682
Ittegat
AccessandUse 682
DataAtteration
andDestruction 683
Programs 686
UsingAntlvirus
andEquipment
Informalion Theft 688
SoftwareandlnternetSoitwafePiracy 688
Computer-RetatedScams 689
InternationaL
Computer Crime 690
PreventingComputer-RetatedCrime 6t1
CrimePreventionbyStateandFederatAgencies 691
CrimePrevention by Corporations691
UsingIntrusion
Detection Software 694
UsingManaged Security Providers
Service lMSSPsl 694
of
lnternetLawsfor LibetandProtection Decency 695
Crimeon the Internet 697
Prevnting
Privacylssues 598
Govefnment698
andthe Fede.at
Prlvacy
IntormationSysteme@ Worki UK BioBankRaisesPrivacylssues 699
Privacyat Work 700
Privacy 700
E-1.'lait
Privacyandthe Internet 701
Fairness Use 702
in lnformation
 FederaL PrivacyLawsand Regutetions 702
StatePrjvacyLawsand Regulations 704
Corporateprivacypoticies 70b
Effortsto protectprjvacv 705
IndividuaL
TheWorkEnvironhnt ?06
HeatthConcerns 706
problems 70?
AvoidingHeatthand Environmentat
Ethicalls3uesin Intorm.tionSFtems 709
TheAITPCodeof Ethics 710
TheACMCodeofprofssionat Conduct 711
Caseone: Workingto Reducthe l{umber of SoftwarVulnarebititi6s 717
CeseTwo:BewreSpywate! ?lg
CaEThree.Clberst.tking tl9
Pert SWorldViewsCas:Eftortsto BuildE-Goverhmentand
an Intormatiolsociety
in Hunqary 722
Gtoss.ry 725
SubiedIndex 74:l
NEmeend ConpsnyIndex ?S:l
 oforganizatiornrkc uscofinforma-
-ople in ne*ly everyline ofwork and in evervnpe
: r systems. {lhrnces en, regardlcs ofyour lirrure role,y,u will needto undcntud lhrt
iroimalion sisems.an indcanrot do and be.blero use then o help i ou eccomplishvour
fk. You will be erpecred to .lscovcr oppofrunjries ro use intorhation sistehs x Io
:r(icip.re in rhe design ofsolutiors ro bushcs problems emPkrying informtion sisters.
m will be challengedn, identifv rnd eraluatclS oprions.To be successful. von must be
::i to viqv infi,rmatn,n svsrms flom Lhcpcrspcctive ofbusiness adct orgdnizadonrl needs.
r vour sohLrions to be accepted, yor must rccogrize and address the; impact on felLow
.rkcrs,cusromen, supfliers,and other tcy bushc$ pirrners. Forihest rerons. a.ours in
is
::rrmation sysrems essential for $uden(s n todav'shigh-Iech 1'orld.
Pttripla oJtnJitnation $:'ens: A Md,qehl AtPlaach, SeLenth[tit n, c,tntimes rtr
::drrion and rpproacl ofrhc prflious editnrns.Our prnmrv obicctiveis ro providerheb*t
I Lcrrand accompanving mterials for rhe firr intormatnrntechrologvcoursctcquircdof
:. I'usine$studens-Through suncn, qucstionnaires, li,cusgro(ps, md fc.db.ck rh.r we
:e rcaived from cucrt ard prst adopter, * wdl as orhcn nho teachin the lleld. rve
,c beenableo rlevelopthe highcsr-qraliwserofteachingmteriJs availablc.
?rincipks ofInfi*nat;or Slsten!:A Ma"asdial A nd.h,9tnth Ediriox,sards ptotdly
: r}r bcginningofrhe IS curiculun end renairs urch.llenged iis positionI dF olny
in
. principlcsrcxtollering rhe basi.IS.onceprsdut.vcry business studentnu$ learnro bc
::essfil.ln thcpas, instmctorsofthe intoductort coruse ficedadilemma. on onehrnd,
rrrien.e i! busnrcss orgar;r&,ns alldvs sudenn to g.sp rhe cohflexitier Mddlving
'T orrantIS conccprs.Forrhis reason,manyschoolsdclaycdpresentingtbeseconcepr until
:.,dentsconplctcd a hrge poffion ofthe (E l,usines rcquirenents.On fie other hrnd,
-hring thr pres.n'arionof IS conceptsuntil stuclentsh.\-c narLuedwithin the businss
.:,lculum oier lbiccs rhc ore or mo Leguirerlinffoductorv]S ouxes to tocusonlv on
:-.sonal(,mpuing sof6'arcroolsand, at best,metelr to i!ooducc conrpurerconcepts.
I his lext hasbren wrirer spccificrllyfor im inroductorv coursein the lS cur iculum.
:,tiples aJt,fomrtion syt.,B: A Ma"dslinl A ndrh, Sere/nbEdnio,, lca6 the appv
: :re conputcr end lS concepatogetherwhh a srrongma.agerialemphasison nttedng
:.inessrnd organiarionalneds.

O FTHETEXT
A PPRO ACH
v
-t it'br of l"Jimdtian .trid6: ,4 Matayial Approaclt, Sedth E.li';o", otr 6 tlL tn'l:1'
rnal .oveiagcof compuref concef$, but it placcsthe materialrvithin the corLcxr of
.rlr$sing busincsand oryani,adonrlneds.Phcing lS conceprsin thn contdt rnd txking
::rneral menrgenentpcrspccrilrhasahvavstr the tdr apaftfroDrgeneralcoftputtr books;
:rs, ir rppealsnot onlv ro MIS rnajos bur al{r b rudents ftorn orhef ileldsofslud,r.Th
. isn't overlytechnicJ.ln$e!d, it dcals$ith rhe .ole thrl irfornarion sysrems Playin an
:srizario n :nd the keyprin.ipl.s anrnage. needstograsp to lx succcsshrl.lheseprinciples
: nftrmation slstens te clisrillcdand in
presenrcd a wrr thar is both undetrtindable and
.le'rnt. ln additn,n. this book oltn rn ovawisv ofthe entirc lS discipline,while givins
,:.rtots a s,lid foundrtior for furtber srudvin a<lvmccdiS coures suchasprogrmning,
, rcrns analysisand desigr,projcctmanagemem, d&b* nanagement,datacommunicr
m, \(eb sire:nd svsemsdev.lopnenr, elecrronicconnercc apPlic.r;ons,and decisn,n
, :rporr. As src!, ir senesthe needsofboth geneol busintssstudcnrsand thoservho will
- lode lS professionals.
Thc ovcrallvkion,framsork, andpcdagoglthat madethe prcriouscditiors soiropular
-r'e bccn rerainedin the s$,endrcdirion, ofE.ins a nunbr of bcnefirsro srudentsv'e
:. nlinuc ro presentIs con.eprswith a maragerialenphrsis.\xrhilc the hmdamemalvision
 o f rhi , Ini l F ..ei di ngrar re,n,,F.un.hrnged.,h. .fl cn,h edi U onm nr e. t cr r , . h, Bt LLigh
e {r" D l \ncdp nLrore\rnd dr L\r. hrve emerec dr , . r c. ulr. , r bu. : r e$.
o.ganizariond,ard technologicilchange.

l S Pr in cip le F
s ir st,Wh e r sT h e yBe to n g
Exposinsstudenrs ro fundmennltS principlesis an advantlsetbrsruden$whodo nor late.
re rrn' ro rl -edr. i pl i re roraJ,dn..d.,,uFe..j i n, r mo{ .un,,i on-
"FJ. in ou\ , , , e.,\et yon
n f onn" ri ,,1* rem.. l unde,!,noi ngot t\ p, n.i pl e.\.' p,.rud.nr , in o, h,. , our e *;
l l r ddi ri on i l rrodu, rg.rud.rr.rorn,
fri nri pl sot i r l o,m" ,i o,r.yn. m . he, p, . unr r eou! -
nessfuncrion menases evoid nihaps thrt otien resuh in mforrumte @nreournces.
Iuthdhoe, preknringlS concep*ar thc intoducrory lqel crea$ nneiestanonggeneral
bushcssstudenrswho may larerchooseinformationsystemss a field of oneirr;n.

A u th o rT e a m
Ralph Stair ad Grcryc Re),noldshave rcmed up agrn for rhe swenrh edidon. Togerher,
fiy hayenore than 60 yea^ ofacademic dd industriat qperience. Ralph Stair bring-:
),eas
ofwritiog, tcaching, and acadeni. dperien.e to rhis iex!. He hs wfiren nde rhan 2; books
and a largenumbef ofalticles while ar lloridr Sure University.ceorge Reynoldsbringsa
wealth of compurerand industriatexperience ro rhe prcjecr,*ith n;re thd 30 reJof
d oeri (nt' tro,(,ngi ngo,rrnmen' . n.,i ru' ." rJ.rd.ommer,;t I\ or g: n, aUon. .He hJ.
alsoaurhored14 rer.rsand is an $sisranrprofe$orat the Unive$i.y of Cind nnari.wherehe
,er.h6 ,he :nl udu.ror-)l \ Lou,.e.t h. smrrod R .rnotd,,em brine,r . ot id, on. eot uJ
foundari on rnd pra.ri * l s qp.ri er* ro..udenr.

GOALS
OFTHISTEXT
Becttr Pi"ri?b' oflnfomdtior E tcn!: A Mdusoiat A?ptudch,Stue,th Editioh s wtif:ea
' " r al l bsi rA . mr;or,.qe bel i * e i r i i mporunrro. onj y ru tB .nr r r eali, r i or r , pe. , ir e
o n Int(m/i ,,n .rcm.In bb:nc., br r,o ro p,o,i denudenr,w i rh , t - e, knt . , h. y au u, e
')
ro he ene.rn. b-u.' i i rF::Gi i i Gi l e i i o,g,.i -,i on. fo rh" r .nd. rhi. o. "r ha. r or r m r ir

1.To provide a core of IS principtes with which dery busine$ srudent shoutd be
liniliar
2. 'Io offer o suney of the iS disciplinerhar wilt eDablea busine{ssrudents!o
undetstmdrhe relariotrhipoftS coursesro their curriculun c a whole
3. -I o presenrrhc chtugingrol oirhe IS profesional
1. To showthe valueofrhc discjptiDeasan a!ffactivefield ofspecjaliation
By lchiqins thse soals, rhis tert will enable srudents,regardless of the; major, ro
mderstmd md ue furdaroennl rS p rciples so dai they can [ncrion more eliicien;ly md
elTecdvelyas worke6. hanases, decision makes, and organizational leadem.

l S Pr in cip le s
Pihr;?lcr af Lfomdtion ,!tem: A Ma"asdkt A?ptudch, Se,exthEdnio,, althoush en_
prehensive, cannorcovet everyasped of the rapidly changingIS discipline.The authon
recosni^ this md providesrudenrsan esen.iaicoreorsuiding rS principlesto ue s rhey
hce rhe care( challenss ahed. Thiit ofprinciples d b*i. ;,"rh:. ,ul;, * *."-pri.^
lhat rmain @Nranteg*dles of rhe siruarion. Ar such, they provide stong gui&nce in the
fa ( ofrush de.i si .n. A .e, D ,i n.i pte.i s hi gt-ti strk,r
. i he besi. . in; ; a, . . h, pk
" .t5
a rr .rh.(hj p,er\l ri rni ngohi (,i !e..Thenrhe(pl i n.i ptr.JreJppti e dt o, ot , . , at . "or t J
prcblems fron-rhe opoins visoerres to the end of-chapter hare;J. The utdnat
soat of
P::ci?t:t olwm.at':" qstezr is ro developeffectiv,$inkins emplo.ve$by insrilun; thcm
wirh principlesio help guiderheirdecisionruhing and actions.
Sur v eyof t h e 1 5D i 5 c i p t i n
.., tcxr nor on\-ollen rhe uaditional coverageofcomputer conccptsbut alsoprovides
rena with a solid groundingin rhe buiness usesof technology.In addition to sewing
::*J businesstudents,this book offersan oveniew ofthe entireIS disciplineand solidly
:.:p:res fnrure lS profesionalsfor advancedIS coursesand their career in the npidly
-:n.qingIS disciptine.

C h a n g i n gR ol e of the l 5 P rol es s i o n a t
-, rus;,essand the 1Sdisciplinehavechanged,m too hs the role of rle Is profesionJ.
::- onsidereda r.chnicalspccialist,rodayrhe TSprofesnrnalopemtesasan internalcon-
,. r ir to Jl func.ionalarcasof the orsnizarion, beingknowledgmbleaboutthe; needsand
. .iprtenr in bringingrhepowerofi"fo'-arion syst.msto bearthroughouttheorgdiation.
.r lS pofe$ionrl viewsisucs rhrough. giobal prspective lhar enconposesthe edtire
::inizarion and the broaderindutry and business environmenrin which it opetates.
I he s@peof responsibiliries ofan lS profesionalroday;s nor confinedto just his/her
. rloye' but.n.omp*ses the entireinterconnected networkofsuppiier, customer,com-
..:irors,regulatoryagencies. and other enritic*no rnanerwhere rhey arc located.Th;s
::!d missiondeates a no challengehow to help on o.gan;ation suNive in a highlr
:rcomected, highly conpetitiveglobalenvironnerr. ln acceplingthat challeng,the IS
::rrcsional phys a pivmal role in shapingthe businessitselfand ensuringits sucess.To
.-1ive, businesesnus now strivefor rhe highesrlevelofcusro-er sati.f,cti"n a"d lol.lty
::oqh competitirepricesand *erinproving productad sede quality.The lS profs-
:rel assumes the criricalresponsibilityof determiningthe organizationkapproachto both
.nll osr and qualhyperforndc and thereforcplaysan inponmt role in the continued
- r i. al of rhe orgmiarion. This no dulity in the role of the IS enployee-a prcfesionai
.:o exercises a specialisisskillswith a generalisfspespectiv+k reflectedthroushourlhe

l Sas a F iel . d
f o r F u r t h rS t u d y
I : lpne rhedownru.nin the econom)-ar the startofthe 21" .eniury, especially
in technolog,'-
':.red secton,rhe oudook for conputer and iS nmagen is bright. In facr,employnenr
:::omputer and IS nanagersis *pected to gro* ntch tuter than the average occupation
:rugh the vear 2012. Technologicaladvancenents ae boosring the employnenr of
: : r puter-related workersr in turn, this will oeate denmd for manages to dnect these
. r:kes. ln addiiion,job openingswill resultfrorn the needio replacemanagenwho retne
:: no'e inrc oiher occuparions.
.1 caree! in information qatens can be excning, challenging, ind rewddingl This tdr
:-rr rhe value of the discipline c m rppealing 6eld of study and the IS graduate * an
-:-sral panoftoday'sorganizations. Perhaps morethar everbefore,the IS profesionalmust
r ;ble to align IS and organizarional goalsand ro ensur tiet Is invesimens de justified
:: n a business perspecdve. So,brightand interesledstudentsareneededinthe IS discipline.
:cn graduation,IS graduates at many schoolsae anons the highestpaid ofall business
:::Juares.Throughout this text. we preparestudentsfor then ca.ee.sby highlightingthe
::nv chollengesand opponunities availableto lS profesionals.

IN THESEVENTH
CHANGES EDI TI O N
:t : haveinplenenied a number ofexciting chmges to the t*t in responseto userfeedback
:. how rhe text can be .lisned evennore closelywnh IS ptinciplesand concepsand the
rrs rhe courseis now being taught. A sunmary of thesechmge follo*s,
. Unifiins Thene. h rhls edition, we stres the glob.l aspecaof infbrmation rystems
d a najor rheme.Ar organizations increasnrglyff nd rhenselves
competingin a global
 ndetplace, they nst re.ognia the resllting inpli.ations on their infornaion
systens.clobaliatiod is profoundly changingbusinesses, h*kels, dd sociery.
\rith its yearsof sedice t{, the IS dncipline, this text .ctainsrhe tEdidons and
$rengthsofpds su@s!e\ while helpingfututc managetsand deision makershce
rononow's globalchallenges.
AA Neu VotA Vietu' C66. whilc rhe tcxr has alwals stresed the giobal facton
.ffecdls information systms, thesefactor *e enphasird *en more in rhis edirion
th.ough rhe Wo.ld ViNs Cases.These.des. written by in*rucror oursiderhe
United Satesand about.eal organizarions outsidcrhe Unired Stats, providthe
reader wirh solid insight into the IS ;ssuesfacing foreign-bded oi multinational

AI Netu Vipetts Enphd!;* Intmanonal A?ecb. In addition ro the l(/orld Viem

Cseq all of the chapter openirg v;gner.esnir actual issuesf.om foreign,baed or
mdrinational @mpanies.

Wb Lcnm Aba"t Feat"ra. EacI chapier ha a nff "Vhy tf,dn Abouf' sec.ion ar
$e beginning ofrhe chaprer to pique studenr inreresr.The seaion srsrhe sragefor
srudents hy b.iefl)- describing ihe ihponme of rhe chapter's naterial m busines
srudenrs whaiever rheir chosenneld.
Inkotut;ofl Sjsten' @ Vth S?ec;d.l Inte/ert Baa. Hlghl;ghring cutent topi.r and
treDdr in tod4'\ he.dlines, theseboxs show how information tsrems {e used in
a varietyofbusinesscreer re*.

Calet Exetis6. N* end-ol,chaprer Cdeer Exercjss dt srudeots to reseach how

a ropic discused ;n rhe chapr.r relatesto a businessareaof ihen choice. Srudenrs
are encoDged to use rhe lnrernet, rhe collese library, or inretuiews to collecr
informaiionabout business careers.
Att Neu V./zo! .xd vidzo Qacrt ru. Ns video segnen$ are prcvided 6r tuh
chaprer of rhe seventhedirion. These segnents demonsmre key chapter conceprs.
Srudenrscan a.tuall)' seeIS principles at work in a variery ofseirings and then anwer
quesdonsto help them ipply what theyhaveleamed.
l'hDousht Rtuted Ex.l4fchd?td Maktidl. The naterial ar rhe end of each
chaprerhd beenthooughly updared.Sunn*ies linkedro rheprinciple, keyterms,
self-assessn.nrquestions,rflio qucstioas,discussionquesdons,problen-solving
qercises, reama.tiviries, and wcb ererciseshavebeenreplacedand revjsedrc rcflecr
rh rhcne ofthe s*enrh edirion and ro give srudenlsrhe opporiunitr to explorc rhe
latesrtechnolo$'in a business setting.
AI Ntu Cars. Thrce new end-of-claprer casesproride a wakh of pr.cti.al infor-
nador forsrudentsmd irorrucros.Eachcde explo.esa chaprerconceptor problen
rhar a real-world conpany or orsanization has h@d. The ess can be dsigned 4
individual homso* qe.ciss or sere d a b$is for classdiscussion.

CHAPTER
CHANGES
v
Ee.h chaprer hs been conpletely upd.red wi$ rhe lates ropia and omples. Here is a
sumnarr ofsone ofde chdges.

C h a p te I,
r An In tr o d u ctioto
n In fo r m a tio Sy
n stems
This chaprcr is ftll ofnew boxes,phoros, figures, rables,exanples, and nore rhm 40 curent
references.The new opening vigneft tocuseson Boehringer Ingelheim, which is mong the
world's 20 largesrpharmaceurical conpanies,with $7.6 bill;on in rnenue and 32,000
:nployeesin60nadons.ThenN "\Vll Leirn Aboui' sectionhotivatesstudcrrsbvsho!nrg
ienr the imporranc of inforhadon sysrenr ro ach;evetheir crrccr goals lhe new
lnbrnation Sysrens@ Vork box strescs thc use of;nbrharion systcnr by Deha\
-\*hre, all disiial spin-oF,Sonsairlide,whi.h usesrechnology,stateof thc-artinfornation
, rems, and goodold-fuhionedcustomerserviccto win cusromers. rigure I .6 containsno
.unpler ofmodels,and Figure1.8 containsnew images.lhe sectn,non Compurcr-B.sed
rtormtion System" includesmany new e*nples and phoros.Table 1.4 is ncw ro rhis
:jrion, revealingthe many poweLtulusesof the Intemcr.'l he sean,n on "B usiness lnfor-
::tion Slstens" includesa ncw figure th* showshow rhcseslsiehs dolved fron .arly
:msacrionprccsing sysem ofrhe 1950sb the advd.cd decisionsuPportmd speciat-
::rpose systems oftoday. This scctionalso;ndudesrew aanples and a new photo ofdrc
,.: ofB2B (busines-tobusircs) applications.Mobile connnerce(m'ohnerce) is inrro-
:red in this chapter.The new "Ethical and SocieaiIsucs'box includesinfornation on
':z dnges of phnh;nrthe useof ctail and \feb sitesas bair to lure consumersinto
r .alins privateinfornarion. l here is a new photo oD the ut of ERP. Thc sccriotron
\ iriual Real;ty"containsno oamples and new photosofa head-mounteddisplayand a
:ra glove.FigureI.18 is new to this editbn. showhg rhe mosr<,nmon attacLsto infor
:rion qsrem today. rnd Figure I . I 9 reveaLsthe hugc cosc of th*e attrcks Thc all-no
nd of-chapterosesincludcinforma&,n on Tyndall Icder.lCredit Union, which provids
-nking seruices to military penonnel* Tyndall Air ForceBase;n Plnrna Ciry, Iloridai
:.e Queen Mar,2 (QM2), rhc larse$ and host expenstuc cruiseshipeverbuilc and My-
:rrtily.@m,Inc., e leadingonlirc subsciPtun business for researching fmily history.

n y s t e m sin 0 r g a n iza tio n s

c hapt er2, I n f o r m a t i o S
he materialonorgdizarioml changehasheenenhmcedto includesusteiningand disrup'
:.e change. Christimsen, who wrore the busines bcst-selletsIrrentots Dibnna and rhe
1orc rece lwe,trr\ .Sa/,to,, discussesthese rypes of change 'Ih si{-signa qualiry
::ogram has beeninrrodued and denonstratedwith soenl *mples The materialon
:rdpeftive advdtage hasbeensnen$henedwith materialFom lin Collin\ best+elling
- incssbook Goodto Grcat Specidcally, we introduccrhelorion ofte.hnologyacccler$ion
..rh new qmples dd a new table.The productivity paradoxhas been intoduccd, u
-:a,nmended by a reviver. The career in informadonqnremssecion h* beenupdated
.' th new positions, such * thc chief rechnology oficcr (Cl O), and severalexamplesand
:,ccr quotes6om CTos. The CLingerCohcnAct, which requ;esCIos for cerrainfedenl
.:encies,hasalsobeenincluded,asrequested bv a revtwcr'

Chapt er3, H a r d w a r eI:n p u t ,P r o ce ssin ga ,n d

0ut putDev i c e s
. he new "Vhy ltam About Hrdware?" and Infornation Systems@ lrorl" featureshelP
::monstratewhy a businessmaiorncedsto undesand this chaprelsconceptsln rddirion,
re chapterhasbeenbroadened to a nuagerial focuson whara nonJS decisnrnnaker needs
:r know ibour hardware.The htest informationon pbaso6i mah memory,secdndry
.uage devi.es,.ndinpur/output ddi.es is covcred,includingsuchtopia o sman phones,
::bler PCr, and MP3 playe6. Th*e is rddcd covenge of grid computing and utility
:lmputing. More than60 newreferences and cxamplesapperthroughoulrhe chaPd The
lterial on compurcrsysremq,peshs bccn modified t0 conform to the Cart.er Grorp's
rdurl, standud definirionsftr the vuious qpes of conputcr systems.Th sectionon
rlccring/upgadnrgconputer systems ht bccnupdatedto;rludc a subsecrion on printes
xd DVD burnes. Also,the nred nr properdisposalofcompter hardwareis discus*d

c h a p te r4 , S oftl v :rerS y s temsan d A P p t ic a t io nS o f t wa r e

\ew ro thh edition is a sectionthat dividesopcraringqttens into four generaletegories:
. nglecohputer wirh a singleurer,singlecompurerwithnultiple users,multiplecompurers'
rd speial-puposc computers.The secrionon cohmon hardwarelunc rns h* beer
.-eamli"ed, od the scctionon file manrgencntrow desoibesfilc typesrnd onventions.
The secrionon penond conputer operaringsystems hu beenrwmped to includecurent
operatingslstemsand doelopnenr*including \findorvs Xl, Apple,and Liru and ro
reducematerial onolderop.nringsystems. The se.tionon \findoss Seo*hx bcenupdated
ro includea d;rusion of\(rindows Servef2003, and ihc discussion ofenterpriscoperatiog
systenshu alsobeenrpdatcd and srreamlined. Reflecrnghdusrry uen.Ls,a nssecrioD on
opcratingsystensfor smallcomputer and specialpurposedoics hasbeennrduded,nirh
coverage ofPalm OS, WindowsEmbedded,and \Vindom Mobile doelopnents Erantples
of uriliry prognns havebeenrhoroushb-rqised. A new scctionon has been
-iddleware
includcd. l'he macrial on proprieraryand off:rheshelfsoftwarchasbeenrevisedto addres
reviryer commenrs.The nateriJ on peronal appl;cationsofrwarehasbeentrpdrr.d. For
aamplc, the marerial on Ercel now inclLrdesSolva. The natcrial on solivare suitcs now
includcsnore informrionabout opcr+ourcesuites. Thereis a nsseclion on otlterpcrsonal
rpplicationsoliware,which focusesor projer managenent,fin.ncial managemenr ard rai
prepdarion, edu@tionJ and refercnce,dskrcPpublishing,conpurer-aideddesign,and
statisrical soliware.Thde is a news.crior on apPliction softwarefbr information,dccision
suppon, and specializedpurposes.The secdonon fifth gcnciarionlangua1;es hr bccn
changedro emph*ia visualrnd object-orienred langugesard is now fomatd thinking in
irs litle. 'Ldg@ges b.yond the Founh Qeneration."Finally, the sectionon open source
soli'rare near rhe cnd of rhe chapterhas beenerpandcdand includesa ntw tablelistlng
differemopen+oure softwareptoducs.

C h a p t e r5 , 0 r g a n iz in gDa t aa n d ln f o r m a t io n
The matcrial on the rndidonal approachto databasenanasement hr beenrcduced sl;shtlv.
The materiJ in rhc secrjonon the danbaseapproachhasbeenupd*ed, indudnrg Table5.2
on the disrdvrnragesofrhe darabue approach. Becausehienrch;cal and nework nodek are
no longer widelv ued, thar natcial has been cut druricalll. The secrion on d.ta cleanup
hu beenrpdatedwith an example.Instuctorswho wanr ro covernornaliarion will be able
ro userheddple !s a sianiDgpoint. The secdoron darabase managenentsystems hasbeen
updatedoin.ltrde a discussion of flat files,single-user,and mulin$er databases Thesecrio!
on maripular;ogdata and generatingrePonsincludcsno materialon que4'b,v'exanple
rQ B r, rnd ns eumpl e. of 5Ql . B oed on r rev+ .r' ugge.' hn' Ql com a', r d' hne
beeninaoducedinanry tablero show studenrs how SQL can be usedforavaiewofdatabase
puposes,suchasselecting, projectinsjoining,ud securiq'These.tionon poPulardaubde
managementsystemshas been up&ted, and a new sectionon spccial-Purydt daiabasc
systemshasbeenadded,which containsa nunber of new exanplesof real organizations
usinsspecialized'detabase s]riems.A oewse.iiono! usingdatabases wirh orhersoftwre has
alsobeenadded.Finally. the secrionon databde applicadons hs been uPdaredwith new
nateriat and oew exanples, such as Oraclet \(ruchorre Managencrt softwarc, which can
incorporate dau fron radio-frequencyident;fication (RFID) rechnology. There is alsoa new
secion on visual,audio, and other databa*s near thc end of the chapter. As with oth.r
chapten,the end-of chapternateialhd been uPdated.

Ch a p te6r , T e le co m m u n ica tioannsdNe tworks

An expandedsecrionon voiceand dataconv*gencediscusesthe "big picture ofhow wc
arechangingfron a releonmuniotions infrottucrureb.sedon POTS (plainoldtelPhone
.e ^ i ,., u' i nCs i { rd | J,, . oD perw i re. ' rLrno.J l or " nrl og . or. , or nunt ar '^n 'r gnal'.
ci.cuit swirchins,and "dunb" voia relephone to a no ioliasructure for transnitting
digit l datasignakbued on prckerwitchins throughfiberopdc links wirh intelligentuscr
devices that provideaddressing infornarion.The focusis on convertingall signalso adigital
fom and using r singh digital networkto carryall conmuricatidns (includingvoi.e end
data).The coverageoI celluh tnnsmissio. ha! heenexpandedand updatedto ;ndude r
discusion of the fearurs ard characrcrhtics of 1G. 2G, 2.5G, 3G. and Multichdnel
MuitiDoint Distribution Svsren cellular comhuniadons l'ersonal uea nelworks dd
metropohan ra nemoLs havebeenaddedunder the discu$ion of nerworktvPes.The
 with additionrl
-:,,.ussionofconrmuniGrionsprorocolshasbensimplificdand streamiined
:nrocok nrclLrding fLame reldi, Fircvne,IEF-L 802.1I g.lE!E 802.16(YriMr), and IEEE
.11.20 (Mobile Broadband\rirele$ A@e$). A dis.ussionon the role ofa hub h* been
..lderlundcr the sectionon 'Nenitrk Ssirching Devi.ts." Thc useofcall centersand ele.
::onicfunds trarsferwasaddedto rhc discusion ofrcleconmunicrrionsapPlicatbns.

a n dExtr a n e ts
7, T h eI n t e r n e tI,n t r a n e ts,
C hapt er
lr4xer 7 rvrs significandvreranped and reorganized ro rcfltct the dvnamicrature ofthe
:rcrnet.ThercarcmorethaD70 dewrelircncesfor cu..entemrplcs rhroughourrhechapter'
h. major rctior on LrrernerseNic$ wdsnovcd larerin the chrpter.cxpardedto include
:,.b applicdons, and rcrirled Internet ad Web ApPlicatidns."This inPorlant chrng
riorved us to covcrthe technolliv iitst dd the applicationsofthc teclnolog nert in one
rincd sectbn.A ner tablcon rhe uf ofbrordbard to conned to thc lnr.rDcr hasbeen
-Jndcd, comparingdEtxDsmissioutim*forafill lensrhmovie:two weelcoltr asardard
odcm,rwo daysovercablcor satellne,and abour20 seconclov* r T I inrc. h the section
-
: the Wcb, se haveinroduccd the notion of\reb porals and pnNicledeumplcs The
:rionon \feb browrs hdsbccnupdatedandenhanccd,ard rhe sectn,non serrchcngnres
:..v includesmon sophisticated searchparunetcrsand apprnch* Additional languates
:l xpplicarionshavt been ilcLudcd in rh stction on lrq and Intentet prograrnming
,gurges.Thediscussionofdevelopinsweb.ontenrhd beenupdaredtoincludeno'web
rhomg sofrwateand thc inportance of conrcrt nanagement sysems (CMS). An
roonant adttitionro thesevnrhedirionis a ns se.tionoD Web sen'i.es,r'hi.h discusscs
,,,r rpprorcl ard aa"da.d. that areuscd. lhe sectn,non "Intcrnerand !0eb Applicrtions'
,: been totallv updred. \re havc nerv n*uial on lnrcrnet cell Phonts rnd h.ndheld
.rryuters.Thcrc are ako no s.tionsor crreef inturndtion .nd online job rr.hes and
i.b loss,or blogs. l-he ne* matetirl on voice over InrerncrProrocolis intodu.ed bv .
: r.erfuL qrotc ftom the cha;har of rhe U.S. leddal Connu @tionsComnission dat
:r:scs rhe indeasinginponance ofthis Lcchrologland irs nnpiicariorsro rhe lraditionJ
ng distancephonecompanies. Thde is d r.{ rableof saleson Wcb sites.Lhe sectnrnon
:uic, radb. and vidco on the Intdnet has beenupdattd. Thc scctionson inttanen and
.lencrs havben lpdxrcd, alongrviththescrioDon netissueslor cxamPle,we now hdve
: ntrv table on the sourccof Inr*"c nuc1<scxpresrd in perccnragesOf coure, tlte
.rJ-of-chaptermaterialhasbten totallv updaredrc relle.t rhcscchangs

chapt er8, E l e c t r oinc c o m m e r ce

. bricfsumnra.j'ofthesta s ofe-commoce arourd thewotld ht bccr added M'co-merce
. Lnroducedasa new busines model.In addition ro examplesofrn-connerce, the tech
-nog) requi.ed is d;cuscd, and the anywhcre/anvrineapabiliry of m-@mmerceis
exahples'and
.lJrcssed.web sedc.s rre discus*d,inchding a deffn;tn,n.s ofsrandatds,
: GarmerGroup forecastofthe grNth of veb senices Phishinsis discussed as d serious
rreat to e'connerce. The role of the Federall LodeComrnissioDin regulatingIntrn.r
rechnoiogi'!o anxlyze
The useofVtb sitecusronerexPerience
, ri"ities is brieflyaddtessed.
::e usabilityofa site is disc$sed.

Chapt er9, T r a n s a c t i oPnr o c e s sinagn dEn te r p r ise

rc e P [ a n n i n S
Res ou g ystems
ri.r' naterial hasbeenaddedconcerningthe variouslawsto control the operationand use
: rhesesysrems,Sa$adesoxtey,Graham'LeachBlilcy, and rhe Health lnsurancelonabil-
:, andAccountabiliryAct. Curent cumples ofconpaniesbeingaffectedby rhcsercts have
.u added.Thc naterial o" businessresunption planninsdd disasterrecoveryhs been
-odified so that rhe definhion of liesc rcrns is @nsistenrwi$ cufedt indrstrv rhinkins
.'.rJio'frequencyidentifi@Iion(RFID) technoloerisnentioned asa ns technolos''tha! is
rolurionizing TPSS.The Listof vendon providing customer.eladonshipmanement
, ilM) rsiems hd beenupdated for currency.An intercsting oamplt ofthe difficulties GM
rd jmpLemnrins a CRM syeemin China is presenied. The list ofvendon providingERP
sysrems Thet n bricfdiscuss;on
h* beenupdaledto rcflecteccrt industrl acquisirions. ot
thc competition in the ERP arenabenveen Onde ad as
Peopiesoli, well as lreoPlesoltt
rcccnr acqunidon of JD Edw*ds. Ncw *ampl* of companiesrring ro deal with
internarionalsysiems areadded.The secriononERPhs becnnodified to focusonju!whr
is an ERI' and what busines p.o*ssesarc nrvolved affectcd.
'nd

r 0 ,In to r m a tio an n dDe cisio Su

C h a p te 1 n pportS ystems
Thc sccrionon inpua to a Fanagementinforn.rion sysem cnpbas;essupplychainman-
atenenr ro a g.atextentin $n new edition Data mining is includedio the sectionon
outputsofa nranagenentinformadonsvstem.The secthn on rhc usesand ndeg.menr of
funds discusssrenrn on invstnent (ROl) 'Ih hanufactrring MIs se.tio! inctudesa
discusionofsnaniabels.Dcsignand engineering aspecrs of the nanufaauringMlS discus
the involvcnent ofcusomer and also;ndude thc imponanceofschedulingsoftwareard
the notior of3D <,mputeraideddesisn(CAD) rools.In the sectiononqualityofand tcstilg
for rhe nrnufacturing MlS, we discussrotalquaLitynanagementad continuousinprovc-
nent. The marketingMIS sectiondescribesthe inpornnce of group salesbeetings and
containsincreasedcoverageard *amples of CRM soliwat and sl6rens.The sccdonon
promoion and advertising includcsar exampleofchoice Stream,\'hich send\Ptople.-mail
abou! enteriainneni choicesrccordingto their prcferencesThis scctionalso in.ludes a
dkcussionof richnessandreach,two imponant narkeringcon.ePrs.luchdedid adverrising
rdrcnrrngr' ,l ' oi o.l roer' ql e$ c. r ^n nor r phce'
"rd' nci r' r.r.i rgu.eofl l r' rner
mcnr hrs beenincludedin the nateri.l or ihe humanrcsourceMIS Thcre area numbc of
lew qahples on rhe useofa geogaphicinformarionsysten (GlS) lhe r.tion or srouP
supportsystehs(GSst aDdstouPwrchdbeen enhxnccdto includedreuscofnewer*ireless
sysrcns,includingBlackbenyand othcr mobileconnunicarionsdeviccsand srtens

C h a p t e r11 , S p e c ia t iz e dI n f o r m a t io nS y s t m s
The tidc ofthe chaptcrhasbeenchangedfrom 'speciJizedBusinesInforma rn Svsens'
to "spccializedInformation Systems"ro reflecttht rnique aPPli.atiorsin nonprofir and
nitirary oryanizetions.l-he chapterbcginsrvith a no erample of chessmaser Garry
Krspxrovconpedngagainstan anificialinrelligence (Al)softw{e prckge lhr runson a PC
catLcdDeeplunior. l'he sectionon roboticshasnaly nq exanpl.s' from NASA ro enter'
trinmcnt. The sectionon visionsvsrensalsohasnervcx.nfhs, includhg the useofvision
systensro inspectwine bonlesin Californiaand attachwindsoeenson.lagur s-Tvpe en.
The chapteLalso<liscuscs the useofnatural languageproccsingb1 a hardwue companvto
developa veb site thrt allowscustomer to flnd whrt rhey treed.The sectionon neural
networlshasexampleson imptoving notor coordinationnr robors'readingbar codes'and
on orherAI aPpli.aiions'
frevenrinsfrauddd rctrorisn.The.hapreraho hasa ncw section
;hich hishlishs the uscof senedcalgorirhmsan.l intelLigentagentsand providesnuncrous
omples ol rhesrepplicarions. There arc alsonmy ncw exanrPles of expn svstens.The
sectbnon \irrual .ealityhasbeenupdatedwirh n*v examples suchasthe foliowing:the use
of v;rul rerlity by an artonorive cohPdny ro help dtsign a$ and fdctories!the Ge ofa
vnrual rcaliqvinrerfacedeviceto help peopleplay chesswiih compurersjSimcitv' a virtual
rcaliq' gane; and a viroal reJiry \Veb sneby Disney-The lmt secdonon other speciatized
svste-i hrs bcenco-pLetelyrcvisedwith new samPles drar rangefron snall miaochips
plantedin thc braint the uscofga-. theoryandth..levelopmemof smll nemorkr. callcd
smar dusi, by rhe Unive6iry of California at BerkelevThere is also lew materi'] on
informatics.includingbn,informrria and nedical informtics.

r 2 ,Syste m sIn ve stig a tioann dAnatysi s

Ch a p te 1
s irl new exanplesand quotcs'
The materialon projectnoagemen r hasbeensrrensthened
The imponanccofgood projectleadaship hasbeenenphasized. Theeffectofthe Sarbanes
OxloActonqrtemsdevelopnent isalsobeencmphasizedwithswoal exanples.The sectior
on developinga competniverdvrntage alsohasnew exmplcs, induding the elTonsofFuji
 r Kodakro dclclop Web sir.sfor sroringandsharingphoros.l he imponanceofscalabiliry
\A beenemphasizcd in rhesecdonon pcrformarccobjccrives.ln rhe secrionon web-based
.r*ems derelopment,the discussion ofHTML, XML andotherWeb toolsis nry. We have
,nce*d the scopeof the forner "systens Derclopmcnt and E-Comncre" sectionro
SystemsDevelopnent,the Internei, Intranets,Exffancts,ud E-Conncrcc." New tools
:nrl cchnlqueshavebeenintrodrced,rnd thesecdonhr beenupdatedto reflectthe changes
:o Chapter7. The nareridlon prototypinghasalsobeenupdated.Rapid applicrtiondevel
rfment (RAD) dns brIBM andothen havebeenhighlighredin rhe sectiononRAD. The
:tcrion on ouaourcingho been*p,"d.d o in.L"d. on-denmd comprting, along with
rcx. materialandexamples. The secion on faaorsalTecting
s$tehs develophentsuc.eshd
rcx narerialandexamples. The mater;lon CASE toolshr beensremlinedand updated
:o include iew bols, such as\TRCASE.Ar reque$edby a reviewer,*e havedeletedthe
Itrcu$ion ofuppe. and lower CASE u,is. N* naterial on scalabiLity has &en addedto
:ic objecrivesofa sysremsd*elopmenr prejecr.

C hapt er'l3,S y s t e m sD e s i g nl,m ple m e n ta tio n ,

M aint enan caen, dR e v i e w
:n th. sccrionon softwaredcsign,we haveaddedinformat;onaboutsoGmredfleloped m
:omply with the SrbanesOrley Acr. h rh. s.crio! on penouel design,the use ofout-
rurcing jobs to Indla by r London, England,tnvcl agcncyis discussed.lhe elencns of
:ood interacrivcdirloguc arc now sumnarizedin a tableto strcmline rhe discu$ion.The
!.crion on d;aid pianning h* been updatedand inresnted inro a !.w sccriondrlcd
Disoter Plmning and Recovery."There is a new tableon systcmscontrolsthar highlights
rput, procesing.outprt, drtabxe. tcLcconnunications, and penonnelonrrols.'Ihere is
Jro no marerhlon nn'demand" or"utility" computing,with severalnocnmples. How
rdniduak and orgaoiatboscd disposeofoldersysiensn alsodiscused.Rcusable softwrre
, rlo enphasized,with new *mples. The sectioror cros-platformdeveLopnent includes
r.r tools,includingV/eb senies and .NET by Micosoft@. The materirl on integnted
:evcloprncntenvironnena (lDFls)hasbeenenhancedu in.lude newt. progrmning tools
:rd approaches, includingMicrosoftsVisualStudio.NET. The softwareacquisitionsection
or cmphasizes that softwareis increasinglybeing viod as a utiky or a sewi.e, not a
:roduct to be purch*ed. A nn seclionon systehsopcation hasbeenaddedthat includes
rformation about suppon.taining, dnd help desks.The secrionon s)srensmainrenance
:cLudesnqinfbrmation on legaryqstems.

chapt er14 ,S e c u r i t yP, r i v a c ya, ndEth icalssu

t e sin
l nf or mat ioS
n y s t e m sa n dt h e I n te r n e t
I \hny new topicshavcb..! addcdincludingrhefollowing:the ComputerArsisred Passenger
.\es.recningSysremfor airLinesafeq,rhe Controllingthe AssaultofNon-SoficnedPornc
:aphr and Markctug ({-AN-SPAM) Act, rhe Sarbanes-Oxley Acr, the Health Insunnce
r'.rtabiliryand Ac.ounrabiliryAct, $e 2003 Conputer Crine and SecutitySuney. cyb+
:.rornh, idenity theft. virusvrianis, biomerrics,rhe Childrens InternerProtectionAct,
rhc Child Onl;ne Ptuection Act. the Gra]]n Leach-BlileyAct, sofivare mlnerabilities,
J
,oisgre. and oberblkine.

FRO MTHESI XTHEDI TI O N

WH A TW EHAVERETAINED
lhe seventhedirion builds or rhc strengthsofput editions;it rebids the IS
.'inciples and sdles to be ihe mosrcutrent rdr on the narket.
 en"r p- 'ing
Ore,ar,hnpf,i n' i pl c thr bool ,onri nuc' ro ' rre* a 'ingle- Jl
rnrorm.ri oni i i r F dcl i \eredr" rhe r' 5 hr p*'on n- r he igh
rheme,rhi
' :ghr improve and ensutcorganizationol effecriveness
*ii.". ,"a * ,r'. ,igrrt.i-e, car

summrize kev on-

Irfoffintioh q'tunt Pnn.ipler Infornadon slsren Principles
."1'" *""t ,t"a.n, .l'oUa Uo* lhis imPorrarr fcature is a colvenient
'l* of key ides preenredat rhe siaft ofeach chapter'
smnary
("rnifg obiertr$ re
teanrt obie,nrts Luhd b t'na"Ph' caretullv'r:ied
ere' y .h' pter. l he l eani ng obi e' ' r'e' r r e lr r ked 'o r he
i ncl ude;
" ,,h cfict what be abLeto accon-
Infomadon SlsrensPrinciplesand " 'tudentshould
plish aft.r comPledng a chaPg
Each chaPterincldes a dcrdLedsudnarl' and eech
' Stnnaty Li*ed to Pit i/tt
*ai.".ftl" *--.'y i' ,ied ro m lnformaion SvsremPtirciple'
"Ethical
, Ethndl aed Soc;ernt I!''s S?ecidlInterclt Box6 Erdl chaptet induds an
look at the erhical challenges ard the
md Societallssues"box that p.esenr a tinelv
srstems.Ethics remains a ornpelling hsue fo todavt
Ar"r..-"ion
-.rJi-f*. and iS stu,lena, and thev gain exposure to ethical and societal nsues bv
busines
g.;fiig ";+ qu*to.' rcl",.Jro'l'eo-o'n" 'er''io' cilbo'*
'*;".+p*
rcl:re to rhe issue.Jiscurd in the chiptcr'
t'*'hivc id eachedirion'we Dke
. Crn,tEdn?let, Boxe',Casa,a Refetences
eumpl * borc n+ si Ff er cN$
erearpri dei n pre' enri nsthe moq re' cnr
i l ' -,nr' -, * .,* ' rome of rhc' e* ere de' cl opedat rhc ^t Po*iblem om enr
on ns htudware
literaliv weeksbefore the book wenr idto pubiiaftrn lnformadon
r".".n"-ringqctem, aPPlica&rnsericc providen'theIntenet'
'r'.
""i -li*-, c"mme.ce, er-hicala;d societ'l issues,and manv othd currenr ddcloP
elect,onic
nena cm be found thrcughout the tat Our adoptersh
and noa recent marerial. We have done *ervthing we ca

revifl and tesr thetr

. Sclf-A:sesnent lerri This popular feature helps srudena
undertading of key chapteroncepts'

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foundon rhi ' W eb (i re Qu\i on' ' orre' P ondi ng ro th e r elPr c'^e\ 'deoclpr ar
 featurcdat theendofeachchapkr;n $e book.Thesexercises reirfor.e theconcepls
raushi and providethe studentswhh more.rir;cal rhinkins opportrnities.
right
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RalphSrans'ould like ro thrnl the Drpanment ofManagemenrlnfirmation Srstens,
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:,ring h;n to join the wridng teambackin 1997.

: . R P RE V IOUS
ADOPTERS
ANDPO TENTI AL
NEWU5ER5
v
. sirccrclvapprcciateoft lovalrdopftn ofthe pobus editionsand Nrlcomc rcw usc6
!'dph! af LfofrM';oh Stst"n!: A Mrndsoirl Atunnch, SeuenthEdition. ,\s n c pas
- ollvvahE,vour leedsand fccdback.\(. can onlvhope ihe sevenrheditionconrinuesto
::-rr rour high expectations.
\\'e rvouldespeciallylike
to rhankrcvicwcnofdc s.vcnlhedition.fom gn,up mnbds,
.l ,evi$eN ofpreviousedirioDs
ln a&ltion, RalphSrairwouldlike rc rhanl<Nlikelordan, ScniorLcdurei, Divis nof
: r nessInformation ManagementClasgowCaledoniaUniversiff 6r his hospitalitl and
-9 at the UKAJSconference.

Re vie we r sfor the S ev enthE di tio n

' : r r eindebr edio d re fo l l o N i n g i n d i v i d u rl s fo rr l cnpcr.cpri vcfc.dbr.konrl vdE ri sof

iihang L. Koh, Usi,ttiry oJNoth ttrdt

HosrLd Sundsdl, V.r Cltatet U,iu^1tl

Re vie we r stor the Fi rs t, S ec ond T

, h ir d , F o u r t h ,F if t h ,a n d
Si xthEditions
,. iollo\{ing peopleshapedthe book 1ou hold nr lour hards bv corribuLnrg to previous

lill Adrns, Nautro Oolhgc Cnrlid C. Brncs. Zr,r/r al,r,. ;t}

Rolctr Ada, Middb T*ntese. St e U"it$itr C.l\iles B;ll,ftr. lrtu' Mtultoa U"irc6i.'
1. K. A&qdhJ, thittir! oJBdhi"Mt ThomasBlasl<ovics, W6t Vitgi"it Li,irt!111
,rurh Alcxardcr, Weno, Ililjah UM)$;ry lnhn Bloon! tLdni ttniLEsiry 4 ohio
Beletly !\m{, Un;,I';ry 0fFl,tinn wanenBoe, u,ircti\ oJtotua
\oushin Asharll,tlni!.Riry oJMn$nchtuytt' Clen t\o*t, IJighan Ya,,! Lhtu.ti4
\tit l\rbll, U,i".^itr oJI i"a^ a:hi.ngo Nrnr Br^bs.n, U";rc^iry 4 T?nn6et
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Thomlt A. Brcwdy, Wtuhiagtafl U,i,edt Herhettl,!dwig, No,rh Dakota Stdte Uai,esiry
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David Cheslow, Unit.dry of Mnhigd"-F/int lahes R. Masden, U,iue5iry ofcannectitut
\obett Chi Cd@t"ia Stat'z Un;!a'i0-Lo,g Roger \y. McHaney, iia,Jzr Stdt Llni,%itr
Lr\n I . M.Kell, Bishdtu ya"ns Uni"e/!i'r
Ctol Chtlsn^n, Ilituah Stdte Uniued\ T,hn Melro,e. t nt"..rry of\tfton. n-t au k',.
'
Mio Cost^, Cdwtnin Std,. Uxirosir-Chi.o Michaet M|haelson, pLlntur catbse
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P.oyD4o;e, USweb Ca'?udtian BatlD
s{!Deue!^, DePdal U";' iry Bijayandda Naik, U,rrrJrl, of SouthDahota
Pi-Sheng Deng, Ctl'fomk Stdk Uxi'et;tr- PamelaNeely, Mai* Collzge
lf,ah R. Pieron, U,;,.rtal afNebrtta onzhd
Roger Deveau, Uh;ro'iA af Md$achuct+ John Pow.ll, UxiredtJ ofsoqth Ddhatd
Matsam P:;ngle, Unireti1t of Houto"
lohnEal5an, Unir.nitr af Not'h Calolid John Q!\gley, L.a$ Teh*see Stak Uniteti1'
Ju n Es.ala, Ednem Mirhigd, U"irotit, Mafesh S. Raisinghani, Uniunitl ofDzt)as
Gordon Eveiesr, U"i,a'i, af Mi,neso'd Mtry Rasley,Lekgh-Catboh Cotunuai4t Calkge
Badie leh, Ea'tem Mihigdn Uni"eti\l Eatl kohtnsoo, St.JolEhi Uni,-'ir,
K^en Forcht,ldns Mddhot U"i"./ri, S.on P.tpple, Mzlq'ettt Uniuetitr
Caroll Frenzel, U"ilnriry of CololadFBouAd D^e \.,r1,n. Caltkqia sMn UahpaD,
John cesstod, Ca|fohia Statc U"ire/ri4-Lons
vener Sche*, Uni"oitr afRochc'tel
Tery Berll Gordon, U,ite$iry ofTolzdo Trr) S Lheuemrnn Ua . sil aJ r au, h, er
K*in Gormd, Uti,-sitr of Nofth Catuli"a
)^nes s.ott, Ceiinl Mbhigah Uni,esitt
CostanzaHagmann, ,(zruar Stak Uni".r\ir' lr'ktn Serii, Sauthtuat Mh'owi Statz U";ue6irl
Bill C. Hardgrave, U,rrclriry ofA*antdi Lurctre Simmons, Laroln Colhge
NHt(is, Appak.hian State U"ir.sit! janice sipior, wthnotu uni,e$itr
\riliam L. Hadson, O/,g, k StateUni,esitr Atne Marie Smirh, LaSalb Unirenirl
Dwisht Hawofth, U,i"etiry af NebAka Htrold Snitl\, Bighdn YoungU,i"es;t,
Peticie A. Sn;rh, Tenph Colbse
JelT Hedrinsron, U"ir$iry af Vh'co%i" Eda Hetb Snydet, fbft Ltu;t Colbge
jJan Spn^, U,i,et;ry ofAitu"d
Donna Hilgenbrink, ///t ,n Uh;r,'iry Tony stytiano!, Uni,edry of Nnth Coolina
ltkHogne, Uniuesitr 'tutu
ofNafth CanliM Btvestn, Cakfolh;a StateUni,e$ir LonsBcach
lo Hoopes, Mzitt Cakse H!\g'Lis'f en1, Botuli"g Gred Stdk Unirctlitr
Donald Hlltrnm, Lani" A,kry Conn""ir, WllIiM'f Lha.d Cblbge
Colbge ^stle,
Getald T il\nar, Appdlachia, Stuu?Uhitt! ;r,
P^ftick J^ske, UniuesirJ ofTaa atA ingnn DvneT d, GeoryiaState Utuireriry
G. Vaushn Johson, Uni,e\iry of Nebta'ka- Jenupson, Lorai" Carkry Connuxitl A ege
Mistyvenar. Pu te U,i,ctit! Cdl,net
Grover S. Keans, Moreheadstatz Uni,eni'r D^!id1Jldl^.e, IUinair Stdte U";ue$ir.
Robett Keim, Aizoka S'ztr U r-si, V i ,l -rl L \f i rmar U %it of
Katen Keie\ Ea'tem lliflois Uni"e^iry Uega' ^. 'ada- la.
Mo K\en, Califom;a Stdte Uniue$iry Lohg David C. \ hitne)-, S,, F/a"cisto Stdt" Unird'irl
Goodwin \rons, U,tdr4l af Calili n i a- Bd h. lry
M],heel lal\ey, Kent Stzte Unid'itr Any Woszczynski,-(azerau Stdt? Uhitnlry
lan de IAR[, Bishan Youkg Uh;rn'i4, ltdy wynekoop, Fbridl Grlf Ca^t U,itt'itl
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F oc usG rou pC o n t r i b u t o rfso r t h e T h ir dEd itio n
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Rtssell Ching, Cdkfomk Stdte U tut'itJ-Sdcrandta
vnslnta Gttisnn, Uni,t'iry aJMd;ne
Bnt C. H{ds,a\e, Uni'nsitr oJAthtN^
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\\.ne Manin, Abfomid Stzte U/li"dtir-Sdoztu nto
\tark Sent, Ballor Uniuosiy
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O URCO M M I TM ENT
;.: ar. conmirred io listeningro our adopteB dd readds dd ro dnelopins cre.rivc
ilutions ro meerrhcirneeds.ThefieldofIS continually$olves, dd we suonslyen@urase
ru panicipadonin helpingus providethe freshest,nosftelevant informationpossible.
Vc welcone your inpur dd feedback.Ifyou haveany questionsor comments regarding
..a,.iph! of l"fowdno" Sr!'mt: A Mdtugeidl Aptotuh, Se"ea'hEditi.n, plase.onacr 6
::rough Thomsoo Course Technolog. or you lool representarive,via e-hiil ar
:.nis@thomson.con, via rhe lnrerner or addres your cohnenls,
:.t;cisns, suggesdons,dd ided io:

RalphSrair

Thonson Come Technology

l5 Thomson Ptae
Bosrcn,MA 02210
 An Overview

'rr1er1 Air lrrlrcal!raiiNr

lir rfafraal an Srsf?n:
: :.e! 2 inf.lrfir;far Sysler|s r 0iE:ir r:li ot:
 An Introduction to
Information SYstems
I

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 m,,i s,+ " m, I chaerorI

INFORMATION SYSTEMS IN THE GLOBAL ECONOMY

BOEHRINGER INGELHEIM, GMBH, GERMANY
-:3n nnd Meanwith InformalionSystem5

I a business ovner could forese the tuture, dcisioc would be easy to make
involve litile riek. Unfotunately, crl.star ba.Is, ta/ot cards, a.nd tea reave
-d
::re prcven u8elees to bNiness decision makers. Since thy can't see into the
:irure, theb eoa,l is to trnd out what is cunently happening in thei business.
arr a slnall'buaines3 owner, one who is involved in every tlansaction. staiving
4rast of the state of the bNiness is farrly stra.ightforwaxd. But as buainesse
a:!w and diveEify, it becom$ increa8ingly difidlt to access curent infoma-
: tr:1on which to bale decbions. Informaiion s)..stelrl pmvide a solution {pen-
:s ljns of communication between a.U business uits md ploviding a
:.trtinuoua stram of up-tcthe-second information to suppoft fast strEtegic

Boebdnger Ingelheim is anong the world's ?O larget phaxrnaceutical

:Jrrparrie6. A giad compary with $?.6 bilion in rvenu ard 3?,OOOemployeee
: 60 nations, Boehringer has diversilied into segmeDts tbat include manufac-
::ring ard ma.rketing pbarmaceuiical,s (such aa prescription medicinee ard
:.:sumer healthcaxe produch), product8 for industda.l customerc (such as
r ::emicals a-adbiopha.rrnaceutica.h), and admal hea.lth products.
i The sheer srze of the company w?s slowing the flow of inJomation to deshion
in the organization. "I want to b told wher I stard a.nd whele we ar
F
t
-alers
:sding," say8 Holger Huela, chief frnancial oftrcer, "I like io lbe able tol see
r:gaiive tlenilE ard comter thm aa fast E possible." With dch of the
! seaments usina diver* information system, ii took 3. Bialiflcmt
i'. -:npanys of time to collect ard combine aU of the financia.l records. Each month
F -ountaccounting depaxtment would spend ihree days coUecting ard analyzing
:::
I : :ited rcporis to $eaie the companle monthly rcport-
F
a
lop lngllagerc decided to totally rvanp the compan/s sysiems with etate-
:i rhe.axt inlomation systens from SAP, the world's laigest enteryrhe soltwaE
:r5pany. It took 14 monthe to rcU out the new sysim, aIId many employees
:.ded intensive training. In the end, the results werc weU worth the investment
: :ime ar1d money. The software provided a standard system used across 3ll of
:,rehringer's business segrents and ofrerd convenient Web access to currcnt
:i'ormation. Boehringer is now able to complete monihly rpofis jusi two hous
r:er the close of business at the end of each month. The new eltem ha.s made
::: accouniing department much mor prcduciive, allowing sta.tr to run up to
repo4s whenevr needed.
-re Boehdnger is ommitted to providing employees at aI levels of the compary
acces8 to the applicaiions and inforanation they need to n1et thei. objec-
-!h About one third of Boebdngr's employes do their work outside the office.
:;es.
:r provide its mobile workforce with up'to ihe'minute atata, the compmy de-
.:.yed soltwarc ftom Ba,ckweb lechnologis, which a]lows atcess to currnt
.tes infomation through a Web poltd and a custom Web interfsce, whercver
::ployees travet. With the new system, Boehlinger's employees can a!ess and
range infor@tion prsented in the porial when they ar ofline, with updates
j:er when they 1og on.
 Pd|1 | Anor er er

By the time Boehringer wa,s flniehed with its technology ma,Leover, the com_
pany ha.d implmnted ovel seven new internonnected infonnation sJstems and
invosted miuions in ha,!dv/ar. softwrre, databasee, telecommunications, aDd
training. Bui the investmeBt haa paid off. Employees can row access up-tedate
organiza.tion-wide information, wherever they may be, with ibe click of a mouse
And decision makE can rcact as nimbly alld qurckly to changs as marv ol
Bohlingr's sma]ler competitors.
Asyouroadthis chapter,considerthe fottowing:
. In designing ia new informarion sysros, whar do yotr rhinl were Boehringels most
cririel goalsad coroiderations?
. How &e hardwee, softwm, databmes,teleconnunicatioN, p@Ple, and procedure
used in Boehrinss's information systen to provide valuable &ra?

informationsFlem fisl An infornation sFtlm (lS) is a setofinterelared componenis rhat collec! nuniPdare' sror,
A sel of Interetated comPonents md disseninate data and hformadon and provide a feedbacl mechanisn to net an
that coltect,manipulate,slore, and objective.The feedbackmechmism helpsorgmizations achi*e their goals,suchasincreasing
dissemnate data and nfofmetion
profitsor improvingcustonersenice.
aid pro v ida t eedbac k hec han
sm
\{te all intenct daily wirh infomation sysrems,both peromlly ad proftsionally. Ve
use autonaiic reller nrchines at bail6, chckout cleric scanour purcha;es uing bu codes
and s3nne6, we a@e$ information orer the Intelnet, and we get infornation frcn kiocks
with touchsceero. Major Fazzr tOo comPaniesare spending in *cess of $ I billion per
year on infornation rechnology. In tie future, we will depend on hfomadon systens even
more. Knowing the potential of infomation sysems and having the abiliry to put this
loodedge to work cu result io a succesful penonal career,osanizatjons that reach rheir
goals,and a ociery with a higha qualiiyoflife.
Conpuen md infomat;on system ae onsrandy chmgins rheway orgd;arioN @nduct
buines. They ue heoming linly inregnred ino our li'o. busines, and sdiety. They d helP
orsmizations eJry on daily operatiom (openrional system). for *nple' \{raMan uses
opentional qstem to pull suppliesfrom distriburion coten and ultimately supplien' stock
she}res,and push our prcducc and *Nic6 lkoush cutoma purchoes Compurd and
inforuriod s)'sEm alsoet u onnand od conml qnems iha! monjror Ftroass and help
supwisors controi drn. For eunpie, an tn6c contrcl cotes ur compuros md informrion
srstemsa comad and conrrcl center ro monitor and diNr pldes in rheir air space
 Ar rrr.dldorto.fo.rr."sr5c.. I chlptei I

nrormaron sysremsare
everyvvhef e A customefat the 9as
p u m pw a v e sa k e y c h a l n ta 9 a ta
r a d . t h ast n d st h e in i o r m a to nto
a n e t w o r kt o v e r l y t h e cu sto m e r s
p r o ft e a n dc r e dI i n i or m a to n Th e
trm nat processesthe transacton
p . i n t sa r e c e i p ta, n dt h e cu sto m e r s
c r e dt / c h e c kc a r d s a !to m a l i ca l l y

L5o!rce:Courtesyot Texas
I n s t r u m e n t sn, c .A t t R q h ts

I odaywe livc in aDinfolmalion econony.Informrion itrlf ho value,and onnoce

:.r involvesthe cxchangeof informatn,o,nther thrn tangiblegoods.Sysremsbaredon
:rureru are inceasir$y being ued to cre*e, rore. and transferintbrmation.Investors
r: ijnrs infornation sysremsto makemuhimillbn-dollar decisions,financialnrrirutions
the uodd elcctrcnicalll and man'
-.: rnploying then ro trmsfo billionsofdollar around
:-mrers ate using them to onler suppliesand distributegoodsfasterrhan *er before.
:r:puren and infornation systems willcontinue to changcour sociery,our buineses, and
: lins. In rhis ctraprer,we presenta fnnework for underermdiogcohPuters dd
i:'mation sysrcmsand discusswhy n is inponant to studr infbrnratioosystems.This
::rrrandingwiil help1ou unlock the potentialofproperh appliedIS concepts.

INFO RM ATI OCO

N NCEPTS

: mtior is a cenrralconceptthroughoutthis bmk. The tern is usedin rhe titlc of the

r .:;. in rhissection,and;i almosteverychapto. 'Io be an effccivemanagerin any areaof
-,,ress.vou needto urdersundthat infomarionis oneofm ofgah;zationino$ valuable
r : import$tdources. '1hisrerm,however,is ofrencortusedwith the tern htd.

D at aV ers u sI n f o r m a t i o n
l:ta consissofrarv facc, suchas an enployees nane md number ofhoun worked in a data
.:.1. nNentorypait numben, or salesonien. Ar shownin Table 1.1, s{eBl rypesof dah R a w f a c r ss u c ha s a n e m p l o ye es
n a m ea n d n ! m b e r o f h o u r sw o r ke d
bc usedro iepr6ent rhesefacts.\(hen thesefactsareorsanizcdor armnsedin a nean'
-: i n a w e e k n v e n t o r ypa r tn u m b e r s,
-::rl manrer, rheybecone information.hfornation is a collecrionof facrsooired in
-:. l 1'ar thar lhey haveadditionalvrlue beyoodthe valueof the faca thenselvesFor
, :rple, a particularmmger nighr find the knowledgeoftotal monrhly salesto be more
::d ro hisor hupurpose (i.e.,nore valuble)than the nrmber ofsalesfor indMdulsals A coLtectonol facts organizd n
on alo help companiesinctease s u c ha w a yt h : t t h e yh a va d d i to n a t
:.1renrarirs. Providing i.formation
valuebeyondth vatueoI the facts
 Psil I a " o * to .w

E
Typesof Data

GGphlcrmages8ndpklures

Data represenrsaal-wodd things. As we have srated,data+imply raw fads hd litde

value beyond irs oistence. For mple, comider d*a o Picesof nilroad $ack in a nodel
raiLroad kir. In this state, each piee ofuack has linle !lue beyond its inherent !"lue d .
sinsle object. Hormer, if sone reladomhip is defined mong the piees of the tncl' they
will gain valG. By eFnging the pieces of track in a cenain way, a milroad layout begins to
nerse Gee Iigure 1.1a). Infornation is much the same.Rulesand relatiomhipscm be set
up ro organjze data into useful, valuable infornation.

@
Definingandorganizing l.l
shipsAmongDat.
Relation
Cre.teslnformalion

tbl

The rype of infornarion created dependson rhe reladonships defined anong *isting
data. For example,the piee ofrnckcoutd be rearanged ro fom ditrerent layou$ GeeFigure
l.1b). Addins nNo! differentdatamems relationships o be redefinedmd nq inbrma-
iior can be creared.For instarce. adding nw piecesro the rrack cm gready inoase the
valurln this case,vaietr dd fun ofthe final product \ve can nN crealea nore elaborate
!.ilmad layout GeeFigure 1.lc). Liksise, ou manaser could add specificproductdatato
his salesdaia to cleate nonthly salesinfotnation brckm down by product line This infor
mation codd be u*d by dre nmager to deretnine which Product lines & the most popul

Tuning darainro informationis a proes, or a setof logicallyrelatedt*ks perforned

relatedtasks
A set of toglcalLy to achiqe a detued outco-e. The prcces of defining !latioohiPs among data to ceare
p erfo mdioac hiev ea def ned usetul i.formation requne knowledge Knowledge is an awroes md undeotoding of a
rt of infomation and rhe wa)6 rhar infornation cm be madeusefulto suppon a spccilic
 An ntfodu.l onro nrormatoi syskm5 | chaetar 1

:k or reach a decision. Pan of the knowledge neded for building a railrcad layour, fot knowted9e
:ence, is undentandinghow lrge an areais auilable for the lalout, how manyrrainswill An aMreness and underslandingof
a sel ol informationandwayslhal
rr on dr tracb and how fasttheywiLlra'el.Theact ofseiectingorrejetiog Ecrsarcoiding
i n l o m a t i o nc a n b e m a d eu s l u tto
:r rheirrelevancyto particularroks is alsobasedon a qpe ofknowledseued;n the proce$ s u p p o da s p e cf i c l a s k o r r e a cha
:i conveningdarainto information.Therdore, infornarion en be considereddatanade
:ore u*ful rhrcugh rhe appli@donofknowledge.ln one c*s, datais organiredot pro-
:sd nentally u nuually. In orhercases, acomputeris used.In the ead;er*nple, tne
:uager could have nmually calculated the sum of the salesof each reptesentarive,or a
rmpurer coutdcalcularethis um. Vhat is inportant is not o much wherethe datacomes
rm or how it is procesedbur whetherrhe resoltsareueful and raluable.This tnmtor
Drocesis shownin Fieure1.2.
-rrion

w
ffi[;l TheProcessof Transforning
Dataintolnformation

T heChar a c t e r i s t i co sf V a l u a b l eIn fo r m a tio n

- o bevaluableto magen ud decision mahen, inbrmtion should havethe charrcterisrics
;cnbed in Table 1.2.Thse chmcterisricsako nake the informtion morevaluableto an
noiation. Manyorgmizatiom and shippingconparia. for exmple, are able to dear-
:rne rheqact locationof inventoryirens and paclogesin their qttems. Recorly, the U.S.
:.mv Mareriel Connand tagged all ia caryo and food shipments with radio-frequency
ienrificarion chips for shipmeff ro rhe Middle Fa$. Beouse ofthe ety electronic reaieval
: i infornation frcn the tags, the tine neded to take inventory of the elgo when n arrived
rcduad fron the usual2 to 3 daysto jur 22 ninuts.' In addition,ifan organiationt
-:
:irmarion is not accuateor conplere,peopleen nake poor decisions, cosiingorganiza-
: r r ud indi; dualsthousmds,or evennillions, of dollaa. Mmy believe,for *nple, rhat
'-:e colLapseof energr'trading firn Enron in rhe early 2000s wd a result of inaccunre ac-
:rrnting and reportinginformtion, which led invesronard enployees ike to misjudge
re acrualsrateofthe conpmls fimnes md utrer huge posonal loses. Sone believethat
::roni inaccuate accounting was intentional and designed to deeive enployee and in-
and not a simpleaccountingniseke. As anothereumple, ifm inaccunteforeot
-ron dermd indicatesthar oies will be nry high when rheoppositeis rrue,u organi-
:irurule
::don can invest nillions of dollar in a new plant that is not needed.Funhemore, if
-i6rmario! is not peftinent ro the siruation,not delivtd ro decisionmkers in a timely
-;hion, o! too cohplex to mdentand, itmaybe oflnde valueto the orguization.
Urful infornarion on nry widely in the value of eachof these quality anributes For
.uple, with narkerinrelligence dara, some inaccuraoymd inonple tenessis aaeprable,
:ut rinelinessisesential.Market intelligencenay alen usthat ou conpedror areaboutto
1ke a najor pri.e cui. The eucr derailsand rining of thepricecut nay not bec inponanr
r beins warned far enough h advane rc plan how ro react. On the other hmd, accuncy,
. entiabiliry,md onpletene$ arecriricalfor dalausedin acomring for rhe ue of conpany
!*$ such d csh, inventory. and equipment.

Th eVa l u eoI Informati on

- le value of infornarion is direcdy linled to how n helps decision mkers achiwe their
r3miatior's goLs.Fot *nplo the valueof informationnight be me*ured in rhe time
::q&edto makeadecisionorin increred profitsto rhecompany.Consideramdetforecmt
::rr predicts a high denand for s ns prodrcr. If narket forccor infornatlon is used ro
:. elopthe ns productand lhe conpany is ableto makean additionalproffr of$10,000,
:e valueofrhis informationto the conpdy is $10,000minu the costof the informtion.
, ilmble informatioo can also help mages decide wherher o invest in additional infor-
r*ion systms and technologr.A nw onputerized orderingsystemmay cosi $30,000,
 Pdi 1 | Ai.r M r

inventoryis on handfor a parilculErpart can be usedbyasatesrepresentauve li closinga sale,

byE productionmaiaqerto determlnewhether mo.einventoryis neded,and bya financat
erecutivelo deierminlhe totalvaLue ihe comparryhas invesledrn inventory

maynot be retevantio a computerchipmanufacturen

Tlmelyinformation whenit ls needed.Xnowingtaslweek'sweathercondtionswilt not

is detrvered
hetpwhentry fq to decidewhatcoatio weartoday.

but it mry gcneratean addidonal$50.000in salcs.lhe nlse aAkd by the new systenis
@ rhe additioml serue from lhe ibcreded salesof $20,000.Most corporadotuhrve cosr
of Vatuabte
Chararteristics reductnrns i primary goal. Using infomadon systens,somemanufacturingonpanies
Batr havebeenableto slashinventorycoss by milliors ofdollan.

ANDM O DELI NG
SYSTEM CO NCEPTS
v
Likc infornat;o., odther.otrJ conceprofrhis book is that ofa sysrcn A systemis a rt
A setof e lem ent sof c om ponenls ofclenenrs or componensthrt inrcracrro accomplishgoals.The elencntsthemselves and
tha t nte fac tt o ac c ohpt is hqoals rhe relationshipsrnong drcn determinehow the sy*em works System hare inpu*, pro
cesing nechanisms,ourpurs,and feedback(ke Fisurc I3). For *amPle, consideran
auromariccarwash.Obviously,rangibiet 1,tJ for the prccss arei dirffqr, water.and thc
variouscleaningingredierrsuscd. fime, endgy, skill. ard knowledgeare al$ neededrs
inpua to the systen.Time and encrgyare b operaterhe system.Skill is rhe ab;lity
"eed.d
to succesfullyop.-tr the liquid sprayer,foaming brosh,and air drycr devies Knowledge
is usedro deffne the aepsin the cars'ashopention and dre orderin which thosesteps*e
 rn ntodud.nr. nlom.toi 5y.rem5 | chaltr 1

i_..__.._.....,, ,,,...-.--..,'l'
1.","..,..-..,...,..,

'the
?to..$ing mechdnntu.onsisroffirst selectingwhich of the cleaningoptiotr you @
.r.r (hsh o.]y, washwith wd, washvith wax dd hand dry, erc) dd comnuni@tins
.Lrr to the opentor ofthe carw*h. Note tharrhereis afedlek nuhan*n lpot xsesrent Componentsof a System
ahow cleanthe car is).Liquid spnyereshoorclearwater,liquid soap,ororwd dePendins Asystem st
sfourcomponentscons
.n *here yorr ct is in rhe proces md which optionsyor selctcd.The azpzris a donmr' o f n p ! t , p r o c e s s l n 9,
o u tp u l ,a n d
:: is importdt to nore rhat;ndependentelemenaor conponens ofa systen (the liquid
::nyer, fomingbrush, and air daer) inreractto cete a clcanor.

andConcePts
systemComponents
:Lgure1.3sh@s a t?ic.l systemdiagem-asimple automariccarwash.The primty pur-
:ose of the car wash is to clean you! auromobile. The slBten boundary defines the tsten
.,d di$inguishes i! frcm serrhlns else(!he envnonment) T h el l m i t s o f l h e s y s te m ;I d sti n
g u i s h e st l r o m e v e r yl h i n eg tsel l h e
The way systemelementsue orsanized or arrdsed is crlled.tie toafgutat;on. Mtcn]nke
::a, thc relarioruhipsmong elemenain a systemaredelinedthroughknowledge.In ncr
::sa. hrowing the purposeor daired outcone ofa sysen is the fict stepin denningthe
.,"' sysremelenos are conigured.For eranple, the desiredourcomeof our systemis a
:ieancar. B*d on pct experiene,*e know thar n would be illogicalro hare the liquid
,rnverelenent precedethe foamingbrushelement.The et *ould be rinsedud thensoap
.,ould be applied,leavingyour car a me$. As you can s fion rhis exanple,knowledgeis
r.rdol both ro definerelationships amons the inputs to a q,sten (your diny car and in-
,:ru*ions to rhe operator)and to oqanize the systenele-ens usedto proces tne inputs
:he foaning brsh must precederhe liqlid sprayer).ligure l 4 showsa 6w s)-semswirh
:reir elcmenlsand goals.
SystemTypes
:rstens cm be clasifiedalongnmerous dirnensionsTheycan be sinple or compla' open
:r closed,snble or dynanic, adaptiveor nonedaptive,md Pemdent or temPorary'
:able 1.3 definesrhesechara.teristics
by SystemType
0rganizations
Ctassilying
\Iosr conpdiescan be des.ribedusingthe classiffcation schemein Table 1 3.Iorexanple'
: j.niroial.onpuy that cloro ofncesafterbusineshoursno* likely reprerents a sinple,
,:eble systembecausethere is a consrant and fiirly steadyneed for its *nices A successful
:omputer mnufacturing cohPany,howser, is tyPially compl* and dlnanic beeuseit
in a chmging environhent. If a companyis nonadaptive,n nay not surive veD-
'oenres
:ng. Many of the culy cooputer conpanies,includingOsborneComputer,which nanu-
:.ftued .ne of rhe fint porable conputere,dd VisicorP, whi.h developedtbe fint
.: readsheetp rcgran, did not changerapidly enoughwirh the changingnarket for conp urere
:,d v,ftwue. As a result,theccornpanie did not survive On the othchand,IBMwas able
 rc nlrrt trrli tion i anuhcr!r( ol i:,e.. !i.i;,l;.nne.omp,r{r ro.r !i&uh.rLurr ol
clr$.s ol .on,tur.$ rnd a \ofi$xrc rnd \cri..s tro\ iier.

llry
Examp t esof s y s t er n. and Their
Goa ls a nd Elem ent s
L5 ou rc car 5r ev eSm r t h/ G eily
niqe!; !:) 5tanteyRovr'n / n.ler
5ro .I T. qer y O PholoDr . . / 6elly

EW
5ysteins Clas5ifical,onsand
t heir P rl m a ryC h a ra c t ri s ti c 5

SimplP arae"&@Mw-%r"ffir,

f3s rewcomponeit3 and the relauonshp or rlem.tion HasF3nyelemenlr lhar 3re h ght reLar.dand
b a twe e ie le m e nG5uncompLcatedand5trai ghrtoma'd

Nas no interadon wrh ihe envirunm.trt

Undergoeslery tittle changeover the unde19D es

raprdandcoi stani .hangeov err me

Adaptive Nonad.ptive
s abt et 0.--tt
t unqien r e s p c n s o t o . r r a n gnet h5. h not3bl etochargei n respoi 5el o .hanqesi o rhe

P.rmznenr .irr,rlt.rr*.t-.e.r./.?..n1..4,/A.
Exklslcf a retatveLy
loig perodof iime Ersts fof otrty3 retat vety5hon perdd of iime

!
 Ai irrodldonro ntormrtrsygrms I chsptr 1

Syste mPerformanc eand S tand a r d s

lrsrem performancecan be measuredin variouswa)6.Efrciency is a meuure ofwhat is elficiency
:roduceddividedby what is consumed.ft car rmge fron 0 ro 100 perceni.Iror qahPle, A measure ofw hati s pr oduced
d vi dedbyw hals co nsum d
:re cflicieocyofanoror isthe energrproduced(in termsofwork done)dividedby theenetgy
-!nsumed (in rermsofelectriciryor tuel).Sone notors havem efficiencyof 50 petcentor
' . bec au. eolt h e e .e ' g .l o .r ro tri ri o n a n dh e a tg erer" ti or.
EffLciencyis a relativetem usedto compue qttems. Fo. *mPle, a gasolineengineis
efficientrha" a stem enginebecause, for the equivalentanount of energJi input (sd
-ore
r coal),rhe guoline engineproducesnore energyourput.
Effectivenessis a nea.sureofthe *renr ro which a qnten achievesits goals. lt can be
upuredbydividing thegoalsactuallyachioedby the toralofthe sratedgoals.For *ample, A m e a s u r eo l t h e e xl e n tto w h l cha
s y s r e ma c he v e si t s g o a ts i t ca n b e
: ;"npany may havea goal ro reducedmaged para by 100 units. A new conrrol systen mal
computed b y d v l d n gth 9 0 6 tsa ctu -
:: I otalled to help achi*e rhis goal. Actual reducrion in danased parts, however. is only 85 a l l y a c he v e db y l h to l 6 to f th e
:rits. The eflecdvenesofthe contol rysren is 85 prcent(85/100 = 85o/o).Effecrivenes,
:dc ell:iciency, is a ielariverern usedto compte systems. Seethe "lnfornation Systens@
i. o.k box, which describes how Dehai lo*-fare, all-digiralspin-offairlinecalledSongis
r:enpdngto makeDeln moreefficientud effectivewith enhancedsenicesfor pasengen.
:'aluaring systemperformancealsocallsfor the use of pertornancestandrds. A qttem systemperformanrestandard
rerfornare stadud isa specificobjecdveofthe system.Forexanple,asysen perfornance A s p e cl i c o b j e c t i v ofl
e h e syste m .
,rndard for a panicularna.keting campaignmighr be ro haveeachsalesrepresenrative se!1
r 100,000of a ceriain q?e of product eachyeu GeeFigure 1.5a).A qsten performarce
.andard ora certainmanufacruringproces night be to haveno nore rhan I petcentde'
::rive pans Gee Fisure 1.5b). Once $andardsare established, sysren perfornmce is
:easuredand compnedwith the srandard.Varimcesfron rhesrandarda.edete.ninansof

V a r i a b t eas n dP a r a m e te r s
S y s t em
i:ns of a systemareuder directmanagemeor control,while othersarenot. A system*ri'
rble is a quanriqor iten that can be controlledbythe decisionmaker'Theprice a compary A q l a n l t y o r l e m l h tca n b e co n -
t f o t t db y t h e d e c i s i o nm a ke r .
:rarses for ns prodlci is a systen vuiable because it cm be contolled A ryste- panne'
:er is a valueor qumtny rhat cannot be conuolled, such as the cost ofa raw naterial.The
:urber ofpounds ofa chenical that nut he added to produce a eftain trP ofPldiic is A v a t u eo r q l a n t i t yt ha l ca n n o tb e
ir is controlled c o n l r o L l e ds ,! c h a s t h e co sro l a .a w
.rorher exanpleofa qumtityorrelue rhat is not conrrolled by mmagemenq
-, ihe Law ofchnisirv.
 pefl ti ght.A utom.tedk osksshodei tnesnt hele. mna andr cd! 'e
DettaSin95a NewSongwith a Focuson Information
theneedfo.customerse']/iceagents
Syslemg m"leL io
Technotoqy is deeptynf!sed nlo the Songbuslnecs
Tlmesare toLrghfo. U 5 ai.lnes Wtlr lhe economyn a slLrmp. p.ovdebothcLrstome. beiefitsand reducedcosLs fof ihe a rLne
heght an esde .u rty i na i rp o rtsa,n da c a u l i o !spl bl itessw
c io
ttrng qrolfd fof nevv nnovanons
DeLtaconedersSongto be a tesunq
fty.mafy. dnes.rc situgqLing attlrebdnkofb:nkrLrptry' The otd Eystems andnet^rlechnotog es
Dozns of stfeamLined lniormalion
arLne gants whrchm.niain tafgefleels arc partrcutartv Et a on. 4 oeao od
d.dooqa160l .qr ar odo
d s.dvaft.geas sriaLterand moreslreamUned ai.tnFc enler the Every
teffnsoftmesavedmoneysaved.andclrst.me.satslacnoi
ma.kot aid wn ove. clstome.! wilh towe. fares Ai.tnes a'e dddcri o ooa ob" a
" o oo p" r '!.do -u_d
crperreit ng wilh newbls nessmodetsandpracticeshopnqto wth Songwllt be niegtedinto Dettas p.rmaryIteet.Songls iar
fnd onelhatworkEn thLsh!hly conrpettlve envl.onmentDttas nl o r m anonsyst em st og
from!nql ei n tsuseofi echnotogyand
t oNf aie. a ttd g ta t s p n o ff a l rti n ec a l te dS onq s one such an advaniageln a chattenging ma.ketptaceBusinessesn .tt
expeflmentSonguses technotoqystate-01_the arl nr'rmaton st them
msrketsrclyon nlormatonsystemsandte.hnoLogvloass
systems,and good otd fashoned clstomer serv.e to wn in accomptshing moriof less
Theimptementationof newandimproved svstems
lnfo.matlan
Songcrters to ts passenqeEthrolgh a nlmber o1 n fight ..e in manycasesdEmaticaLty chanqingthe wa]7
emplovees do
ament es.Eachol ts th,riy_s r 757sL5f!.nshedwthroomyleatl-rer rego" I oal onb-snd- 0oe,6 r000 A dc :<
Lq" oo..
seatsthrcuqholtihesircfaft Passengers areoiieredan extense c-oo l r .< po
men! of beve.aqes andsnacksirom welt knownvendo|ssuchas n-ranagement. andclstomersaspossbte.Bvaltowngpeopletodo
P z z ef la U n o .C n n a bLoenn d e .s .a n d Yo pi at-aLl ol w hrchthevcanw hati heyneedtodow thoutdetay theya.e abt et aaccom pt Lsh
p: y lor w thth es w p eo fa c fe dt c .rd Bl t th emosti nn' vatve aod
, nt ecctonbeb, lee
a nd
i nagvenperodF.l str.tnni s m ni mi zed
appeaL i n S g o fn gs s e tu c e s to p a s s e n gsetocal
rs ednthP se' tback andcustomersbecomesl's3 stressed
managemefi.emptoyees,
above the fotddown tf.y a persooEtvrdeo montor with
''tolchscreen technoLogy and c.edll ca.d swpe cap3bittv
Passengers canchoasel.om24l.ee atl dlgtattiveD SH Nettlork
D i scussi on 0uesti ons
rychannet5o.pay per ! ewpfogrammng Thevcan lsethe d spta}, _
d-A dd ar':o p a a r6 Pd
'oo" op- o la t,. o a .o 6 o o .o p' H o^- " .e, '_aao
I
MP3mls c. Theyca. elenlo n n an nleractvemlLliptavef video the dut es of chckrnagentsandl t ightat t endar t s?
g: m ewt h o th epf a s s e n g e rs o n th e l tiOqihhle.l LC D
. eatLrfec' 1the 2 W hatdoyoul hnkarethebi ggest chaLt enqesf o. . hec
disptayncllde rn nteractvemap programto vew laidm2fks aqentsandl tghl attendants l n dea t inqwlt h cust om er sI
belov rco. i n e .tn q g .te rn l o mi to n a t th e upcomn! stop 0' the tfadrtonata rtl neb!si nessmo det ?Howdo t he inlo'
shoppnqffom anonlneversoroftheskl Dallcatatog matl onsystemsS ong !ses attowt hese wor ker st o be
To make slch lLrx!.iols a.commodatioisavaitabteto and effecti ve?
mo.e effi ci ent
passenlle.s at a low {.re song has streamLnedtc
'r'fmaton
systemsto feduceove.head afldt!rn ftghtsarclnd morequckty C ri ti calThi nki ng0!esti ons
Sriq prdes onspending 23pefcentmoret m in lhe aL.than hafdshps ofa rtrave l t he seaf chior cheap
3 C onsl de.the
'lsetf
a fcf.ft rnDetta s ma n tne Son!s ptanesreq!i.eonty50mlnltes rates,tonq check_i ntrnesal the t er m inat back! ps at
bet weeta n n d l nagn dL a kn go ff.M o fe tm e n thea.:nd tessontand E ecrfty checkponts, deLayeda nd cancet edf t ight s
a(ow5fo. mofeftghtsandmore ncomeIof thecompanysongs c.ow dedseati ng, andhoufsol w a t ngt r m e HowhasSan
Lnfo.matonscrcensat arrpodgales dolbLe usedi echnotoqy and .fo.mati onsvslem sl0 sor t enihese
jut
whe.emrrckho|.orllms sLrclas TheThingThatWauldnt Get hardshps?W hatmofe coutdthe com panvd'?
,llhe lisle a.e fe.tLrred. Thesem n fitmseniertan passngers as
4 C onsi derothe.tr:fspo.tat on r.odes: lr an ship lax ano
theywail fo. the I flght and educatelhe.n on l-rowto makethe b!s D o theseothef modessha.eany of t he sam echat
boafdrng p.ocess.!nmoresmoothty andq!ickty Lengesthat S ong h:s rddfessedw t h lnf or m aton sy.
Sonq prcvdesan innavatveonlne.esenranonsystemlof tems? C o!Ldother t.anspo.tal ionar eas benef t f iom
book iig fL g h ts .U n ti k e m o Eto n l n e fL i ghtfesetual i onsvsl ems.SS ongonqs appfoach I
. us t om e rs c aena s rty c o mp a re o ri c e s a crosE avari ei vol depa' t!re
andieL u rn d a y s a n d ti me sWong
R e s e ry a l o n s n radethfoughS eb 'Deltas len Pitot,lTai SonqDeLta s New
soURcES,lGthteen Me{ymuka
s te saveSong$,i per i[ght overthosemadethrought'adLtonaL Low Cost AirL'ne!i t, Canputeyartd, Argrsr 1A 2043, w'ahpLtel
re5ervairon systemsAne-t cketrigk oskatloc c!st0mer'ro ryorrl .m:'songl l nve Gl heWortdsMostS oph s l i c atedSngl eA s tel n_Fti q
'neck EnteftaLnmeit Syslem PF /r'eryJw, November17 2003;songwebste
themseGs n whentheyar.ve at the tem nal and altomatLcattv ww ysonq con, a..essed Jdnrary 16 2041
d spenssa boa.dingpass sav,ngthe companv$5 pe. clstome'

-."---t
 s!3Er3.!d:$!l)0r00j_
I

l.lodetinga System @
Tlc real world is ompl* md dynanic. So when we wnt to tot different relationshipsard
SyslemPerformance
:heir effects,we u* modelsof qsrens, which are sinplilied, insteadof real slrrems A
Stendards
oodel is an abstmction or an approximaiion that is usedto represenrrealiry. Models enable
;s ro explore ud gain an inproved undesffding of real-world sinarions.
Sincethe besinnins of recordedhistory. pople haveusdmodels A written desuiPtion
.'i a banle, a physiel rnock-tp ofm mcient building, od rhe use of synbols to represent Anabslraction o r a n ap p r o xm a l r o n
that s usedlo representreatlY.
noney, numben, and marhenai.al relarionships a.e 311umples ofnodek. Today, mn
:sen and decisionnake$ usemodelsto help then understandwhat is happeningin rheir
uearizations and nake be$er de.isions.
There arevarious type of nodeis. The najor onesae narmrive, phlsical schenaic. ad
arrhenatic.l, as shown in Figrte L6. A unathe nodel, * the nme implies, is bsed on
..ords; rhu, n is a logical md nor a physical nodel Borh verbal md written descriptionsof
 FEt 1 | rnromatm r{hnotay corcars

reliry are onsidrdn ralive nodels. In an orguiation, iePorts' docunents' dd convec

sarions concernins a systen de a[ inPorant namtives. A Phynal nod'l B a t^9ible
reprcentarion ofrealiry. Mmy physical models are compu.er designedor construcied An
enginer may develop a physical nodel ofa chenical ractor to gain imPoftanr infomarior
about how a large*cale rwtor might perform, or a builder nay d*elop a scalenodel of a
new shopping center ro give a potenrial investor informadon about th ovrall aPPdmc(
and approach ofthe deelopment A$he,natic nad.l is a SraPhicrepre*ntation ofrediry
@ Gephs, chars, figuies, diagrms, illurtiations, md pictures te all gpes ofschemadc models
FourTypesof Modets Schematic nodels are used exrersively in d*eloping compurr program dd svstems x
Nar.alivlwords,sPoken or blueprint for a n* building, a graph that showsbudga and GnancialPrcj<rions, electiicn
writenl Physicalltangbtel *iring diagrams,and gmphs rhat show when cenain raks or acriviria must be conpleted rc
schematic (graphcl, and stay on schedulere mples of schemaricnodds usedlnbwinqs Antthnudcal nodz,
malhemat caLlarithmeticlmodts. is an uithneric representation of reality. Conputers *cel ar solving narhenatic,l nodels'

lsource:o Boboaemmrich/ Retail chains, for exarnple,havedevelopcdmttrematical models to identifv all .he activities
PhotoEditi scloelty
@PhotoD effoft, and time {sociated with planning, building, and oPenirg a new storeso that thev car
forerut how long ir will take to complte a stor..

Narlative
Rlglonat5.15
JamesEtoclronica
$ 2 5 00 0 0 dc bi c .ai oi s y dttor.mx d,
dilruc. aloiq r di3. ro'E ii Y d I
$200,000

$ 1 5 0 ,0 0 0

$ 1 0 0 ,0 0 0

$50,000

$0

MEthematicat

In daeloping any model, rccuJacyis critical. Ar inaccuratenodel will uuallv leadto a

inaccuraresotudon to a prcbtern Most modelscontainmany assumPrions,and it is imPond
rhat they be a realisiic s possibl Pornlial uses of the model must be awarc of $
ssunptions under which ihe model ws d*eloped.
 Al rLrdlrro.r. .r. irrs,ttmq I c h l p t oi 1

WHATIS AN I NFO RM ATI OSYSTEM

N ?
v
.. rncnrionedprevnruly, an inforn.don svsrcm(lS) is a set of inenelated dementsor
rponcns rhat collec (inpud, nanipulate (proc$) and store,and disrdih*e (output)
:::: rnd informarion aod provide a feedbacLnechanisn ro hed an obtdive
,.: Figure 1.7).The fedback nechuisrn hcLpsorganizations achievetheit goals,suchas
-1.isingp.otits dr inprclingcusiond seNice.

@
The Componenls of an

F e e d b a c ks f f t c a t l o t h e
s u c c e s s i uol p e l i o nof a sysl e m .

, oc e s s i n g0 ,u t p u t ,F e e d b a ck
I nput Pr
Inpur
- :nfomurion ryslems,input is the acdvityofgadcring and caPru.ingnw &tl In pro
: : ingpay c hec k s ,fo re n n p l e ,th e n rmb e to fh ounevervempl oyaw orksnutbecoLl ectedT h ea c l i v t y o fg a t h e rn g a n d
::rre paychecks can be ehulated or prirted. ln a univeniry gradingsysten, individual
- ,:ucror mustsubmitsrudeotgrades beforea sunmaryofgradesfot thesenestcorquaner
.:: be.onpiled and sentto the studens.
lnput can takcmany forms.In in inturndtion s)'srcndesignedto producepaycbecl-s.
: erample.emplol'eerime cardsm ight be the inftial inpur. ln a 9 I I emeencytlephone
,ren, an inconing ellwould be considered d irpur. lnput to a markedngsysrennight
':lude cctoner suweyresponses. Car nrnuActurers areexperinentingwnh a iingeryrint
::rtification input delicein their cxr kcuriryq{rem. You nay soonbe ableto gnr entry
: Lrr and srarrn with the touch of a frnger. lhis un;que input devicewill alo adjust
- :xtrs.thc srcenns-wheel position,the tenpcrarure,md the .adb for D indilidual's sirc
: .: preferences. Regardlesof the s$ten involvcd,rhe q'pe ofinpur is deterninedby the
:..red ourpur of the system.
lnput canbe a manualor auromaredpioc6s. A rcanrer ar a groce.ysorethat readsbxr
les od enrersrhe groceryiteh dd price inro a compureritd esh registeris a type of
..lmated nrput process. Regaidlesofthe inpur nethod, accunteinput is citical to achioe

Processing
. inb.nntion sysrems,procesing inrclves convoting or trusforming data i"ro useful
.puis.Pr@ssing an involvenaking calcularions, naling comparisons and Bkjng alrer' C o n v e r l i nogf i r a n s t ofmn 9 d a ta
::nt acdons,md storing darafor future use.Prcesing data inro usetulinfomation is
:: :icali. buine$ settings.
l\oce$ing canalsobe done manuallyorwith computerdsistance.In the PaFoll appli-
::ion, ea.hemployee'snunberofhours *orked nut be conrertedinm net, or take-hone,
r:,. Other inpurs often includeempLole ID number and depanment-The requiredpro-
:::!!rscan nrst involvenultiplyins the dunbd ofhourworked bythe enployees houdy
: :, nre ro get grosspay. If weekiy hour worked exceed40 hours, ove.tine Paynay also be
:luded. Then deductions for *ample, federaland starerdes,cont.ibutionsb h*lth and
:: insu.d.e or savingsplars-are subractedfrom gros pal to se! nel Pay.
Once thesecalcuLarions and conprisons are performed,the resuL$de typically
: red. sroragr involves kepiog daa and infornation available for future use, including
i.P'n, dscuseo nexr.
 Pdi 1 | , nm r , r : , , , Lir r t . i! . d :

0utput
In informathn sysrcms, output involvesproducingusefulinfornarior, usullv in thc form
t ol ls ef ut nt or m at on.
Prod uc on ofdocumens rnd rcpons.Outputs crn includepaychecLs lir employees' reportsfor man-
uslatty n t he f of m of doc um ent s agcn, and infonmtion supplied to stockholdos, banks, sovdnmenr asencies,and orhd
groups.In sone cdes,outPut fron one sl std can become inpur for anolhd For *nrple'
onrpur f.o- . systcrnthat pn,ctscs sales ordos can be used rs inpui ro a custo'rcr billing
system.Ofie', liom one s)stcm can be nsed as input to control otho svstcm ot
""tput furnirutc is complicatcd with
devices.Ior instln.c. rhe design dd mnufacure of oliice
nany rriables. Thc salespervrn, customer,od furnimrc designcrcan go throughsoeral
desigr ireratn,nsto meetrhe cutomcL s neds Spccialcomputerprcgnms md cquipment
crcaterhe origilal design and allorvrhe designcrro opidly rcviseir' once rhc last design
mock-upn apprcvcd,the compuro creaas a bill ofmalenJs rh.r goesto ndruiacruing ro

Ourputcanbe producedin a uricty of mvs ForI comfuto. prhrer and dispLavscrced

are common output dcvices.Output can alsobe r nanuil Pro.essinvol;ng hrndi{riiled
rePortsaro docune!6.
Feedback
Ininfomation systems, feedbackisoutput that is usedto makechangcs to inputorproces*ng
0 utp utt hats us - Adt om akchanges a.tivitics.For exanplc, elor or prcblens might n*e i! decesrrvro corrcctinpur dataor
1 o ipu t or pr o. es sng ac t v f es . change a process.Considcr a pavrollexanpl Perhaps the number ofhouro rn cntplovet
*"' i,"" omputet t 400 insteadof 40 hous Forrunatll. nosr iftbr
-...a "
-",*.a
na ,n systems checkto makesurerhatdatrlalh *nhincertain rangesF-orn unber ofhours
worked, the rangemight be ion 0 to 100 hours becauseit is unlikcly that an cmplovee
would sork moe than 100 houn for anv givenrvck. So, the infornratnrnsvstemwodd
deterninerhat.100hoursis out of ruge and providefeedback, suchu an eror repon Tle
feedbackis urd to checkand corect the input on the number ofhouB workedro 40. If
uidetecrcd,rhis tror sould t6ult in r rery high nci Payon the Prined PavdrecFSome
blane rh. August 14. 2003, porverbhckour io the U S.'sNonhexsror a ]allrv comPuter
systemthatmr\ ablero providesecond-bv*con,]lecdback.l
Fealbackis alsoinportanr for nuagen and decisionmakes for example'a beddins
makeruseda computcrizedfeedbacksysteom link irssuppliersod plarrs The output frcn
an informarn,nsyren might indicarethatinvenroryleltis for afcw itehs tuegeilinglow
a potorial ptoblen. A managercould uc this fecdbackto decidcto orderrnoreinrentorv
&on a supplier.The nev inventoryorder thenbecone inpur ro rhe sv$tm h addii;dnro
this reacrheapproach,acomputersystemcanalm be proactn'e predicringfunue evemsto
a"oid proble-i. This concept,ofro calLedforecaring, can be usedto estimte futre sales
t f ut ur eev ent st o av od
P.ed rc ng and ordermore innntorybefi,re a shorrage oc.urs

d fo r m a tioSystems
M a n u aal n dCo m p u te r izeIn n
As discuscdearlier,rn infouation svsrenen be manud or conpureri?ed foi example,
sone inuestmentan,lyss nanually draw chrns od trcnd lins to issistthem in naking
invesmentdecisiors.Trackingdat! od sockprics (inpu$ overrhe hv fervnonthsorvcus'
thcseanallss dcvelopprtems on gnph prper (processing) thar help then dereLninewhat
s@k p.;cesr likely tu dd in the nexrfo dap or rteks (ourpur) Sone nNqtor havenade
nillions ofdollar usingnanuai stockorlysis infotnation s1rlemsOfouse todavmml
exceent compuleizedinfornadon slsrcmshavebeo dereloPed o follo$ so.knrdcxesand
markos and to suggeswhcn large blocLsof stcks should be purchasedor sold (called
?rostu/r rzLns) to oke ^dvantaseof market discra rnctes.
Many i ormarionsystemsbegin* mnual qntens ard beconeconpurcrized loL ex'
anple, consido the *v the U.S. Poshl SeNi softsnail. At one tinc' nost letterswere
visuallyscorcd by posai enployeesto determinethe ZIP codeand wcr lhen nanualLv
placedin m approptiatebin. 1b&y the b&coded addrcseson ]ettes passingthrough the
poslal systcn are @d latrcnicallv and autohrically rouled to thc aPproPriatebin via
io"'eyon. The c"mpurcrizedsortingsystenLezults inspeedietpracssbg dme md provides
maiagemenrwith informarionto heLpplan rransporuriondeeds.lr is inrfortalr io s!ress
however.that siftply computerizinga manual in6rmarion systen does nor guanntet
 Proqramtd ng systemsattow
r r a d e 6 t o k e e p u pw t h sw i ft
c h a n g si n s t o c kp r l c e sa n d m a ke
betler dec sionsf or their nvestofs
l s o u r c e :O R u t e r sN e w M e d i lan c/
c 0 R B t Sl

:r:oved q'sen performna. lfthe undolying infornation slstem is flawed.the ac of

apuer;ing ir mighr onv nlgnilr the inpad of rheseflavs.

Comput er- B a s eIdn f or m a t i o nS yste m s

. ;o-puter-basedinformationsysten(CBIS) isa singlesetofhudwarc,oftmre, daraboes, compuler-based
information
,.:ommunicadons,people,andproedurcsthataLeconfiguredtocollcct,rnaripulate,stote, system{CBlSl
: pftEe$ darainto information.For ennple, a company'sp4toll rystem, order entry A s nqle set of hardwarc,softwa.e,
d a t a b a s e sl e t c o m m u n r ca o tn s
::n, orinventorycontol systerns arccxamplesofa CBIS.Thc onponena ofa CBIS art p e o p t ea, n dP r o c e d u r eth s a ta r e
.f..red in liigur L8. (ltpuario" techflolorJ,
IT,ls a rclarcdrerm For ourpurPoses,IT conligured t o c o t t e c tm a n i p !ta t ,
r:; to rhc technolos componentsof hardware,softwre, databases, and telecommunio- store and processdata nto
: . I A busine$'st(hnolog infttnucture includesall the hardwre, software,dasbases,
, -.omnuricarions,people,and procedures rltararecoofiguredto collcct,m anipulote,srorc,
: procs daraturc informatn,n.The techology inf.dructure is r scr of sharedIS re' technotogy
inlre5tructure
. -,<s th:t fom the foundationoferch individualcomputerbted infonmtion sntem. Allthe hardwafa,soltware,dala
b a s e st,e l e c o m m u n p e o p te ,
c a tr o n s,
: n d p r o c e d u r etsh a l a r e co n fg u f d
, a n p ! t a t e,sto a n d
l o c o l l e c tm
processdara nto nfofmalion.

@
The C omponents
ofa
Computer-Ba5edlnf ormation
system

:rrdwue consisrsofcomputer equipmenturd to perftrn input, processing, and output

Computerequ p m e n tu se dto p e r
..-.,ties.r lnputdoices includekcyboards, autnatic scarningdevic, equipnent that can
Iorm input processing,and outpur
:: magnericink characrers, and many other deviccs.lnresment firms often usc rcje
: dd orh.r infomat;on 6ing ordinaryspoken
rc allo* custonen to gertheirbalances
"xc
 P*r 1 j irom3r onrechnoLosy
comepts

rnlena(, The Sdipp{ Instiruijon of Oeenosraphydryeloped \pccjal

a undeMa,er(
Pukropn.ar Dpur dfl'(e @xor a djrer6deeps r00 f.er rocorurctM udeMarer@
wh r.h @< lormsly onEolJed by a compurersysremud
moue on rtle surface..procs
oevrce\Indude rheenr.al prccessing unirdd main memory.rproeor spccdis impor
in oeadrs video inases.6 Liftlile no./ie chancrrs such ar GoIlJra
in &; rud of ;e A
show,whJr is pGdblewiLhrodi.y; tur prccesK l\4e,,1 t-Ae,
.f ce.*y ,;d p;,
oe unrred )rars hrvc."rd su(h r\@d_winninBimrgerendedng
techniquer.The re(lx
ud herpd.isn e,-'. $ch a d,e steel ,trapa ol Meredg Ben?
:s, i.1,9 'o Khi,
)P(rar Ded.Ineypensiveh &dq m hasal$ beenusdir schooh,o helpsrudniitwn 3 w

Thee:re muy ourput deu_crs. inctudingse@ndrrysloage doie. prinren. and o

pure' rtreni. onc @mpoy, for exarnpte,ue compurer
hudware in irs srors ro al
.usromeB,oordcrirem dur re nor on nore,hetves.The hadMe
hetp,rhe.omDrv _
,he ule- nd incres rcKnuer.Miciart De[. fobder.f D. t*.,
bii.* .h"i;d;
wili increrdnsly include rery smal devie thar are conneaed to
orhei ha.dware dwics.
sid, "Ndorechnolo$ and .olmuiqrions wil be in *errhin& A[ kinds of oder dw
will attach ud link mgether, centered,r thjnk, wid, the pc."s
Noorechnologt @ inv(
noleculesi4d lEdwarc d*i6., There .re also many sp".i"l_p,.p"se h-j;. de,i
compudizd adr data .corden (EDRs) ate now b.i,s pl*d
in; ,$i"1".. Lik. ,
pbe, bhr[ bo:. tDtu_record J lehidei spced.p*.;Lt *g_. -
probtems.a ddv
pcrrsmrce, ,nd morc. The re.hIotog, n beingLDedro moni,o;
rehicteope,&ion.de
m,ne, he.!ue oi<,dens. rnd invesrisarwhe.ier Lrud drirer,are
otins;quiRd bre
In r rorida.rn FDR s"! 6ed @ hetpcon,icr a &iver ot whi(ule
homi;ide.,oA susr
q"((nu'8 a J.rJ (ompurer sdeo dd
6ing a ioF(iLk cM viry up ro 2.000 di6 or (;
ycr,onr eJe4ot, pari6( 5bodybefor
pwi*ly remo inga can.eiou"rumor.Sophi,rica
input dd ourpur dqices e rnaking surgery more precise,which
can savelives.i

F lard w a re i cs oa mp o n n to
af
computerBased Inforharion
System endinctudes input,
processr.g, and0utput.
[source:Courtesy
ofAcerAmerka

Software
Softs"E oniisc.of rhe compurerprogrmr dut gorrn the opcradon
Thecomputef programsthargovern of dr ompurc
rn6. prosrams.xos a ompurer ro processpayto , sendbi s ro cuiromer.
lheop e E to n o tth ceo mp u te r. ud p;ti(
man ge^.v[h rdo.madm to in.fta prbfrs. redue coss. and provide
berrercu.rom
opleon wdk anldme at dyplac.. On, oip b&l ro rhe UniE
rtacs rrom Au5ualiaed No 7eJmd. SrryeBallmr. CtO of Micrcrti
comm.nred,.
could wry my.:lida. ould erry my e malt. | .ould .ajry anldring
_l I ne.ded rc re,d.
courdcery my lire with me l_ m wry pouertut..r, Thde de Mo
b6ic rypesof softva&
slAtem $tt*Ec, such er 'Windos )0, which @trtrols b4ic ompu.e.
oieEriois sch a
str-uptrd prinr;n8.dd rppl;.!rions sucl a Omce 20dJ, $hich altowsjDecif
'oliwn.
ra|c ro be rc(omplilhed.s{ch s wo.d prcesingor t butar;ngnumben.
 A n n r m d u d o n t on f o i m d m s F b m s I c h a p t4 ! r

0atabase5
\ darabse is u olgmird col@rion of facrsand iiforn,iion, rypicaily consisting ofttu or
iore relarcd dara files. An orsanization's databasecd @nrain fecis ad information on A n o r g a i 2 e dc o t l e c ti o o
n l l a cts a n d
:uronerl enployes, inventory, competitors salesi omation, online purchdes, dd
nuch more. Most nurgers and secu rivesbelim a darab$ is one of rhe nosr uluble and
:nponat pans of a computer-bmd inbrmtion system. Incre{ingly, orgmizations are
rla.ing imponant databses on the Internet, discused next.'a
Tetecommunicalions.
Network5.andlhe Inlernet
Telecohnunicationsi the elecronic uaqmjssion of signalsfo. communications, which telecommunications
:nable orgmiations to cary out rheir pro.essesald tasksthrough ef6ctirt computer net- Theeleciron
ctransmission
olsig-
*orks.r) lnge resraurartchaim, for ermplq car use telecommications sl,stemsand n6l sf orcommuni calionsienables
organi2atiofs to carryoutthelr
qrellites to link hundreds ofresraurana to plants and coryorare headquanen to speedcredir
processes andtaskslhr ough
ird authorization and rpoft salesand payroll data.Noorls are usedrc cornecr compurem elfectivecomputernehaorks.
ud computerequipmenrin abuilding, uound the country,or round the world ro enable
:lectronic cornmunierion.lnvestnent 6ns cm w wireles networis ro omect thousuds
oipeople with then orporate offres. H otel Crnmonwealth in Boston us wircles telecon- C omputers andcomput er equp-
aunietiors to allow gue*s to @nnect ro the Internet, get voi@ ne$a8es, and perforn other menii na bui l dng arcund
lhe
couniry,or aro!ndthewortdto
:icdons witlnut plugg;ngtheircomputenor mobile devicesinto awall outlet.'oWireless enabteetectron c comm un
cat ons
:ssnission is alsoallowingdrones,like Boeing'sScanEagle,to nonnotpower lines,build-
rgs, ud other commercialestablishmenrs.'7 The dronesare smalletand les-erpensive
of the Predaror md Global Hawk drones that were ued succesiirlly in the
':siom
\fthuistan md Iraq conllicrs by the U.S. n nary. One conpany usesa privne network to
:omectoffras in rhe United Srates, Gernany,China,Korea,andothei compdies.Itdcsn'r
re a public nemork awilable to weryono such u the Intemet, discusd qexr.
The Internet is the uorld's largest computer nework, actully consisting of thousmds lnternel
:iinrqconncred nefforks, all frcely exdunsing information. Researchfirms, colleges,uni- Thew ortds l argest com put er nei-
jusr a few mples work,acluatly consstingot thou-
':6iries, hish sch@ls, ud buinass are of oryanizariom usiry rhe
sandsof intrconnectednelworks,
all hetyexchangjnginlormaton
The lnternetis uwd by most buinses md indusries.ChemComect,for *mple, is
a hternet site that allows conpuies to buy md sell chenicals and chemical products on-
:re.13The Internetsite is the large$online chenicalnadiry sirewirh more rhm $8 billion
unual sales.ln addition to being able to cheaplydownload music, audio soft.rare and the
-::ternet allow peopleto changea ong's tempo, createmixesoftheir hvorite runes,and
rodift soundracks o suit rheir personalIste. ft is evn posible to play two or morc ongs
;,multmeouly, called zzrl;2s.l' Monsge ompmis use the Intener ro help malc loos
:: turomes. I:nding rhrough the Internet ha grown dnmaric.Iy from about $260 biiiion
i 100I ro more ihan $800biilion in 2003, represenring almosr30 percentof rhe rot,l lorn
=rket.ro Medo Herlth Online, a subsidi*y of Merck & Company, receiwd nore rhan a
:ilion dollas in salsthroughns Internetsite.rlThe Inrenethu alo beenusedin public
:rdom.:: Anien, a subuS of Genem, rru the 6st city in Swieerla !o use ihe lntrnr
: a public, binding vote. Busineses re increaingly u{ng insant wsnsjng (IM) a con-
;unicate.a Ill4 allows nmages ad enployees to insrotly comunicare ow rhe Inrerner
:rng rext messages, video, md even sound. Today, bedmom, srudies,kitches, dd living
:mms are being connected to the Inte net.'?aIn addition, ravelere who can gah acces to
Inrnet .d .omuni.ate with ayone elseonthe Interna, includingrhoe who ae in
-i
:l:Shr. Someairline companiesde stariing Interner serie on their flighrs ro ,llow people to
<nd dd receivee-nail, check inrestnors, and browse the Intenet. Acording to \nnon
one of the pioneereof the lnternet, "There will be a very large ruber of deviceson
-<rf,
:. Nt-appliances, rhings you wer md cany around, md things that are enbedded in
r^sive rhings like wine cork and your socks."'75Table L4 lkts onpmies that haveued the
:.reroe! to rhir advdtase.
 r-r | ! r . . r i, Li, q r c o , : , r L r
' "' , . ' , ,

Tl ' F.onoal r devel oD ed

d /e.yoroil ab F l " l pr retci . t . . r a owscLeloner !
l o bJvard sl rp.l -oco.dl ps.
A ..oroi nq X a I ano,d re cr o.ot G od\ o D r 4 ,
"ThiEwas sel upfrcm {he bglnningto' om.ke money. ln two.years. ontine
sal esfdve> odf" dbynoF hal tOo"eacrre.r.

Theofgani zat on.l o.me.tytheE nvi fonmeniDalefense Fund.successt ! t t y

usedthe nternetto aterlpeopl e to thep.aci i ceof Gtchinqshar ks,. em ov-
n9thei ffi nsfor so!p,andreturnn9themto l he ocea nt o d e.Thelnt er net
site aLsohelpedpeoptfaxatmost10,000tettefsto membefsof Co.qress
aboutthepfad ce.A cco.di ng to FredK rupp,theexeculved r ect or of t he
Fund," Thel .terneti s i he uti i mai eexpr ession
E rvi roi menl at of t hink

.Eetler -l ecofpsrvueedtheI' l erl et ol -a-enpl oyeestosellsoecat r v! henr car s

paper.onpai i es. i l sreddof bri rgi i g hFn to V ampLsl f ort a r r . q.AcLod n9
l o ore Fi e.J_i /e,our rel erti o" ral e s n rchi q.Fr E1dwe . er oveoo weel.
fol ,.ai i .9l . V en' ol E w l c1 neanrD i gsavrga L5 inqr her r t er let lower "d
thFhoJl !cos ol f d| ,n9ai erp.oy" e4ongl 000toonlr gqo.

U sl ngthe nternet,i he company,

w hi chb!i tdsandservcespowerpt ant s,
w asabl el o fedu.ethecostof ente.i ngo.dersandser vng clsr om e. sThe
ni erneisoU ton costaboul$60,000 compared w i i ha hadironalsoluton
ihai wouLdhavco.t of $600,000.

0ol;nn Th" company ru< es l achi rel ool sal ow acabl etost aslt he I ner t lalps ho
f l tar o.oe on o-. nor l l s l o a w ee"usr19lhe I ler 1el o l. lp
- manufaetu.lng " boLr
aootdlruteparti siid with its supptie.sandEtils ptanls.

-l e.ofp:rv oeye.oodo
d1 l r l 6r s r6 l o- w 10' .< aer s o ( or pne eq! p-
mentandsuppLes.Thew hotesal ' ar ersusethe
si tetonake bet t er decisons
pri cesotvari ous
aboulthefeaturesand p ecesof complt efequipm ent The
.
systematlowswhotesaLersto connectto Partnershp Amerlcas slte usingceLl
phones.W henmanyol oufc!sl omersneed i nl orm.ton,t hey. e not at t hei.
desks, saysonecompanyrepreseniative.

@ the waid Vile web (wIYI'Yt or the \(eb is a nerwork of li*s on rhe Int*n* r,
documenrscorrrinnB idt, graphics,video,and souM. tnlbnnarior about Lhedocumen.
and a@e$ro rhcm arc .ontrolled and pm'ided b).rensol drousrndsofspeci:i compucr,
calledweb scncr. The \Yeb is oneofnranyservices arailablcorc LhrInternetanrlprc;de
rcccs ro lirer.ll,vn,illionsofdcumenrs.
Thc rcc-hnology usul o createthe Interncris now rlso beinsapplieds ithin companie
and oigadizarions to.rerte ar intraner,which allo$s pcopl.w;fiii d orgrniatn,n rc c\-
An n ler nalnet wor kbas edonW eb changintormirion and workon piotds. The Virgir CLoup,for cxanpLc,nes m iotnne:
techn ologies lhat aLt owspeopLe
t, connectits200 globalopcfutirg cohpan;esand 20,000enplortcs.ri Accordirgto Ashle,
wlh n an or ganz al on t o er c hanqe
nto rm aton andwor k on pr olec t s Sn)ckrll ofrhe Virgnr crorp, "One ofour key challenges ar Viigh is ro providr high
tlualiry servicero orr family of.ohpanies. One key rool ro hch trs proride th;s rva\ rh.
d*elopment of an nrrranetmd exr:net. An extmnetis r ncr*ork bred on Weh tech
A n etw or kbas edonW ebt e. hnot o nologiesthat allovr sclcctedoutsirlers,such as busines parrncrsrnd custonr*, r, accer
9resthat attowssetectedouts ders, authorizedresourccs ofrhe intanet ofa compaw. CorDpaDics canmoyr rI ormosr i* thei;
su cfras bus nes spar lnr sand. us -
to mer s t oac c es saulhonz ed
business rciiviriesro an cxf.net sie for (trpoEr cu"omer. Marypcople useertanes even
resou f c esof lhe nt anel of a day nithout realizingit to mck shipperlgoods,oder producs from thcir supplie*, o,
ac.ess.ustomerdsistroccfrorn otherconpanies.l.og on ro drc fcdEx sitcLocleck the *ru,
ola package, torermrplc, and you te usingan exrraner.
 A i n r m d u . t o i r oi f d m d m s F t . m s I c b l p t .i I

Peopte
l.ofle a.e the nost inpondt elhent in nosr @hpurerbaed iofomadon s)6rcns.In-
rmaion sFtemspeBomel includeall the peoplewho nanase,r!n, pros.am,and nainrain
:re sysrm. Largebmks cm hire hundredsofIS per$mel to speedup the doelopment of
rmputer relaredpmjects. Usenarepeoplewho rrseinfomation sysremsto gerresula.Users
r;lude finmcial *ecutircs, narketing represenatires,
manufacturingoperaros,and nmy
ilhels. Certainconputer usersarealsoI5 peronnel.
P r oc edut eg
Proceduesinclude the straregies,policies,nerhods, and nnesfor using the CBIS. Ior
:ranple, someproedures describewhen eachprcgrm is to be run or erecutat. othen Thestraleg es potcies,methods,
:.rcribe who can haveacas ro faca in the database.Still other proedures desqibe whar is a n d r u l e sf o r u s i n g C Bl 5 .
:r be done in cm a dister, such as a fire, an euthquake, or a huricane thauendas the

Now that we have looked at conputer bced informrion s)'stds in general, we will
:rrcIlv gmine rhe most comnon types uad in busine$ today. Thse IS tpes ale corred
. doie deiail in Pan 3.

BU5INE55INFORMATION
SYSTEMS
1c mosrcoomon typesofinformarionq,srns usedin buines oryaniz:tionsareelecrronic
::d mobile connerce q'stems,$aiEactionproce$;ngsysrems,rnanagemenr informtion
r- rems, md decisionsupponsysrens.In addition,sone organizations enployspecial-pur-
:o r sprems suchasanificial intelligence systens, erpen syaens, and vimral realiry sysrerns.
ogerher,thesesysens helpenployeesinorganizadons acconplishborh roudnemd special
:ks-from recording sales,ro procesing payrolls, to supponingdecisionsin vdious de-
:rmenrs, to providins alErnarives for lalse{cal projecrs and opporuniries. Fisure 1.9
:'es a simple o"eriw of rhe developnenrof imponant busines information sysrens
::cusred in this rcrion.

@
TheDevtophenlof lmporlant
Businessl ormationSystehs

Ete ctro n icand Mobi teC ommerc e

E<omnerce involvesan)'buin6s mnsactionsrcuted electronically betweenparries such
:.onpaDis (busines-ro-buinas,B2B),ompan;esaid consunen (buines+o-consumer, A n yb u s i n s lsr a n s a c l i o ne x cu l e d
llC), consunersand othe. consumers(@nsuner'to'consuner,C2C), busine$ and rhe e t e c t r o n l c tbt ye t @ enp a r te s su ch
a s c o m p a n i eIsb u s i f ess- r o -
.trblic *.tor, and consmer md the public cctor. Peoplemayassunethat e-onnerce is b u s i n s s cl ,o m p a n i eas i d co n -
:sntd nainly for onsunen visitingweb sis for onlineshopping.Bur \reb shopp;ngis
::.1r a smll pan of the e-commerc pi.tuj fte najor volume of e commeeand its c o n s L m e ras n d o t h e rco n sL m e r s
:lesr'g.owing smedr-is business'to-businss (B2B) Eansctionsthar nake purcha!dg {c o n s u m e tro c o n s ! me r l b , u si n e ss
=ier for olporatioru. Thi gowrh ;s being stinulated by indeased Inernet acces, grqing a n dt h e p u b t c s e c t o r,a n d
c o n s u m e ras n d t h e p u b tc se cto ..
:.rr conlidene, beaer payment rystems,and iapidly inproving Intenet md Weh securir/.
-nrpofale Expre$,@ olie{upply companylrrard in Brcomfield,Colohdo, 6d a so-
linicaled B2B sl^td to @ordinatebillionsofdollam ofoffice suppliesthar flow fron ia
.'"fplie!s,through its ofil.es, ro ns cutoners.' Today,more thd h.lfof its 75.000 drily
::Jer anive electroniclly throrgh B2B on the Intdnei. E commerceoffersopponunities
rr snall burinesses, too, by enablingthen to narket andsellai a low.ost worldwide,thus
 Pdt 1 | r".htLoqyco-"pt,
"rr.d ""

IBMPa . t ir wor ld@s af ex am pt e

o l 82 B lbusnes s t o bus i. es s l
e -co m m er c teh6t pr ovdes m em ber
comp anies w t h r es our c es lor
p rod uc lm 6r k et ing,
t ec hnc at

Order rnd track products

i 5co,n;-|Ire1etr,4:!.,-,,-!9tr9,!j1,.t1-Lq!iJ!!-
i.-,.-.--... Hm

sd.ub]ih'.lshll|.o|ddlsconol'l'

s.mE'pircB'M'dlndF'laisbn&|doi3]

6 E!t!!!-!!r!!t!t4!41]}i 6*s - un ,r, ror

I udbd se (P$! :!!!r!l4r!)
a qrild, (pwss '1. t*'o)

allowing then to nter rle global mrker right fmm snn-up Mobile .onnme
(m'onnde) at rnnecrions conductedanivhoe, anyride M-comnerce reljeson the
Trnsacilonscof ductedanywhere, ue of wneles comuniarions to.llow nanasersand corpontions to placeorden and
.o ndr.r burne' sui ng hodl -el dcomourer'pormbl epFore' .l aproponpur er com e.t ed
rc a network,and orh- mobil devic6.
Consunen who havetried online shopping appreciatethe eae ofe-commere. Thev can
avoidfightingcrowdsin the nalls, shoponlineat any dme frcm the @nfortoftheir hme'
md hm goods delivered to then direcdy As a resuft, advertisen plar to increu spending
by6.3 percentonlineversus4 7 perceniin conrentionatnedia.zsIn addirion,curenr laws
gove.ning online purchNs exenpt purchcers fron paying state satesldes How*r, e-
commerceis not without ia downside.Consunen @ntinueto haveoncerns aboutsending
credit ord information over lhe Internel to siteswirh larying secuiry measud, whe'e high'
tech ffininals could obtain it. In addition, denial of+ervice attacls rhat ovenvhln the
capacnyofsone of the Veb\ mostestablished md popularsits h*e nisednewonerns
fo.ontinued so*rh of e-connerce. Privacy n anadditionalconcern.Individuak rmt to
know what data is sthered when a consner visi$ a V/eb sire and whar conpadies do with
the collected datar ome hae mld dara ro nultiple sources' leadins markerins compmies to
know nore than we would like. Se rhe "Ethiel and Scieral Issues"box,whicn dncuses
orher potentialproblems of e-omerce
t-r3hin9
forVisaCardCustomers etectmncattywtlr the. .lstome.s and to r:onduclbls nesson
o'.r". ?,d . be om, n ..6 ...9 .p ,q d .d
tin.'Ai slakeis our !e rytfLrstt hatthe nte.net. beledupon
" ! d
Io odod o md D_.-
-- .! conslm.s the.moneyand dentityTh 5 hiesiscam '.
Jevans, .harmaf of the Antl Plrslr ng Wo.knq Group
-
'9bd o,.d u .e .e n a d n d W6 b rd o bo o
:: :rners ntorevtng privaternformaton lMannphlshing ary).
: l fthey Soh^/arelools dasgnedto detectplrshing:cams typcatty
- ee. c techrclogyto
es y s t em s re ty o n th
prolide e trl
sate ands to fth e p
sec!re a rtrcpai i s
t.ansactions, dentifyonty50
to 70pefcenl ofaLtphony systemsTheontydefeise
-:tthe
6 / o . t d Lo , o .o .t 6 wr L 4 - 6 ,o ' .r ' e hf"
consumershaveaga nstsrrchscams5 edlcJtion-.nd cauton.Be
e"
teeryofanye-ma tf| om. companyl hrLrsksyoutovst Web ! page
::: io.e secL.econnectonsbetlveen{do padiesaverthe
to pfovdep.vatenformaLi on.C hckw l l rthecompanyat
ft sof f. iat
: .:. foolproofsy5temsexsi to quaraflee thal the
::-is ir.e whotheycLaimto be.PhishingscamsexpLoit
this Web sle lo conlimr that such .eqLrest5 a.e teqtim.le beiore

: : iiq s c amw a s rc c c n tty L a l n c h e d :g a n sVt i saca.d

: - . f d s er v es
a5a l e x tb (n e
k ra m p teo fL h ete c h nqua. A C .i ti catThi nki ngQuesti ons
: - ., lwas 5enttolntemeluse.s,,!ithanoffcialtookinqVsa H on " p" op' -po," I e^.e 6ro b o- ! d.
_ :rlress .laming to havecame hom Vsa Inte.rutioiat
ti m of a phi shl ngscam?
2 W hatactoncanpeopLet.kcf theydi 5cove.that t he. pf
_ .te.netir.!d:nd s fomatly.efetedtaasspoafingIhe
vate ni ofmrt;onhrs beenstotent
, ::.d thatVi5ah.dimptemented a nry"secutysystemto
:: avoidpossbtetld actons andask-ad userstoclrcka
WhalWoutdYouDo?
:r:tlateyouracco!nt. TheLnkwaspr ntedas
'.-:n lsers dcked theLink, '14M/sa Youve receivedan e mart from yoLrrcoLtegesFlnancalAd
il tookthemto a Webs te that
.l theysaWebsite-wihanofflcatVsatogo,artworkand Depaftmeni thatcongrat!laies yoLron beng the rcc plenlol llnds
.6,1 Vi TL6 frcm a newtytauichedgrantprogmm.To r.ceve yoof $2 0!01o.
: :: J..t lnformaton nctudrng theifVisacfeditcadnumbe. thls 5emesteryau are lEq! r.d 1ovlsI the F nancatAd Websit-"
:: _ . ids t s ihefha d b o th a c L rs to m e rs .c c onLuro t
mberand lwr"wfnanctalaidfaurs.haal.rml and slbmt a brel ont.e
spptcatof form.Afteff tilngo!tthefo.mwh ch.otte.tsiffo.m6toi
o do. dd o .o^o/uLlp6 sl ch asyoLfnam, addross phonedateofbi fth.:cl roo D nlm
l be.
.i ..6 LL ,,,an 61160 l on SocaLSec!ity numbef.nd bankacco!nlnurnberllof rltom.t;c
: :_ : ma ts sentout.lt rsesiimatedihai 5 to 20 percenlol depostl,yo! ctck theSrbmlbuttonandheado!t lo cotebrateyo!r
: : . e. poidt oph s h n g s c a msfi.h e V s as c a m,th eo wners goodfoduneAftera week,the moneyhas)t to bc d.postedand
:-lLtcnt siteshuldownandd si]ppearad priorLodiscryry youareqetl.g concerned.
'- them an Lrflkn.rrnquanttyof customef.ecordsThe
3.
: : _t hey s t ot ec o l td b e s o L d i n th e !n d e rq r.u n dc.edl ca.d W hat n thi Escen..o sugqests
tl ratth s m ght bea ph slr
. : _als c dby c r oo k s a nthdi a w s toa s s u m the ed e n ti t yof
the
: :-l nrakeittegaL p'rfchases 4 i f yo! w era .esponsi bte
l oi nfo.matl onsec!rty at yo! .
: :_ _! scams arc nc.easngty d {flcLrttLo detect.The 5choot, w hatsystemm qht yo! des gn to ass!.e st udenls
: - : . m at s andWe b s i te s to l doeknct a ttoo d qn a tc o r porate l hal offi cat schootcof.espondence.eE comes
tty rf omt he
' : :-lence andWebstes Webaddresses appeartegltnrate schootandnotl .om an mposte.?

: :l .on atthebottomotthebrMserwindMl Slchscams SoURCES,Paul Robeds Late5t Ph shing ScamTafqersLsa Cunomers,

Canpute otld, Ae@nbet 26 2A03 crowth nlntp.netFGUdtoBe Keycon-
mmu..Le .en n2AA4, Elect.onjcCann.rc.r.6 January5 2004;lheAnt Phsh nq
grcrp we6 slre, Mant pht.hingo.9, acces5edlaiuary t7 200,1
 Ps i r d", m "t * T" hnor oe y c o n . e P r s
I

wo*
Yet.in of !he conrm' e-commtrr oFrsmsv advuuses for tremlining
'oiR (J rhr
iviriA. fistr L I0 pr@id6 r bridrunPle ol how e-@mmere 'imPIiry Prc@5
the msud sts
fo. pu*h,riiq n.* om.. tu mnue from dn omce-{pph 'ompmv t ndet
*.',, *' ler mur ge apprcvrlfor r pu'hu rharos moreLbana anaj n
ih,, r.qu"" go.. rhepurc}uing depanmor' which generrr' r form2iPu(hr*
-'p.*i..m*
^o-,. to procue the gmdr'ofrcn the approved rendor' Busines-o busnss e-conmerc
order
,he *,'" r;**' Emplovego dirctlv ro r}e t pplieri veb n re find r}e irm
"r,.*"1 ri aPProvr
in it'uralos, md orderwhdrrheyneedet J Pric 'et b) theemPlovee 'comPdv
e-cometgvrems g'N'5
is req"ired,ihe app'o'er n.otified auromadcallvAs rhe ueof
r-heirrndirional svro' fhe eulring growrh ote omere is
pf,*l"g-,
-p-;*,*
creating nany new bustnessopPortuntles'
l-i*-"-" .* r'""" . p*itive imPai on stock Prices md t}le marker value of firns'
brick-and-monaJ
To&y, sweral e-conmerce firm hare tened up with inore rEdiiioml
a"" m- eaa *hert srengths. some e-comnerce cusornes can order prcducts
s..*i.
through an Internet site md pick then up at a local store close bv

T.adition.tProc.sslor Pl.cing

E-comme.eproc.sstor Ptacing.Pur.h.seordor

@ In addition to e<ommace, businesshbrmtion qttems include the use

of teleconml
(''P/octtl
ni@tios and th Intenet to perforrn mv related tasls Electv"i' Pncament
E-commraa Graatly
pdis at
SlmltilisPur.h.sing zezy', fc *anple, involn using information qstem md t}te Internet to acquire
.uoplie. ui.e hformxion .ysrem' and the Inarner' i lzmo* batwt tbrcim) gce' t
* i*r"ae rhe ue ofinformario' vstens:nd rfie Inrm* o perfom '
"."i "-.'i*
'U-i*.'*f""a *f" f"n.lions, slch a! accountins, fime' maLedng' mmuhaunr
md human reouces -a activi ties. Ebctoaic nanageMt (e-tb'4setunt) iwolves tta we
 /n nrmdL.rri :o nr mr i i }l Fn! | chal tr 1

and rhe Internetr manageprofitand nonprofit organizatiors,

: i,rmationsysrenrs incLud
:: governmentalagencies,the militry, md religious and charirablc organizations.
lnagemenr indude all aspects ofstaffing and hiring, directing,onuolling, and other

T rans ac t i oPnr o c e s s i nSgy s t e m sa n En

d te r p r ise
P
R es ourc e l an n i n g
Processing
Tran5action Systems
. :,:. dre 1950sconpuft^ lave beenusedto pcrforn commonbusine$applic ions. lhe
rcriveof manv ofthee earlysystenss'as to rcducecostsby automatingmany routine, A n yb u s i n s sr e l a l e de xch a n g e
s u c ha s p a y m e n t lso e h p to ye e s
1r inrensivebusinessy*trns.Atnneciion is lny busincv relatedexchange sucbaspay-
5 a t e 5t o c u s l o m e r sa ndp a ym e n l s
: rs ro emplolees,salestu customosi or palmerts ro suppiicrs. l hus,pro6$ing busine$
-:rrrcdons q'rs the first applietion of computr^ ftr n6i orgdriarions. A transaction
:tu.esins sstem (TPS) ;s !n orsanized<nlection of peoplc, proccdurcs,sofnvarc, Tra.5actionprocessin9
system
:::r5rscs,and deices usedto record onpleeJ buiness tnnsacrions.To undcntard a tTPSI
::,:rcrion proc$ing s).ted is to undentrnd basicbusincss operarions and tunctions. A n o r g a nz e d c o t t e c to n o l p o p te ,
procedufessoftwafe,darabases,
One ofrhe fint busines systens ro bc conputcrized ivas rhe pay.oll systemGeeligure
a n dd e v l c e u
s s e d r or cco fdco m p te t
ir. l he primary idputs for e pavmll TPS arc the rumbers of errployee hoursworked
: r og theweekand pay nre. The prinarv output corsists ofpaychecks. Early pryroll systens
.-. rl'lc ro producee-ployee paychecks, along with important cmployee-rclrted repons
,:rrcd by srateand fideralagedcies. su.h xs the Iniernal Rcvmuc Sen-ice.Other rcutile
.rli.ations includesales ordenng.custond bilhrg andcustomerrelarionshipn,anagement.
:rror1 contrcl, and nany oiher applicrrions.Someautomobilecompanies,fot romple.
.. rheir TPS to buv billions of doilareof nccdcdpans ech 1er through Internet snes.
-.-.rre rLesesrrtemshodle rnd proces dallybusncs exchinses,o. ransaclions,lhey ffe
--rsilied o TPSs.

w
A PayrottTrans.ction
Proces5in95y5tem
T h e n p u t s{i u m b e . sof e m p to ye e
h o u 6 w o r k e da n dp a yr a te slq o
t h r o u g ha l r a n s f o r m a l i opnfo ce ssto
p . o d u . eo u t p u t sl p a ych e cksl .

n idpov.d forms, rhcsel-l'Ss e srili tu mot nodern orga arions: Corsider

'ital
. r .w,uld happenif a organizationhad ro tunction withort irs TPs for .ven onc day.
.: .Lnanv emploies would bc paid and paid tbe correctamount?How mnr sJeswouid
. ::cordedrd procs*d? Truscrion pro@$ingsystensrepresentrhe applicarionofin-
-rlion conccptsand tcchnologyto routine, rpetitnt, md usurllv ordinary busines
i .:ir.tions dur arc criricalro rhediily tuncdonsof tk t businc$.
:nterpriseResource
Ptanning
: enterpriseremurceplanirg (ERP)systemisa serof integrated prognns tkrt is capablc enterpriseresourceptanning
.rrlrgnrgacohpan)"svnel bninessoperations foran globJ orgdiation.
enrirehulrisite, IERPIsystem
.! srstemscanreplacemany applications with oneunifiedserofpn,gnns. Sutt* HeJrh, A st of ntegratedprogramscapa-
b l e o f m a n a gi g a c o m p a n ys vi ta t
:::. nerwo.kof33 hdpiels with ovcr 4 nillion patienlsin northernCalilornia.ses a!
b ! s n e s so p e r a i i o n f5o r a n e n ti r e
,.:.1srsremb pro.es nedicrl fansactionsandto exchange infornation berweenhospitals, m u t l i st e . g l o b a lo r g an i za ti o n .
-. . ic r ns , andm p l o y e rs .z e Al th o u g h th c s c o p eofa.E R P systehnarvaryfmmconpaD y
to strpporrrh. nduAcruring
-oNpanv,host ERP systemsprovideintegnted sofsare
: rlnancebusines functioro ofan org.liz.don. In suchan enrnonmox, a forecm is
, .i i .:rrcd rharesrimates cdtoner demandfor several rveks. TheERP systenchecksrvharis
 Pu t1 | ir o n r L NiT e .h n ,h qy..ft,pE

SAPAG , 6G er m ans olt war e

co mpanYis oneof t he t adng
s!p pt eE of ERPs of t war e.The (r*' ,.,.! i 'i 1't
/,*6.!-i9dd- Qt* {j :,.1,
companyemptoysnearty30 000 !86
pe op t ein m of et han50 c ounk ies .

f- -- -,
--.

*6r',5r$r6fdT *o!"u?taft $
FQa *ffiAr,268
';gwg\ANT

WWW
{r

!lread).available
in nnishedproducrinventorrto meertheprojecddenand.Manufactui
hst the. prcduceinvenroryto elimimc anyshorr@tuings.In developingrhe produ.ti
*hedule, rhe ERI slsremcheclGthe hw nadialand packing-narerialinvcntoriesddc
ternines whar needs !o be ordercd to neet the khedule. Mosr tsRL qrrens dlso hav(
purchsins subsirremrhat order the neededitem. In addhion ro rhesecore busin
prodses, sotueERP sFrens cu suppon additionalbusine$tuncrions,suchashmd ,
sources,sales,and disrribution.Custoner relarionshipnanasenenr (CRM) fertures,i
example,help organiationsnmage all aspecaofcustomerinrcncrions,includinginquin
saies,deliveryofpoducts and sefu;ces, and supporrafterrhe sale.Today, ERIj cohpr.
havelnterner-based systensto nanagecuromer relarionships. The prinary boefits ofn
pleDenting an ERI systen include s;ng adoprion of improved work processes r
inproviog accessro timely darafor de.ision tuking. An ERIr rysremca! r.!c a largenumb
ofsepatatesptens developedovera nunber ofy@s by o organiation and replacethe
whh one unified serof prosramqnaking rhe sysremeasierro useand more e$ective.

In fo r m a tio an n dDe cisio Su

n p p o rSystems
t
The benefirsprovidedby an eFectiveTPS aretansibleaodjusrifiesthen rsociatedcoss
.ohpurins equipmenr,conpuier prograd, dd specialized peNonneland supplies.Th
speedbusine$acrivi.iesand reducedencal coss.Although ea.ll accounrinsand filarc
TPSSwere alre.dy valuable, conpanies son realized rhar the data stored in rhescsystc
could be usedo help nanagersnale beter decisionsin lheir respecrjve busin6s ee
whetherhumanresource ndagement, harkedne o. administrarion. Sadsfringihe need
mamgersud decisionnake6 continuesto be a rojor facor in doeloping informtir

Management
IntormationSystems
managmnt inlormation A mdmnt information rystm (MIS) is !n orsanized collecrion ofpeople, prdedur
systemlMlsl sofrw.re, darabases,dd d$ices urd to provide rcurine infornetion ro nanagers and de
An o r qaniz ed of people
c ot lec lion sion makers. The focus of an MIS is primily on operarional efficiency. Mafkedr
procedures software,&tabases,
production,findce, and o!he. tuncrionalared de supponedby MISSand linlad rhrou
and dev ces usedto provideroulin
inlo fm aton lom anager sand a comnon databse. Management informarion sysrem tlpically provide snndard repo
generared with dateand informationfron rheTPS (*e Figdre 1.12).
Managementinformation systems werefinr developed ir the 1960sandarechancreiz
by the m of infornatioo sysros ro producemamgerialrepons.In most cases,theseea
reporrswtre produ.ed periodically-dailv, weekly,nontbly, or yearly.Ganhliog coin
seneraredaily reponsthar rell rhen sraffwhat specificcurones like. Sone casihosknc
 .nn.du chspte,r
" ." ,-s, ". I

@
F u n c l i o n aml anagemenl
nformationsystemsdrawdatalrom
t h e o r g a n i z a l i osnt r a n sa cto n

1
SYSTEM

. ::irer a cenain cuslomerlikes ltowes in her roon or a bsenqe in his hand and can
. nodr . e r nd; v i d u a l n e e d ,od,rn re ' . l e n o J i l R pon\rep,i n.ed reb,tr.tr.,o,hq 4r
. .J nhet/rkd repolt\ S.heduled repor$ heLpnanasers perfofunrheir duties. Ior emple,
. . n " D r epo, , ' f ro rr' p l r)' o l l .6 r. ri g h r h e l pa n a..ourrrngrr4r,.od." t fu;re
:- ioll cosrs.Be.auseof iheir value ro mnasers, MISS haveprotiftratedrhroughourrhe
::gcrncnr ranLs.Forinstance,rhe roralpayrcllsumary repon producedinitialy foran
: rnriDs nanagd misht also be ureful ro a producrionnanager to help nonitor and
-:!l laborandjob cosrs.Orher scleduledreporlsa.e usedto helpmamgen from a wiew
' ::parlmerrs conrol cusroner crdir, payme.ts to suppliers,rhe performanccofsales
:::::entatires,invenrorylevels,and nore.
Jrher rypes of repors were also d*eloped during rhe ea.ly sragesof MtSs. Dr,r,/
-i wcredelelopedro givedcisionmaken cenaininftrhadon on reaue$.For esnoie.
- . . . t o. ing r , Je . a .a J .,re p re .c n rrrn e
mi s h \eet " derund .0" " 1." _,.1
.:rory existsfor a panicdar irem. This reporr would telt the represenradve ""
wherher
' .;h invcnroryis on hand to fill rhe custons: ordet. Et ebtios rcroft desibc lnst.J
. . r i, ir uJ r ion...u .h J . l o w :n ,c n to ryJ e re ,,.{ "
ercori o; ..pori r. p oouad onJl i r "
:-:i,n condiriondisrs-in ihis case,invenroD.falhnsbelowa specifiedlevel.ror emple,
. . . lem J nuf r , ' r ,,n g .o n p M ,.rn e r.e p ri ,,n ,e D o fl mi gt-.beprodu.eoby,hc14t:i f
- . : .mbcr of bicycleseatsis too low and more shouldbe ordered.
:cieionSupportSystems
: ::: 1980s,dramaricinpmrements in cchnotogyresuled
in inforturion srstehs rhar
. ( \ pen, r e hu t mo ,ep u r-rtu t,h rn e r t,e ,,, .,en.. r.op e" r aI l e\et.oforg& i /r,i .1.
i:::r !!!g persnal@nprters rc do a varieq.oftolsr rheywereno longersoletydependenr
:::. IS dprtmenr for .ll their infornation needs.So, peoplequict<lyrecosnird thar
:utcr systemscould suppo{ addirionaldecision-naktngacriviries. A decisionsuppon de.ision5upportsysteml0SSl
'--m (Dss) is an orsani,edcollecriorofpeople,procedures, rcftsde, darabaFs,anJde A n o . g a nz e dc o l t e c to n ol p e o p te ,
::. ied to supponproblehrpecific dcision making.The fcus ofa DSS is on decision- procedures,sofhaare databases,
- rris efiiciiEn6s. \flheres an MIS helpsan organization"do rhingsrighr," a DSS hetps a . d d e vc e su s e dt o s u p p o .tp fo b -
"do t e m - s p e c icf d c l so . m a ki .g .
4ger $e right thing.' Otrord Bookstore,lGated in Crlcurta,ues a DSSand tle
' .: rer ro allowb@k loves in I ndiaro p urchase lhen favonreb@ksar orford's rndj rionat
.: rroresor thtough its Intener sire.The Inrcrnersirepro;des a wealthof inhrmdon
Jp peoplemakebenerbook-purch$ingdecisiors.30 Blue Cro$ of ponsylvdia lses a
.r :ron Inte.Qual ro help n $pport level-olcae decisions.rl
i DSSsupporrsdd assisls all *pe.$ ofproblem{pecinc decisionmakinq.A DSS can
. pp" r r. ur om e n b v ra p rd t)re .p o rJ rs ,o ,h e i rph,,ne e n: , ,nqi tri e..I o:s
" nd
::,i . ey ondar dir i o n J M l S b y p ro v i d i n g i mme d i a reassi sl ancei nsol vi ng@ nptexp.ob-
, - . \Iiny of rheF problehs areuntquedd nor srraightfoMard,and info.narion is otien
. :dt to dbrain. For instane, d auto hanu6crurer nish! uy ro dete.ininc rhe ksr
::::on to build a lcw nmufac ring faciliry,or d oi1companynight Nanr ro disover
 Pdil I nrormaim T{hnotoqyco(epls

rhe bestplace to drill for oil. Somebig oil @mPanid se a DSS to nack md mage ptoject
ard emplo}ts in @mds aromd the world. Traditioml MISs are seldom ued lo solv
thee types of prcblens; a DSS cm helP by suggstingalterMtive ed csisring in fim

0c iso n e e d npgro vd e sd e c i s i o n Decision suppo.r s/stens de wd when the prcblem is conpl* and tie informatio
supportsoitwarecatledCrystat
neded to male the best decision is dificult ro obtain and ue So' a DSS also inrclv'
5 u s i n spse o P l e o t
B at L ,wchhh e tp b
all typesassessrisksendmake megerid judgment and perspecrire.Manages often play ar activerole in t}te developmt
Iorecasrs. Sh@nhereis the md inplemenradon of the DSS. A DSS rognias that diflercnt nanagerial stylesand dt
i nb e i n gu 5 e dl o ro i t
Ed i o
s t and a rd cision rypes require ditreror s'stems. For exmPlq two Producrion nmagqs in the s,r
position rying to solt the soe problen night require diFerent infornation md suppor
The ovenll emphasisis to suppon, ratier than replace,namgerial decision naking.
lsource:CrystatBattscreenshol
courresy Inc.l
of Dec5ioneering, The gsenrial elemena ofa DSS hclude a ollrcrion of models ued ro suppon a decisio
maker or Mr (nodel basd, a ollection of factsad inforrnation to ssist in decisionmakir
(databa.se),ad syserns ard procedute (dialogue nanlget that help decision naker ai
orher usersinreract with the DSS (seeFigure I t3). Softwte is often used ro manage tl
datab*e (the danbue management s),sien, DBMS) ad the rnodel bte (the mod
managementsystern,MMS).
In addition to DSSsthat suppon irdividual decision nuLiry, there de grouP de.isi.
uppon sptems and erective suppon systeos that usethe sameoverali appreh ofa DS
A sroup decisionsuppon sysren, aho cdled'a gnq *2p,rl16tu ' includes rhe DSSelenei
iust described md oft*are, cz]Jed' groupuare, to help goups make dlicrire decisions l
qcutive suppor systemiako cdledavtatiue infomdtiob !1sten, idps ro1tqel narr'get
inctuding a firmi prcsident, vie pre.idents, dd menben of the board of dnecton' nal
better decisiotr. An *curive suppon sptem en be used ro csisr with straagic plannin
ropJevel orgmizing and sraffing, srrategicontrol, and crisis mmagenenr.
 Anrnrmdurr,on
fo sr*.' I cup.' t
""-" -

w
EsssntllDSSElemcnts

SpecializedBusinessInformationSystems!Artif iial
ExportSystems,and Yirtual Reality
Intetligence,
Ir .ddition to TPSS, MIS, and DSss, orgeiarions ofrcn usc spaialized system. Onc of
lae systemsis basedon the mrion ofartiAci.t inreffgqce (AI), where the omputd s1srcn a.tificbt int.ttignce l,lll
116 on.he chancteristiG ofhumd inie igcnce.Th fild ofanificial intelligence indudes Afieldiowhich lhecomputers)stem
nEal $bfields GeFisuE 1.14). lakes on the characlerislicsof

M
TheMaiorElemonts
ofAnf lcht
Intcttigence
 Pdir I nior m dm T. . m ot o q y c . f t e P r .

ArtificiatIntettigence
r.S.,i. i *';ti.ial intelligence in which nachinesrakeoverconplex dangetous
- ".-f
' ouunr. or bori ngr* k . u.h * ' frrms ' " uembl i ng '"m ou n t t m ' s1
^ " .l d' ng prcess vsMr
.osDoncn$. Vision svstos allow robotsmd other devicesIo see'store'and
pressing ;nvolves the abilitl ofompu ten to undastud md act
inages.Natunl luguage
* i".l.r *i."" in English,Spanish,or other hunan languagc Learning
- ""--andsabrl J.vro l ea'n ftom prr mFr* e' ot dper r r nre 'u h I PLr nne
* ,Lemrei \econpurer'rhe
qd+ oi maki ngbu' i ne- deci non' . neurdlnevorl ' L a brann of r r i6cr al r nr clligen'
and
."rr.' Ar.*, . .ecognize and act on panernsor irends Sone succ$sfulstck'
".-p** ;* neworks to spot rends and mke rhem note
o*iom. md tutures ln,t*'
"*"1
profieble whh then invesments.
ExpertSystems
, rheooliryrc n"ke 'uggc'rion rndI r like r cxoer t in
r,J"" .v"*' *i*
'r,. que vaue ol erpen' rrem' i ' rharth ev allor or gan'r r t ion't o
-rpure
th a tg i v e a
A s y s te m s c o mP u t rtn e o-,i ." r,' nal r l . ui
abitiy to ma k es u g g e sotn sa n oa c I " ,1" of open ' a.d ' pe.i rnr' Therel o r ever F ot exPer ien'e dnd
." i -,. ..a
lik a ne x P rtn a P a .n c u l aertl d ^. -U " m
' o.,;tl ..t" tt' ,,." " ,.o-olb.,ppl
.rel l l orw he'al' humoerpordi
i edro mor " nl i el d ordr{ic' re' P
' r'l dl e rl\+l"r
i ne "not hel
pei^vnet u h'r ebeen
i .S . r" o.' w u.-...n
' p* fom m edi'Jdr ar ce lo'"t e
rc' moni to'rompl .' ' y.' ..' ..t'
^ed ^ " " .1. I(" * t' r'
po* i bl erepai prcbl
r em..de' i gn,nd onGgure ' oml onor\' Pt r lor r \ Rda. f lJr ur iu!
de' el op ma l e,i ngp| r' forz no produ' L' r no i nve!men t! Er ! gr c\ '
" .d *d rehtionshipsth* nusr be followedto achi*e valueor the
.iL", p--ai'i.,
'i*, o-. i ' , on' " i n.J i n rhe.(perr kno" ' 1' dge bo e
o.oo" ,ou' . ' )' t(m '
fhe end ofrh. ruenueh .enru4 broughr ad' r.e' rn borh r if i'r J inr elligen'e
"nd
The cotteclionofdata, tuLes,Ptuce-
t hat m us l
du res ,andr et at ions hips qpen Ystem Morc and nore orgnizadom aresingthae {'stemsm slvelodpldPrcb-
be followedt oac hlev ev at ! eor lhe hms ani upport difficult decis;ons. Hwoer, danv issuesremaintoberesolrcd'and nore
work is neededro refinetheiJmedninsfuluses.
VirtuatReatity
ihat@bbeexPeden
ri**r Ji.y i, ,r'".n"rationof a rcalor imainedenvironnent
Jir r u r enlin
The simutalronol a real or imaqined i n th,.edi m' roi on' Oi gi nal \" i (uJ rcrl rDrcl er' d ro r m m cFik
' i ' u" l l v i i) $or ld | lnnokier '
t hatc a. be ex Per i
en vi . onm ent w hnh mcu' r-heu' er be' ome'ful l vrmeFed i n an rri fi (i J 'hJt
t hf eedr m ens ons
en ce dv ls uaLt y in qenerated by a computer.The vntual wodd is presented in ftll scale od relates properlvto
',r'" such * a building' ar
r''--ii*. It nay reprsent dv 3-D sening,reai or absrract'
anhreol ogi cal o-' rti on' i re rhehuman' naromvr' ' !l pure' or r 'nr c"oer "obr t u'
im n'nl'n r neu't
don.V i nuJ.orl d' onbe,nj mrted.i nrem' ri re' rndshar' d Thr "r gh
can sein a deexr understanding of the virtual world'sbehaviorandfuncriomliry'
i ufinp"t d"ui-, a had-nounted disphvs(*e Figu 1 15)' dah glov
'-i.w 'uch the u*r ro ndigate ihrcush a virtua
GeeFisurei.16), ioysticks,and handheldwmds allow
."u-i--. i. with vituat objecs D;ectional sound' ractile and force feel
back devic. -a -*-.t
voie recognition, and other technologicsde Nd to ori'h rhe ;me$iq
Bes ol hl
ooe,i en.e.S e" eelpeopi e,r' i rar od rnrem' rIn i he \ne cn\ i'onm ear '
.bi ' rv real ;rr.r' nbe, pow edulmdl i um for' ommuni'r r io
' i rrual

'"*lili;".r'o *. thatre nottullvinncni"e'suchx mou'

toapplicarions
"*.efer m oir ct r cr eo t 'ot n
.onrrol l ednari gati on rhough : J D envi ronment " n r gmphic'
l rom $e mon,ror" i ,.rero gl s.e. ' rereopr" recti on 1" cm\' rd or hd \ or evr nur r ca|r
aoolicationsallow vitm oieal en;romens wirh superimposed virtual objecc. Motio
,ii.r.. of doer or athietesfor subsequenr studiesin imersiv
'r'" -.*nenssrstens (e g.' rclemedicine,
-."i.- Telepre*nce
vinuat rmliry. inmene a vtewettn
telerobot;cs)
for the roor
real wold that is caprucd by vido oneras at a dismt loation md allow
r h'r vilL
mrni pJai on ot rej obj c.r' ' i r robor rm\ rd mri puL' on M 'nv br lj*e
;' * * ,pi ^g e i nhrrmJ'ronr e'hnolon
i " * ,rd, e bseenpeoP lrnd bv of f erins n'
,
" Ji ,i '* idem creativeln
*-, i. i"r.madon' visulize prcesses,and exprcs
Useful-.--L*
apoliotions ofvirual realitvincludetra;ningin avariervofareas(militarv' na
rvnur l pr 'ior yPint ) Jr 'n
i cJ,.qui pm.nr ope,,don.er..r eduori on dci gn * Juatrun
ol sem h
rc.t' ' j .al t ti rcugts hu-r' fa.,or' anJ crgonomi ' rudie'. r m 'r llion
tasks,asisrancefor thr hudicapped' studv ud ueatnent '
*q"""-'
-d -"i;**
 I nr':.r-r,. L r.ri : r.,r.Lrri C hapi e r l

@
A H ead-Mounted
Dispt ay
Th. headmounl .dd . playI HMDl
w asthefnrt dev.oolt s k nd
P r o v0 , i q r n w e a f F fw r h a n
m m a E v e e x p e rc f c e . Al yp .a L
H M Dh o l s e 5 t w o m n al u r e d sp ta y
5 . r e e n sa n d a n o p t . J L.y!te mth a t
. h a n n e Llth . i m i q s l r o m th - a
s . r e e n 5r 0 t l r e . y e . t h e r e b y
p r o s e n in q a 5 1 . r o ov e w o ta v r tu a L
w o n d A m o l o n t r . c k er
. o n t . u o l s t y m e J r u f e sth e p o st o n
. n d o f e i l a t o n o t t h e use rt h .a d
a n da t t o w 5t l r e m a g e ,!e fe r a tn g
c o m p u l e fl o a d t u s lt h e 5 ce n
r e p r e 5 e n t a t , o1not h e .u r e f l v e w
A s a r e t u l t l h . v e w e r .a n to o k
:i, .fflving), .lkririnmcrr, md, oicousc. !ifturl .ealityganes.Snttcrs taking
: r o u n . l . n d w J L kl h r o u!h th c
.,.,i ihc NJodcnrhesidcn* rt the llfiv.$irr of t)enrtr, r. ablc ro .hrt wirtr
s u r o u n d n 9 w t u a L e nyr 0 n m .n r
. ' acirs, Vhite I lqtrc rdninrrlror, .nd XLshireron irriJers.rl
: 0 u r : e m a g eL 0 u i e ;, 0 \u

@
R e a L t t r .n t e f a c to n 5w th v ft!i l
o l r l e . t sv a r ! . h d e vc es.i a d a l d
qLove t h a t s o n r e sh a n dp o et o n
a l L o wi o r m : n p u t a to i o p e r a to n
. n d . o i f t o L o l v r l u a t w o r l d s.
l s o u r e : m a q eC o u f t esy
of 5Dl

.1ificrjr to pLedicrwhcrt irti,rnarion slrems :nd rcchro|,$.rvill b. in t0 ro 20

,.-rms,horever, rhrt irc rre jur besimtrll. n, d;co!.i full rangcofdreir use-
l.rhrologr has beer i"rproving rnd cxparrling rr rn 'hr f.r.j d.rmric
':.rearing
r rl .hi ngc arf expecredfor rern ro coni. Yrit hour qucsrion. r k.os.tcdg. of rhe
rsc ofinlbrmrtnn slstcmswill be crlricalllr managosbo'h noq..nd h rhe kmg
,r hos, irc rlr* infonn.iion ssterrs cLcarcd?
 Ps . 1 | n om at onTe. hn o t o q y c o n . e p ',

DEVELOPMENT
SYSTEMS
v
syrtemsdevtopmnl S1srcm d*elopmnt is the rcriviry of creating o nodi&ing e.isting businesssysie
The activly of creatingof modifyng Psple imide r compoy tu doelop systems,or onpanies.an lsE oasou/ciag, hir!,nt
existin9 businesssyslems. outside compuy to perform some ot all ofa s1'stensdevelopnent prcjecr. Outsour
allom a company ro focu on what it does best and delegateother functions to ompa
wirh xpnisein sysEmsds'lopment. Cox InsuranceHoldings, for mple, oursource
omercirl underwritiog operations to another company.rr Outsourcing embled Cox
sumce to strmlire in openrions od rcdrc cs. Outsourcing, howEver,is not the l
alternatie for all ompmies. Toyoa recendy stoppoJ oureurcing its financial services
staned to perform rhe ffnmcial senie fiuction inarnally.l Acording rc the directo
Toyota Financial Sedie, " You dcpend on thn sewie prwider. 1ou wory about wha
or not it will be in buines n*t yeu, and wherher or nor it will be able to seryie
coroistody thoughout the terms ofttre agrenent and beyond." Other conpaie h
used ousoucing fo oftw*e dwelopnmt, &rabase de"eloprnent, ard other *pect
qstems devetoPment.
Developing inbrnation system to neet busines needsis higtrly comple* and diffft
so rnuch so that it is comnon for IS prcjecs ro ovenun budgets and ereed rhatr
completion dates.Bsines mages would iike the dwelopment proess to be nore n
ageble, apecirlly with predictable co$s md timing One stratery 6r impoving rhe res
ofa sysrem dmtopnenr projct is ro divid it into sevenl steps,echwiih a well-dd
goal and set of tasksto aconplish (r Figure 1.17). Thse stpsare sumarizpd nert.

w
An ovorviow ol Systems
5YSIE||5 tNVESI|GAT|ON

SYSTE|,'|S
AllALYSlS

SYSTEMS DESIOII
3.1..t .nd pl.n b.d &tutlon

gYSTEMS IMPIEIlENTAIIOII
Pl..e $tulion into.lt.rt

lrlAll{TENANCE
SYSTEMS
Ev.tu.t. r..ulk ot rotutio.
 q^r udldon,o c o " p t ",
I
"",." - '" " . , '

I nv e s t i g a t i oann dA n a l ysis
S y s t ems
--. rint two seps of sysrem d*elopmerr re system investigation and malysis. The goal
,; ft ryt.% i,t'tkntia, is ro gair a clea undentoding of the problem to be solved or
,;onunny to be addresed.A cruiseline compay, for umple, my launch a sysrens
. .stigatioD ro dererminewhether a development prcject is fesible to autohare purchdins
r rrrs *ound the wodd. on.e an orgdizadon unde(tandsrheprcblem,rhe nexrquesrion
,: answeredis, "k $e problen wonh solving?'G;ven rhar oryanizalionshaE limired
-
+:urce*people and money rhis questiondesffescarelil consideradon. Ifrh decision
! :r .ontinue wirh rhe solution, ihe ndt sep, {,6?us azlys;, deffnes t}te problens md
duniriesof th exisringslsren.
'.N

S y s t emDe
s s i g nl,m p a e m e n t a tioMna, in te n a n ce
a n, d
ReYiew
:!:.a /.rls, deiernines how the new sysen willworL io neet rhe busines nedr ddtred
r.ng srstens amilais. S'lJ.% inplendtdtlon innlves crating or acqui.ing rhe vaious
.,.::m conponenrs(hardwre, software,daab*es, erc.)definedin the designstep,ssem-
r:-:5 then, and puning rhe new sysieminio operaiion. The ptpose of ysten maintmatce
is io che&ddmodi$ rhe systemsothat it continuesto neet changingbuiness
"s '.,ttu

I NF ORMATION
SYSTEMISN SO CI ETY,
BU5I NE55,
ANDI NDUSTRY

--! oation q,stem hare beendoeloped ro meet rhe neds ofall rypesoforgniarions and
r:rle, rnd their ur is spreadingthroughoutthe wodd to inprove the livesand buiness
r: ries ofmany citizem.Burto providerhen enornou benefits,irformarion systos must
r rplemented thoughtfrrlll,and caiEfull),.l'he spedand widespreadue of informtion
E::nx opetu orgdiations ard individuals to a var;ety ofthteats ftom unethiel people.

S ec ur it yP, r i v a c ya, n dE t h i c al s su e sin In fo r m a tio n

S y s t eman
s dt h e l n t e r n e t
r r:.,dch inforhariods)atemsen prddeenormousbenelits,thererea numberofporenrial
ra::nr upec* to their use.J'Figu.e1.18,fo. *mple, show tle percnrageofbusine$es
arackedby variou neaos ina one-yearperiod.Figure 1.19roeals
e--: rrher organizarions
c. :osr of loes during a one'Fai period ofabour 250 organiationsrhat tespondedto a

ln addirionto anacksoo informarionsystems,compure.r6ou.c6 can be wasted,an,l

::ruterrelated mjstake and misusehareosr oryaniarionsni[ions ofdollas. Itr an acr
i:=- enge,one fired employeein Austrrlia urd a compurerrc hackinto a sweragesysren
r.: eleasedmillio"s gallonsof ew wote inro riven md parks.r6He relecednwwaste nore
rir l0 timesbeforehe re caught.Computer crirneand the invuion of privacyarc alo

:noeainsly, $e erhicalue of sysremsho alrc bem hishlishredin rhe news.Erhic.l

concernwhatis gener.llyonsideredrighror wrong.SomeIS prcfesionalsbelievethat
's
:apurcre may caate nq oppoftuniries for unethical behavior. Ior eumple, a facuhy
r.-bcr ofa oedical rhoolfalsified conputoized rereatchteufts ro getapromotion-md
- ;hcr salary.In another w, a onpany {6 chargedwirh uins a humo resourceinfoF
nron r$erD to time employe layoffs and firings to a"oid pay;ns pensions. More and more,
re :nrenet;s alsosaiated wnh unethicalbehavior.Unerhicalinresors baveplacedfalre
-Eos or wrodg infori@tion about a @mpanyon the Intemet and tried ro indumce its
 Oesc.i behowto sal ectai d cr!anrrccom puler
A s s e m b L i naqn e ffe c ti v ee ffi c ientcompul -
of i ts svsl em compone.t5to suppofL nr 0r m a( ci
e r s y s te m;e q u i re sa n u n d e rs tandi ns
systemano system[l S l ob]ectvesand bLrsnes5or gar za
re ta ti o n s h itop th e i n to rma tron
th e o rg a n i z a ti o Tn h ec o mp u tersvstem ob-
to
j e c ti v e sa re s u b o rd i n a te b u t suppofl rve,
s v s te m
o l .th e i n i o rm a ti o n a n dthe needs or

D es.fLbethepo' .de.3peed, andcaPacitol j7cen

Wh e ns e te c ti n g c o mp u te rd e vi ces' vouatso devl c es
trst p.ocessnq and memory
mu s t c o n s i d e r th e c u rre n i and future
n e e d so f th e j n fo rm a ti o ns v stemand Ine D es.nbethe accessmethods ca pacit ) and 7'
sl 0faqaoe ! ces
o rg a n i z a i i o nY. o u r c h o i c eo l a partl cutar pofi abl Ltyof E ec.ndary
c o mp u te rs y s te m at
d e v i c es h o u tdaLw avs l he speed,l !n.t onati tJra nd r m po'
D rscLrss
to w l o r ta te ri mP ro v e me n ts i anceof i nP !t andoutP !t0el rces
l denl rl ypop!l arctassesol compL r t ersvst em s
anddl scu.sl he foLeoi eacn
 F dwafe nplt Pm.essnq .nd ourputDups I ch.pt@ 3

NT'ORMATION SYSTEIVISIN THE GLOBAL ECONOMY

FORSCHEAG, GERIVIANY
llardware
lts Computer
r - : Man!factureiUpgrades

:='=.:he is known for nanulacturing vorld-clase sports cals, amoDg them its
rsr: js I11ard Boxsten automobiles The compa,ny built on its leputation wtl6n
I e:rtly introduced the fou wheel-dlive Cayenne. the world's tastest Slw, alld
:nelra m, a super spolts cax with a powerful v1o engine Porsche's head-
- in Stuttgart, Grmanyi ii maintains production facilities in
ji,::i:art anil Leipzig. and it has dea.lerhips and eale8 offices lporldwide Annual
{E- are ai record levels-pproaching a jaw-drcpping $? bilhon aDd its em-
aLr--s number just under 10.ooo,
:: naintarn its market leadership. PoEch must emplov intormation svs-
L.^ ,s cutting edg as its ca$. The compary w3.s one of the first auto makers
enterprise rcsourrce pranning (ERP) software to suppori its a.-
- ::rduce
rri:rg, finance, purchaing, md materia.l managment business prroce$es It
E;-Eiiented its ERP system in the early 19sos and chGe then stat-ofthe-ari
:!-.-:rr Packard V-class seners 3s the underlying computer ha"rdwaxe to hmdle
*r:i -, 5 million daily iransactions quicklv and reliablv. Over the yeaxs' howev_
{ :: lolume of tEnsactions its system must handle has more ihaJ} doubled
1'-- :-dease comes from fou! factors: (1) Porsche plans to Ne new ERP soft
du-? :o.lules to support additional business processes (2) the comparry intro
:re: :ew automobile models, (3) it built a new production plant for the Cavenne
6r la eFa GT, md (a) the number of users of the ERP svstem exceeded 4,ooo
::-che InJormation Korrmunik|,tion Seryics (PIKS) GmbH is a whouv
lrE: subsialia.rv of PoNche AG, with headquarte$ in Siuttgart lts ac
lor piarning a,Ird operating the IS inirastructure for
'cc ::ees aie responsible
;E :r:ire Porsche group, including networks, seFers seculitv sl'stems. ard
trir:<! systems. For over a year, PIKS evaluated several difieleDt computer
oE:iciurers anal hardware optiom to met the new procseing rcquiremenis
r :ritical that the new hardwar not inctease the companv's h.rdware bud
-- lbr iously, the new hardwaxe must work well with elisting comporents of
4q
s :iiastructurc (softwa.re, network, and other computer hddware) Impo!
.: : the new hardwaxe must be extremely leliable and available
:r ueet the company's computing neds, PU<Sdecided to rplace its HP V_
uls seners with two HP superdome seFers. each with 24 prccessoN and 2a
prccess-
r!&,-!..1es of F-AM. This haxdware upgrade also provides for incrcased
e!- : rf,er to meet future needs: the PA aToo pmcessors in the cunent version
n i. Superdome serv$ cm be upgraded to ploc38ors from the Intel Ita"nium
r:iEisor family to double the prccessing capab itv
E u readthis chapter,considerthe toltowing:
- - -a are companiesusidg conputr hardwrc to conpetc and meet rheir buines

. - . do orgeiations go abourselectingconpurer hadware and what mrsr vou know

. r.sistin this process?
 P&te I nrrmrionrrhnotoqycoaceprs

Today\ ue oftechnolog is practical intended ro yidd ral buinss benefic, u seenwftt

Pomche.Employing infomation technolos/ and providing additional prcesing
co increue employeeproducivity, erpand busincs opponuniris, od allow for more
ibility. As we alreadydirused, a cornputer-basedinformation srsten (CBIS) is a ombi
tion ofhrdwae, rcfrware, darabaseG),Eleconnunications, peopL, ud
oanized to input, prc6s, and ouput &ta and information. In this chapter.wc
on the hardwae conporent ofa CBIS. Hardnre consistsofoy nachincry (most ofwhi
AnymachineryImostol whichuse use digitat circuits) that osisls in the input, proce,sing, storage,and output activities of
digitatcircuilslthatassistsii the iafornation rysten. The ovenidins considerationin making hadmre daisions h a
inpul,processing. storage, and
should be how hardw cu be usedro suppon the objective ofthe informerion tsrem
outputactivilies of an inio.mation
the goalsofrhe orgrniation.

C0MPUTER THEPOWER
INTEGRATING
SYSTEMS: 0
TECHNO LO G Y

A @mputr s'stem is . spcialsubsystemofar orgmizarion's overall information sFtem.

is m iotgratd dsmbly of dsie<entered on at leasionc prc<sing mechrnisn utilizi
digiEt elronics thar are ued to input, proces, storc, od output data and infornati
Puning together a onplete computer system,however, is nore involved thm jut
necting conput r dflic. In an eifectiw ad dficienr sysiem,comPondtr de sdected
organized with o understanding of tlre inlrdent tnde-ofG between overall sptcm
mance and cost, ontrol, and complexity. For insrace, in building a car, nanufacturs
ro natch the intended ue ofrhe whide to itr conponents Rrcing ers, for example,req
spccial rls of engines,tmmisions, od dc. The selectionof a trusmission for a
d, rhn, rquiresnot only omidention ofhow nuch ofthe ogine\ power can be
to the wheels (efrciency md cllectivened but also how dpemiv th tmnsission is (
how reliable it is (control), and how many geamit has (compl*ity) Sinilatly,
soble computer sysrcmsso dnr they are effectivc, c$cient, and well suited to the
thar need rc be perforncd.
As wesm in the openingvignene,pople involvedin sLctingthir oryanizationt
purer hrdwar mu$ have a dar undestanding of the businessrequiments so they
nakc good rcquisition decisions. Here ar sewial exarnplesof applying business
stmdine to rer-h critical htdwac dcisions.
GmbH (ARZ) is oneofAustriai ledins Provider
ARZ AlsemeinesRechnzentrum
infornarion services,processingmore tho 8 nillion trarsaaions per day for finarcial
nediel insrirutions. AM is koly inrereted in reducing prcesing osts, naintai
 Hafdwafe Inpul,Processinq.nd outpd Ddtres cbrpi.r u
I

{!iEr capaciiyio handle m increasingwotkload, and p.ovidins hishly rliable proccsins.

frr :.hi(. information technolo$/ d;.ector at ARZ, selectedrwo large, *trcncly pow
Porscheneededcost eltective,reli
i\l zseriesmainfram onputer to hmdle the workload.'
'iEr.; r rault ofdeclining ticket sales,Conrincntal Airlines managenent nmdated rhat all abte,powerfutcomputerson which
to run ls ERPsoftw.re.
mre levclopmenr prcjcc musr pay back their costsir lessrha one year. In addition, the
, ie-."tal I echnologyGroup necdeda safe,reliable,and userfriendlydevelopmeoren'
ffi-enr o wrirc ns applicrtion soft
,rc :;k wag, mmaging dircror of the
lcr"iogr Groq, acqdred a HNItt-
flhll*: H P Nonstop 58600 kner to run
ser.rservic applicationsand a Non-
ihEa :-+000 screr for softwde drydop
m5r r:d backtrpin rhe evnt the prinary
oa :k. Thse high-end, hult-tolermt
o: rc f'equendy ured fot c.itiel ff-
,@d rssactionF;n the financialser-
{E ele.rronic col]me(e indlstris.z
-J?rcdlcrsand Chemicals,Inc., isd
,.r
rnn:-nonrl supplier of indurrial gccs
oc '-r:d equipment, c wcll r spccialty
!ia.:li. The @mpany mploF unique
o!r* rhat requires powerful, high pec
r@.. codptteB to .onduct sinula-
cre r:J .onputations. Eri. Werley ofAir
ll,acr: rechnical comprting group rec-
,+!ej rr,1 shoricomings in uing
or ::om rhree difTerent nmufactrren: The acqdsition md ongoing maintenane of
rr,,r !-.;er sFtms were .osdy, md the sewea wete diflicult to managedue to lack of
lto'a'urtion. Air Produas nigrated ro Dell omputer hardwre, including powerful Dell
]u : :--rioo 4 I 0 and Dell GxPro worksations and Delt PowerEd$ seft6 ro eliminate

n -rJt.d Bicycls is a pioneer in ddigning and mdufacturing high-perfornmc bi-

rlre, :elmers, and otber cycling acc$oris. \i/hen SpcializedBicycla mnrcd to offer is
IE ,r!- ovc! rbe Web, it selectedcompurer hrdware that could mpidly incme computing
provide high reliability so that the Web site wu alwals available, ud casily be
"ac-.
mr!4:r.d wirh the rqr of the organization's hardware. To meer these requiremdts, Ron
qh F: .hiefinformation omcer,went ti Sun MicrosysrehsEnreryrise450 Srer.a
i!j,:n SrreetB.-kery stared in I 994 by an an student and anthropologisr, is roday one
rrraE ron populd ltelid bakeriesin NwYork- The ownerchoseApple s Mac onputes
rr--< .}e.v de em.ient and *y to ue The Maa rELe han,sins p.odedon dmosr
rr$rrc:. and they sppon billing md inventory onnol. vorkes dodl haveb wort' abour
hr. ri ! the compuieB dd cm oncentate insteadon nainteining the quliry ofrheir
rror-:-.rted tnditional ltalim{ryle breads.s
\ ofrhek dmples denomtrata, ssembling the right conputer hddwere requirer
-h
rn oarranding ofits relationship to the infornation syrem and the needsof the orgari-
on ieoenber that the conputer hrdware objective de subordinate to, but supportive
.G * : c,mrion {F,em sd the need'of r}reorgaizrrion.
-:e jomponents ofall informarion systems such s hddlae doica, people.ad pro-
coo-rre interdependent. Beome the perfornace of one systen atrectsthe other, all
n aq< :rstens should be ne*ured according to the sde stddddr ofetrectivenes dd
l6!E.-. gived the .onstraint. ofcost, conr"l, ,nd c"npl.*it1,.
TLJn selecdngcodputer h$dwa.e, you also musr onsidd th @rent and tuu.e 6es
r6,D,rie iicse srstehs will be pul Your choice ofa parricular conputer systemshould alwals
T dlp ;.larer i-provenena in the overallinformationslstem. Reasoned fi,rethought-
{
N
 PNi2 I lnrom3lonTechnotoqvcorcepis

ard otganizationat svstenx of all

rair recuired for dealiry wirh comPurer, bformtion'
.i^-i" th" t'"11""'L of" true busines pofesioml'

HardwarecomPonents
compuEr hardwaft
sls,m i"'rtld"
unitlCPtl
entratprocessing
p-"o;ns. i'u
"o-Po"""rs YJ:;*i;*fr ff ,*"r::'#,'ffi:
Theparloi thecompulerlhalcon_ ""os' 06(e en;ronmen,.rrosn.
-.0, -'*l:f-.0:"j,'"""eFbaed
sistsol threeass@iatedetemenls:
unit lhecontrot
rhearithmetic/loqic *:#:ffi 'Iffi.ilfjil t"'?':::'"'"fiffi i""e *-*,,,'.,p;h
u-ilp'
unit,andtheregisterareas
:*fi*##+.""rffi,:i#.[:iJi#*.f ffi:;ffT:"-i.*i"$
arithmeti.n ogic unit IALUI
Portionof theCPUthatPertorms 5li;"fii;;;;;.;:P*;"::".r'?;jj:'ffi c ,$::13-::""T';Jf;
mathematical and
calculations analoxv,rhe incomng and outgoing mail mx
(ou'PUo
makeslogicatcomParisons onouijo."s p1"."'," put,l'e Proce'sedPaPevork

SystemComPonents
ComPutr
ThsecomponenlsinctudeinPUt
devices,oulPUtdevrces
communicationsdevices,Primary
and secondarystoragedevices and
lhe cenhat processingunit ICPUI
The conhot unit, the arithmetic/
loglc unitlALUl, and the regster
storageareasconslituterhe CPU

Parl of the CPUthatsequentialty

accessespmgEm instructions
decodesthm, and coordinatesthe
fto wold atsina ndouloit heALUt he
registeE,Primarystorageand4en
secondarystoEge andvanous
*t**i*;p'xmfiA
*Y*:#i:n**
trf*:i}:ffi*{Llm i::r.:'.:
***ng;m:'r*rtr;"#L*r"tr"?ffi:trjj*tr$il.ff
ilr
Hi; sDedsloraqearea in lhecPU
us;d t;bmporarityhotd smatl units
*'il#*ffil:HoT;'.Y*.'.,'*,.a"oi,r.':*lT:::,'-:":
ol programinstruclionsanddala
immdrateLY betore duirng ano .d:il-*'i.;tffi ;;;;*'..i.* *a a'i' i"'aarctv bdoreo innediaervatq
alter executionbYthe CPU

primerystora96lm.in
tr"*-*i[':"?*xl$::
*ix*irg**';:"*m$rffi
Part of ihe compulerthathotds
in Action
HardwareComPonents
Mo Phad: In\rdclron
prEm instructionsand data' The oecution of uv ma-hhel*d inrrunion inrclves 'h' pt'ce:
pri*. nuring r}teinrrucion phl* the following trre"
J" **.;."
-a dd anv n
. Step1: Feth iNtueno,. The fetch stageread' a pmgram's iffirutiotr
dara into th Procesor'
. Ste, 2: Decodziwtitttu. The instrucdon- is decoded dd ;s Pasd to rbe
unis:'l'he anthneric/logic
procssr dectrrion unii There at sderal execution
 r,.fcnare puLr'o.es nq3id |rp,, o.-, I cr''pt". u

:.,-:,rnr all arithmeric openrions, dre lloatingloinr unn deals with non;nreger
: -rrLons,the load/storeunir mamg.s the in$ru.tnrns rhai reador wrire to hehorv,
-, -.rn.h pro.elsingun;r predictsthc ourcone ofa branch insrructior in rn arcmpr
-:Ju.e distuptions;ntheflow ofnrcuctiom md dan inro rheprocessor. thenemorr-
::eement unn tnnslaresan application'saddressesinro ph,vsical
ncmoq, add.e$es.
- : : I e vecrorp rocesnrgunir handlesvdoFbasedinsrNcdonsrharr..eleFre sraphics

. 1 dd 2 dft calledrhe; nsrrucriorphasc,rnd the ti me n takesro perforn this phae

ihe ins[uction tine (I'time). inslructiontime fl'timel
.:tordphrseis the executionphase. Durng rheerecutionphar, rhefollowingsteps T h el i m e i t t a k e st o p e r l o r mth e
t e t c h i n s l r u d o n a n dd e co d e
n s t r u c to n s l e p so f t h e n str u cto n
- , .;: l:.*tat thei5rtu ra,. ltc de.ution stageis whererhe hardwareelehenr,now
-...1\ ied wirh an in$rucrion and dau. .arics our rhe insrucrion. Thn oid in'olve
- :,g an .rirhnrric conputatn,b,bgical conparison,bir shifi, or ve.tor oper.don.
-
. . . Sto/.ftr"l6. Drtlng thn srep,rhe rcsulrsarcstorcdin registersor menorv.
executiontime (E-timel
, .:. .1
' :r,rt are calledthe eaecurionph.sc. The tine it hk$ ro compleredrc exe.u&rn T h eI m e t l a k e s i o e xe cu l e a n
! , i . , : J led t h. e l e c u ti o n ti h e (E ti m e ). Inslruction a n ds t o r et he r e su l ts.
':.: iuh phases havr ban o,mpleredfor orcinsftrction. thq arcasair performedfor
m , . i. J ins r uc t io !,rn d s o o n .T h e i n s rmc ri o rp hxcfol l ow edbythcqecuri onpl usei s T h e n s t r u c l i o np h a s el o tto w ebdy
. , : . nxhine cyde (seeFigure3.2). Sonc procdsing ditl can speedup prccessing b),
,, ': r:pclining, wherebythe processingunn ge6 dn i.$rucrion, decodcsrnoths. and pipetining
, .,,:rhin:latthesametime. l-hePcnrnun4 pro.es*r, fi,r erample,usesrwo exrcutnrn A t o f m o i C P Uo p e r a t i o n i nw h ch
r :.-.lines-Thngivesrhefrcce$inguD;r c alrilitvto executeso inn nlcrionsin d single t h e r a r c m u t l l p t e e N e cu l i o
pnh !se s
n a s n q r em a c nn e c ycr e .

Processing @
Execut;on of an In5tr!ction
ControIUnit ALU I n t h e n s t t u c to . p h a sea,
[2] Decode [3] Execute p f o g r a ms n s r u c r o n 5a n aa n y
n e c e s s a r y d a taar r e a d n l o th e
P r o c e s s oLr l LT h e nl h e n str u cto n
l l l F e tch s d e c o d e d s ot h e c e n t.a tp r o ce sso r
Registers c a n u n d e sf t a n dw h a l i s l o b e d o n e
l 2 l . n l h e e x e c u l i o np ha sel h e AL U
d o e s w h a l i t s n s t r u c te dto d o ,
m a k n q e l h e r a n a r i h me t c
c o m p u r aor n o r a r o 9 . ar
c o m p a . i s o n 1 3Tlh e nt h er e su l tsa r e
s t o r e di n t h e f e g s t e t sof n m e m o fy
1 4 1T. h i n s l . u c to n a n de xe cu ( i o n
p n . s e s r 0 9 e r n em r a K eu p o n e

ANDMEM0 RY
Fq0C E S S ING DEVI CES:
PO W ER,
5PEED,
ANDCAPACITY
' ifonetrs responsible lbr proccsing thr CPU and hehory-are housedog{h{
, , ,.,n,ebox ot cabinet,callcdthc yraz az;. All othera,mpurersysrcmdo'ices,suchas
,,,. iirorand keyboad,arelinkcd cirhci dire.rly o. iodirecrlyin to the s1stcm unit |ous-
r- .- J sc"'*d pte"iousll achievinsIs objecti!$ and orsanizarional soils shouldbe ihe
r -; ;onsiderarionin selectingprccsing ancLmrnory devices.1n dris scction,re in-
.':: :: rhe characteristics
ofrhcscimportantdsices.
 Pdt2 | fr .m a :o n T ( h f.L a r co te p i5

P r o c essinCh a n dF u n ctio n s
g a r a cte r istics
Be .ru .eh i ngeff. i enrpro.e' i ngdd.i Tel ' .u.pu, i i moornt otg" n,,ti or 'u'cavanet
'r
of mcasures to gaugeprocessing speed.Thesene*ures includerhetine it takesto compler:
r machnrecvcle and clock speed.
Machine Time
Cyate
A: we ve seen,the secution ofan insuuctiontakesplaceduring a nachine cycle.The dm:
in which a machinecvcleoccun is measutedin fractionsofa secondMachire cvcletin--
rc netved i nittoseto t (one-millionthofone second)for slow* conputer to zazar:
od (one-billionthofone second)andpnoseconds \onetilliorth ofone second)for favr:
ores. Machinerycletime alsocan be netured in termsofhow many inslructionsde e\.
MIPS cured;n a secord.This measure,.alled MIPS, standsfor nillions of instructionsperseconc
M lton so f nstfuclons per s ec ond MIPS k anothernedurc ofspeedfor conputer sysrems ofall sizes.
CtockSpeed
!.ach CPU producesa seriesof electronicpulsesat a predeternincdrare,calledthe clcr
A se rieso fele ctfo nc put s espr o speed,which rflecrsmachinecyde tine. The control unit ponion of the CPU controlsr:
ducedat a pf de t r m if edr at et hat varnus stagesofthemachinecvcleby followingpred*ernined iircrnal jnst,uctbns,kno$:
afictsma chn e cy c let im e
as microcode.You can think ofmicrocode as Predefined,clcmenrarycircui$ and logi-
operarionsthat rhe processorperforns when it executes an nNrncrion. The.ontrol un:
Pred efn ed ,ete ment : r Y
c r c uilsand execuresthe microode in accordarce with the elecronic cyclc, or pulscsof the Cr'.
tog icaopl e.a tiontshatlhe pr oc es - "clock. ta.h nicrocode ins$uction takesrt lcastrhe same mounr of rine 6 thr inte.:
so r p erlo fm5wh n t x c ulesan interyalbe$een puLses,
rhefa$d er.h microcodeiNtructr:
betwcenpuks. The shonerrhe
can treexecurd Geelistrrc 3.3).

@
CtockSpeedand the Execution
ol Microrod Instruction5
A f as t er . t oc k s p eme de a nth
s at
m of m c r oc ode in s rru c rl ocnasnb e
er e. ut edn a 9r ve Inm e p e ri o d .

Clock spcedis olien measrcd in megahctu-Ar sccnin ligure 3 3, r hertz is ore oa

onec y c t eof puls ep e rs e .o n d . orpulsepd second.Megahenz(MHz) is rhenreduredentofcyclesin millionsofcycles
m egaher t , lM H z l sccond,and gigahera (GHz) *ands for biLlionsof cydesper sccond.The docl spccd:
M it tonsoi c y c t epse rs e c o n d . pcrsonalconprters can rangelion 200 MHz fbr cohputersboughr in the nid 19905
gigaher t zt G Hzl well orcr 3.2 GHz lbr thc mos advancedsysterns 6
B llions of . y c t epse rs e c o n d Because rhe nunber ofmicrocod inirucdors neededtu erecuc a singlefrogren .-
sruction suchasp*forning a calcubrn,nor prnrtingresults<rn varv,thereis no d
telationshipbenveendockspeedmeuuredin mcgaheraandPb.tssingsPeedmeasures st
d MIPS dd nilliseconds. Although widely touted, clock sPeedis only ncanirglul
naking speedcomparisons betwccrcomputerchipsin thc sameEnilv fron the same
ufircure| conpuhg one Intel Pcnriun 4 chip with rnorher,lor exanple
andBusLineWidth
Wordtength
bit Darais noved witlin r compure.srsen in unitscalledbits.A bit is a binarvdigit 0or
Anorher hclor aiTectusoverallsysen perfornanceis the number of 6i$ the CPU
 eerra I n,,.*"nr-"" "q ro-"P;

Iind a new technologyto rephc rhe semiconductorif thev are ro kep up this rare.oi
@ inprovenenr. Assilion trmsisror grow smaller-the re will be a billion onasingle chip br
can
20b8-power dissiparionhecomesnearlyinposible to conrol, and wen cosmicravs
ptincipal rnalvstat re
Isource: D6tafrom "Moofe s Law
causermdon procesing enon.' Accordingto Narhm Broclvood,
greato inrsment in
Overview' IntetWebsite at l'w/n_ rdch conpaw Insisht 64, "Everygenerationtofnew chipsl requno
i*"I.p-.'tl and ddufactudng ro make ii work. because rhe low hangins
tet. cam/resea rc h/s iticoh/n oores' h**.h
";d producdonwas hawestedvean ago "10ln addition to ln-
l,rhh, accessedFebrlary ll, fruit in terms ofsen;.onductor
200 4 an dGa ryAn lhes ,M lc f oPr o- creasedprocessingspeeds,Moorei law has had d;mpi't on dd ddall svsrem
'osrs
ces.arc M arch on, c anPLtetua I d p",f..-;r*. A.;.; i" ligure 3 4, the nunbef oftrusistors on a chip ontinues to climb
Match 1A, 2443, ww.c anPu ter'

d
Researchersare taking many appoaches to continue to imPro'e the pcltofmance
rU e materi l
:l or in com
.o .p ,," ^ . on" ,pr,.,.h o ' rb ' uperonducri ' e ' h" i licor
'' of.emi n maJ' rharJoq" ure nr r " llow" d
o ,' .' .h i p .. s" p" ,-nduai vi ry L a properry
ri rl r e'sr r n'er hr
n me l a l s rh a t
A pf oper ly of c e rta m i n i n a l rl e,(i crl ,..;!an.. l r.di ri o;J ' i l i ." n chi p' creare ' one el e'
aLtowsc!reil to ftowwithmrnmal ,l o w , o ro .es,i na. .l .i p, bui l r l rom l ,- re.i .Lfl nrP c,.ondu.r^emerJ ol ier r r 'r er * c
p .." -i n g ' p* i V .* i .1. o,he han' rl i on i i .l udi ng orbon rd sal l rrmrn enr J' / C! A' '
*. chips'
i" il" a*a.p-""t of special-purpose
","a
SeverJconpaniesare*perinenting with chipscalledoPricdProe$oB' whichse li
Com pur er c hl p s u rhsaetit g h tw a v e s wms instod oi elatrical c".*, . ..p-** Ui" ne primary advantageof optical pc
optid
of t ec t f rccaut tre n tto
ns t ead re p - ceson is their speed kmle! an tsra.li-bced stan-up firn, hs dweloped
s rnl l i " n opeeri on' r r er -an
uf r 'I k
l"p
;;,' " , ,h,' L .aprbl eoi performi ng 1r ' eond
.o .p -y ' p ,.uo.yp.;' f" i ,l yi ,,g" .ndh,l h b' '
' h' so' l .i ' ro' nr;nkl roI' rn sle'hr p\
:oori.ri . p.*",ii p'-.'., ii u. p'' ,. i' ' *h 'Ppliori'n a hrshr*ol'' or ru&'
" ''.
e l e .rro ni currf:re.l uggage' Lteenrngardi ?on' ri deo@ mprc\' i ' nw eJr hcr r or e! ar r ngr r r
allular ohoneboe stadons.ri
lBlvri ard oth* compades ue tuning to strained silion, a rechnique lhat boosts
formne md lower pwer onsunption bv strerchingsiiion nol<ules iafthd apa't'
which
allowing .lectro". to experienc l.s resisrancemd flw up to 70 Pdent fastd'
har-ingto shrink the sizc
l"d o""hip. that are up ro 35 percenttuter-wirhout

n
Anorheradvmenent isthe deveiopnentof the etbon nuotube, re alled baaur
a pure carbon rube made of hengonal structures 1 to 3 nuometers in diadeter'
 Fi ri rda,e i .! Ff...qsr! rdodFdD efa I chal i e 3

P M c - s e t r a s R M 9 00 0 l a mty o 1
MIPS-Rl5C p r o c e s so r ps r o vd e s
h q h - p e f i o r m a n caen dto w p o w e .
sotutonsforembeddd
a p p l i c a t i o nssu c ha s n e tw o r kn g ,
p r n l n q ,w o f k s l a to n,a n d

l S o u r c C
: o u r t e s oy i PM C - Si e r fa ,

i(. r:i canhe usedoftnn rhc rinycircuirsfor conptrterconPonen!s.The Practicalust

, ,- :rb$ may not d.cur until sonerimeiI the 2010 deode bccanse ofnanulacturing
:,.': : rd orhercomplicdons.
:.rns ar the l.osAlamosNadonal Laboratoq havetakenninia(urizarioDio rhe ex'
.- with lsing radiowaves!o manipdhtenrdividualarons into
.cv rre expefinrenting
:. .: r simplecomput* program.Their goalis to be ableto maniPularerhousands of
r ::J bujld a s,mputt nany rimessmalleryet more porvcrfulthan any conrpuer
,n cxhrence.
andReduced
:.E-pLex Instruction
set Computing
- ,, for p*sonJ conputen are designedb*ed or complc instruction st (omptxin5truclionset
" -a.v computing{CISC'
;n: ring (CISC),which placesasnanymicrocodeinsttu.tionsinro the cenftalPtocesmr
A c o m p L t e r c hp d e s i g nl h a t p ta ce s
., -::. ln rhe m id- I 970slohn Cockcof I 8M reognizedrhat mostof the operationsot
as manymi*ocode nstuctions nto
e' olvedonly about20 p.rccDrof the arailablenicrocode insrntcrions. fhis led to t h e c e n l f a lp r o c s soar s p o ssr b L e .
r - :- :rf rochip designcallcdreduced;nstroctionsercomputins(RISC),shi.h involves
.,-. : rhc numbo ofnioocodc insrrucrionsbuih into a.hip ro rhise$eDl;alsetof.on reducedinstructionset
- -.ocodein$ru.tions. RISC chipsarefistet than CISC ctripsfbt Ptocssinga.tivities comPutingIRlScl
" A c o m p u t e rc h i pd e s q n b a se do n
-.. : ::omnundy usethis core ss ofinstnrctionsbecauseeachopcrationrequiresfou r e d u . n 9 t h e n u m b e ro l m L cr o co d e
I rc dcpsprior to qecutbn. Mos zuSC chipsusepipeLining,which, asneniioned i n s t r u c to n s b u i l ti n toa ch p l o a n
::: , ' lo\{ rhc processor !o executemuiriplc instrucrionsin asinglenachinc cycle.\fith e s s e n t i asl e l o f c o m m o nm i cr o co d e
r . r-trti.arcd nicrocode instu.tion scrs,IUSC chipsarerlso lesscxpensiveto produce

: Coryora,n, which n*es bcl$, hoses,and autonorivcproducts,moved42 busi-

,, .::li rionso{Iir agingmainfrdnc conpure.sont) No RISC-basedHl'SuPetdohe
,- -L:nningan Oraclel.RP prdgrdr and Hl' slstemrnmagenent software.Gareshas
- -. rcrs imtrllcd il eachSup*done, *hich can be expandedro 256 proc.sos. 1'he
. :. trrde to boostprocesilg capaciryand slstemreliabiLity.Lr
.nr 2003,Appleintod(ccd rhel']owerPcG5, the world\ firsr64-bit RISCPro.esor
. .:op computets-Bv rlnost any benchmark,RISC proccson run fa*g than Intel s
. ::
lrocesv,r.And ltcausc IUSC chipshavea simplcrdcsignand fequireles silicon,
-, -.:hcaperro produce.Thc Powcrl'Cchip is designedtoprovideporableand desktop
r-. : .omputersthe Ptucessnrg poirrcrnormallyosociarcdwith nuch more expensire
- : : r . F or ex am p l e ,th e M r.i n ro s h l ' } o w e ri ' C G5h$theabi l i r,vromakefuna;nsuch
i . : fe.ogririon,dictatnln,pen input, and rouchsdeeos pracricrl 'l he Iro{etPC G5 cdn
-, ,trh 1wo IBM I'oFerPC 970 nicoprocessorswith a 64 bit archirecrure. Sun Ml
. :.ni Sprrcchlp n ant,thtr darnplc ofa RISC pro.esor.
,-:n sdccringa CPU, organizrlionsnru$ balancethe berefia ofspeedwnhcost CPUs
, . . r : s c Loc hs p e e d s a n d n a c h i !.q d c ri n re s a .eusuLl ynorecxpensi vethansl ow erones
- . :ensc,hos*er, is a n.csary pan ofdre out.all .onputer s'sren cost,fbr the CPU
 Pdt 2 | irornatLonrerhnotoqycorcept5

is typically the single larget determimnt of the prie of mny compurer q'srems.CPU speed
en aho be relaredro complexity. Having a les conplo, code, d i! the qse of RISC chips,
nor only an increm speedard reliability but can also rduce chip mmufacuing cosa.

a n dF un ctio n s
M e m or yCh a r a cte r istics
Main nenory is locatedphysiolly clce to the CPU, but not on the CPU chip irself It
plovides the CPU with a working storageareafor p.ogran imtructions and data The chief
fearure of memory is that inapidly providd the data and imtrucrions to the CPU
StorageCapacity
Like rhe CPU, mmory devicescontain thouands of circuits inprinted on a silicon chip
Each &cuit is either conducting eleclrical curent (on) or nor (o*) Dara is stond in nenon
asa onbirurion of on or off circuit states.Usually 8 bns are used to representa chanct*'
byte{Bl suchd rhe le!ter,4. Eisht bia together forn a bye (B) Follwing is a list ofsomge capacic
E q ht bts th :t to9 et herr epr es nt a measurenenrs. In nost cass, stose caPaciryis mdured in b1tes,with one byte usualtr
s ngte characterof data. equalto one chuacter The contentsofthe Library of Congrss,with orer 126 million keru
and 530 mila ofbookshelves, would tq re about20 Petabltesofdisitd storage

Name AbbreviationNumberofBytes
Byte B 1
K lobyte KB 2roorapp.oxmatety1,024by'tes
M e g a b y te MB 2Dor 1,024 ki tobl es[about1 m]Ll i onl
G i g a b i 4 eGB 2s or 1,024megabytes [about1 bi tti oni
2d o. 1 024gi gabytes l aboti 1 i .i ttoni
2&or 1,024terabytes l abo!l I quadri tti onl
Exabyte EB 2&or 1,024 petabytes l about1 bi tti onbi tLon,0.1

Typesof Memory
There re rveral forrns of mmory as shown in Figuft 3.5 lnsuucrions or dara @n b.
randomacce55momorylRAMl enponrily stored in randon res memory (RAM). RAM is tenPorary od volatilr
inwhlchlnst.uc-
A formofmemory RAM chipsloe their contenisif the curnt ;stumed offor disruPted(d in a power su.ge
tion sor da lacan bet em por ar ily brownout, or elecrical noise generaed by lightning or ne{by machine$. RAM chiPs d
nounted dnecdy on the computert main circdt board or in otier chips mounted on pc-
ripheral ards rhar pl4 into rhe compuler's main circuir board. The* RAM chips consist d
milliom ofswitches that are sensitire to changesin electric cunent

@
of MemoryChips
BasicTypes

tr 15rtr
vokriL. Nonvor.rrte
I I

rh
trtrtr trtr
RAM comesin manv differenr varieries.One ltrsion is dtended data out, or EDO RAM
which is f*ter dn older types of RAM menory. Anorher kind of RAM nenory is
dynanic MM (DRAM) ard is bard on single'tmsistor memot, els. SDRAM, or q
chronousDRAM enploys a minimun offou iransistorsper menory cell and needsh;
or low vohages at regular inreNals-ftD' two nilliseconds (rwo one-thownds of
second) to retain in informarion. Compared wirh EDO RAM, SDRAM provids a
rransferspeedbecaen the micrcprcesor and the memory
 oD " " I chap r d3
" "

.-::l.i rl?e of memory,ROM, an rcronvm foi read,onlymemory, is usuallynon- read-ontymemorylR0Ml

q,u:r- -r ROM, rhe conbinarion ofcircuir sraresis filed, and thdefore irs conrentsde A nonvolatiLe forh of mmory
urr : : : rhepoweris removed.RoM providespermanenrstoragefor dalaand insitucijons
rrru:: :-r change,suchm progrms and datafron rhe conputer nanuhclurer, including
nru:,:":rions rhat rell the omputer how ro sranup when poweris turned on.
-'::. re orherqpes ofnonvoladlemenory aswell. Progranmabteread-onlvnemory
l[q' I ! r typein whi.h the desneddar. and ;nstruction.-and hencelhe ds;ed circun
me . :hination nst Urstbe programmedinto the henoq' chip. Therealier,PROM
r*; ', . le ROM. PROM chips are usedin situtions i. which rhe CPU s dita and in-
rr-:::. do not change.bur lhe applicarionis so spe.i.lized or unique thar custon
i,E,-r-irr!E of a rrue ROM .hip {ould be co$ prohibirile. A comnon useofPROM
$r. . i.r roring rhe insiru.tions!o popularlideo ganes,su.h asrhoseforcaneBoyand
illi : instruciionsarep.ognnned onroihe PROM chipsby rhegamenhufacturer.
'rr.
u,r-: :es and datacanbe prosramnedonto a PROM chip o y once.
:.:::ie progrannableread-orlymenory (EPROM) is sinilarto PRoM except,s the
u:. ::lies, $e memorychip an be ersed and rcprogrmmcd. EPROMs areusedwhen
flr -,daraandins$ucrionschargc,butonlyinliequendy.Anauronobiletuanuflc rer,
r . . . nicl ' ru * " n i rd u .rri J ro b o o p e ,t o,m.efe,,r\eope?ri on.o1r.e,G,n ur
o' , . : . ; r bc nr hero b o ri s p e rfb rn n rg i rs o p e ra ti ons,rhenonrol ari l i ryandrapi daccessi bi l i rv
r, :" r-:r in*ructions olleredbv EPRoM is an advanrase. Once rhe nodel ved is over,
, r - : . : : hef ll' RO M c o n rro l l i rg th e ro b o i s o p e n ri onsi l l needtobe e6ed ard repro-
r;-,-.: ro acconnodatea difTerenra model.
' .: rh. pasrdecadc,nicropbcesso.speedhasdoublederery l8 monrhs,bur memdry
r,r. hasnor kept pace.In effe.t, hemon' hasbccomethe principalbofflcnecl< to
a{:- -::;e :. fmlnce.Thus,nicroprocesornanufacurersarcworkingwith memoryvendors
'io
r r:::, :..mory rharcankeepup with the performanceoffdter proce$o6 md busa.chi
r:::.:. ttrc approachtharhs beenrakenis ro enploy c.chenenory, a rypeofhigh speed
dr- - irI r processor can acces,norerapidly than nain nehorv (seel-isure3.6). Fre- A f y p eo f h i g h s p e e dm e m o r yl h a ta
tu,:: .:ddatais sored in easilyaccesiblecachenenoff i.slead of slowermenory such pfocessorcaa n c c e s sm o r fa p d ty
! r-.-.1 Be.a{seihere is le$ darain cachcnemorv, the CPU co acce$rhe des;ed dara
dr'.:.r.tions more quickly rhan if ir wercselectingfrdn the largerserin main neho.y.
'| r. : .u rhusexecutein$rudi{ris Errer, and rhe overdllperforhanceof rheconputer
-
r,:. - . ,mproved.Therearethreerypesofcachenemory. The Ldel I (t.1) cacheis on the
: : : : Thc Lcvel2 (L2) cachememorycan be acce$edby rhe CPU overa high-speed
,ut. :: husnrterface. The larestprocessors go a sep funher and plae rheL2 cached;ecrly
r :, . i,lr chip itselfand proyidehish speedsuppon for a reftiaryLcvel3 (L3) exrefnal
r:< l::+lelll, olien qlled rhe lruium 2 chip, is rhe low-powerycrsionoflnrels 64-bit
r - ::J'vrs introducedwith 1.5 MB of l-evel3 cache.ra

@
P . o c s s o fcsa na c c essths l yp eo f
h t h s p e e dm e m o . y fa ste th r an
m a i nm e m o r y L o c a re do n o r n e a r
t h e C P Uc h p , c : c h e m m o fyw o r ks
i n c o n l u n c t i own t h m a n m e m o fy.A
c a c h ec o n t r o t t edr t er mn e sh o w
ollen the data s usedand transters
l r e q u e n t t y ! s e dd a t alo ca ch
m e m o r yl,h e nd e t e t e sl h dalawhen

i i.. rheprccessorneedsto decute an iNlrucrion, n looksfirsi in irsown damregisres.

:, ::rdcd darais ror there.it loolit ro dre L1 cache,lhen ro rheL2.eche. rhenro lhe L3
 Pali s I hiofmatm T{hiotoqycomepc

cache.If rhe darais nor in any cache,rhe CPU reqtrsts the datafrom main mnory. It nighr
nor even be lhere, in which caserhe q4rem has io rerieve the dara ftom sftondary slorage.
It can rake fron one to rhree clock cyclesro ferch informtion fron the Ll cache.*hile the
CPU waits rnd does nothing. ft rakes6 ro 12 cyclesto get data fron o L2 cacheon dre
procesor chip. It on ralcedozensofcycls to fetch dara fron an 13 eche and hundrcds of
cyclesto ferch data fron secondarystorage.Thl hierarchical anangemenr of nemory help6
bridge a widening gap berweenprocesor spee&, which are incredins ar roushly 50 perenr
per y@r, and DRAM accessrates,which ue climbing at only 5 perent per yeu.
Costs for nehory capa.ity continue to decliqe. \{4len consideredon a negab}'re+o
negablte bsis. nemory is sill considerabiy nore *pensive rhan most forms of seondanT
sioage.Menory @paciryan be imporianrin the eFeaiveope.ationofaCBIS. The specific
?pplications of a CBIS determine the arnount of nemory requned for a omputer srsrem.
For *ample, complex processingproblens, such u compurerasisted producr design, re-
quirc more nenory than sinpler tasls such c word prcesing. Also, becausecomputa
systens have ditrerent gpes of nemory other prognns nay be needed to conirol hos
memory is accessedand used. ln orher qses, the onpurer systen co be configued to
maximize memory uage. Before additional menory is purchred, all thesecoroideratioro

M u t t i p r o ce ssin g
mutlip.ocessing A nunber offorns of multiprc@'sins involve ih sinultoeous aecution of two or non
Thesimultaneous
execurion
oftwo instiuctions at rhe sane rime. One forn ofmuftiprocesing invohes coproc$or!. A copG
or mo reinstructions at lhe
s am e cesor speedsprocesing by decudng specific t}?s ofinsructioff wltle ihe CPU worl6 on
anorher proce$ins acriity. Coproceson @n be internal or drernal ro rh CPU ad may
havedilTerentclock speedsthm the CPU. Each type of coprocesmrperforns a specificfunc-
Pa d ot th ecomp ute r t h: ls peeds tion. For esnplq a maih oprocesor chip on be ued to speednathenatical calculations
processingby exculingspecillc
typesof instructionswhile lhe CPU
and a graphic oprocessor chip decreasesrhe time it takesro nmipulate graphics.
works on anolherprocessng Massivety
Paftttet Processihg
Another forn ofmultiprocesing, called mosiwly pamtlel prcesins speedsprocesing bv
par.ttelproces5ing
massively linking hundrcds and eventhousmds ofproeson to op.atear rhe sme time, or in parallel.
A lorm o f m!tt pro c es sn9t hal Each puesor i"cludes ia own bus, nenory, disks, copy of rhe opemring slrrem, and ap
spe d spro ce ssing b y t inkng h! n pliedon softwre. \0irh parallel procesing, a businessproblem (such u designing a ns
pr oc es s ortso
dre dso r lh ou sa nd s ol
product or pieceofequipnend is divided into severalpans. Eachput is tolved" by a separarc
op era leal th e sa mel m e,or I n par -
alle l,withe achpro c es s or hav n9 ls procesor. The reuls fron each proesor are then sembled to ger the fiMl output (se
ownb !s, memo ry,ds k s ,c opyolt he Fisure3.7).
opefat n9 system,and appticatons Musively puallel procesing systemscan oordinare large amounrs ofdna md a<rc
rhen wilh srearer speedthan wu pr*iously posible. The not frequenr busines usesfor
nassiveparalielprocessing includemodeling,simulation,md the anafsis oflarge mouna

@
Massive{y
ParattetProcessing
paratLet
Masslvely processn9
nvotves breaklng a pfobteminto
a c
v.r oussubproblems or parts,then
processin9 eachof theseparts
ndependentty. Themosldlilicutt
aspectoi massiveLy
processin9
processin9
paraliet
is notthes muLtaneous l"'".r"'ll'"'j--lEmr..r'",l
oi rhes!bproblems b0r
n rqo lth ep ro b
l het ogic at s t uc t u
teminr oindepend e n tp a rts .
0 E

I
 H afdda-p:npl r P -oL.ssnq fdol i pLrL-rerFs I chepi d 3

r =r ln n ayt challcngingna.kerplac., .,n""nen arc demandinginoeasedproduct

*r: :nd a wholearmyof nqservices. Theseconsunerdernandshavetorcedconpmies
r ;r. :,o'e effecriveand ins;ghttulwaysofgatheringand anab'ins inrorhrion. not jlst
ri.r :ti{ing ctrstonersbut alsopotentielcustones. Collectingand organizingthneror-
nr.s rounr of data is dilllcult. Massivelypatalielprocessing can accesand analyzethc
Lrrar : ::eare the infornarion necesary ro bJld m effective narkering program that can
:r(' :: rompanya.ompetitiveadvantage. Ford Motor Conpanv is interesredin the useof
mo,: :i. parallelptocessingo predictdriver and posenger injuies h accidenr scenados
'"re to humrn organs.Today's anal-
-:rputcr couldconpute and predicrthe drmagedone
n, resrdumnies de verycudc. They condeterm;ne ata brsic levclwhe$er a ceraiD
-:r
" , *. : : ahis s uNi v a b l e .Bu to c c u p a n ri n j u t-i n a l l ai srakesnuchmo.ecomputi ngpoN er
nr . :.aiieblenow.'5
]-ff.trical nultiprocessins (SMP) is mother form of parallel procesing in which symmetricatmultiPro.essing
Gr::: prodssorsrun a singlecopy ofrhe operatnrgqrrem and sharerhe menory md ISMPI
Anotherlorm of parattelprocessing
cr :::ourcesof one computer.Sharingresources deatesnore overheadrhan a single-
i n w h i c hm u t t p t e p r oce sso rfu
s na
rJc--r stsreh oi the mdsiveiy parallelprocessingsyrem. As a resrlt, the proessing s n q t ec o p y o f t h eo pe r a tn g syst m
:r-i f, ofSMP srstemsisn't proportionalll g.eaterthrn that ofsingle processor systens a n ds h a r et h e m e m o r ya n d o th e r
. : : : c r pabilit y o fmS M Pp ro c e s s o rw i th tw o processorsi sl cssthan| ' i cethespetdofe r e s o u r c e s ool n ec o m P!l e r
rec ::ocessor. sMP hd been implementedin the sun Microsystehs UlrasParc and
rr:=rcr,IBM Alpha, MacintoshPowerPC,and Intel chips.
:rJanr Coryorationoperares lnrernet-based tnvel sites.includhs Che4Ticke6 com
r-.r leo.a corponte reseNations sirc.Ir recendl hoved its airlineftrc sFren rc lBM e-
,r: i\lP srsremsto delivertues to cnstomenliute'. In rddition, thc projectsavedthe
;,-:.-. rns of millionsofdollas in hardwaremainrcnmcemd progranning costs.The
. . . , : 160eF a rc s s F te n n o w ru n s o rm o re rh1an 00.l utercdIB MeS enerx440and1445
r,;:-. Ihese conputen are high-p.fomance fou.wly dd cishr-wavSMP server thr
u" -::i\eon ptocessors, which Cendmt hrks togetherin powertulclusters.Vith the nw
.. rens, Cendant reducedthe hous ofpreprocesingwork necessary ro posi rhe ne$
',:
re, by airlinessix timesa d.y. End userscan aees a;rlineupdatesimmediatelyand
-.rsd
:r. :. *'v fa.esfote..'6
E ' E Com put in g
inr:omputingis the useofacollecdonofcomputcre,oftenownedbv multipleindividuals grid computing
T h eu s eo fa c o t t e c t ioonl co m p u te fs,
" , = : . iz at ions , to w o rk i n a o o rd i n a te d n a n n e rrosol veacommonprobl em.Gri dcom- olten ownedby muttipLeind viduats
r.: onelow-costapproach to n*sivelyparallelprocesiog.The grid cd includcdozrm,
o r o r g a n i 2 6 t i o ntso,wo r k i n a co o f
-.,
r:.::ls. or eventhousnds ofconputea thar run collecrively to soLveexttenelylargepar' d r a t e d m a n n e rl o so tvea co m m o n
.uc ::-ressingproblems.Key to th su@esofgrid conpudng is a ccntal serverthat .crs
r ::::id leadertd aaffic nonitor. This contolling senerdividesthe conputing taskinto
,L:.r.-- aDdssignsihe work to conputemon thegrid tharhave(atleasrtehPohrill) surplus
:-!-i.ng power.The cenrralsener alsomonitor thc procesing,and ifa nember of thc
."i rli (o conplerea subrask,n will rereit or ressisn rhe task.\0hen ell the subtaslsare
: r: .cd, the controllingsene. combinesihe rcsultsand advances to the next taskuntil
:c job is.omplered.
-:.lc
l1: rrpesofcomputing problemsmostconpatiblewith grid @npuling arethoseihar
: :t Jivided into pmblen subsetsthat can run in prallel. Suchproblenx areftequendy
,r- :rtercd in scientificmd engine$hg compudng.Mission-criticalor time'sensitive ap
: i:.ns should not be consideredfot grid computing bccrusesecurity,rcliabilitl, xnd
r- :n!na cdnot be guaranteedcurrendv.Businessissucsalsoarise For ennple, ifan
r: :rion is !o run on 25 onputers owned by 15 dilTercnrorganizatuns,how do you
r' - : . ho palr lhe co$s and how thosecostsre allocatedanong the organiza&,ns?
: trgrid expe.inentni&namcd "the llig Mac," Vrgnria Tcch studenaand snfllinked
r, \IacintoshG5 PowerMeccomputcr to Ib-' th.*odd's third-fastest supercomputer.
.rr-i; ofperforning 10.3 rillion operarionsper sec{rnd.The processors ar linked by a
-:: :peednework calledlarla;lad that allowsthen to breal up najor calculations and
:: eachom at the sane tine. l'he cnriresystncosrabour$7 million t'/
"::
 .l ;tuMfe rpul . Fro.e!.i q .rd 0!tI1 D !l ri chrpi dB
I

r' . , - : r onet ine, o rth e w o rd l e n g th o fth e C P U .!.arl trcompurerw efebui kw i rhC P U S

::.. -:: a wordlcngd of 4 bits, neding L\ai the CPU wascapableof },foessins4 bi$ ar Thenumber otbl tsth eCPUcan
r , - : Thc 1 birs could bc uscdro representacnraldaa. an insttu.tion b be proce$ed,
, .. :idrcs ofdata ro be accesed.Thc 4 bit linitation was quite confinlngand grearly
,. -:: r<1 the powerofthe compurer.Ovei rime,CPUShlve evolvedo 8', 16-, 32-, ud
* rachines with dnmatic in.reasesin powrr dd capab;Iiry.Cohpures wirh larser
:.rsths can transferndre databeftee. devicesin rhe samenachine cycle.Thcy can
-
* ,-: rhe lrger numbet ofbirs ro addres more memory locarionsand hcnceare a re
n , : : : . r r ior s y s t e n s w n h .e fta i n l d g h e mo ry fe qui rements.A 64-bi tnachi ncal l ow srhe
' -Jtrcdyaddres 18quindllidn (abilbnbillion) uniqueadd.e$locarionsconparcd
i . i biliion for a 32 bir processor. The ability to dire. y ac.essa la.seraddresssFce n
"
: - :i,r nulrincdia. imaging,rnd drtab*e applicarionsihoweve.,rhe compureisopeF
r: ': . rem ad relaredappliotion softwaredusr alsosuppor 64,bir rcchnolosyro achise
:-. b,enefit of the 64'bn atchitecture.
-.
: :: r rarsfemedfromrheCPU to orherslsren componentsvia buslhes, the physical
/ :: :har condec$lhe conputer q.stemconponents.The nunber ofbits a bus line can T h ep h y s i c a t wr n 9 t h a l co n n e cl s
::: ::'rr inv one tihe is known asbus linewidth. Buslinewidth shouldbe narchedwirh l r r ec o m p u t e .s y s l e mco m p o n e n l s.
l. , r r dlengr hf o ro p ti n a l s y s te n p e rfo rn a n c e .Lw oul dbeofl i rl ew l ue,forexampl e,
::ll a new 64-bn bus line ifthe sy$eh s CPU had r wordlengrhofonly 16.Arsuning
wordlengthsand bus widths, the largerrhe wordlensrh,rhe norc powerful rhc
-::rbh

it-eusc all thesehcrors machinecyclc rinc, clock specd,wordlength,rnd bus line

, :: rtfect the processing speedofthe CPU, conparnrgthe spcedof two differentpro
.. c'e" fro- rhe sa"'e qr be confruing.Although rhe megahcrzrating
',,. -anufacturer
:,, .onsequencer fo. rhe desisnofacompurer sysremand is rhereforeimponant
. i: -:orunr
.omputer des;gnengineer,n is not necesarilya good neasureofprocsor pcrhr
-...' : . cspecially when compuing one fanily of procesor with the next or when naking
: -:::isons betweennanuilcturen. Chip maken suchr lnrel, Advdced Mico Devices,
i: iin \4icros)6rcnshaved*eloped a numberof benchmarksfor speed.To ensun ob'
,i,- : .omparisons,nany peoplepreferto usegeneralconputer systen benchnrks such
, | : i adk, disrriburcdby a consorriuncalledrhe BusinesAppll.ation Perfornan.eCdr
r .: rn. rvhosemenber includchardwarcand sofrwarcnanufacrurcnsuchr AMD, Dell,
' i ::r rackad Co., IBM, Intel, and Mioosoft, and indusrrypubliarions strchas Com
'--.: rhopperand ZDNet. For lesrechnical measures ofperformance,popuk conputer
,. - t : ( s t c has l' } C Ma g a z i n c a n d PC w o tl z l o k e nmepcrsonal conputersonpri ce,per
.-:rce, rcliabiliq,,senie, and orherfacror.
tr)sical Characteristics of lhe CPU
'-.pedisalsolimiiedbyph)sicalcotuftaints.MostCPUSarecollectionsofdignalcircuirs
,: -- :ed on siliconwafen. or chips,eachno biggerthd the dp ofa penciLeres*. To turn
. :: nl .ircuir wirhin ihe CPU on or ofI, electicalcurent mus flow through a nediun
- ,:ln silicon)from poini A to point B. The speedai which it tnvels betweenpoints can
t : : , eas edby eit h e rre d u c i n g th e d i s ta c e b e tw eenthepoi ntsor.educi ngtheres;snnceof
-, :.dium to the elecricalcurent.
:.:ducingrhedistanceberweeopoirts hasresultedin ever'sballe.chips,virh the circuirs
, . r J c los er t oge th e r.In d re l 9 6 0 s ,s h o n l y a fte rpatenri ng$ei nreg.al edci fcui t,C ordon
.: r. formercha;rnanofrhe boardofInEl (rhe hrg*t hiaoproce$or chip maker, 6r-
- ::d rvhat is now known o Moore's law. This hroothesisstateslhat transistor(the
- . opr on' of f.* rr,h e ' . o r rh e m i .ro p ro .e -o,' h' " ' ...tt' , a..' ' r;.' o.,.,.gt..1' p A h y p o t h e s itsh a t s t a te sl h :t ka n
, : oubLeev er y 1 8 m o n th s .Mo o l e s l ,a w h a s h e l dupamazi nsl yforneayfourdecades. s i s t o rd e n st e s o n a sl n 9 tech i pw l l
d o u b l ee v e r yl 8 m o n th s.
l,rrll, Moore himselfforecasr rhar rh sreadysrovrh in rhe densiryand perbrnance of
- ::rprocessors may go on only for the next 8 to 12 year. A key problemwill be the need
-:ro\r rheminimunwidd ofbmiccncuir fearures ofa chip,which rodayare90 nanomc-
, , one billionth ofa neter, 10' neret wide in rhe most advmed chip manufacturing
;- .-rs.r (The 9o-nanomerr des;gnationrcfen to rhe &h ofrhe smllesr circuirlineson
-. .hip. The actualfearureson 90-naioheref chipscanbe qune snall, down to around45
'--rm*en for sone ofthe smallesstructureson rhe chiD.)3ChiD males thenwlll hevero
 Put, I

By n sta ttingth e SE TI @ hom e

s.ree n saverp rcg m on t he r
perso nacomp
l ute r sm
, ilt onsoi
peop tewo rldwde .onk ibulet he I
idtecPUt me loa na Ly z ing r ad odala
fro m sp acefor s gn s ol nlet tgenl
tle WithSETla ce nt r ats er v er
dolesou tth e wo rk b y g v if g eac h
.omp ltero nth eg rd dat ak om a
tinystce o t th skyl oanat y z e
l5o urce Cop yrg ht O 2003
sET@h omel

STO RAG E
SECOND ARY
Drirer byuch licton asthc needto relainmoredatalongerIo neer governmentregularon
concerro,thc needo sore new 6rns ofdigid datasucho audioand videodata,and thc
ned to kcp srsremsrunningurder rhe onslaughtofstr-increasing voLtmesofe'mail' the
anount ofdata that conparics storedigirallyis incrcasingat a rate of 85 ro 95 Percent
@ ne.{ a
annurllylrsOrganizations t" .t"r largeamounlsofdata rnd ins!ruclionsnore
'wy
costcomparisonlorvarious pernucndy rhan nain ncnory allo*s. Secondary stomge, 3lso callcd p*nanett stotage.
Formsof 0ataStorage
AlLlo rmsor secon darsyt or agc os l Conparcdwnh menon, sccondary srorageofler rheadranngesofnonvolariliry,gmtet
co nsrde rabte ot
ty ssP ef m egaby t e md
capacirv, grcarer
econony- As prcviously noted,ona coscpo'megabvtebris, mostforns
ca pa clytha n SDRAMait ho! ! ht heY ofsecond*y srorageareconsidetablylcs apensive than nemorl (re Table 3.1). Becaus
ha vesto wera cces sm t es Adat a of rhe elecronechanicalproceses nrvolved in using secoDdarystoEge. how*e., it
tap e.a rtridg eco sl 5about$. 16per
^
cons;derabivslowerthan memory. The selecrionofsecondarystoragenedia and dwices
g ga byte,whileSDRAMc anc os t req$es m undcrranding of their primry chancteristic*accessmethod, capaciry'md
aro !nd$9 00pe r g igaby t e.

:..,bftit;s..t.tr,'.:,t
,tr,.ir
DVD-RW t!.7 GB $.29

co-RoM , :',".t":,:,,",:",
;1;
1 .44MB $3/+7

Cor npacl ra
t s hm e m o ry (367

S DRA M 1 28l vi B $871

 Hrrdrli. ip t P_..essiq ard !,tr.L De":r. I ch.pter s

\ wirh otherconputer systehconporents, the a..essnethods,stongecaprciries, add scondarystora!telpermanent

r lbility reguiredof secondary soragcned ia ate dttennnredby the informatior svstens storagel
D vc e sl h a t s l o f el a f g r :m o u n l so l
:rrires. An objcctiveofa dedir cardcompanyi informationsystem,ftr qamPle' might
d : t a , i n s r f u c lo n s ,a n d n fo r m a ro n
'. t rrpidly rerricvestoredcustoncrd:ta roapprorc customerpurchascs. ln this case,a Ast
m o fe p e r m a n n l ttyh an a tto w e d
.i:.i merhodiscrirical.lnothercascs, suchasequippnrgasalesfitrcewithlaptop computer'
r 'rbiLity and storagccapacirynight be major conslderarions ih seleciingand usingse.-
:trF stonge hedi! and devics.
irrrgt nediarhetprovidcfastetacces ncrhods.re senerallymore expnsivethrdslovef
.rir. Thc costofadditionalstoragecapaciryand potubihy varywidely' bui they arc also
.-::rs to consider.In addirionto costand porability. orgtuizationsmus eddrcsssecurirv
. r ro allowonly aurhorizedPeopleacccss to sensitivedataand ctiticalprogramsLleeue
:. .]m and prognns kcpt in secondary srorasedevi.esarcsocriticalto mosrorsnizatnrns,
rithesc issuesmerit carcfulconsiderxdon.

Acce ssM e t hodg

::r rnd informationaccess canbc eithersequtnrirlor ditect Sequntialacassneanstllar
R e t r i e v a t m e t h ondw h i chd a tam u st
r:: mustbc acce$edin the ordcr in which it is stored lor exxmple,invehtorl drta siored
b e a c c e s s e dn t h e o r d e r n w h i ch I
: rr.ntialll may be vorcd by pan nunber, suchas 100, 101, 102,and so on lfyou wadt
:.rrieveinlbrmarionon parr number 125.you must reaclrnd discardall the datarehtnrg
]rc 001 rhrough124.
Directacss neansthat daracanbe renieveddirecdy, withort thc needto pxs bv other
Wirh d;tect access,
ir is possibleto go ditectly to and .ccss the needed R e t i e v a tm e l h o di n wh i chd a l aca n
::: i. sequence.
b e r e l r e v e d wt h o u l l h en e e d tor e a d
::: say,pdt ntrmber125 without having to read tltrough Par$ 00I rhrough 124 For a n dd s c a r do l h e rd a ta
.
r :etrs,n,direc!access n usu.lly fastd than scquentialacces The doices u*d to scquen-
rccesssecondarysronge dara are s;nplv called sequential a@esssto.e dqies sequentiat
rccesssto.ag
-, deviceISASDI
:{sDs)i thoseuscdfor di.ect accesarecalled direct a@e$ stohg devices(DASD'
usedto sequennallyaccess
D evi ce
secondaryslora9edata.
Se co n dray S torageD v i c es
inciudemxgnet;chpes'nagnericdisksviftual dire.t acce555toragdevice
-. ofsecondarysorage
-ostc"-non6rns of thescmedia(nagnetic allow
tapes) only sequentialacces, IOA S D I
:--.:. rnd opticaldiscs.
Some
usedl ord fec taccess
D evi ce ol
.- l. oth*s (masretic and opical disct Pmvidedncct ard sequentidacces.Iisure 3.8 secondarysrorageoar a.
r ..ssomedifllrent secondary srorasemedia.

@
storage
Typesol Secondary
Secondarysloraqedevrcessuch a5
m a g n e t i ct a p e sa n dd sks,o p l ca t
d s c s , C DR O M Sa n dD VD Sa r e u se d
l o s t o r ed a t al o r e a syr e tr r e vaal l a

y l l m a t o n co r p l
l S o u r c eC o u r t e s o

ieqnet ic T aP e
. common seo.d"ry storugemediun is magnetictape Sinilar o tht rapc found in
c o m n o n s e c o n d a ry sto r a 9 em e d l
. : r- a"d videocusen*. mxsnericlaPe;s r M/ar nlm coatedwirh iton oide Porrionsot
u m M y L a r fL mc o a l edw l fr r r o n
:::rpe aremagnetized b representbits. MagnctictaPeis an uanple ofasequentialaccess o x l d ew i t h p o r l l o fs of th e ta Pem a g
. rgc mediun.lfthe conputer needsto readdatafrom rhe niddle ofa reeloftapc,all rhe neti2edto fpfsnl b ts
::: I'crbrcthe dcsnedpieceofdara must be pascd oversequenti.lly-one dnddvanrage of
-i.rdc bpe. when infornation is needed.it car rakedne for a raPeoPentor to load the
:rdicEpe ona rapedeviceand gct the relevarrdatainto the conputer' D*pite thcllLling
.' ,.s oihard-diskd,i"q, tapestorageis still I popularchoi.e for low-costdan backupfo'
' .rrt songe in the eventof a disaster.
 Pdt 2 I nrrmar:i ccnrton! cmtprq

Technologris improvingto providctapestoragedevices rndfaster

with greatercapacities
@ ransfer speeds.In additn,n. the lrrgc, bulky rape drivesuscd to read and write on large
ol TapeFormat5
Comparison dianeterrcelsof*pes in the earlydavsofcomputinghav. been rePlacedwith
'luchsnaller
Data
lsource, lrom Kay,
Russett tapecanridgedoices measur;u a fcw miilineleB in diancter that takeup nuch lcs floor
''Tapelypes, Cah puterwodd,At spoa and Jlowhundreds oftrpe cartridgesto be stotedin a snalLarea.Sweralcompeting
9 ! s r 25, 2003, 6. c e s s e d a t cutridee taor fornars aresumma&ed ir Trblc 3 2.
w||v canputeNof Id.con.l

Uttrium'2 $.60
lBt{

':- :.: ..::.: :::a: . .:a'

Disks
Magnetic
m.g ne tic d isk MagneticdisksareaLso coatedwithiron oxidertheycrn be thin *eel plattcr (hrddisksr see
Co mmons co nd 6rsylor aqem ed Figure3.9) or Mylu filn (diskene$ As with magnctictaPe,hagneiic disksrePresent birs
um wlh bitsrep res ent edby m ag bysmaLlnagnerizedare*. wleD readingfrod or writing daraonto a disk, the d;hs readi
rv;re headcar godirectlyto thedesnedpiee ofdata.Thus, rhednk is a directicce$ stordge
medium.Although disk dnices cm beoperatedin asequcntiaL mode,nost diskdqices ue
direcr aces. Becausedirect accessallows fut data reffieval, rhis q?e dfstorage is ideal for
cornpaniesthrtneedto respondquickly ro custom* requests, suchasairlinesand creditc*d
firms. Fot exrmplc,if a managernecdsinfornation on the credit historyof a custometor
rhe seatavaihbility on a p*ticrlar flight, the infornation @n be obtainedin a mafter ot
secondrif the darais storedon a directaccess storaqedryice

@
Hard Disk
Harddisksg ve d irec t dc c estso
sto redda ra.Therea d/ wr t ehead
can movedirecltyto the tocalionol
a de ste dp e ceofd 6t a,dr am alic ally

c o mpa red wthma!net c lape.

{Source:Courtesyol Sagale

Magneticdisk storugevaries*idely in caprciw .nd portabitiry.Sranderddiskenes*e

ponable but have a slower accs dne and lowef $orase capacirJ'(1.44 MB for sohe
conputes) than fi{ed harddnks.Hard disLsrorage, while norc cosrlyand les porrable'h*
a greaicr storagecepaciryand quicker acces tine
 l a fd[a rc nour P ,o..si nq 3ncOdFdD pfa I ch3pl e 3

.rrirg magneticrncdiahold nue drta hasnaditionJLybcer a maaer ofmrLing rhe

i . . !) rhe kcording medium,and the sporsrhat hold the rccordedbit, evo smallc and
. .-lgether. Duringthe l990s. resroQgedensiq of nagneticdisksindeasedT5 pcrcerr
, ..,r. outpacnrgevenMoore'sLrw. Bemeenthe hll of 1999 and the fJl of2003, the
industryincLeasedopaciryby morethm 20 rines anddroppedthecos pet
-: ::.[ drive
rccordingdevie
: nenory by haltr" IBM\ Millipede is a I terabir-persquare-inch
' - - lJs dreequivalentof25 DVDS on a surfacerheste ofa postrgcsramp.ro Toshibarnd
-. , rr: developingcoin+izedhard drivesthr cm hold up to 3 GB '
l0
busines rkk-the Los of critiql
- :: rn organiation'sdala online involvest serious
,- ..s daa can put a corpontion out ofbusiness.The concen is that the nost ctitiql
-,i :rical componcrrsinsidea disk storagedevic+the disk drives,the fans' and other
, iNpur devices<an break(l;kt nor thingsthar nove)
be fault tolermt-have the
':lrnizariols dow requirrhat rhe; daa+toragedevices
.i :. ,o .onrinue wirh LittLeor no los of performance jn the eventofa ililure ofone or
. i;r cornponena.A redundantarey of independent/inexpensive diskr (RAID) is a
-, I ofsrolingdatatht gencratesqrabits ofdrtafrom existingdara, allowingthe systen independent/inexpensive
.-:trrea "recon$ru.don map" so rhat if d hard drive faiLs.it can .ebuild lost dita. With d isk5lRAlDl
th a t g e n e r -
' : : r r oac h, dar a i s s p l l tm d s to re d o n d i l l i re n tphysi cal di .kdri vesusi ngorech" i qu.ol l ed M t h o do f s t o r i n gd a ta
a t e se x t r ab r s o f d a taJr o h e xsl l n g
.-. i:,,r-.o.venLy dis!.ibuterhedata.Sihcebeingd.veloPedat the UniversityofBerkelevin dala,attowinqlhe systemto cfeale
.- tu\ID technoLoghasbeenappliedto storagesysrensro improvesysremperfotmucc a " r e c o n s t r u c l i om r ap so l h a t i fa
: : : liabilir y . h a r dd r v e f a i t s t h e s yste mca n
i\lD ca! be ;nplenenied in several vrys. ln the sinples forn, RAID subsystems du-
..:::Jltaondrives.Thisproces,calleddiskmirroring,providcsanexaclcopythatprorccrs
.-. tull)' in the evenrofdata los. Howryer, if tulI copiesare alwaysto be kepr currert, diskmirroring
needto doubLerhe amount ofsrorase caPaciry lhar is kept online Thus. disk A p . o c e s so f s t o r n q da l ath a t p r o
v d e s a ne x a c lc o p y t fr aPr t o te cl s
- -:.,z:tioDs is qpensive. Other RAID methodsare les expensivebecausethey only panly u s e E l u t t yi n t h e e v en lo f d a tato ss.
r i{e the dara,allowingsrorasenanases to nininire lhe anounr ofsta diskspace(or
: -:ring
.:r.d) they must purch* to prorec data.
re ellectiveuseof RAID stonge hardw& and sofrwareun leadto savnrgslion in
.-: eficicrcv. QuickenLoans,hc., an online norrgageJendingconpanl movedto a
-i
. :r:lizedRdlD sroragesystcmwith auonared managenertsoftwarefrom EMC Corp.
' : ::Juced the nunber of IT ralfen deuted to nanagins sorage frorn 15 to 3 The e*ier
. :..: rc intornarion alsohelpscut tbe rine to createdera;ledfinancialreponsfiom one to
'.:: daia ro two ro isht hous. rl
ir t ua[ T aP e
rual tapeis a specialsoragetechnologrthat nanagesLesfrequentlyneededdataso that
be sloredentirelyon tapecantidges,aldroughsone prrs ofit mar acuily be Storagedevicethal managestess
:r.e$
'o lrequentlyneededdata so that t
.:;d in faster,hard'diskstorage.'Ihe softwre associated with a virrual taPesysten is
a p p e a E t o b s t o r e den n r e l yo n ta p e
. tn\es al:|.C,a tdpr rraar. Virtual tape can be used wirh a sophisricatedstoragc- c a r l f d g e s6 t t h o u g hso m ep a r tso t r t
- "irtd
- ..rg.menr srstemi! which datais movedo it falls drough vaious usrgethresholdsto m a ya c t u a t t yb e l o c ate di n l a ste r ,
.:r bur lesscosly forns ofstoragemedia Useofthis technolosican reducedataaccess
: :. lowcr the uJ cov oiownerhip, md reducerhe anounr of lloot sp.ceconsumedby
,r. operarions. IBM md StorageT..hnologr arervell'esablhhcdvendorsofvirtual tape

irl.om conpdny Qualcomm,Inc., neededto rapidlybackup and recoverdatastored

:r Oracled*rbase.The conpany turned to vinual tapenerhodsmd speciJsoftwarero
'.:.,r its backupwindow from 2 hours to 15 minutes.md ir hd ldpled the nunber of
::pletebackupsit doeseachday.13
lpticat0iscs
'- rhcr wpe of secondary sroragemediumis the opticaldisc Similarin concepttoa ROM optica{ disc
A I g d d i s ko f p l a s t i co n l o w h ch
- .. an opticaldisc is simply a rigid disk orPlasliconro which darais recordcdby speciaL
data s recofdedby speciallasefs
:.:r rlut physicallybum pits in the disk.D.ra isdi.e.draccesedfrom rhedlsk byan oprical that physicaUyburn p ts n the disk
: .: d*ice, which operares much likeastcreo\ onpact discplayer.Thisopricaldiscdwice
 Part | , r'n,r on T{hfrLcqy comept'
"

ss a low'powerlder rhat nedures rhe ditrerenccin reflecredlishr causedby a pii (or lack

compactdisc read-onty A.onhon fo.m ofoprical discis c.lled compacrdisc read-onlymehoq, (cD-RoM).
memory
tcD-RoMl Once dah hd been .ecordedon a CD-RoM. ir qnnor bc modified the disk is'iad
Aco mmonform oi oplic aldis con only." A CD bu.ner k rhe informal nlne for a CD recorder.a devicerhar can recorddara
wh chdata,onceit has beenrcord
to a cohpacr disc. CD-r@rdable (CD-R) and CD-rsritable (CD-RW) are lhe rwo most
ed ,cafn ot b e modlied.
commonrypesofdrivesdut canwrirc CDs, eideron.e (in the cse ofCD,R) or repe"redly
C0-recordabt
IC0"Rldisk (in rhe cm of CD-R\V). CD-RW rechnolos/ altows prsonal conpurer use6 to rcplace
A noptc at dis c t ha l .a
bne w ri tteonn the; diskeftcswirh high .apacityCDs rhar cu bewritten on od edired.The CD-RVdisk
on hold 740 MB ofdata rcughly 500 timesrhe capaciryofa 1.4,MB diskertc.
C0'rewritable {CD-RWJdiEk DigilatVersatiteDisk
Anoptcatd scthalattowsprsonat A digital vesarile disk (DVD) is a five-inch dimerer CD,ROM look-alike widt the abilirv
computerusersto replactheir
io sioreebout 135 minuresof digital video or severalsisabyresof data GceFisure 3.10).
d s k et t es
wit hhighc a p a c l y C D s
thalc anbewrt t eno na n de dte d Softwareprograms, video games,and novies are common usesfor thn sroragmediun. Ai
a datarElsfer rareof 1.25MB^econd, rhe acce$speedofa D\D drive is fasrerrhd ihar
ot the rpical CD-ROM drive.

@
Digilat VersatileDiskand

DVDSto oklikeCDsbut hav ea m lc h

gfe are rslo ra9 c6p
e 6ct y af d c an
tra nsfefd ataa ta m uc hi6s t e. . at e.
Courtesyof Sony
LSource:
DVDs are replacing recordable dd rNrirable CD discs (CD R and CD,RW) s rhe
prefened fornar for sharing novies and phoros. \i/here a CD can hold abour 740 MB of
dara, a sinsleaided DVD can hold 4.7 cB, wirh do$le sided DVD5 havins a apaciry of
disitat vrsatitedisk lDvDl 9.4 GB. Unbrrnnately,DVD nanufactureshavcn'iasreedon a standard,sorhereareweral
Storagmedi!m usedro store d gi types of recorden ard disks. Recordings can be nade on iecord-ohce disks (DVD,R dd
latv d oorcomp utefdat a
DVD+R) or on rsritable disk (DVD,R\f, DVD+RV, .nd D\D-RAM). Rewrirabledisl<J
ne les widely conpatible rhan others.Dell and Hewlen-Packrd useDVD+RVr Apple,
Gatemv. and IBM otrer D\D R.
Magnelo-0ptical
Disk
magneto-optical
tM0ldisk A negneto-optical (MO) disk is a rype ofdisk d.ive rhar ombines magnetic disk technolo-
A h yb rd b elwe ena m agner lcd s k gies wnh CD-ROM technologies. Like nagnetic disks, MO diskr cm be read from and
w.irten to. And lik diskenes,they re renovable. How*er, rheir storagecapacitycan oceed
5 GB, nuch grearerrhm CDs. This rype ofdisk usesa lasrbeam ro changerhe nolecul
configurationof a magnericsubsmte on the disk, which in turn createsvisualspots.In
conjun.tionwnh a phoroderecror, anotherl6er bem rcRec$lighr offrhe diskand hedures
the sizeofrhe spoa; rhe presence or absenaofa spot indicaresa bit.
A nw magnero-optical formarbasedon bluelaserlighr (rradirionalMo, CD, and D\D
formars all usered 1ase6)hd beend*loped. Becauserhe wavelengthofblue light is shoner
rhanrharof redlishr, $e bem from a bluel6er makesa much snallerspotod rhe recordins
larer ofa disk.A snaller sporneds lessspa@is neededro recordone bit of data so more
daracm be sioredon a disk.,aSony Corp.i new blue l*er optiel disc format allowsfor
slorageofup io 23.3 GB per d;skwnh a 9 MBAe.ond trdsfer rate.By 2005, Sonyexpecrs
to doublethe capaciryand daramnsfer rarero 50 GB and 18 MB/se@nd.PlasmonPLC,
Toshib.Corp., and NEC Corp. arealsodoeloping blueJaserMo prodrcts.,5
MemoryCards
A grcup ofcomputer nandacturers formed the PesonalConputer Mernory Card Inrer,
national Asso.iation (PCMCIA) ro creaie standdds for a peripheral d*ice known as a PC
nenory card. These PC menory cads are dedit,catd,sized devias rhar cd be in$a[ed in
an a&pter or slor in mmy pe6on l .ompure6. To rhe resrofrhe system,the PC menoq
cud llnctions as though it were a fixed hard-disk drive. Akhough the cosr per mesabFe of
 Fafsr3fe nlur Pfo.essr! afi i-,u:r!r | chept.r 3
"e!c!

, . : . s gt r t er r han fo rtra d i ti o n a l h rd d i s k $ o n s e ,rheseerdsarcl espronetofi i l than

.. .::k., rrcpon.ble. ardare relativelyearyro use Sofnmrcnanufacrurenoftenstorethe
A s t c o n c o m p u t r c hp th a l u r tke
:-ionsfor lhen programon a rncnorycard for usewith laproPcomPutes
RAIV is nonvoLalte and kePs ls
m e m o r y w h nt h e p o we r s sh u lo l l
:-- nemory n a silicon computerchip rhat, unlike RAM. is nonvolatileand keepsis
. *hen the power is shut oll lt g*s its mme from rhe fact thrr e micbchip is
: - - : ds or hat as e c ri o n o fme n o rv c e l l s (c a l l e da& /arf)i scrasedorreprograrnmedi nr
: . ..:ion or "flash. Flashmcnow chipsaresrrall md canbe edlv nodilied and rcpro-
.'. - :.J. which nakes thernpopularin conpuren. cell Phons'rnd orherPrcducs flsh
- :. r rlso usedin sone handhld.omputen to storedataandprogranrs,in MP3 Plal'ers
: iusic, in digitaicarncras to storcphotos,and in airplanesrostoreflight nrfomatnrn
, - rckpit.Comp*tdwith orhertvpcsofsecondarystorase. flxshmemor/.an bc acceskd
' , : r c k lv . c onu m e s L e s p o w e r.a n c L i s s n a l leri nsi zc.TheP ri narydi sdvantagci scosr
roo,v chipscan cosralmo$ rhreetincs more per megabvtedrar a tradnionalhard
'.rrctheles, the nark* for flashmemoryhasexpLodcd in recentvcars
li6-MB nenory devi.ecxlledMigo is rvailable fron Fom"rd Solutions lt is i kcl-
. ::rice thrr comeswith sofnvarethrcaptures tilesand seaings from vour e-nail, word
...,rg, \fcb browser.md presentdtio!progmds There prcfaenas re sored in flsh
- - .,. r'J .riren you phg rhe Mig{r device inb rnorhr cohpurcr, ir r'ansfds rhcil t)
' - :.hincso rhatvoucenworkasifvouwcrerryourostl'C \Vhn,vou edontworking
: -:lLrg the Migo, the rcfiwarervipesalltnccs ofthe filcsand senings ollthe P{l Thcr'
. , , r uplugt heM i g o b a c k i n to v o u ro w n PC a rh o me,i rauromati crl i vsvnchroni zesrl l
. rJ moresall changesto vour desktopor laprop The dcviceelinnratesrhe needfor
, : . r, lug their leptopcomputes with then evcrywh..ethey9o.26
.1r.ndabte Storage
::::ndablc stonge dwic* use removabledisk crftidgcs Geeligur 3.11) wh'n )our T h eM i g ok e y - c h an de v.e co m e s
i ::: necdst<linc.ase, you cu useno.e rernovabl.disk caffidg*. Thc sroraseclpacirv w t h s o f t w a r t h a ic a p l u r e sn te sa n d
per canridgel n tcnt vas, tht &css
. :gefrom les thrn 100MB to soeral gigabytcs s e t tn g s l r o m y o u r e - m at w o r op r o _
stotagedqic* ht increard Somedwicesareabouts fasrasaDinternaL c e s s i n g , Webbr o w se ra, n d Pr e se n
' -: -.i.'pandabl.
dcvies canbe intemalor external.Afewpersonalconputen arerorv
:.pandablesrorage lSource:Courlesyoi PowerHo!s'"
,.ng nrrenal expandablestoragedevicess sraDda.dequipnent Zp bv lomegais T e c h n o i o g i eGsr o u p ,n c l
'n
::ie. ofcouse, a CD-R\r drive by H*1en-Packard, Iomesa,and orhes can alsobe
, .: r.r opandablestonge.AkhougLmoreexpensnrc rhanfixedharddnks' rcnovabledisk
:. : :ga conbine hard disk stonge caprciryand disketreponabilitv. Sone orguizations 5tor.9edevices
erpandabte
d sk
S t o r a q et h a l u s e sr e m o va b t
,'.: r'nmvablehard-disksroragefor thc porrabiliryand control it providesfor exanpLe' cartfidgesto provideaddit onal
':: uount ofdara un be mken to any location,or it car be securedso that acces is

@
Expandabte Storage
E r p a n d a b tst o r a q ed f ve sa tto w
l s e r s t o a d dh o r e s io r a g eca p a cr y
s m p l yb y p t u q qn g i n a .e m o va b l e
d s k o f c a r t r i d q eT. hed i sksca n b e
u s e d t o b a c k u p h a rdd i skd a tao r to
tfansfer t6rgef tes lo coLleaques.
l
l s o u r c e C o u r t e s y oi l o m e sa
En te r p r i s S torage0P ti ons
, . ..ssesincresintll leed to $ore ia.samornrsof daR crcaredthroughoutthe organi-
: o. Such LaLgesecondaq slorage is caLled.,'.?tn. I',ra.qa 'Ihce arc three foms of
, ,.'p.". d,'",to."g., attachedstonge nerhods, nc$vorka{ached songe (NAS), rnd
:gc areanesvorks(sAN).
 Pu t z I r f or n, . , oiT( , . L. q c dt r PeG

Attached Slorage
Atached storagemerhodsincludc rhc rape,hdrd dnks, and opticald*ices discussed preri-
ouslr, rvhichareconnecleddirectlyto r singlecomputer.Athched $otuse merhods,whil.
simpleand cosr-ellicrivefor nrdividualsand srDil sroupsofu*r, <lonor allow slsrens to
sharestorage,and rheynake ir dimcuk to be.k up data.
Becauseof fic limnrrions of atte.hedsrcEge,nms are tuning ro nctwork-anached
srorasc(NAs) and storugearu nrMorks (SAN). l hesealrernatlvcforns of enterprisedar
srorage enablern drganizationto shafedara-sroE$resourccs amonga nuchlargernunba
ofcomputenandmen, resuitlngin inproved storuge efficiencvandgrcatcrcosreffectivenesr
h addirion,thcy simpli$ daia Lackupand ieduceihe r;sk ofdownrime. lidusrry experr
esrinarcrhar up ro 30 percentofsystd downt;tuen ad;recr resukofdata+tongc failures.
so el;hinarins sroraseproblensc a qusc ofdowntime is a najor advanhse..
Network-Atta(hed
Storage
network-attached
storage Netwoik-attached stor.ge (NAS) emplo)s sroragedevicesthat attdch ro e netwo.k in$d
INASI ofro a singlea,mpuer. NAS includessofwarcro nanagesorageaccesandfiLenanagenen:
Stora gede v.e slh at at t ac ht o a and relioe the usn'c,nputers ofrhoseresporsibilitics.
The resulth thrt both applicatior
ne tworkn ste ado ft o a s ngt e
sofnvareudfrlescanbe rNed Askr because rherare nor compcriDsfor the srmeproceso:
resolrces.Conputer userscd sha.eand rcce$ fie sane infonnarion,sen if rheyare$in:
differenrtypesofconputers. Common applicarionsfor NAS includc consolidated stonge
Inremetand e'commerce applications,
md digira.L
nedie. NAS vendorsincludeEMC Corp..
llwlert'Packard Co., IUM, l'rocom Tcchnology,anrrotrers.
I-osAlamosNarionalLaboratoryn$talieda 1.400nodeclu$erof Prntium-based serveF
that rFs a newobjec!-bsedfile sysremtechnologyfordao storuge.The lab usd nemorL-
ntachrd sohge (NAs) rchnologi ro spreadfile managcmcntcapabilities adossthe seNer
to a.hieve4 GB/sec.th.oughputand to storcup to 600 TB on drecluster.The hrrdwre;
usedto run sin ationsof nuclearweaponstests.,r
S AN
storageare. network{sANl A sromseare. network (sAN) is r special,purposhigh,speedne$vo.klharprovidesdnc.r
y t pro v ideshigh
Te ch no toglha conncciionsb.rwecn dau sronse devi.esand ohpurds acro$ rhe enrepfise GeeFiguk
rpee dco fne crio ns
b et weendat a-
3.12)andcnablcsdilTcrcnrrypesofstorgr subsysrens. suchasmuhple RAID sloredq;c6
srofageoevcsanocompurersover
and magnetictapcbackupsystcms,to be integratedinto a single$onge sysren.Use oftr
SAN ollloads rhe nework truflic asociated with *orage onro a sep*ate nevork. Th is allos:
darato be easilycopiedto a rcmorelocrtion for dis*rer recovery,haking ir edier for conl
paniesro creatcbackupsand inplement dna*et recoveD.. Ahhoush SAN hasbeenaround
for severalyers. its ue is nainly linited ro organizatiooswirh lae 1Sbudgersdue ro n:
co* and onolq;w."
Inplehedting e SAN enablesan organi?.donro ccnrnlize rhe people,policies,proce
dures,and practiesfor managingsrorage, rhu enablinga dara+roragc managerto applytle
datapolicies.onsi$eddyac.ossd enrireenrerplke. fhis cenrnlizarioneliminatesinconsls
tent local reatmenr of dala by dilGrenr qrrem adninisrrurorsaDd end users.providnrs
efficienr and cost'elfective daa*lorase pracrices.
A tundamentalditlirence bemeenNAS md SAN is that NAS usesfile inout/outour
which definesdarain rerns ofcomplete containesofinformadoi, while sAN deahwith
block input/ourpur,which is bued on subsets ofdata smallerthanr file. SAN nmufacturer
includelMC, Hirachi DaraSystems Corp., mdIBM. Hirachi Data Systems Corp.'sThun
der 9580V is the nwest memberof the companls producrline, which is trgeted at smell
and midsizeenrerprises looking to consolidare
storageand seruenln the datacenter.It h*
a caoacitvof64 TB.rrl
 Fa,d,trre ipd pro.sssiq aid0dourDdGs I chalrer 3

@
d& Storagearea Network

KV /, El A S A Np r o v d e sh i g h - sp e e d
conneclionsbelweendata stofage
d e v l c e sa n dc o m p u l e Eo ve ra

e C

\-t'
: .lmir. Hdrold, Allen & Dkon IIP employs550 people,and the amountof litiS-
:.:: it Nst storeht been growhg raP;dl)' from 90 GB to 600 GB in jusr one vef
. . -..r r. thc firm decidcdto changeirs sronge infrctructure, moving from a group of
'r' ::i.rcty disk drivesto an automtcd stotagearcane$ork The fird spenrle$ than
idplcneDting the sAN."
,. ' or
'1,1\y{em Senices.Inc.,.cLeditcrd tnnsact;onprocessing companv,usesmo Cisco
'r, :i $'it.hes ro conned rwo IBM SAN systemsin daracentes 17 milesaparrusing
,-:: ronrnunicario! p.oto.ols.'I otal sysrcnsSenicesnircrs up ro 2 TB ofdaia be-

rhe resultingincreasein
'. .rrgescaleSANs are dePlovedthroughoui organiaions'
-. ,.'i ,ra r.*-t.."recdons bcconesdifficult to managc.ln response,soflw*e
. . ::'igned ro automatestorageusing proiously definedpoliciesareffnding r placein
t<".*" * policy-baed storag. nmagement' the oliw*e prcdrcrs frcn poticy-based
5torrge
-,, ..,.p'i*.
-., ..,, L,a*. *.1' as Verirar SofmareCorp, trgato Svstems,Inc EMC Corp, md
. . :uomatically allocatesroragesPacero end usen, balancethe loadson senen and A u t o m a t i o on l s l o r a 9 eu sl n g
prev ousLydeined poticies
, . rl reroutene*orks when systerns go down .[ basedon policiesset up bv svstem

-: otralL rend in secondary storageis rowarddirect-acce$nethods,hisher capaciq',

.:..d ponabitiry,and auronatedstoragemanagenenr'Organiatiom shodd rLect a
r-- :; Lrpeof storagebasedon then needsand tesourcesln gencral,thc abilirv ro stot
.-oun6 ofdata and infornation and access it quickty inc.eas orsanizttionaleffec-
'-:.
. :- rnd efliciencyhy allowingusersto acessdesircdinformationin a dnelv fuhion'
':.-: ,, rlso incrcminginteresrin pty-Per useseNi.es,in which organizations rent storage
. rsrvtstoragedeviceshousedeitheraraseniceprovider(es.,Hewletr-PrckardorIBM)
'Ihis
rhe custdneis own Premises, payingonly fot the mount of sroragethev use
;: :::h n sensiblefor organiadonswnh wildty fluctuaringsrorageneeds'such as those
..d in rhe lestingofns drugsor developingsoftwate.

TO
THEGATEWAY
INPUTAND0UTPUTDEVICES:
SYSTEMS
COMPUTER

. ,r s 6rsterpcriene with omputen isusrallythroughiiPur andoutput devicesThtough

-
:,.: dcvices the gatewavs to the conputer spten peoplepro'ide datadd hsuucitrns
 to the conpurr and receivercsuhsfroh ir. Inpur and ourpur devicesde par of$e overaL
userinrerfa.e,wh;ch includesorhcrhardwde dnices ud sofftare $at allowhumanbenF
ro inrcracrwith a conpurer sysren.
As with otlkr cohpuler s,vsrencomponenrs,rhe selecrioD ofnrpur dd ouFur device
dcpcndson organizalional soils ard Is objectives.Ioreemplc. nxrv re$auranrchains
uk
hrndheld iiprrt dnies or corrputri4d lerminalsrhar ler write* enre. ordes ro cnsur
timely and accuratedatanrpnt.Thesewsremshavecut coss by makinginvcntoryrrackin:
moreeFicierrand mdkedng b cusrones lrore effe.tive.

C h a r acte r istics
a n dF u n ctio n a tity
Rapidl)'getringdarainro a computersy*emand producingtinely ourpur ;svery imporrM:
'1hc form ofthe ourpur desired,rhc natureofthe dara.equnedrr
for todrr,'sorsad;zarions.
generaterhis ourput, and thr re<luired
spccdand rccra.v ofrhe oulPur and rhe input de
termnrcrhc appropriateoutpur and input devices.Sohe oEaniarioN hayevery sp.iti:
needstbr output and input, requiting deviccsthar perforn spsiffc tuocrions.The mo..
specializedthc appliotion, the more spccializedtlr a$ociatedsysreminpur rnd outpl:

The speedand firncrionspcrformedby the input ard ourput devicesselecred and usc;
by rhe organizarionshouldbe balancedwnh rheircost,.ontrol, and complcxiq,.More sp-
cializedd*ices mlght nake i! easierro enrer data o. outpur inlbrnarion. brt they m
senerallymor.cosrly,les flexible,and morc susceptible
o maltuncrion.
TheNatureof Data
Getdngdata;nro the compurer inpur-olien requircsrronsfer;nghuharfeadable d.ra
suchrs x salesorder, ;nro rhe compuro sysen. Hum@rcadablc data is dak thar can tY
diit.dy radaDdundersroodb]' hlnd beings.A shccrof prper containinginvenroryad
justmenrsis an ex.nplc ofhuman radable dara.Bvcontrx$, nach;nejidabledaracantt
underrood and readbycomprter devices(e.s.,rhe univeBdlbar.ode rharsrcceryscdn$
re.d) and is rypically$ored asbis or bytes.Data on inveirot, chaDses
sroredon a diskeftr
is an cxanpleofmachinereadabledara.
Daraqn be borhhunan readableand machinereadable.Forexahple,nasncric inl<o:
baii< chcckscan be readb)-human beingsand conpurer sysrminpur dnices. Most inpu:
dflices requiresomehuman inreraclion,because peoplenost olien beginrhe inpur procc
by organizinghuman readabled*a and ffansforningir into nachine{eadabledata.Elec
keysnokeon akevboard,rbrexanple,turnsal*tersynbolof! hunan language into adig;E
codeihat the hachine caDundeBrand.
DataEntryandInput
Cettingdatainto the conputer ysrem is a iwoaragepro.es.Firsi rhe hunanjeadabledaE
n @lverred into a mchneradable forn rhrough a proces called data entry The secon:
Processbywhlchhum an- f eadabt e stageinvolvestransferingthe machine{eadable darainro rhesysten.This is data inpur.
data s conve.tedinlo a machine
Todal', many conpaniesare usingonlire data entry and ;nput-rhe immediarecon
municationand tnnsferenceofdatt ro compurerdevi.* direcdyconnectedto theconput<
datainput stsrem.Online dat! entrv and inpui placesdarainto the cohpurer sysrenin a nartei o:'
Pfocessthal nvotvestransferinq seconds.orgsnizadonsir nanynrdusftiesreqJ.e rhe insranrancous updaiingoffe.edby rhi!
machin e-fe ad abdat
le a nt o t he
approrch.For example,ar anlineclcrkmay ned io enrerrlasr,ninure reservation- Onlin:
daraenlrvard input is usedm recordlhe rescNarions soon6 ir is made.Reserarionagens
ar other terninals en rhen accessrhn drta to hake a searhg check beforerhey nak

SourceDataAutomation
Regardlcsofhow datagetsinro rhe compurcr,it shouldbecaflurcd and ediredar irssour.e
sourcedataautomation Sourcedata auromationinvolvescapruringand editing dah where rhe darais orignnlr
Cap turin ang d e dil nq dat awher e c.ealedand in a forn rhrt can br directlyinpur ro a compurer,thus ensuringaccuracyanc
lhe d ata s n talty c r e: t edandin a
rimchr.ss.Forerdph. Lsingsoure d.ra auronation,el*people enrersalesordcs inrorhr
lo rh tha t ca nbe d ir ec t t yinputt o a
c o mpu ter, tn use nsurn9 ac c uf ac y compurerar rhetine andplacerheylakerheorder.Anreftorscanbederecred.ndcotrecte:
immediarell lfany item is tenporarilyour ofsrock,rhesalesperson candiscussoprions$n!
rhe cusromer.Prbr to sou.cedaraautomation.ordus werervrireo on I picceofpaper ar
 ridoripdDdrcs
Natumruipur,Prdcessng I Crrapte3

.i:..j into rheconPurerlatcr(olienbysomeoneother thrn lhe Pesonwhotook the orde')

'
n-a*.i,,* i"f.-'ation was t legibleor, wose vet'got lost lfproblemsoccuned
-. - ,r.. o the ostmc o^"rrcapturc"
r : Jatr enry. it m nccessary to contacrthe salcsp*on
r,, *"d.d f- leadingto furthd delqa and customerdissatisfsction
-. -d* -rll',

r p u t De vi c es
special'
, - . hundredsofdcvice canbe uscdfot dataentrvard inpur' Thev rangefrom
*p.urc specificapes ofdata to moe gerenl-purpose hpur devicc
, - .. a*i-. *.a.
laterin this chapter'
, -. i rhespecirlpurpor dae entrya.d ilput 'levices*ill bediscusred
' ' .. i*i.es usedto enterud inpur moregeneraltvpesofdata' induding
"irir".*." conPuiers
,,, :,Jio, images,ardrideo tor Personat
t sonatComPuterInputDevice5
. ,, ...r.,1md a onp"ter moue arethe most conmon deies usedfor entrv and input
, . ..".h *.h**t..', t"'t, andbasicconmro& Somt ompanics oe dwelopingnoe
.,,1',r'* *" motecasilvadjruted'ud tuter to we Th*e kevboards'
".. - . l- . plr r le --.tb o l J L ' V,ro ' o tr s d o ' h e r" rr de' i gn' dro ro:d unr md hrd
--fortablc,
I . hy .," o t i e )h .a rd i rs U ' i n s rh evm' kc' 6o' rd rcu ' rrr ore-' ko h+
- "
,.1 . .*hp,,l"rdd s' *i"g rhc kevs Anodoin"ovarion is rhedeveloPdentofwnele$
r ,:. rnd keybords.
I u ' c d ro p o rrr ro rn r i l tl or" smboh i ' on' menu" " nd
-' 1h F .J rrc ' .l -. c o m ru ' erro' ate' numbo ol J' tront' u' h s
" 1. "inro
, r . . .the
* ." comPutersFlem
.,. r Jara

A k e y b o a rad n dm o u s ea r e l w oo l th e
most commondevlcestorcomPUtef
i n p u t Wi r e i e s sm i c ean d ke yb o a r d s
are now readity:va tabt.
Inc I
(Source Co!rtesYol GatewaY,

&n(e-Recognition Devices
voice-recognitiondevice
.-- doi.e.o rec.gnirhumanpce'h r alled{ie-recocni'ionde-
Aninputdevcelhat recognizes
' . "".-.ri"o,'
- . u .. n e . rn J ' p c .i rJ' o l m rre ro te' ordal d ' on\e t Lhe' ound ol
-. ' o" -i ..p h ,
- - , , . *- i. . i" . aigi ," ts i g n a l s .Sp e e c h ' e c o g n n n rncanbeusedonthefactoryfl oorto
to while lhev are using rheir
. . .q"iprnent ope*tor t. gi"" t-i...^*"a" 'achines securitvsvsrems
Voicerecognirionisalsousedbv to allow
.- . ,i
. .uriorize,l pcno"rei inrc resrt;cteda'ea voice rercgnirionhasbcn
".f..-.ir'-.p.ati"ns. urd in nov
autonobiles Voice rccogniiionsvsrcmsnow available on man)' makes
':,rs, incLLrding
ur-cven
, . , 1 . r u.r' rJ l o " " d rr* ro a .r ' rre r:J i o p rogrrm" nd ' D ' The ' )i em'
rhr-t) rour'
. r her im e .A k rn g w h , ri meI i l w rl l g e r: e' pon' e u!h r' -Ll rven
. ,. rLer application,Voie Conmand softwrc fron Micoso{i allowsure6 to i$ue voje
, o Lh e i rPe ," n J d rg i rrla ' rro r' ' r ' e l l phono l he ' otvrre underumd' Ln'
'.. rerrdfl rce(
, dr inr egr a rc d rrrh o rl -e rM i .m' o t' o fN rr e' rhrtu\e' Lrn ucl e* turrv
. ,ll th. omce or cve" askthen "MaCs mv next appoinrnent?"rl
hem hro
' c . r . . ogn i ' i o nd o i .e l J y z c a n J .l i * rfv ' P r< l ' pJnem rnd ' onw r
r rrml ed\ocdD urerv
' . ' de' . ' om e .r' re m' re ,l u i rerra i n i n grl ' e!"mputetro re(!' gnrr
 Pdz I ittrmr oi TechrohqJ'cm!.pr:

o t r4 d J J w ord. In cr.h u.ct. Ope ron rrri n < .ogni re rh t r or * b'

e
rc p e rrrn g a .h w orJ ro b. adceJ ro rhc rouhu,rry ' oe= J ri mc' O' mr l rem ' Jlow I
computer to unde*mnd r voie it hs levet heard ln this cde' rhe compurcr mu$ be ablt
ro rrcognid nore than one ofthe sane word for*ample, recognizing th<
Ptonunciarion
usc of the phrase "Please?"spoken by someone from Cincinnari d neening the sane a
"Huh?" spokenby somarnefrom the Brom, or "I beg your perdon?'sPokenbv a Brnish

BurlinsronNorihefn and sarta Fe RailwayCo (BNSF)ued to trackirs nains the old

fshioned my. through two way voice radios located in cverv loconorive cab Train cr$'--
droooedoff ar and rhenndioed that informatnrnbrck rc adispatcherarBNSIk nesol^
opeiatiomcenter.The dispatcherthen had to q'pe the informationinto databases runnin5
on IBM mainfrane conputen. Recently.BNSF launched a projecr Io ue irs voia radiosa
the interface ro a inrenctive voie response (lVR) sysren to p.ovide inPui dired ro th'
ompanyt darabases.lt chosescansoft,Inc.,to provideit wirh sPeechrecosnidonsofrwir'
Theircject prcved quite a chaliengebeeue rvo-way mdio svstensh*e lower fidelitv rhc
rhe ohonelinesoaditionallyusedwirh IVR Plus,rhe noisyenvironmenrof the locomorni
cab compoundedthe fidelity problen. SonSoft built the BNSI IVR applicationon ic
Sp.ech\rorkssofoare and addedroise lilter. ScanSoftalm unpled engincr ndio callso
tech the rcftware to reognize speechge"eratedin the noisy envhonnent ln rhe end' BNSI
gor a sysremthat atrronatically integratesradio callswith its b.ck'end svstms,Providing '
with curenr ud acunte infornation on its tnins and individu.l caJs.BNSI is now abL
to proride customeswith morefrequenrinfornationon c* novenent and belrcresiim'(e
of upecred tine of arival.ra
Camera5
DigitaIComputer
di9it.t (omputercamera Digit l conputer cmers look very similar to regular caneras but record and store inaga
Inp utd evce!sd wit haPCt or ec or d orvideo in digitalform (seerigure 3 13).'J?henyou takepictures'the imagesareelecaoe
an dstorema ge sandv ldeoln digit at icallv sroredin rhe cmera A cible is rhen connecredfron rhe canera to a port on rn:
compuret, and the inages can be downloaded. Or you can simplv rernove a flash nenon
cad-or diskettefron rhe canen od inserrit into you poonal omptter' One on ri:
conputeis harddisk,the imagescanbe edited,sentro anotherlocation,Pdied into anothd
applicad"n,or printed.Ior *ample. a photo ofthe prcje* tem opured bv a digitalor
p"i.' *-"..- b. d.*"l.aded and thenpoed into a Prcjed statu rePdi Dishl dmei6
now rival cmeru usedby profesional photographes fo. Phoio qud;tv and such features5
zoom, flash, exposurecontols, sPe.ial efrec$, dd sen video-capture epabiliries wnh th'
risht soliware. vou en even add sound and bandwriting to the photo

@
A 0igitatcamera
D g tatcame rassav et m e and
ng t he needt o
mo n yb YeL lmrnat

lsou rce :cou rtesy olCaso I nc . l

More rhan wo dozencamaa manufactures,including Canon,Kodak, Iuji Hewleft'

Packard,Minolta. Olynpus, Penru, Sony,and Tosh;ba'orTerat lext one digial comen
 P m.e* i q ...1o!rni o* cs
H afrMfanpur. I choet.r 3

r5
i'!r!r ' - rndc. $2s0 wirh sumcient.esolutionro producehigh quahy 5" , 7" photos
m&, --rt.icturcB offer a digiralcrmera$at rccordsli l'ndion video.
- ,, -rrber one advantage is savingiine rnd rnonrT bI eliminaing
of digital cemeras
rru ..: . process fiin. h facr,dignal camerasthat can easilytransferinagesto CDs in-
.r.r': ..drnge. the consmcr 6lm busin$ of Kodak md lujitsu As a resrlt, Kodak n
,,u, -, -Lrg phorographers o havc it borh ways \ hen Kodat print filn is developed'
,"u- :r; drc oprion ofplacing piciureson a CD in addirionro the mditiondl prinrs.
n,.: .J on thc CD, the photoscan be edned,placedon a! Inrefnetsite,o. senrclec-
rnn.,, :r buines osociatesor friendsatoundthe wond
.:: , :. testinghigh'speed.canera-buedsonner thar Lead,ll si' sidesof a packge ro
ar -.. :;,tJ imagesofeachbar code An aray of cmeras looksata1lsixsidcsofapackage
u : j ,. :!sn rhe S!. huis faciliw s softins conveyon The digital cameruinagesdetect
rE'- :ic that is on one of rhe box\ sk sidesand decodesthe bar codethe way r laser
qn:. ::todes barcodesin olhef FedE! faciliiiesThe Pa&aseis ihen sonedic.ording to
nr : ' ::rion on the bar codeand placedon the appropriarerruck bI a worker.\rhilc
u -::rr read95 percentofboxesthe frst time, the oneru scarnerscan readapprox-
rnou: r percentofthe packages. Gn'en the hundredsofthousandsofPa.kagesthrt nusr
r' ,,-.: :\e 3 percenrinprovenent is signifient, reducingthe anount ofhunen inter-
,mnr . ::J shoneningthe amount oftime fedEx spendssoning boxesfrom its inbound
r-": : rs ourbounddepanures.This systcmerablesledlx to cut coslsand inprovc
s .. : lr..usomer.'"
lL'|nnats
rr:., . ,: ard easyto usc,rerminalsare input devicesdnt perforn data enry dd d.r.
ur[,.:. ::: srmetine. A re.ninal is.onnecrcdto a cohpLeieconPurerslsteh' including
r, .. .. :. nemory. and secondarlstoregt.Gcneralcohmandr, rexi, and orher daia are
ry*r.: . , kcvboardo nouse, onvened into nachine+eadable form' and transfertd ro
r0 .- .i:ijLn.qponion ofthe conpurer svsrcn.Terminals,no.mailyconnecteddnecdyto
m -::rer svstcn by relephonelinesor cables.can bc placed;n offices,in warehoures,
n'r - :: iicory 1'1oor.
Sitir'l n9 Devices
ou: .:.l rhancterdrta canbe input usinga scanningdeviceA pagescanneris iike a copv
ru: -. Ihc pageto be scannedis tlpically insenedinto ihe scanneror Placedfecedown
n r . : r.. plareofthe scmncr,co"e'ed,andscanned\f;ti a handhcldsenno, the scrnning
u ., ru cd or nLled manuallyoverthe inage to be sonned Borh pageand handheld
,d: :,- f,n.oNen monochromeor colo pictures,forms,text' and other imagesinto na
r: : . . , J r bLc digirs .Ith a s b e e n e s i i m a e d th a tU .S enterP .i sesgenerareoverl bi l l i onpi eces
r . , c . : : : : i[ . loc ut & v n o n ti re h i g h c o * o fu s i n g a n dprocessi ngpapet' manvconpan]es
rn - :g to scanningdevics to help then managetheit do.menrs
8!!Et oata Readerg
. rr',: devicecalled optnal,latamd"t canalsobe usedto scandocunnls
'crnning ^n
'r1, :rtegoriesofopticaldrta reade.'*e for optical recognitior(OMR) ddoptical
-uk
:rtr r--.: k.ognition (oCR). OMR readenareusedfor tests.orinsandotherPurPoseswhen
pendls to fil1 in boxeson oMR paper, which is also calhd r "nark
rr*. -r,. oMR is ued in stan<Lrrd;edtests,includins the sAT and GMAT tests ln
jr':.!.n, most OCR readen use rellectedlighr to .ecognizevariouschan.ters Y/irh
s,, - .: r. arc,OCR reddescanconv.thendwririeno. q'peddocumentsintd digitaldara.
,r-, : :: red, this daracm beshared,modified,and disributed overcomputernetworksto
ad r.:: o. drousaod\ofindividuals
lMlCRloevices
Recognition
rBetic InkChara.ter
r. riOs. rhe banldry industrybecaneswampedwirhPape.che.k.loan aPplicadons.
u,,, :::rnena, rnd so on. The resul was rhe developnenrof nagneric ink character
n:...- :,or (,\4ICR),r sysremfor readingrhis daraqdickly Vith MICR. datais placedon
n, ., ,.n ofa.h.ckororher fom usingaspecialnagneticink. Dataprintedwirh rhis;dk
u,:: , :hrracterset is readableby both pcoplea'd conputen (ee Figure3 f i). l{eadthe
",rtion Srems @\x/ork"sp.ialferrurero lern nore abouthow baks arccombining
 Pd, I ih naf unr e. r r . r . qy . . n. ept 5

the epabilities of old echnologi suchasMICR with new techrologiesto inprove

@
MlcRDevice
Ma qn elicn k ch afac t err ec oqnront
sa p rocessin whlc hdar als c oded
o n lhe b otto mo f a c hec k ofot her
Iorm uslnq5 pe ci alhaqnet ic nk ,
whlch s fe ad ab t b y bolhc om put er s
a ndh uma nb ein gsFor . anex am Pl,
too ka t th e b olto mof a bank c hec k

lso urce Co ufie s y oiNCR

t**rtiqjt
(P0SlDevices
Point-of-5ate
poinl-ot-sate IPOSldevice Point-of+ale(POS)dwicesarcterminalsusedin retailopenrionsto enter sJesinfb.hatirr
T rmina tlsa dn r et aloPef atonst o into the conputer s-nten. The POSdevicethen conputes rhe tobl chdises'includingia
entefsates nfo.mation nto the Many POS dcvicesalr useotherwpesofinpur ondoutput devices,suchaskeybodds,b:-
A largeporrion ofthe morq-that b$incssessPendd
codereadcrs,prinrers,and screens.
compurerrechnologiinvolvesPOS dwices.
AutomatedTetterMachineIATM)Devices
Arother typeof special-purpose input/output devia, the .uromtted tellernachine (AT\l .
s a termiml usedby nost bank cu*ones to perforn withdramLsand other mnsrcticr
rvirh rheir bank accounts.The ATM, howcver,is no longerusedonly 6r cashtd bs
reeiots. Conpanies use variousATM dcvices,",merimescall.d *;r*r, to support thd
b " ,i " ..p ' " ." ..* .s.-" .,ndi .D en' r,i ^eFl orrrl i n' .on.erbsd\o.ccrgdm "'- -
collcgesur drem to outp"t rranscriPtslor ihis reson, the nrpurand output capabilitierf
ATMS arc quire varied.Like POS dev;ces,ATMs may conbire other rypesof inPut ai
ortputd*ies. Unisys,fbrermple, hasdeveloped an ATM kioskrharallowsbalkcustons
to nake oh withdrawls, pav bills, and alsoreceiveadviceo! investhentsand rI'rehd
 tigh Move to lmproved Che.k_Ctearing sLrbstii!te.he.ks. n sddlllan,cLrsto.iers .eceNethe convenience
ofvewinq cLea.ed checksviaa PC connected to the niefnetorfrom
.tnkon:n nsti l ton' sW ebpage Thel seof l R D sattow sbankslo
nf or m :ti o n s y s te m s i s .n tc a tto th e sl ccessol
- :: rl lse more efficlent detverychannets for statements vraCDs.DVos,
' I 8. . " " o o -o (4 ., o d " b Id
6b|por - a
. "o el" n. Ln6, . o
lvost tarqebanks.t.eadyhavemlch of the basc complter
.-" d dc e "| "9 oo dpo. e. i9"1 Manysm at t e.
hadw are.eq!.edfof.heck magnqai dproce5sng
. : :i.msior ef f ic ienc y . r ' r dhighr et 3b, Ut y onihe riargerco!nterp.rtst0
." rF L !.0 b.nks howevef wLt nstead depend
. te".gd.dq,..6,o.od
p.fo|mthecheckim.qeprocessng Anothe.appfoach thatsome
_ . : _.e the 1950swhenbanksLnt.odlced magnenc_
maytake i5 to oltsolfce check ctea. ng and setttement, rctyngon
_. ctea..nceand settiementof checkslook r.om
athrd pai ryprovl de.tope.fofml heseJ!nctons
: : : r . diequ re dp a p ecf h e c k s to b e 5 h p p e d b yptane
q u "d r ,r a L lmagine ihat yo! afe the manager in charge of the
.p .o r .. d ,o .o .60
" checkcteain! andsetttemeitope.aton i a mldszedbankthats
consdernglnvestng n informatonsystemsand hardwa.elotake
::- r.toqicat advancessuch as mage-captu.e of Check 21.Sen or bank manago.s have askedloryoLrr
:dvantage
: _ r r , s pee d n e tw o rk s c re a te d a n o p p o .l untytosto.e
.ecommendati ononw hethe.theb:nksho!tdmakelhenecessar y
- . : . : - . . k im a g e si n te u o f a c t!:Lc h e c k sH o weve.. io convertto thrsnewprocess
nvestments
. : :: r. forcedto acceptelectrofc check mages so.
| . ::-ks that ddnt nvest n magin! systemscoLrLd
DiscLrssion 0!estions
,il1, : : . r r. contnle thecosttyp.actce of h flnga I cou.
' . : : . r ! . dt es o i c i re c k s s c .o s s | re c o L rrj l ry . 1 Whatarethe potenuatbenelts ioryolr bankto conveftto the
r. : . : iea. nq fo r th e 2 1 " C e n t!ryA c t,o . C h e ck21,
I : -.e of a devce catledan mage reptacement 2. Whata.e someotthe ssles andiactorslh3t maycomptcate
. p"p- d . d ..l' p a "o a b te o"
:-:. ?r cs how tw o rk sSl rp p o s e th a tB a n k ol A mefca
m a g eto ab a n ki nN o .thD a k o l ab,L rtthF
- : . . : . c hec k C ri ti calThi nki ng0uesti ons
..r : ::.( sn t equipped io recerve digtatimages.Bankor sho!tdconvertto the
3 Howwo!tdyoudecidewhetheryourbank
:: , _. : th e i ma g eto a p ro c e s s i ns g(e n e a.the newCheck2l process?
. - _: : -kans
ot . m wht c h w o u tdp rn to L rtth ema g e a s a nR D
What factofsshoutdyo! consdef n decdnq whetheryo!
E o - h d o q !o p 0.6
4
\ . . D- .o ." b a r
shoutdo!tsoLrrce thecheck'cLea. ngandsetttementl!nctons
ir - : : r : , r . t t y as n th e p a sT t h l s p ro c e s s e ra b te stheB ank
Gthefthai contnle to pe.fo.m them n house?
.,: : :i!.e ts checktcnsportatoncosts,bltlhe Noi(h
: , . : _rt lo.cedto nvestn imagng technotogy. so!RCE5, stevenMarln 'che.kctearigto 0el ELectronk Overhaul
: _p-ovedprocesswittspeedthecotleci onoicirecks. tnfo.naiahlleek, )sne 1a 2AA3 ww int'a.naioh'|eek can S\essa B
do - / o ,rn d ,d d . " i ? L o ro " " d lo^et C ohe^,-N ew S l edi ngspl nol tFo.usesoi C he.[21 S uppofl , GadnerGr0up,
Seprember 17, 2003, at wwagEhheLran Luca5 Mearan check 2l
::: A..ord ng to smaltvaLLre Payment con-rpany a
Become5Law, Attows SpeedrefEtedronc Setllements er-prrdBr.1,
.: : :,,der of eLectronic-payment seryces.bankscan November23,2003,llry.,Dprleryo.ld..rn CareyRichardson,'Che.[ 2l
: : 3! . gs of s 2 .1b i l ti o n3 y e a fth ro u g hth e l se oi CharI Ctearinqtor lhe ?]'r Ceitury, de novobanks..om )anrary 22,2AAL
Pdt 2 | nrrmr DnT{hmrosycomePis

PenInputDevices
By rcucling the screenwirh a pen input devi.e, ir is Possibleto acrivatea omrnmd u
,t'. ..-o',.. . o*f-- rask, enter handwrirrcn notes, ud draw objeca and figures
"
input requiresspicial sofrwareand hardwre. Handwrning recosnidon sofrwre can cor
hmdwridng on thescteeninro text.The TabletPC from Micosoft and its varioushard$z
p*tnes caa tnmfo- hmdwritinS;nto typedtext and storethe "digitalink" just the,w-ar
p*-r i.. Users on use a pen to wrirc and snd e-hail, add connents ro \s
documents.-.i.* mark uo PowerPointpresentadods, dd evenhanddrav chansin a documr
Thar dara cm rhen be moved, highlighted, sear.hed' and converred into comPuter
data. Ifperfected, th is interfac is likeLyto beone widely used.Providing such a s;nple inl
merhoJ is hisbiv anoctive to usen who are unconforrable using a kevboard The kevs
the suces oi this msm ofinput are the accurucyat which hmdwriting cm be read
translated into digital fotm md cost
LightPens
A lisht pen uresa light cll in the tip of a pen.The cell cogfta lighr ftm the rreo
desnins rhe locaiionofthe pen on lhe sceen. Like PeninPut devices,lisht Penscu
usedto acrivareconmands and place drawings o! ihe s&een.
Screens
Touch-Sensitive
Advances in screentechnologr allow display screensto functiod ar inpur s well as
devices.By touching certain Pdrs of a rouch-sensitives.reen' vou 'd execurca prcgnn
causethe comDuter ro rake an action. Touch+ensitive screes ate Popular inPut dsi6
sone snali conpten beeule they preclude rhe Decssitv of kevbodd inPut dsics d
consune spacein storugeor in ue They are frequenrly usedat gasstations for 'srome6
selectgra&s ofsas dd requesra receipt,on photoopv mrchineso enableu'ds tol
vuious options,at fot-food resraurmsfor orderclerksro dter cu$omd cho'ces'at I
marion enten in horels to allow guess to request faca abour loel eaiing and drinb
esmblnhnena,and at amu.senent parksto providedirectiolsto Patrons.Thev alsode
in kioskr ar airyoris and department stores
Bar-codeScanners
A br-code scaner enploys a larerscamerro reada balcoded label This fo'm ofinplr
usedwidely in grocery itore checkous and in warehoue invenrorv conirol Often. bar<o
technology is conbined *ith other forms of technolosy to (are innovaiive wavs for c
ruring daia. For *anple, in-srorePromorionsare essndal for punPing up rhe sa16
ooo"iar DvD'. Lo"do"-based Twentieth Centurv lox Home Enterrainnent provided
ofirs salesrepswith Hewlert-Packard iPaq handheld conputen and digital amoas ro d
,h"t i"diu;d",I ..t"il storesfulnlled their agreenenrs to insratl bames md d;
"-.nr
to promote specilic filns. The systen also include a barode scannerfor accurareap
o r i te m .ours. Th. ' ,1e.rep' ni 6 J ' rorr. c,prure'P hoi o'o' rhe i n-notepr om ot ion'
termines Droduct inventorY, and sendsall this daraback !o Fox over a wireless@mtnui

The Uniform Code Council (UCC), which assigns the l2-digit un;venalproduct
(UPCj, determinedihat the numbenwodd *entuallv run out ifnore digitsweren'radd
In 1997,the @ubcil nodfiedmanufacruren.retailen,dd distributorsthei asofjanud
2005,it would in$oduce13-d;gitUPCsandthat conpaniswould haveto be ableto P
rhem.This seeminglysinpletaskhas requireda nvriad ofchangesto database fields'
puter hardwarea*;.*, aPpliarions, resultidg in a major etron for
".a -r**.
When orsrnizarions cosider inpiemendng the newestcomputer h&dware to
input operarionsmd reduc enon, dreyoftenrun into budgetliniBtions md resistan<'
chanee,m illusmred in the "Ethiel and SocietalIssues feature'
 n Management
Systems adopiionof pEtentsafetytechnoLoqies,
accordnqto a sutueybythe
Heatthcafe lnformatlon
andManagement Systems Socety.Ne:rty
: :3artmentoi Heatthand Hlman SetuicesIHHS]has
threeJou.thsofthe respondentssaida la.kofl!ndingsthe b ggest
d r: : : ia! pham ac e L rtccaot mp a n L pe lst b a r c o d e son.tt
reasonfo.lhe stow adoptonol paienl safetytechnatogy. The
i: : : _! ed n hos p ta ts to .e d l c e m e d G to n e rro rsWhte .
secondbiqgesilactoi,cted by 45 percent s physicanresstance
r: : , : lwdet y , s om e b e l i e v e th a tti te ra tty te i s o l t housands
r ' :::ichyeaffrom medcate.rcrsf.omdispensagwrong
l rrj .jong dosaqes. or ncompletepaiientdat. Atthough
::.::Dns applyonly to drLrgmanLrfactu.ers and nol t. CriticatThinking0ueElions
|r!: : expected thal hospilalpharmacsis andvendoBwitt l . U nde.w hat condti ons shoutdadapti onof new p at ienl
,1 ,,r ri : r des andt h a tn e tw o fk s w L tb e n e e d e d to supportl hem sal etyi nfo.mati on systemsbe m:ndal oryfor al t par tc
' r;,: r.. the Food aid Drlq Admrni*ranon IFDAI has pants i n the heatthcare i ndusl ry?
,rri r : - : lse of the NationaL DrlrqCodeto idennt thetypeof 2. W hyw ouLddoctorsres st adopton of new patent saf et y
:: :_ :.d dose.Th goatis to emure lhat the dght patent nfofmati oisystms?W hat coutdbe doneto ove r com e
!: -E . ght dftrgin the rght doseat the rghi time These
::,! :rJtatons wtt go into effectthree years afte. the
p i d ," 2 c 0 4 B r e| ' i rg
WhalWoutdYou0o?
=!r ;-r.s. the FDA broke an mpasse among drug
o. Po( or * . " + o, ba ( o d " . Youafe the manage.af qr.raltyand patienisetuicesof the onty
"4ip --d
'.. r , ea dd wonl u< e bo, oda5 be "r " L hosprtatLn a 50 m te .ad!s The 250-bedlacitityis knownfor the
'o "
o \ 6 r 6 o d d' .o ' d L cto < p r d .d d r o n r o i sl dl hgh qualty of itsseMceand ts strongstatf Howeve..the hospliat
is Vpcaltyslow to adoptnew technoLogy Youhave he.rd rumors
|.j . r : : t / bec aus es o i e w d ru g s h a d th e b i rc o d e s.
thai the hosptaLs boafd of d fectorswshes to movestowLy on
" -::::ton managementsystem b.sed on bar codes management system They
imptementalion of a few medication
!: - :pte checksio ensu.ethat a palrentrecevslhe
d. pene L"r .'.no wani to be sure that the new technotogyis rclable before
"o"o
_ consde.lnqany changes.Furthermorebudgetconsideratrons
r:. : :-e rbadge,thenihe codeonthe patientsbr:cetet and
s i n fo rmaotn s s e n tto ad a tabase woutd makelt ad!nt.geolrs to extendthe mpLementailonovertwo
- - : : r e ont hed. u g .a l l th
_
:-: : c.t eniandpresc.ptionnfo.mation. Ihe lnfo|mation
:r :: :ra nslthepatientsete.tronic medicatrecordstonsure
,ri : - : . t m edc r ne a n d d o s e l s b e n g g i v e n a tth e co.recttme3. D o yoLraqreew l th the boards posl l on on the n eed t o
mpl ementa medl cati onmanagementsysl em?Why o.
:r,.: : checkpossbtealtergieso.adversedruqint.actions.
,r:-.an alsa be used to che.k bLoodtypes beiore
4. oncethsproj ecl recei vesboafdapprovattop.oceed. what
ii ! r . dlot c k t a b s p e c me n st s o me th l nfagi ts1 0m atch
acti onscanyoul ake to heLpaccteraithe e mpte m ent a-
i r r . : : : it er ts oun d s
.r :: erpensrvefor hospltalsto deptoythe bar code ti on ol th s system and avol dresrstance on the par tof any
.e FDAhas the costto exceed$7 b tton, o{ those affected by the new system?
:: -"siinaied
r, ::rtonal $l billion neededto nstattfiretess LAN
r connecinurses dispensingd.!gs ai patients 5oURCES,Bob Brewin,'NNS MandatesBa. Codeson Alt Nospitaloruqs
r:rr:
Conpute.Mtld, Marc613,2AB, w onpLtewortd coh Bd6 Aren n Ba
. --: FOAeslimatesa onetimecoslot$250.0001o equipa lion3 Neededro Meet Druq Ba.Cade Mandare. CanpoteNatld Mat.h 17,
,r : : : : r at wt hbar c o d e te c h n o to g y a n d s y s te ms.A hospi tal
20n3 w ranputeryatd .Dn Marbnne (olbasuk M.Gee,-Drug Track lg:
$rilt io an add tional FDACourdMakeAarCodesPract.al lnfatnattonve.k, May 19,20D3,ww
! .:i . rh no wireLess LAN need spend
ihf.rnationweek..on; Sl.pianle 5iahl,'Ed iors Nore:lT: GoodldrWhatAls
lr : :.eiwofk. Averytaruehospitalcoutdspenda colpte \ov lnfomarantlreek,May 19 20a3, httpy'lnfarnatibnwek.con Mar anne
KotbasukMcGee, Eye on Pafenr Sately lhfarnat|nweek No\enhet 3,
p.i i :re advancesthat innovative healthcarecompanies 2083, wE )nf or na I i an||e ek.c. n.
. qb " .s r" " i o to q , r\a " d .4 .l td g
 Pa ri ! | i
- - at m t u. ' , N"! , ' m - e,

Radio-FrequencY ication
ldentif
ii,Jrir'"*i'. ii-.m*,ion ,RrlDr 'echnoros/ r mL ocriP cnkde
emplots
identilic6tion
redio-trequencY 'rya
io @rrespond'E
IRFIDI rzs, with an antona that broadcar$ irs unique 96-bi! idenrifier and location
tr'. .4"" the data to a computer' which decodes the infornation ua
AtechnotogythatemPtoysa
m croch anantennatnat -i.*..'. "-l'er ofRFID k ro placea nicochip on rctail irens and installin-
Pwith o-.-"""*. i . O""
its u .iqueidenliler and
bro ad ca sts "pptl"".i.ncoLrntthe inventorv on the shelvesto restockthem automaticall''
l'.,. ."a.^ ,r'* .j'j.**t"
'''.!-".f.*.
*" s. a- in irernsthat aredjllcult ro bar code'suchasa bund
"mbedded rc muu
r f,.t .," ** Ueenbeddedin uw marerrl' drendins lhrir brnefiF
"f ",,"*. fhe dir{eren.rbeseen ba-'ode rcsnet'rnd RflD rc:nneru i' t}ll
i^i,
",' -a ',oori." r..- eachiten ar a disrmce of 4 ro 5 feet h doesnot requne a humar
,r* L"..,.*dL"
fmter'As a resuh
to nanuallv passthe item overa scanner,somnsactios canbe conpleted
R l l D o n produ.emorezrcurdre i nven' ory@ unr' thanbrr code(
it'e *t'..r-rrt-r.it aruss is a $30 billion Problen for rhe drug industry 'nd is causris
re$ of rh'
r, ,. *J." 1,"--r"*r *e oF radio-frequencv.identifietion technologrr' In a
l rbd' rdi e' lohnon x
,.J " .ri " , n* 01,,." ..' ri ul mrnuf,' rureni n' l uci ns A bbdr
o{ vo or wr E
f.f' * " " , l n-,. tro.rer & Gambl ebegan' hi ppi ngbotdes ' vp e\ P'l\
" .o mdruh' tu' e^ t o m
n rl D t,U" L' .n. U o" t.' ,,e bei ngtrrked n Lhevmorefton Pr r nb
*r."", ,l-,o di.t;"-^ f-ilitie'. distibution centen' and lnallr
ar,"lU",r." 'tailer'
i ui n {i d rerai l phrrm:i e' McK e* on ( orp rnd crrdi nJ H e^ Jt har : 'hr . lir -
',i. .i p rri n-a " l los r hhwlr r G
Adi nri hJtoFl trheP i l l ' nove rode!i nrri ' n' ouhi derhenormal
;.p-' i a i " * n' o.) w i l l b' I ben' fi ror i r em - le'elRFI D
a .,L " l l L "" * -
' " - ;,l .-.rri w ' -" u" s" " n'
l -el pa' oi d p o' rucr' ro' k-" u' m 'I e c
," g * " g . pl .' i ' ^." ' rv i r* i l l "'d
dsier ro rra.edrue" rhat haveheenrcdlled'

0 u t o u t0 e vice s
ro
C o m D u ter \y,,em'provi deourputto deci ' i onmakenaral l l erel 'ofan ogan r ar ion 'oic
rn' ddni on o ut PUr f t om oB
:;;.i ;;;;bi " ;:,." p" :J;eon,comperi ri ' eoppoi ,uni ' v
\vnem l he denr edr or md
.o m ru rs w ' rem un be ued o i nput rnroanorhercomP Jrer
\(/hrLfl er
the ourP ur' !on'entor loc
rh i , o u rp utni ehLbe .nul rudi o.or oen di gi ral
in r he r : st r
* ,1." ro pro\i dethe ri shr i nro' meti onro rhr r;shrpeFon
" ,* ,, i . ' 1." n
format at the rieht time.
DisDtav Monitors
devi.eonq hkh ou'puriron rhecomputer n d+
i.'Ji"r"' ...1., r", tV-.creen-like
' ,.-. .."itor usea cathoderuvube ro displavinages'thevaresoneti'-
;;J;;;'..
i.rr.i.nr '. , .-i,o, "orks nu.h $e 'de $av a tadirionalrv ntrn ltr'-:E
inke " pnc
-'r' b.am'ue ge..oredfromurhod' ru; rube\'tu rhebed'
or morecle.r'on
rpho' ph,'I .o' red o' $e i tui deol rhe" rcen rdo( onr he\ ! t d
pixet
" n .' * * " , -.*r,i"
lJii', ," a o pixeln a dororolor on a phoroim'geor r pornrorlish',o !
"r'a "0. oiruomodes: onorofl t:- *":fl:-lT
A d oto l colo fo n a Phot or m ageor a dnpray '. ree..r, cf ber" one raru ro
]i" "l':"'"
fade i r i ' rru' l eg ar nandlighr 'r 4'
poinrof Llqhto. a d sptaysfieen ,..,1 ,.' ." * rr a' rhepho' phor
' i " ' .-" " -
@naarv tmei'<1otrt:
With today'swide selectionofnonnoa. price and overall qualitv
rr'" .?" ..-." r' .n- uvti" ofhorizonalmd verticalpixelsusd
""JL* -.**"a "'-O"r
inchnearo anigherresorudon' or dazr
;;:-; ri. A L;;.' *-b.. or pixerspei square
(786'
lesolution
.r'"**" .rir'" i-"g.. F--**Ple, " *'"" -ith a r'024 x 768
".i thrn onewnh aresolutionof640 I 350 (224'000 pqel'
pi-aO r'1" f igr'-
" 'f'"'pi.s on the screenand,he nqt Nar$r pixeris known r /"'?/!*.
fi;;;il;;;;i'.i
pitch'$<
i'. ..g" .ia- Pitchis fron 25 nn to 31 mn' Thesmallcthedot
"^a* good Greater
S"". ---"" oochof 2s mmor snalleriscoDsiderd Pixel
and 'i..
sna ""'".1
;r dot pitches sharperinagesofhigher resoludon
- -,q tield ^,
.."i,", .lur;.y. a]'Pl,)."1* ^ ' tu*'i'; "f 'nequrlrvofrhemo.rro rhe
t)sem.rnd Lhemon;roi ' cJrd
grrphi rrddP rer r , he@r or
o fR AM i n l he@ mP urer
;;;,,aCA, rodi'pr+'oro rmrg$rn rhe<reen r
;^:"..i,he fi,r te.hnorogie'
rreirndrd Pro!rdrngvi'idcolor'rnd'ul
,upe ideog'rphb urayrSVCArdi'Plevs
 F3..lrar. iput Prc.pssnq and 0urput De!.F:

LrquidCrystatDisptays(LCDsl
:r:trusc CRT nonirors usean elecfon gun, therc nrusrbe a dhtancofar le{t one foor
-.:-,eenrhesuDmd sceen.crtrsingrhen iohe 1a.seandbulky. I'hus,a differenrreclnologli.
:.r: prnel displal is usedfor somepdsonal @mpurs and all notebooks.One connon
:::*nogj/ med for flat-scrcen dGpla/sis rhe sameliquid crl6raldisplay(LCD) te.hnolog)-
-.-: i;r po.ket calcularo.sand digital wtches. LCD moniton are flat displeysthat useliquid
::als<rganic, oil'like mateial placedbctwcc! rwo polariks to forn.hda.k6 and
:..h,. imagesdnibacklhscrcen.Thesedisplaysarcmuch easieron your eyesbecause they
r. :lrckerfree,fi lighrer,le$ bullg-,aod doni enir rhe rypeofndiation rhat maLessone

fhe primary.hoicesin LCD sc.eens a.epa$ive-m.rrixand acrive-marrixLCD displays.

: : ra*ive-maaix display,rhe CPUsendsirl sisnalsro rransisrobaroundihe borde( ofthe
- ..n, wh;ch conrrcl dl rhe pixelsin a givcn row or column. In an acrire-nauix display,
,--i pixeln conrrclledb- irs own transistoranachedin a rhin filn ro the glss behind lhe
-:.. I'assive-macix displaysare typicallydimner, slower,but lessexpensivetho rctive-
-:-:rr ones.Actire-marrixdisplaysare bright, clear,and havewider vicwing dgles than
- . .r e-maoix displays.Acrive-maftix dnphys, how*cr, aremore expensivedd cd incease
--
:: ot the screen.
"eight

C R Tmon
l orsarel 219 and
bulkyin
comparisonwlh LCDhonitorslftat

C ourtesy
l source: ofVwsonc

CD rechnologl/is alsobeing usedto createthin and exrremelyhigh-resolution moniton

' iskrop @mpure6, so-calledfat-soeen nozitor. Nrhoush rhe screennay neasure jusi
, i.hes fron cornerto .orner, the displars extedely high rsolution-1,280 x 1,280
. r:..-lets ir show * nrh informadonas a conventional20-in.h honiro.. And while
:-- ming more into a snalLerarei eses dt dd ihases o shrink, you car comfonably sn
:,:: closertod LCD soeenthan the codveddonalCRThoniro.. The IBMThinkvision
-' ilar's eenmonitorhu a bse rharsivels a tu1l360degrees. The SamsungSynchMuter
': - hs a screenrhat doesnor wivel but qn rotatefrom rh holizonBl rc rhe verrical
: . :.on. At rhe high end are dczling plona screensfrom Fujitsu, NEC, md Sansung
r i-Jins 50 inchesbut wirh a priceofnearly$10,000.{The iMac compurercm beordered
. .i r 20-inchflai saeen.
}-!anicLight-Emitting
Diodeg
l;shi'ehilrins d;ode (OLED) rechnologyis bued oo rcseuchdone by Eurnan
. -:ric
r:-I Co. and is just reaching rhe market in snall electronic devies. OLEDS use rhe same
.r.: ::chnologyasLCDs, wirh onc kcy difTercnccwheres LCD screens conraina fluoresceni
-;:.right and rhe LCD acts asa shutter to selectivelyblock that light, OLEDs direcdy enir
-- OLEDS can provide sharperand brighter colon than LCDS and CRTS, and sincethey
: - : require a backlighr, rhe displaln cm be half the thicknes ofOCDs and qn be ued in
 Pdt2 | nr.,nar of T(hmroqycomepis

flexibledhphys. Anorherbig advantage is that OLEDSdon\ breakNhendropped.OLED

a.e cufendy l;riied ro usein ell phones,or radios,aid digiralcarero bur nay be usd
in computerdisplays ifrhc averagedisplayliferihe can be enendedbeyondrhe cura
8.000hours.'
PrintersandPtotterg
One ofthc nost usefuland popularformsofourput is elled /a/ rap,y, which is sinply papr
outpur from a printer. Prinr* wilh differcnrspeeds,fcatures,xnd capabilities de availat!
sonc can be setq to acconhodarediffererr paperfon , suchasbldnk checkfo.tus dd
invoiceforms.Nser printeB allowbusinesesro crearccusomizedprinted output fot ejt
cu$omerfrom standerdpape.and darairptrr usingfull color.
The speedofrhe prinreristypicallymeasured by the nrnber ofpagespdnrdper min@
(pph). Like adisplarscreen,lhe qualiw, orresolution,ofa printeis ourpur dependson e
nunber of dorsprinredper inch.A600 dpi (dots-petsinch) p.inrerprinrsnorecleadi rLr
a 300-dpiprinter.A recurringcosrofusing r printer is the inkjd or lasercalrridgerhar n.5
be kplacedeveryfew rhousandpagcsofoutput. Figure3.l5 showsa lse.pfinrr.

@
Lasef pf nters,avaitablein a w de
varietyof spedsand prlce ranqes,
havemanyfeatures, nctLdng colof
cap 6b ilites.Th eyar e t he m os t
commo nso tutio nt of out put tng
ha.d copiesof nformation
l5 ou rce Co !rtesy oiLex m ar k

Reserchen* working on specialiftdcomnercialinLiet prinrb rhar can be uei

.reate3-D par$. Thesep tinterssprayour layenof inklile polyners,id "p.inr" a nscir
bo*d induding all the eleclroniccoDnccrioNand tnsistorslaid our in rhe properan
PlasdcLogic Lrd. createsinLjer'printedpl*ric trmsistoB fdr fla.panel displays.h is
develop;nsRexible,plasric"sman labels"that could be usedon c,nsumerproducts.
labelswould conrainelectroniccircuitry that could ftigger warn;nssm dorii'
when food in a packge is no longer fresh.r'z
Plottersarea typeofhard copyoutput doice ued fbr generaldesigrwork. Busi
Atyp e of ha rd copy oLt putdev c typically usc rhesedevicesro genehr paper of acerareblueprinrs, schenatics, and dru
u s dfo r qe ne rat des i9n
wor k . ofbuildingsornewprodrctsonto papdorraNparencies.Srandardplorwidrhsare24 i
and 36 inches,and the lengrh.an b wharnef meerslhe need fron a fm inchesto l<-
Computer0utputMicrofitmICOMIDevices
Companisrharproduceand srorcsigiihcant nunbers ofpapd docuhenrsolien ue
puter outpur microfilm (COM) deviccsro phce datr fron the conputer directly
midolllm for tulur use.-lhe rraditionalphorog phi. phaJeof.onversionro nricrouh
elininated.Once rhis is done,a srandardrnicrofiln reader.d accesthe dra. N
andjoufnalsrypi@lb'placetheirp*t publicarionson nidofilm usingCOM, giving rerci
rh abiliq.ro yiew pasrarriclesand newsirens.
MusicDevices
tlP3 MP3 (MPEG I Audio Layer-3)is a srandudfornar for comprcsinga soundsequence
A st6id ardlo rmatI or c om pf s s ing a very snall file while preseningthe orisinal lnel ofsourd qurlity when ir is pleyed.
a so un dse qu en c ent oa s halt lit e. conpresing rhe soundfile, iteq*es le$ lime ro downloadrhc filc ard les srorage
 rrardlvarenprr fto.e5snq.3ndoutpJLDN..s I ch4lror 3

r a hard drive. Ahhough MP3 is currendvthe lead;ngdisirJ audio foLnat, n is frcing

npaition from \findows Medir from Microsoli, RealNeoorkt RcalAudio,and an up'
::!le.l vrsio! ofMPl callednp3PRo, rvhicLcursrhe sorugespacercqu;ed nr hall
\1any differentmusic dsices about resir ofr cigareaepackcm be uscdto dowrload
:rsic fiom tht Intenet andothersoutes.Thesedcviceshaveno movingpans:ndcan store A devicethat can be usedlo down-
.:r ofmusic. A nurnberofcomputer manuhcturcn including Dell, Hewlet Prckard, t o a dn u s c l r o m l h e n te fn e ta n d

'.:C, and othe6 offer computer that nake dowdoading and playlng music from thc
:::mer in thr MP3 fornat euier with bettersound qualiq-.ThsespeciJizcdconPuters
casydo*niording and superiorspeekers for playing music.Apple expandcdinto the
- nusic darket not only with aDMP3 pldver(rhc iPod)but alsdwith ns iTunesMusic
: :LLn
. -- thamll<,*suen to find musiconl;ne,previewir, and get it in a way that is safe.legal,
ways,perhapseven
--.: riturdab)e.fti posible thrt Applewill *pand this marketin orher
.llf pannerinswilhconpaniesto rleveLop in asimilarnedn!m.'r
r way to sellvideocdntent

Apples Pod,a d grtalmusicplayer

tor MacandWindows, weighsjlsr
5.6ouncesand canstof eupt o

C oudesyolAppt e
l S ource:

ipec iat -Pu r p o sl nep u ta n d0 u t p u t0 e vi e s

.rddnionalinputand output dericcs.reusedfor speciaiizcdorunique aPPliotions A
-.
thlunction devia can combinee printcr, fax machine,scanncr,ard copv machineinto muttifunction
devic
.. j:\ lce.Mlldfuncrion devier arelesscxpensive dd
than buyng thesedflices seParaiely, A dvce that can combinea pf ntef,
fax m:chine, scanner,and copy
'' :rkc lessspaceon a desktoPd,npiredwith seParate delices
machineinto one devic.
ircial'furposehcarnrg dev;ces on Lreuscdto detec mdufacrurhg otequifment prob
, . The Gsrgialnsrinte ofTchnologyh* doelope.l a hdrdw.rcdevicethat qn "listen
.:upment to detcctworn o. ddaged palrs. Voice-outpurdcvices,dso cilled /,;.'
. - ...1z,;.r, .llow the conpurcr to sendvoiceoutpur in the filrn ofsyn resied sPcech
. :rone1;nesandorhermedia.sonebulaandtinancialinstiturionsusevo;erecogn;ion
: :.+ionsro givc cusromesacount infolnation overrhe phone.
:: boardconpurcFbasednavigaion slstemsare an option on many luxury cas. in
.: rr e Ltrus. Acura,lnfiniti, and Crdillac. l-hesystenis ablc ro pinPointthe Position
. . uo fn,n Locationdara fron a globalposnioninssarelhe(GPS) k.eived
'ecei"ed
- :h an on borrd antenna.It usesvehidc speedinforndtion ro determinehow iar yo{
. ::'cling and a gyro sensorto tell when you rum. Then drc doice conp*es Jl this
CD'ROM ro.d naP datab*e ro showyour t'os;tionwitl n
-::arion with the sysrcrn's
, . i.r.'l'he Gamh SrrcerI'ilot III Deluc is a ponablepositiorhg systemfb. yodr crr
. . : . r s undo$T 0 0 .Itp ro v i d e s tu rn -b y tu n v o i epromptsthatgui deyouroyourdesti
,. : l,sr cng a $reet dddrcs or business locrtion ro aaessthe shortcsrand fa*e* rcute
',: . ro the door. Downloadablemapsfo.us in on your teglonofchoice.
 Pet 2 | frohn oi re.hioLoqycorcepts

COMPUTER SYSTEM
TYPES,
SELECTING,
AND
UPGRA DI NG

In genenl, computen can b darsilied as enher specialpurpce or generalpurpo*

5pcial-purpose
romputers Spe.ial-pu.poseconputeB re ued for limited appliodons by military and scicntific...
Co mpu refsusdf o. t im it edapptc a rarch groupssuchu rhe CIA and NASA Other applicaionsincludespecialird prcesv:
rronsby m litary and scientifc fomd h appliances, cars,and other producs. Spedalpupo* conplres .re incresnrg
being uat by buinesrs. lor example,automob;h repairshopsconnectspecialpurp*
conprters io yourar'sensine ro identiftspeciffcpalirmaoce prcblms.
computers
9enerat-!urpose Goenl-purpoe omputere are urd for a varleq' of applio ,ns and to perforn :r
Co mpu ters
usdlor awidev ar iet y of bsiness applicariomdiscussed in this text. They combincproessor. nemory, *cond:-
stonge,input and output devices,a boic ret of ofvate ptograns,md other conponcn:,
Generalpurposc compurersyste-scan be hbkeb i.t,, two nrjor grcups:qrtcms used:.
@ a singleuer ar a time and sptems ued by muftiplect,n.ment se6. Table 3.3 shows:r
systems
Typesol Computer generalrangesofcapabiliriesflorvar;ousrypesofco,"puLcrsrsrdx:.

$2s0to t 00ro t4,m0io

1r.000 13,500 $10,000
, I ..,4q6iii.
r::r.oq$t.

Computer5y5temTypes
Compwer sFtems 6 rmse frcn snatl handheldcompute.sb hdsive super.onpuls
that requireentircrooms.We sidr fisrwirh the snatlestcompurer.
H.ndhetd ComDule15
handhtdcomputer Handheld omputers are sin$e'uer conpues that prcvide ede of porrabiliry bequ i
A sin gle -use.co m p! r ef lhatpr o then mall sir-some areu small o a credk c*d. Thesesystensoften include a wide w=
vdeseas of porlab lity becauseol of oftwc ud comunicatio.s @pabilides.Most are .onpatiblc wi$ and ableto co1-
nudote with desktop onputers ove' *ireles net*orks. somc oo add a built-in $o:a
positioning slsren reciverwhh oliwre riar cr integrae the locaiion daIr into the apfi-
cation.For elimpl, if youclick o" a" e"r.yin the addrss book thc devicedisplap a rB
and dnecriomfrcm your cureot lcation. Suchaconputercan alsobe nounted in your=
aod sene d a navisation system. One of rhe shoncomings of hrndheld omputen is r:r
they require los ofpower relative to their size
 H ardw are
npJiP ro.e* 1qaadour.u:D ercsI chaet. r3

:',rnOne (fomerly Paln, Inc.) is the companythat inventedthe Paln Pilot organirer
: rn6. The PalmPersonalDigiraLAssistanr(PDA) eiablesits userto rrackappointmenrs.
.!i::rs, and rskr. Palmone hu now signedlicensingagreenents with Handspring,IBM'
. and many other manufacturen, permirting rhem !o nake whar amountsro Palh
: -:.. Ar a resuhof the popularityofthe Paln Peronal Disiml Assistdt, handheldcom-
r-:::. re ofrenrefe(ed to asPDAS.
: -:.dplaza conbine rhe tunctionsofa telephone,PDA, gameconsole,and a wheles-
:::3icc-nd sonetinesdigitalcamero.They enablea userto browsethe Internetwhile
::: move,storemd play nusic, jot down briefnessages, and placeand receivePhone
-
:. \\'irh rheir greaterfunctiooaliry,snu phonesare erpecredro outsell PDAs ver.v
,, - '' The HmdspringTreo 600 hasa brighr color display,a fas processor, and the latest
c.-:::ng soliwue from PalnSource.ft is about'i 5 inches;n length md 1 inch $ick. It
,:::, a riny kevboard.Five dnecdooalbutons allow rhe uer to selectan iten and
'vith
::i :li.k ihecn!e.buttonroselectii.TheTreo.m reccivewireless data,and Sprint offers
--:ird datausefor a $10 nonrhly $uchdse on a voiceplan.web pagesload quickly,
.;:::gh dre snall displaylinits the usefulness ofbrowsing.The usercandownloadgames,
r. f,tiols, and ditrerenr
ring toneswirelesly from Splint'sPCSVsion scdce. SPrintalso
r S5per honth Business Conneclionserrice.which ca. fomrd e nail from coLpo,ate
-:-.
.- -rs rowirelessdericesand fetch mailfron standardlffe.net a.counrs.

The Tfeo 600 s a smart phonethal

e n a b l e su s r s l ob r o w seth e
n t e r n e l p t a c ea n d . cve p h o n e
c a L t ss,e n de - m a t a n d l xt
m e s s a g e sa,n d e v e nt a kea p cl u r e

l s o u r c ,c o u r t e s y o rPa tm o n eIn c l

,:.tabLe Compute15
. rro.ofportabte conputers,droscthat can be caried easilv,are now rvaihble from
C o m p u l esr m a l te n o u g hto b e ca r
!. ri. rc norebooks,ro subnottbools,to nbler compue6. A larta! ..tuPatetis r snal|
,.;-.:ighr I'C aboutthe sizcofa three+;ngnorcbook. lhe den s'ullcr and lishler z'-
:td subrotcbookconputer oflcL similar computnrg power' Sone notebook and
", '
r- -:tcbook computcrsfit into dockingsarionsofdesktopconputersro provideadditioml
i '- rnd processnBcapabilides.
l;l,r'crPCrareponable,lighmeightconputersdrat allorvuscnto roamthe office'honc,
. ;Iru l1oorcarryingthe dericc iike a clipbdard.Thev come in tlvo varicrics,slateand
,, '..rible. Thc slatedevic* hrre ro keyboard,md uscrsenterdatawith a writhg srylus
:::1r on thc displayscreeo. TheconveniblerabletPC comeswilh a swiveLscrccnand can
as borh a tLadnionalnotebook or as a Pen bded portablelahLet Acer, Fujirsu,
-,
- - -J.a, Viewsonic, and othus offer rabLetPCs thet *righ under'1 pounds atd cost
: i: : ! 1, 000.
.i,ril the us. of rablel PCs hd bccn slow to cet.h on, hafdw*e nmufrcrurcs atrd
.: ::uer industryuallsts th;nk thar the deviceh* a bright filrure. Indeed'Bill Gateses
:::::J thr sJesof the dwices would soon exceedthat of deskropand Laptopcomput-
,r Thcy are qune popular in the health scnicestield HeafthSouth,a codPd) thxr
r .::rs otripadentsurgervard otherhealthcrtescrvies,odued 5,000tabletPCsequipped
, : ,.irelcssLAN connectionsfrom Morbn Compuring,Id. The rrbler dflices are used
rhempi*s at rhc compols 1,400 r.habilitation cenrersro Provideac.essto
- ::.sical
:.::1redds and enablelhen to docuncnr clinic1progressa6
 Pslit I irtrmat di T{hmtiqY com+G

The Ve wso ncV1 250has a l2 1 iic h

sffe ena nd co mes wt ha s m alt
n 6vg ario np adth at pr ot . udes f r om
the righ to tthe sc f n, wit hbut lons
Iorla skssu cha s s c r ot tn9,t oggling
b etwe ena pp Uca t ions and
tau nchng Inle .ne tEx pt or erlt at s o
co meswltha do .k ings t at iont hat
do ub tesas a ba lter y c har ger
lSource:CourlesYol Viewsonic

ThinCtient
thin client A thin client is a low-cosr,cenrrallymanagedconputcr that n dooid ofa DVD plar=
Alow-cost,cenlrallymanagedcom diskenedrive.and expmsionslos. Theseconpurershavelinited capabiliticsud perfor
but lim led
p ute rwithesse nt iat only esenr;alapplicarions,so they remain 'thin" in term ofthe clienr epplierions rh*
ist dev oidof a DVD
cap ab ititiestha i""i",l". Th"..,tiipp.d'do-" ve^ionsofdesktopcomPutesdorurthue the stuageepar
ptayef,diskettedriv and exPan
o. po*". of..upicatdektop computers.nor do thevneedit for rhe rolc thevpL'
r'"Jii.t , rt'.y **r pick up vnusesor upcriencea hard-diskcrashUnlike pemrl
--puti"g
V;tt'
'.
conDutes, rh;n clien$ dowoload sofmare fron a network when necded,nrking suppo:-
dist,ibution,ard updatingof softrare applicationsmuch euiet and les expensiveTho
primarynuket is snallbusinesses and cducationalinstitutions.

DesktopComputers
Desktop omputets re relatively snall, in*pensive singl'user comPuter svsremsrttat *
x p e n s si vne
A r elar lv et y s m iantt, hiehlvversatile.Nanedfortheirsir-theyrrcsmall enoughto fiton an officedesk /aii'1
9t e- us r c omp u te rli shhagt h tY co)*xrs car orov;de sdlrcient nenol' and storagefor most bsiress conPuting task
o"'kr.p..-prt"" h"". beconesendardbusinesrootsidore rhm 30 nill;onarein ut

and Microsoftsolivare' there:r

ln additionto tnditioral PCs that useIntel processors
other options.One of the nost popularis thc iMac bv ApPleConPut*'

Workstations
Workstations ere nore Powcrtul than penonal compum but still snall e"orgh rc fn or r
A more PowerluL Personatcompute. desktop. They are used!o strppoft engineeling Md lechnical userswho pe*orn heary ma=
lh at s u se dlo rlec hnic at c om pur r ng, (CAD), and othcrapPli'rrionstqftins a hiF
suchas en gln eernq, but s liLlllt son "-"ri.A --p"'irg,
end prccesor. Suchuser needvery PowertulCPUS,l{ge xmouds ot mon ncmory' 3d
--p"ier-aideldesign
atroely hightsolurion gnphic d;sPla)sio heer their neds
Servers
A conpute. srer is a computerucd by nany usersto petform a specificrok'-such
I or a s Pec if ic
A comp ute rde s igned * I".."efapplications. senen tvpicatLvhat iarge,nmrcrv and sto;
task, su.h 6s nelwork or ntefnel -."i"; ".!.-k with tut and efificicntconmuni(ri'ns A web serer is used
capacitls,along 'bihies
hmdie lntemet truflicard comdunica.ions A! lnternet caching sener sores\feb sitesr
are ftequendy usedby a conpany. An enterprise scwer stor's provids a'cessto Progn
'nd md coordinatesprogt
rhat net rhe meds of an enrire orgdiadon A Cle sener srores
and datafiles.A trusaction sNeris usedrc pr@essb$iness tonsacdons Sewersvs
.o n .n r of muhi u. r ompurcr' i n.rudi ng' uP er.omP U re( mJrnrrre' " nd'cner '
 $ ol]ir itr er r s c ahbilit y . r hc ibjli( ! k , jn. , .r s ( r h r t 'r o c e s s i n ec a p r l , i t j t y o f r L o r r
{.r, \o th3r ir . . ur hr nllle I nor s a\ , nof. d r r , r . o n o , e r '. n r . L r j o f s i n ] l hea! Ltyto n. easethe.rpi l ]] r!
ili\cj,
i..L hb ilitr r nc r t r "eJ br r t lding! ! ) r c . , ! n,o '. p ! {r j r u l . f r o . c $ o ^ . t z r ( , ? l rJds ol a .ol rpul er eysteh to Frc ..i 3
n a q v en p.r.d
' ,tr.rlll pn,.eskrr, .rd la1trg rrr rdcll nr:nv norc .gut k, .er t6s |orvcrful)
byadd nq m.r., o m. fe pD er.rtut,
.. ,\ n) in.r c is c r hr k f t ldr r r pr c . c $inlr . r pi( r y .

-: rframeComputers
.Iia.rc co'nptrtris i lire.. powrrrirlcomturu stj.rctlbr dozcnsor clcn hu.djeljs oi mri nl ramEcomp!t ef
f f r ! s . r . o rn rL re d ro ri ! rn r(h i n co r.r r !.tr!,rk. l hc rui ni trm..onrl ,trrejnrus( La19., pow ,arut.0mP U ter oi l !n
, , dr nc c nL d ri th \p c c i rl h c l i n g .v i n tn i g rnrl :i r fondi rurn,g0t\A cl e(ttri pn,crr 5f.red by hundred5 of.on.!renl
: r lt hc r c r 4 ' e rrn rrch, u n i c ttrr.r d L rrl .v l l smuf d rhc.onpurtf t! rtdi rnnr,D ,osr !!!,5.onn..red l o Lh emJ .I n. r a
' drs .trekefr if . a..ure &ri ccnr.f rvirh lin,ir.d a..c\\ n) nt rcom rh,olgh sonj.
\ . . ur ir \ s v rc rr. th c ro n r.u .ri o n .! o ,ri rtn.rf..oIsuch rconrnrl l crtrcccsroor,
I \.\(l on r{ld hrrdr.ds ol rhousin,lsoj .l.lh,s rhc ror o} ol'n trs rnJ op.r.lirs
: , r r . r nc. om ru (.r Mfi h rn i . .o n rF rrrs rl n , fi'oqul c rt,eLi i tl rl l i i r.LL i nd r urt
| :trr, o9,..\ trrt?tr/rr,j"!irl,.^r (, .ir! for dr.rr
^rt1

M J n ', a t r i e . o m p ! t . r c h a l r b l e n
rn. wofki0rse.0r.orp0rare
. o m p ! ( n q l o r m o t u l h .r 5 0 y:..!
T h y . r n i , t p o r t h u . dr .d c.l u r !f5
s m u l t . r F . ! ! L y a n d r . r d te ;L !i th .
i 0 r c r u n . r , . . r o i a . 0 rp 0 r .10 n
5.!ie a . u r t r s f . r BM

I ,. o lc o frl,e n, r inr i. r jr ir t r r J r f goir s s or r t je n r r l , : r b l L L h . n r : e r : r l o w c r r o *, r n r l c

.o ,\r!r.s b e. om . in. r ( $inglr f oN. , iul. M J r ( n t r r . r l o b s r h I L r s . d! , n n o n
'r,.!tr' .or,trtre r s hiv . lr ir lr r t e, l ono r |r ' c s n[ ] l o . 1 c $ . r p r . \ j \ c ( ) r i p u r . j s f h i r i n
L lon pn ,.e$ ing r r igr . li( n i\ . all. \ 1 1, ! r t t t / o, , t i . i " ! . T h e . e s h t . o t ( l , c n i . r j f h r n
jref iftorn[rior ,Jfi srorrgc urilnr fin 3 (o,]jd.tri(nr trrrn!,!r]ob\
l]|occ$irrg.u
,,q . ro , o(h .r r ont ul( { s , jbr nr g lilc r r nd dr t r l 'r e s t o , , l r r q . r {, L e r o r c r t L l s o r t r o e .
.n,in .e b.r.ltrr psol ile\ t r nd dr r r t s . 5 . d. , t . .s ( l h r k tbe n,ri.frrnre ,s citibl..ot'
. rrg c millons of dr ilr f us r c r ons r s oc jdr J *n h r i r ] n c , r u r m o b j l c . r m t h o t e t r
. rsf Mrio r \* t enl. lr . r npr c ees . nr c r c r s olt hr r n d r o l d r i l \ ( t u e i i t \ f . . ! $ r r r n )
de d.trr tu (l..li{n, s,rpofr s\sr.r$. I. n,rs rc r(,fui1. .Nl inf!r/otrrJrtr .rpib L (ics
.c r ro p lrr Lhe r olc of lidc o r om pur L. pui J i , r r f i , l l n o r x , n r i J e o t u j r u l 'j t t e .

..r,ris S.p .I i\ one . f lluop( lr r r e. r c r c llt c r L c lc o n , r i n . s . s i r l ) - . j m | t o r l r l J j r

.r. or(srrnd ins. l $ li0. ill . . r ei . c , ai. . r q, ds m r s p i . o . . s s! n , 5 0 . 0 0 1 ) . u \ r o n e j . r t l r
lI lo r t6 brn k s in l( . 1r . Tlc r gc Ds , ir . i( \ r r r * r n c r d r l ] l o c r L e di n , t r r r b r s c si n t h r
_
,t.u ,r\mInh :n,.. onLt t uds or f $v r r ! u. r ions ( ll( d b.,(nron,.rs..ronnr thi
-.'sn ,ijste ed r.dlt s . ilt r $o, r g. . . f r ! ir f . t . h. nn, . . hir $ N i k e t r i s i t r r l t t . i e n r r . d
 Pdis I nrormar'cire.hmtoeycdi.epis

Supercompute15
Superomputen are rhe most powertul computer sysrems,with the frtest procasing speo:r
ThemostpowrlutcomPuter sys They re designedfor applietions thar require e"tensive md rapid computational capablF
ng
lems,withthefasteslProcess ties.Vith m entrylevelco$ of$250,000,not all orgmiarions car atrordsucha compura-
Otginaly, supercomputes were usedprimarily by governnent agenciesto perform I
high*peednumbercrunchingoeededinwearherforecttingand nilitary applications\ t
reient improvements in the cosr and performance (lower cost and faster speeds)of th
mrchines. they are being ured more brcadly for conmercial purposes rodry. Ior
lrmce's ConpagnieGdniralede Gophysique SA is a globaloil'sedices@mPanvthal
linked more tha 3,000 Ddl PowerEdge seruers to rct asa superconPuting cluste! to an'rr
seisnic data. The ompary ues variou sener clusten to proces seknic data ro ideotil-r'
oil and gasresrvoirtd well o to model *isring reseooirs to oPtimizep.odu.tion."'

Th s 5 12 p roces s or s uper c om put er

al NASAsAme s Res ear cCent h ers
usedfor perfo.m ng scalabititY
stu die s.b en ch m ar kng,aid s olv ing
larq e-sca te pro bt em sr or t he
nformalionPowerGrid.Thesystem
has 1920B ot main memory,
con tain s2 TB o t d s k s t or aqe,and
can reacha peak processrngspeo
ot 30?0FL0P5
lsource:Tom Trower NASAAm'"s

g m Pu teSyste
g n dUp g r a d in Co
S e l ectin a r ms
The structure,orconfigurarion,ofthe hardwateconponentsof a comPutersvsremis
.omputersystemarchitect!re rhe conputer rystem dchit@tr:re. This archirectoe cu include a mixrure ofcompo
Th slrlctufe, orconfig!ration ol includingprccsing. nemoq., stoge,atrd inPui and outPut ddics. A .omPutef s
the hardwarecomPonentsol a com- rhar ws once eFeciive nay need to be enhanced or upgraded to suppon new bu
activnies md a changing environmenr' The ability to upgradea svsten can be m i
facror in selectingthe best computer hardwre. Conputer lttens can be upgraded b' i
sralting additional menory, additio""l proceson Guch asa math .oProcessor),mor I''r
disk sronge,a memorycdd, ornrious input and output devices
Given gpical failue ntes, nost orgmizations can safelyPl.n ro keePa desktop
four or nore year. Howeve6 ifthe systemhils after the stardard th ree'vearwaranrv
it is probably more cosr-effectiveto replaceit wirh an upgraded nodel rather than st
time to fix ii For notebools, which facerougher handling by users,no* conpmies ple
replacing them wery threeor four yem As worlsrations rod notebooksarereplaced'co*i
iling mr the nov capablepcsnal rcmpures to les'demading.wos Compmlc^
mm*ima roed to upgrude othesise uable nachines beouse of the menorv and
requhenens of newerveniodsofresource;ntensive sofmde
Many lege corporarions set their own internal .rch;re.iures by selecting speclfk
o"a. .-ne"."tio", f-- a snall set of mandacturen The goal is to reduce hr
iuppon .",r' i"cro.. the orgdiaiioni flexibiliry Businessunia within an orgad
"nd hardu' . i ompl i * te furure corporl e l \ P roi r.r' . For exdnpk
rh a i a doprdi Feen,
Pdt 2 | nrrnt onT*hnoLony
conepts

There are two cost hcton to considerwhen purchasinga printer. The 6nt is the purchc
prie ofrhe prinrer.Pricesfor laserprinter nnge ftom $200 to over$2,000,while pices fr
inkjet printerc ranse fron $50 to $300. The secondcost to comider is operating cosr. lasa
printers provide greaterprinting duq, cycle (volune ofpages prinied per month) md lonst
life for tlt ink/toner products, giving then a much lo-er operaring cost than inkjet prinr*
Lde. printes qicaliy haveoperatingcosrsoffron $.01 to $.04 per page.lnkjer prinr6
can have operating cosrsof from $0.03 to $0.08 per page for black-and-white page .Da
$0.10to $0.20for @lor pages.The cosrfor printing photoson specialprpercm oceed $.t
per pagefor either gpe ofprinter becaue ofthe high cost ofthe paper.
laser prinies de generally fcter than inkjet printer md opable of handling
volune p.indng thd the inkjet pinrer. Laer printersprint It io 30 pagespe!
(ppm), and inkjet printer print 10 to 20 ppm for blrck and white md 2 to l0 ppm for cole
For color ptinting, inkjer printersprint vivid hue and ost nuch lessthm color
printen. Inkjer printes cm produce high-qualiry banners,sraphics. greeiing cards,
t*r, md prins of photos. For nmt people who requi.e color printing apability, inki
printer are rhe nost cost-effectivesolution.
DVDBurners
CD burner have been supplanred by DVD burners. Todals drives can burn both
and CDs. A DVD burner rh.t mounB ituide J (ompurer cow. under $200. Mal',ns
rhar your D\D player will hadle rhe disa you ueate n the nmt difficult pan of
a DVD writer. Mo$ Dlayen en hmdle DVD-R and DVD+R, bui not all wotk with
various rwritable fornaa. Check the DVD ptayernanufacrurels \feb site to be sure.
@mparingD\D wrirers,you'll seenumberstike 2.4xl2.4rl8'. Theseoe the nunber
CRor +R),rewrinbleGRw or +Rv), andread(RoM) fottnats.D
one+imerecordabte
R drivs run Fom lx (abour 1.3 MB per second)to 4x. D\D+R runs up to 2 4 MB

As menrioned throughout this chapter,a ompurer systenk onponen* md uchi

should be chosento srppon fundamenml objecrive, corent bmines procese, and
needs of the organization md infom'tion systen. Each conputer qstem o
prcessing, nemory, stonge, input, od ourput dwices-has a (itical role in the s
openrion ofthe computer system,thc informadon systern,and the organizarion.A
undestmding ofthe broader sysrcn goals md the charactriltiG ofthe hardwde s
reine o thesesoalswill be an inporant guide for the tuture IS profssional or bsin$
5:}TMARY

i-. : : r :Jle Mcore5 Law s r hypol rr.ss th.t st:te:l hat the n! m ber
cl l fanr 5l orsor a srngl ech p w tt dol bte everyl 8 mont hs
d!,.-5tingan effeclive, efficientcomputer system
Th 5 hyr.thesr hasheLd!p ami rrnql yw ett.
.{r- ':s an understanding of its retalionship
to the
:peed s atsoti mrtedby phy: cal .oi : t . ar nt s
P .occ!i :rrr9
nn:r-ationsystemandthe organization. Thecom- .rch a5 the d st:n.e bel w eenc.c! t.y po nts and . f c! t r y
ur'-.-5ystemobjectivesare subordinateto, but sup- Jp op "p
mrr:',:of,the inlormation systemandthe needsof ^d." "
c.!:or! sl .. nedsi t.on, andcafbonnanotubes w tt. e: ! lt n
tiir:.:tsnization, v.
c c r i p ! t . ! L C5 C l c h p s \ a h i c hh . v e m a n y m c r o c o d e n stf!.
d"
t i o n s p t a . e d l n t h e m W t h . e d ! . e d f s t . ! . t o n s e t . o m D !t n g
\:L " p o ." rl do
i R i S C lc h p s . o i t y e s s e n t a t n s t . ! . t o n s a r e i n . t ! d e d so p r o
B.
' g" l" I t ,
" .o.d ot ! o g"
'1"' p.oq.am rst.!.t o n s a n d d a t . t o b e p . o c e 5 s e da n d p r .v d e s
'o p d" d o o _ ovd !
' ln L dl ' d d
- '
' : . - t ! c Ly. n d o fl c c i L l y :tL .i . c o mp !re f s y!tem
R A [ 1 5 ! o t a i t e t o 5 s o f F o w e r t ! t h - " c . m p L t e r w L tefa .e ts
ppo
c o r t ! n 1 s ! n d c o m e s n m a n y d i f f e r e n t! a r e t l e s T he m a n
'' !o .B J I s t r e a m t y p e o f R A M s e x t e n d e dd a i a o l t o r E D O R A M w h ch
: : ! c . n ie.m r o l .o .l ,.o n l fo L a , .a ..m p L e rl yw LL D ^V. d
pd o

tons ot R A [.1nemD ry n.t!,l e dy]ami c R A t' .1 ID RAM I: id

. r q s per io .me db y .o o p e ..to n b e tw e e n th e.en
synchronoLs U R A M S D R A IVatso i r.. the .d!a.t.q e . f .
o, I
_ 1.5tert.ansferspeedbetw eeithe mi .roproce55or . idt he
- . nt s t hea rl i h me t./to g r.L n rlL AL L lth
l . e .ontrot memory D R A M.hi p5 needhl gh or tow !ottaqesappled at
. t er a. e. s T h eA L U p e rfo .m s.a t.u t3 to n s and
.e!!ta. l nt-" r!ats everytw o m tl .econd. Ltw oo. e t hoLl
: : . s of s T h . .c n l ..t !n t a ..e !s e s a n dd e codes
sandths.f a seconCo.50 l l rhey ore not tc l ose iher r

r ; r eas l. f n s tr!c t c n s tc b ee re .!t-a db y th eC P U

R eadoi l y mer.oi / LR 0l ' /l. nonvoL.l
l e a.d contans per
ma.ei l programi .trLrcLonsfor exec!l .ofbyrheC PU. 0t her
r- :: : ! 1e L.d" .g : o
-b" "- d
m-" rory LP R 0I/Jand ef.sabLepfogf.rm.bl e read oiLy
tthi- -<eIectin 9 computer devices, you must atso aon-
memoryl E P R 0l r' 1l C acheri emory r r typeof h gh speed
p' :-e currentandfuture needsof the information
memorythat C P U s..i a.cessmore rapdtytha. R AM
Jrfi:- andthe organization. Your choiceofa partic- P ro.es.r9 done !s n9 scvcrat proccssi fq ! f , 15 i5
lliiir: rrrputer syslem device5houtdalwaysatlow f or t:rll:l no|iprccessing One lo.m of m!tt p.o.es:.9 !:e!
itnP'-plovemenE. .op.o.esso.5coprocessorr ere.!l e one l ypecl i ns l. Lr ct
o.
w l . i .1h. C P Ll w orksoiothefs [4ass!etyp:.i ti etpfo cessr g
: r r e , ar e c l te d . a trl o p h a s ep f0 .e s s n the
nvot,r.s t nk ng sevefatp.o.e5so.sl o w c.k LogeLhe. lo sot lc
.ompLerprobLems. S ymmetf.aL nLrttproce.si q ivot ve:
!s nq muttrptep.o.esso.sw h ch sha.e! s ngLecop y. t t he
- d .h .-l T h o r.D L o
operal i nq systemmemo.y.ai d othe..eso!..es.1 onecom
ohas cp. o c e s sl s a ma .h n e .y .te Pro cessn-o
p!tef. G. d computnq s l he !se ol a cotte.ton ol .om p! t ef s.
: _ m eas ! fe db yth e t me t l a k e : to .o mp teteone
oftenow nedby m!tt ptel ndvl d!.15.f ofqanz.t ons t o wo. k
: e wh c h s m e a s r.e d n l fa .t o n s D i:e .o nds
n : coafdi nated mannerto sotl ea .cmmor probtem
oy
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r ( ir . h 5 n .n s !.e d i n n .!i h e .tz l l ' 1 H z lS. pecd
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" do " d .j o " .o
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 ,nhf mat on e.iiotoqy Loi.ePt5

. . . es 5 m e a n sth rt d a ta..n b e to c a te da n d retr evedd rectty ts !nqLre i denl i l e. and tocatLonto st r . t eglcat L!
lr od anylo .a t o n o n l h e m e d a .
Conr m o nl o .ms 0 1s e c o i d a rys l o ra q e nct!de magnerc 0 ! l p ! t d e v . e s p . o ! i d e n f o . m a i o n n d l ffe fe .
o r..rro l ..o o r' d o ' o_o" d f . o m h . r d c o p y l o s o ! n d l o d q t a t f . r m a t. D sp ta y -
" p" . " qe
d git : t v e1 5 aLt ed s k m a q n e too p 1c a t d s c memofyc.fts a.estandi rdoutpLrtdevrce::montof q!a t liy : det er ^'
f t as hm . m o ry ,a n d e rp a n d a b l e s to ra g ed el l cee R ed!ndant s ze .ol or.E nd.esol !tl on L qu d crysta dt sPt ayr nc :
d. F!b
ar . ayoi r n d e p e n d e nnt/e x p e n s i vdei s k sIR AD l s. methodol g r"oao1616,ooo o oo"

s t or ng dr ta th a t g e n e .a te se l tfa b ts o t d nl a i rom exrsl Lng the resotuton and stre oi compul ermoniio. s.0ll'e :
dat a . Lt o( n g th e 5 y s te m1 0m o fe e a sty re .otef data n | re dev.es nctuda prrntefs.ptottefs and com put c_:
ev entoi a h d w a fefa l !.e N e tw o fka i i a c hedstor.gel N A S l mL.rofi tm P .nta.s.fe pop!l af hard c opy o! t pt i:
fofmsotdata 6do o
ands t of ag e .re an e l w o rk sl SA N l a fea tte .n ati vc ^
eq, d D .6oo d' 6 o

s t of aqet hEt.i a b l e a n o .g a n i z a l roto n s h a .edatafee0!r.es o!tp!,t ha.d copyfor generatdesgn w o. k. Com p! t i

am onga m!.h ta .g e rr!m b e f o fc o n rp !te.5and !sefs tor mffof l m (C 0l .4ldevces pl a.e data l r or . t he . : -
im p. ! v eds l o fn g ee f{c re n .yi n d g re .te r c o st el rectveness di rectl yo.to m c.ofl m. MP 3 s a stand d io. m al :
S of t wa. elo o tsk n o w na s p o Lc y b a s e ds to r aqemanagement pressng i he amount of datai t i akesto a. clr f alet yr : :
. ut om at es to fa g eu s i n gp .e vo !s tyd e fi n e dpoti ci es. Theover so!nd N Lrmero!sm!si c devce5 basedon lhe co. :
. Lt t . end n s e c o n d ..ys to ..g e s to w a rdd red accessmeth
ods h ghe r c a p a cty , n c .e a s e dp o fta b i ti ty, and aLrtol nated may be cbss fi edas !pec . t p! . pos:
C ompLrtefs
5lor agem a n a q e n re .tT h e fe s a ts o n c re asnq .1e' esl n
. ent ig s p a c eo n n i a s s i v e s to ra q ed e vc e s nume.ousapplcatl onsand can be bro ken nLo1f :
I np! t a i d o !l p l l d e v.e ! a tL o w!s e rs to p.ovde dataand g.o!ps systems!sed by a s rql e !ser and syst er :
if . t . ! . t on s to L h ec o m p l te .l o r p fo c e s sng and al towsLrb muurptaconc!ref I use.5
s eq! ents to fa g ca n do L rtp !tT h e s .d e vc e sare pa.t of a !ser E nqtc !se. systems n.l ude ha.dhet d pod: : .
it er f a. e t h .o u q hw h i c h h !m a n b e n q s n tefactw th com .tent. deskl op,a.d w o.kstatoi compLr t e. HandF.
s :
pLr le. . y s te msn. p u ta n do u tp !t d e v i c evsa .yw rdety, b!t r.y pl te.5 pfovd. easeof portabtl i ybecause
of t he I s- :
s har ec ommo nc h a fa .te .5 tc 5 o f 5 p e e d.n d i Lrnctonalty tdr r.06od roo a^or6 o o.rd.oo

Dala s p ta .e d n a c o m p L rtesry s te mn a tw o stagep.o andsma.t pl ronesA vafi etyof po.tabl ..o m pller s : _:
c c s s dat ae n try c o n v e rL h su ma ni e a d a b tedal . ntomachne_ n. d s nr op op. . " boot ,b o "boot .
"b "
aoo a i i expen5ve. : -
comp!ter Thethi i cti enti s a d 5kte5s,
"p
0nLf e datae n trya n d n p !t m m e d i a te ty c o nveft5andt.ans' usedfo. a..ess nq se ef basedappl.a t ionsaf d
I c r s d. t a f f o m d e v .e s to l h e c o mp !te r:y sl ei . S ourcedata nel D esktopcomputersare retati vetysm . t t , , r .-.::
a! t om at r o nn v o tv e a s !to ma l n g d a l ae n tryand rnpi ,tso that compLrtersystemsth.Lai ehi ghl yve. sat le ksl; :
Wo.
dat . s c ap h ,re d.l o s e to ts s o L rrcaen d rna Io.m thatcan be advnncedP C 5w l thg.eate.memory processinq af c :
f p! t dir e. ttyto th e c o m p u te f
T her e.a w d e .a n g e o f c o m p L rtei nf p u t devi ccs, fctLrdng vL' |d" a" a"
-. r '" "
a k ey boa rda m o rs e v o i c efe c o g ntl o n .d q tatc.meras and s!pe.compLrters A ..mp!l .r seryers a com pller : ;
o6 pr ab 6 tof a specfi . task s!.h as netw o.kor n t ef netap! :
andlc x t ni o b n a ryd g ts Sp .c a Lz e ds c a nnersn.tudeoptl S ervefstypcal tyh.ve targemcmoryandst of aqe. : : :
. at m ar k f e c o q nt o n l 0 l ' 4 Rdl e ! c e s ,o p t c a tchai acterrecog atongw i th f.st and eff cl ent.ommuni .a lan5ab t t : :
n t ionl0CR ld e vc e s a n d m .9 n e tc i n k c h a racter.ecognion t f.ame.omp!l e.s h.ve g.eate.process ing capabI : : :
I M I CRIdevc e s So me n p !t a n do !tp !t d e vl .escombne sev supe.comp!ters are ertremetytasl c0mpuler s! 5er :
e. : t f unc t i o i s Po n t o f-s a te l P0 S l d e v l c e sa.ei erm natsw ,l h the most ntnsl ve.omp!tng p.obLems.
ba. c odesc ..n e rs th a t .e .d a n d e fte r c o d esj ntocomp!tef Theconlguraton of .omp!ter systemhaf dwar ::
s y s lem s A!to ma te dl e l te r m a c hn s L ATMSare I tefm nal s nei ts l s the con' rp!tefsystemarchtect ! r e Com p :
wt hk ey bo a fd s !s e d fo rtfa n s a c to n s .P enputdevi n cesattow tems can be !pgradedby chanql ngh:r d dr ve5 -
Lr s er ios ac ti v a l ea c o mma n de n te f h a n d w frtten note: and prl ntefs D V D bu.ne.s,and other devces.C. f e -
d. awoble c ts a n dqfu fe s R a d l o J re q ! n cdeni y fl catoni ech taken n the d sposatol obsol etesystemsbeca! se. :
nologyem p L o yas m c ro c hp w th a n a n te n nathal broadcasl s hafdw a.ecofl tans many potentatty ha. m iLr lr r . : I
 Fadoa.p nprt P -o.essns afdou+dD eN es I cbsrto 3

CEAPTER 8: SELF-ASSESSMENT TEST

,*=:,ing m effective,efficient omptrter systen requires V4rn selectingonputet d*ies, you alsomut considerthe
o :, r . r r ndingofis re h L i o n .h i ro p rl e i n fo rma ri o ry"
n rem .uftnt dd tuture needsof the information slstem ud the
o r. - . T h e o m p u te r s ).re m o b j trriw i dc oigdiation. Your choice of a panicular omputer system
' r gr niat ion .
,u",r:::re ro, but supponive ot the infornation slsten md ddie should always allow for late. inprowmen.s.
rn of the orgmiation.
-el 8. Havinga collectionofcomputcs, oftcn owncdby multiple
- ii mrnagerehavelitde needto undertand computer individualsor orgariatiors, tha.vork in a coordilated
. :.. ue liue or false? ,.rnnf o .otv., . on,,non probt,m
. rtornatior sptern solutionschoscn to be inple-
e. n*sively parallelprocessing
- - :J nost nonprofit orga arions arcvirruallyidcn-
b. syhhrdicJhuhiprocessing
: ; rueor Falsc?
c. grid.ompuing
a J d) n rc h i n , ry (mo $ o fw h i c i u r d i gi talci r
d. all ofthe above
- rhat rssisrsin thc inptrr, proccssnrg,storage,ard
- : ,: r.tilirics ofrn nfornarion sysren. 9. Th reetundanentalstraregies
for providingdatastorageare
. :- rcpresents a largermounr of daa a terabyreor
a. upandablc,noo*pandable,rnd mtic
: :: ofthefollowingpofornsnathemadalcaL.ulations
b. attachedstorage,neoork attachedsorage, rnd
. r - rkeslogicalconpArisons? srongearearetworks
: Comol unit c. scquertial,direcr,indirecr
d. hard drive,CD ROM, DVD
: -\LU l0.The relariveclockspedof No CPUSfrcn dillirenr han'
: \{.in menory ul :.' ure,. g^od Indi Jro otrn" rr rear.epr oa. r ng
^ "
. -. rrm describes
rhe nunber ofbirs the CPU can pro speed.True or Fahe?
11.A tchnologytha! employsa microchip to
unique ident;fierand locationto reeiven is
a. radio-frcquency
lD
b. barcodc sonning
c. bioncrrics
o. cryprognPny
inrolvescapturingud ed;tingdatawhenthe
-:: L. originallycreatedand in a fbrm that en be ditectly TEST ANSWTRS
CHAPTT,R3: STI,F-ASSLSSMENT
:'o rcompuier,thu ensuringaccuracyandtineliness.
(l) False(2) ralse (3) Hardware (4) tenbrte (5) c (6) d
(7) Sourcedataauromation(8) d (9) b (10) Fake(11) a

MY TERMS

, - - :r c/tosic
unitlA LUl92 comptex
rnstruct
on selcomputing d;fectaccessstorage device
l cl sc) 97 IDASD] 103
L i9 5 computer systemarchitecture
126 diskmirroring105
98 controtunit92 executioniime lE timeJ93
-.4 coprocessor 100 expandabte storagedevices
107
:: ::..dabteICD-Rldisk 106 dataentry110 ftashmemory107
: .:.,,.tabtelcD RWldisk106 datainput110 generatpurpose computers122
I : p.ocesslng unitlCPUJ92 desktopcomputer 124 (GHzl94
sisahertz
digiiatcomp!tercamefa112 gridcornputing 101
'-:::t discfeadof ty memoryICD disk(DVDI106
digiiatvrsatite handhetdcomputefs 122
::vl 106 directaccess103 hardware 90
 Hafdwa,ci nour Pfo.essne rd lllput ue!F; I chaptr 3

.olhtion ofsoftw*e is nadc nuch easierifsimilarequipnentfrom rhernenanufacturer

nwnved,ratherrhannew and differentsyrens at eachinsialarionsite
I im Link, CiO at ohio StateUnivenity Ncwark and Centnl Ohio TechnicatCollcge
:ji6, "we had the NGh's *k syndrone' wc had two of everyrhins" Link .arefu y
: rred how to ninim;e the nunber ofonfigrnriors he mus stpport He decidedto buy
r:,oral computerswirh a 3'GHz proesor and a full gigablteofnenory to avoidthe need
'rcnory orhard driveupgiades.Over a th.e-yer pcriod, he teplacedan unwieldvnir
; 100person.lcompurerswith oneofthree standtd configutations from Dell. As a resdt
'.:a,dardization on borh hardware and soliwac, the nunber ofpenonal computersuppon
.
: Jropped ovet 22 perceu. In the furure, he Plds io rcplaceonethird of his qrtems each
::: Hc'sreluctant to go ro a fouryear lifc cyclefor PCs bccausealtho"gh thatwould ,ed"ce
':ur c huec os s , itw o u l d me a n n o re i n d i v i d u a l m odel s,w hi chw oul dcompl i catesupport

\r impoftanrfacto.to considerin upgnding ro newcomputerhardware,whetherit bc

' : singleindividualor for a largemuhinaional orporation, is the properdisposalof thc
: .,luipnent. The Nadoml RecyciingCoalition esrimatesnearly 500 million Personal
::urenwillhave heconeobsolerein the peliod frcm 1997to 2007.i0As a result,the EPA
.: ::ggede wNe u the fastes-growingsream ofwute in the United St es.srA tvpical
:: rnonitor connins 3 to 9 poundsof lead.Printed ci.cuit boards@.tain bervllium,
flmeretardaors,md orherconpoundsthat concontdinare th air andground-
-;:ium,
,::r crposinghunan beingsto carcinogens and odrcr roxins Unforrunarelv,fo individ-
:. rr orgmiarions realizethe potenrialfor h*n from inproper disposolof rheirconpu ter
: :] xre, nor haverhy budgeted for the osts rsociared whh proper dnPosal.Three nhjot
-ruter hrdwue vendots,Dell, lBM, and Hewlcn-Packard.offer dnposalprogrm for
: :onpuer hardware, regardles of brand They follow envnonncrr-ffiendll recvcling
.-,:,,res and do nor apon the wrsic. There de also a few iePutablcvendo$ who offcr
. :,a disposaland recycling senices. ln sone cesesthe conpurer hardware mav still havc
. --rnl life and can bc donatedto schoolsor chuitableorsnizations
..rd DriveConsiderations
.. opimal harddrivefor a computern a funcrionofseveralovcrlappingfeatures. Snrcens
-- r roleis to seweu along-tern datastore,opaciry, speed'md mediacapabilities arekev
,::-:rs. 'Ioday\ bus es softwarcapplicdons md largevideo' audio, and graphicsfiles
-.: ::e Io$ ofstorage,so a hard drive stomgecapaciryofat least80 GB is recomnendd.
.-:: corsiderations are aces spced(look for I0 nillisecondsor les), anount of RAM'
rard drive cachesize.Many single-u* conpuren emPloyfas rc helP.ool ihe intemal
--:
..:onenr. Thescfanscan ouse rh cse to resomreand male thc q6tem seen loud.l! is
powersupplythar areclassified a "quiet."
- : r selecta qarem wirh Ens, hard drive,and
qarn MemorY Consideration5
meoorystoressofvre code,while the procesoteadsand aecutesthe code.Haring
-.
R\ \ 4 m ain me m,,Dme rn ! v o u !d n ru n mo re' " 5" rrc progrum'rt rhe ' rme ri ne
::rx wirh 512 MB te well suitedto rakeadvanugeof roday'sadvancedpersonalPro
::..iry sofrware(word procesins,sPreadsheer, snPhics' and d abase)and nulr;nedia

nain nenory' and cachenenorv depend

'. dscussedearlier,yofisysren's processor,
'a.:1. on eachorherto achi*e oprimalsystemtunctionalhr'The orig;nalmanufacrurerof
, -: :omputer considenthn interdependency when designingand choosingthe pans for
:r .. rem. Ifyou plar ro upgradeyour lsren's nain menory above512 MB. vou should
:;-:Jnour supplierroundersiandyou. sFten s nain menorvImns od sizeofache and
:: rplication ofexceedingthoseInns
!-nier Consideration5
;<: p rinten :nd inkjet printersarethe two primarl choicesfor printer' and the differences
!-^:cn the rwo arebecomingsmallerand smaller'\0hile nosi inkjel Printe6 arecolorand
*::rinten nonochrome,thereareaho colorlaserprinrersAll producesharpinases'with
:. :rioosof 600' 600 don perinch (dpi) to 1,800' 1,800dpi now.omnon The major
:::::nces arein price,color,md speed.
 Partz I nr or m ' m r { hm Loqy c onep r s

hertz94 ..ti .r nr^..cc.r< 9A scatabiLity

125
time ll timeJ93
instruction pipeLining93 secondary storage{Permanent
machine cycie93 pi xet118 storage)103
magnetlc disk104 ptotters120 sequentiataccess103
magnetictape103 point-of-saLelP0sldevice114 sequentiataccessstoragedevice
magneio-opticat (M0ld sk 106 policy-based storagemanagement ISASDt103
mainirame computer 125 109 server124
massivetyparatteIprocessing100 portabLecomputer123 sourcedataautomation 110
megahertz lMHzl94 pnmarysrorage lmarnmemoryi speciat-purposecomputers 122
memoryl92 storageareanetworkISAN)108
f,ltPS94 radio-frequency ication
idenlif supercomPuters 126
f,loores Law95 IRFDl 118 96
superconductivitY
MP3120 randomaccessmemorylRAMl93 symmetricat 101
muttipfocessing
muttilunct on device121 read-onty memorylR0Ml99 thinctient124
muttlprocessing 100 reducedinstruclion setcomputing tape105
virtuaL
musicdevice121 lRr sc) 97 device111
voice-recognition
neiworkattached siorag{NASI108 fedundant arrayof independent/ wordtength 95
opticaLdisc105 inexpensivediskslRAlDl105 workstation124
reglsier92

REVIEW QUESTIONS

1. \rhat role does the mainfnme computet Play in today's

leJgeoania'ion?
2. How would you distinguish berweena &skop computer
and a workstnion?
3. What is MP3?
4. YAat is RFID t<hnolos1'? Identi! thrce prctical usesfo:

at doesthe roludon of a digital mera convey?How

doe" rhn help you *lecr rhe appropriaLcemerr for you

Ci'e Lhreephoicalqampla ofthe u of roJceecogni-

-. \t}at rie dilfercne ber$.en dab enrryod d:ra inPud

'I
8. Vhat n policy-bared*omge nrna$menr?
9. 'i{4ren it corn* to reording &a on a stonge mediu4
whar !s rie advantageofuing a blue laserover a rcd laser?

DISCUSSION QUESTIONS

l Idendft and briefly describethreeforns ofnulriproces- 5. which forn ofnonitor would you prefer and
i"g LCD, or OLED?
Brieflyoutlinesone ofthe isuesud someofrhe solutions 6. \(h1 is rherea needfor rmdrrd' groupsruch t rhe I
associaredwith the dkcarding of old compuer hrdware forn Code Council which is behind the univeral p
I n: giae r h rr y o u rre rh , b u ' i n e * m rrra g r,l or yn' rr rrni ' code?Vhar role do they play?
versiry-\X/hat tlpe of omputer would you lecomdend for 7. Idendly md briefly desoibe the three
broad deployment in the univcrsiy's cohPuter rabs a approachesro dara stooge.
stodard dcsktoppenonalcompureror a tlin.lient? Why? Decribe how you would select the best DVD bunq
4. Vhich would you uthet have a PDA or sndt Phone?
V4ry?
 i .r.ffLr rE ,.E ! | cha er3

: s follv:V}ar advaotages doesa 6.i-birprocesw ha't I L I fco$ weren.t m ismc,dcscLibe the characterisics ofyour
, : 32 bit proessor?Ate theredrv disadvanrages? idealcomputer.Whl would 1ou use it firr?\\buld rou
:: l5 Moore\ Lawi \0hat aresone otirs inplic.ronti l ,on' .rl ' ' ,,J1 J ; r' l ' 1. dc\.op.^r" ," \r r i, , n. r I

: ROBLEM-SOLVING EXERCISES

: believerhatthe informationtcchnologyindusry hrs B usi ness Supef

P rocessig S yst em s
,n thecconomyandin largencasuredetermines stock
-.:ix piiccs-notjust te.hnology stocks bur orha socks
:ll. Do someresearch to find an nrdexthat measures 3 GH zP eni i um
w i th $525 9505 9550
256MB RAMw th 4ll
. I per ' or ma n .e o r' h l ,rg rrr. In o o g v e n p,rr' .
' rhr indexv.sus the indd for rhc SE{l' 500 6r tht
U pgfade
to 512MB 60 65 50
: :lre yers. Whar is,vourconclusion?
.: rhe upcomingyear,,vourdepertmentis expectedto l o l 20GB
upgrade ?0 125 105
r p. ' pl, r oi r.r' 1 1 .Y o u " i l n e e dto r q ,,i re.i Y T
:.r svsrensand two odditn,nal printcn for the nerv S tand.rdr5 i ch.28 2A A 210 2 15
. : ore* to sharc.Standardoli:iceconputcrshavea Pen
: rl-CHz) proccsor wnh 256 MB of R{M, 15'inch Fi gh resoturi on 400 424 4 50
- \colornonitor, ard a40'CB ha.d diskdrivc.Arleatr
- ri the nm peoplewill usetheir conputersmore dran
: :. houn per day.You would like ro providehiglueso- W retessmol seand 65 55
e nonitors endspecirlwireles miceand keyboaros tor
r:.: pcopl*ifit fits withnr your budget. You arc not sute 12ppmcol ofi nkj et 75 55 65
::heryou want to upgradcthe machinsto 512 MU of
: ,\{ and 120 CB hard drivcs. S urgeprotector/pow ef35 32 35

- rlepanmentbudgetwill alLowa maximumof$6,000 Threeyearw arfanty 3L0 300 320

lnprter hardmre purchrscs$is,veat, and you wani
:rct onlyonevendorfot all ofthe hardware.A pricclisr 3. Do researchor th reedilliredt digital..meras.ldentiryd,e
tlrce appearsnr the following able, with f'*l Fa.ros (cost, size,$right, resohrtion,lcarures,erc-l drdt
-::; for a 'endors
singleunit oftach conponent. Use a sprcrd d;ringuish cachone. Usea spreadshtt to coter thesetac
,:r r, find the depanment'sbesrsolttion; write a shorr rors in one.oloru. Nexr emu the vJuc ofthis factx fu
.ro explainingyour rarionale.Spccirywhich vendor n in a tlillercntcolunn Now
eachofthe thrcedighalcarneras
re aod rvhichiremsro be udered aswcll asthe tml wrile a briefhemo rcconmendingwhich on. you wourd
buy andwhy.Cul rndprsie thespreadshectinto thc memo

TEAM ACTIVITIES

r:rh rwo or rhreeof your dassmares, intery;ewsomcone 2. \[ith one or two ofyour cl*snatcs, visit squal localcar
:rn the compureroperationsor support group ofyour deJer ro iderti$ what nakes and modelsofautonobilcs
. " g, or unr en i ry . D o c u m e n rrh e ro l < rh rr rhe m ' i n- conc equippedrirh on-boardconpurerba*d mvrgauon
:nu and rhe serer play in terns ofthe rypesofdna thcy systenx.Ask ro seea demo of Lhccapabilnies of thesesw
:,id and the softwareapplicaiionsrhcy run. rens. \rrite a briefreporting sunnarizing your lindings,
includingcostsand feanues.
 Psri 2 | ir of m at m r { hm t oqy c m c e p r ,

WEB EXERCISES

l. Do reserrch on rhe \Veb to idenrify the current starus of 2. Do researchon the \yeb to find the curent satu
rhe useofrdio-frequenry ID chips in the consuner good! inplenenting the nw l3-digit bar code.Are ompana-
industry.\rrite a brief repoa sumnrizing your fiodings. struggling to do rhis or hs ii already been suce$F:
accomplished? \rrke a brief report sunnuizing ror
findings.

CANEER EXERCISES

1. Inagine that you arego;ngto buy sone son ofhandheld Manasershaveaskedyou to be a nember ofrhe hard" a
. om pur e rd o i a ro .u p p o n y o u i n y o u r * ho.' l adi v:.i e' selectiontem to help define user conputer hrdsa
\{4rat t*lc could ir help you peiforml wlar sorr offeatures needs.Howwouldyou goabourdocuneniinsu-sers .ees
would you look for in thh device?Visir a computerstoreor How would you deternine the number ofprinters needcd
a comuner electronics sore and seewhethetyou cm pur V4ut advice would you otrer about rhe disposal of od
chasesucha devicefor under$400. conputer dselsand Planningfor the tururedGpovlol-
2. Your conpany'sfinanedepa.tmentis planningto rcqu,re
< 0 1e$. o mp u re Frn d n " n i ro r.. p l u ' .c v e ral
newpri 1en.

VIDEO QUESTIONS

\rarch rhe video clip Gening Staned and awer rhese 2. After seeingwhar it rake to build your own con-
puier, do you thiok that it is nore eononiel to
build or buy a pre-buihcomputer?what do you rhnt'
1. \Vha e*on is given tof bdying a good high-qualig' key
the advantagesand dhadvantage of both?
boardand moniror?

CASE STUDIES

Case Ode beforthepr.rrchase,

thetw ocompani es ha da hodgepod
l aptopanddeskt opcom
re i ncL!di ng
comp!ter hardw a
HlttonHotetslmptenents"OnQ" pL!sHP-9000
fromvado!svendors, andIBMAS/400
Ee
Hit t on Hot e l s c o .p o ra tro no w n s , ma n a g es,and dvel l ps Fottowng the acqLrisiton, H ttonwas leftwith a hopetess
hoteLs,resorts, and timeshare propedies ioiating 337,000 bLeo' l S ' arow a' e,sofrw a-e,
a-d darabaJps Noto- lyr as
rooms ai 2,084 properties\ryortdwide.Hltton hotLbrands rcsuLtingtower of Babetexpensiveto operateand mal
lnc t udeHil to n , H i l to n Ga rd e ntn n , D o L rb tetree, E mbassy but i tw as notas rel i abteas neededto sup por t he busr
S uit es ,Hamp to nH , o me w o o d S u i te sb y H i tt on,and C onrad. H Ltondecdedtomptementacomol o nlSpt at f or m t o
H t t onat 5od e v e to p s a nodp e ra i e st m e s h a .eresortsthraugh Sucha commonptal
alt its brandsandaLtits hotels.
Hit t onG r an dVa c a ti o nC s o m p a n ay n d i s re tatedenti tLes. woutd atsolmprovethe reiiabiLiiyafd efliciencyofcornp
I n a s t r a te g i cm o v e ,H i tto na c q u i re dth e P romusH otel ope.ati .nsbysi mptl yi ngandstandardl zlng ihe a. chit ecl
Cof por aton ,w i th s o m e1 ,6 0 0h o te l sa n d 4 5,000empl oyees. Hittof replacedthe var ous computersand serverswlh
an oug- r he a .q u s ri o - -a d e o e e !rb L s n . ssse-se. t(re compul ersconnected to pow erfutD el lseRer sholdingc
at edm anyp ro b te msl o r th e c o rn p a n y sl S o r qani z.ti on. E vn mon soltwarcand dataaboul emptoyeesand customrs.
 Fafl ar ru I q 0 pu tr,. er

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1 !!h.t w oLrl you
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: _r c f f es et uaot n n e x i w e e ka l th c H o me w o oSdLri te5,
.on5defed i i sete.ti ngthe vendorto. the cor np! t ef
l- r oubt ei. edeo w nth e .o a d o f In ..o l h e r c ty i . atl
: : ily t oc r os s s e tta mo n qth e e n l i reH tl o nf.mrtyol
: r ps ens Lr .eth a t H l to n k e e p 5b l s i n e s sw Lhn ts
_E nac Lr 5t o m e rs fi rs t.hcoe s n o ta v ata b tc .ofa.l , C ri ti catThi nki ngOuesti ons
i9 . c . or nt e d fo . m o reth a n5 3 0 ! m i tto i p e . yea. 3 D oyo! th nk thai H ttonw l t bei btc 1oma nta n a pe. m a
: : t al s y . t em wd e b o o k e dre l e n !e N D n eo l H ttof 5 nent .ompett ve advantaqe w th i l s 0n0 syst em ?Why
: _: h. s t h s c a p a b ity
L ,a n dw th te .h n o l c q y .dvarce
. - r q on iic f e a s e d mp o rta n .en th e y e a .sa h cJd I ' " o ( "
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!i! Two characterreade.l 0C R landpr.v dea ftatl eedertcacq! er ce

oo5t 0ffice Information System Iniliative It.t n:r t rto the core.t detveryo.de.
-: TheFS Sm!sr be abl eto handteatttypesol l tal m . r t w lh
. . ws pape fec, a l a to !s m a g a zn e s a n ao rfe r pefl : m n m!m ma.h nethroLrqhp!t of,i !.1l 1lpDecespc. ho! . 10.
_: p. es c nlc l o s eto 2 5 p e .c e n to f to ta tn ' ratvol Lrme a si nqtepasssorl i ngope.ati on0.3 c!m!tt ve l 6 35 0p cces
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l rtl ta t m : l v a . e s q .e a ti yn s lzei rnd .i tefi : nctudeachi evnq . mi ni m!m oJ95 pe.cenlsof t r ale
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: . m a t e. s io c a ri e f fo l te s . re q ! i n q te tl e .c a.r er. I pe.centol the vol !mesorted
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: ! m a t boxb e fo red e ti v e n nth q e ma t th.o!qh one stfeamth.t s then packa!edtogeth e. n oie
: l. r po. at e F t a lS tfa L e qcya { 1 fo
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t oa! t om .te s o rl n q d o w n to th e o rd e ri h atl ette. po nt packagl ng.outd be achevedby ?007

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: l. at w t t . equ re l h a l fL a tm a i tb e fe c ev e da t th e posl I H ow l ong w l t t take to so.t 240.000pi ecesof f t al m a t
. : _. ady bar - c o d e d b y th e s h l p p ieard d to n th e Ll S P S th.oughthe new FS Sa5s!m ng a si i qLep.ss op er ar ion?
6 6, .6 .o096 o .d .i b. L Do L.
'. H ow manyfLatsw i tl .ot be 5ortedto the dtve r ypoLf t ?
o r' s p . 6usP pr6rd H ow mrry ftrts $' l l l be sortedto tl re nco..ecLdelver y
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: F L. l S eqlen cn q S y s te ml F SS I,th e f fs t o l ra tve n ery po i t or sorl ng to ai n.orect del v.ypo int t Whal
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r ept ac et he t h re eb a . c o d efe a d e .sw th o .e opt cat dentIy chafacl erl stl cs that d st ng!i sh the. . ! st om e.
reqLr.ementsandopefatons l rom th.t of the USPS
 ito r m :tn lr .h r o .t! r :r r c,1.

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AuquslS 2003,3..esedai wffiLM.on

_
Case Three o.q:n z3ton ma i ta ns comptei econLfotove. t he l :
i nl .astr!ct!re.hrfdw afe commLr..atoi s dat a.anc : :
0ffe15HostingServices
PopteSoft ac.ess S Lrrebri dqc pfoa.tl el y nran.9e 5an0 s! pp. _:
P eopteS oft apptcal on th.o!qh ts spe. . t r ed app : :
P eopt eS . flt5 l h e w o rL ds 5 e c o n dta rq e s ip . o! der ' l P nl er
p. s e s oliw a i e w i L hn e a .ty$ 3 b tl o n n .e venucai d 12000 mai agemert 5ystemsand c!st0mer 5 et uce ex! :
n 150' o!i ensLrfe that l he systemsarc fl nfi ng op t lm at t vTh: :
em pLot r ee s .T h e c .n rp a n ylh1a0s0 0 c u S to me.5
t . eE wof Ld w i d ePe o p te S oaftc q ! re d .l D Edl tatu5a c0m
The opl i onot femotetyhost.g at a cLr st om e. sL .
pat t of I Au g L rs2t 0 0 3a n d rs c rf.e fl ttvfg htl nq a hostte
.Ltow i .onpani es to mi i ntai n i !tt nterrat cont r ot:
iak eor efby0 ra c l eC o .p o faol n
computcfha.dw Jreandsol tw arew hl e 0lt so! r c ng r _:
I n ear ty 2 0 0 4 ,Pe o p l e So lat n n o !n c e dn ew hostrn!dnd
l o d.y management ai d 5uppo ofthe.rp pt cat one_
appt ic air oma n n a g e me nste rvc e sfo f .!s to m e.sw th .nn!' t
ment S Lrtebri dge marages the P eopt esof t! ppt '
. e! enue5! fd e f $ 1 b tti o n W i thth e n e u /h o stng servce cLrs
w hether t res de5at l h cLrstome.spfe m se of . t :
t om er c u/ h o tl c e n s eth e . s o ftw rfe ffo m P eopteS oican l
pa.ty fi rc(l y. remotetYthro!gh
to th i fd p a rl y d a ta s to ra g eand ma nrrame
avataol e: S !rebf dqeassi stsn desqn n! and mpte m ef t ig T"'
c om put e. sa rd .e rv e .s .T h re eL e v e los r s e N rcear_A
50!.c ng al tow sthe cLrstomef s 5 .rqan izaton t ' r : '
lllt hev at L re te v esla b a s c L e v e L o l s e a c whchquaranl ees
5erl i nq ts c!3tome.s The c!l tome. m a nt a ns :
99 5 pe. c - "i a l a ta b L ty o l a l t l ra rd w a a
re nd se' vces ptus "_ -
.ontfot over the physl cali nfrastruct!re har dwar c.
t lm lt ecac c e Esto Pe o p te s o lsl !p p o fi s e rvc es;l 2l the enha ': _
ni ..trons d.ta and systcma..es. S !fe br dge pr r ':
nc edLc leto l s rrry i c !!a e fa n te e s9 9 : p e fc entrvartabLrtyard
man.gesaf d 5!ppofi sthecLrstomeasa ppl c. t onlh'i : '
g v es ex pir n d erc d c e s s1 0th e s L rp p o .t s e tucesi and 13 the
specatzed manageri ent sysi ems i rnd c! slom e' 'i:
! t t im alet el e t o f s e rvc e g u a ra n te e s 9 p ercentavatabt ty
9 9
afe .!fn ig opt m : l
exp-orts l o ens!fe the systems
and. r o! r d th e ' c l o c k s L p p o .t! fl i c e s .
.r..fgement atsokeepscostsdow n
S ! " ebfl .i q el,n . l n L e xn g to n Ma s s a ch!setl sp' ov des
W l htheded..l edhosLngsel i .e S u . t br dger ! f : :
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need panes .pptc.l l ons n tsdati rcenterman aqngt hect _:
. om p! l n! e n v i ro i m e i t.i d th e5 e N c e te v etcLrst' mefs to i ::
feq! set ol compul erha.d!!a.etechnotoqv . eqlir ed
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l hel rbus.essappl catoi envl ronmei t
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f rms to qet !p and
t ee i. LLrd ea 2 4 ' 7 :3 6 5 N e tw o rk 0 F e fati onsC ommai d
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syetefl ' 5 mance.othai .!storne15
c ent er t s e tl s e q L pr p e dw th i u me ro u s
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H V A C t re havnqtow o.ryabo!ttra rg pers0fneL t ! f ioverLr pq_:
n
t o en5! r e re l a b i tL tyn .L !d n g p o w e rs v l te ms.
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n
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d a c L o s e dc rc u t te l e l i s i o ns v s te musedto mon tor
nc lLr ng dges W eb basedc! 'Lom ' :
h.ve 24,7 acces.to S Lrfeb.
tal so theycan mon tof l he capa.l ty,Lrtlt lzit lonavaL: :
S r . ebr L d g ep .o !i d e s c !5 to me fs w l th the fl exbtty of
of Lhei .sY :tems
.nd rel ab LLtY
dept oy ingPe o p i e s o lst o ftw n fe n ma n v u / avs nsr3tte00n fmwlt h$5Dt lr n :
A s:!methatyo!.manLrfacturi nql
c om p! t eE l o .a te da l th e c !s to m e rs o w n facl tti esfem0tetv nve.hi ! $3 m it llon n r h: : '
annuats:rl es Lscoi si defi ng
hos t edat th e c l s to m e .s to .a n o n o f C e d' :ted hostti l :t sol tw are to suppod : ever atcr il : ;
es ch.seot P eoptesoft
S ! . eb. dges o w ns trte o 1l h e a .t c o mp !teftacrLrt ng h!man
"l
n e5 1o nes5 f!nct ons, l nctud
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nnan?geme ntYoLr a'elh_c: :'
nl ra' acco!ni ng,ands!pptycha
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and pe.sonol a taskl ofce togethef '!
lr uc t ! r e w h L teo !ts o !rc L n !th e d a v to d a vm anaqement
m' fages the S l r c b f i d q e h o s t i q s e . v c e o p t o n . w o ! \d b e st m F'l 1 :
s ! ppor lof th e Pe o p te S os{ ot ftw .re S u fe b ri dge
P eopt eS o ft a p p tc a ti o i s w h e l h e r th e y
c om panys c o mp l i e .s o .a tE!h .d p fftv 5 fac Lt' er The' Lent
 Frrdorro: lnput Pro.es5inqand ourpui De'.es

:,\"rssion Questions 4 l f yo! w e.e i o vi si tthe S urebfi dge

fac I t es.w h at wolt d
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. : r ra. e t he k eya d v a n ta g easn d d s a d v a n ts q eoi
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SoURCES:GilLianLaw "PeoplesotlAims Hosl ng Sedc
, . r ot her nf or m a to n d o y o u fe e d to k n o w a b oull he cao Pedple9oll
Conputerwartd, )anuty 27 2A04, ww.canputeMa.td
:: - r c e opt onst o m s k ea c h o l c e ? web paqe, Hosriq Senkes, acce..ed at w peoFtesoft.con/eh/ho.ting
Febru3ry5,2004'PeopleSoftneodu.esMidMarletHosiinqSotulion5 Peo
ple Soft pf 6e rcLeaseJanuary26,2A04,acce...d at M. peaPlesaft .on/e h/
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\OTES

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l8. Khari otga, 'FverybodyHas More to Slore aLsinessweek
'l nd Beneathls wings-NonstopTechnology 0ves cont nentaL ,r1ne october28 2003,accessedarw.busihesswEek can
i rt ne s a co mpe t iv e Edge, oec em ber12 2003 ihp l l e w e t 19. SatkevprAter, ConsumrsThanksfdr the M.maty, Rusiness
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. ) r..an/desktoP/.Drcess/specialized.htnL a.tdssed Janrary 19,
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2 5 Wl t i a m s ,M a d y n ," S o n yt o L a u n c h2 3 G Bo p t c a t o a ta D 5 [ n
rlvson stephan 'l,loofe, nnovation Key to Keepnq H s Ndven6et, conputeMarld, o.tobef 22, 2003, a.ceesed at
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ieuters, Processlnq ar lhe Speedof Lghl, tl4redrewe,o.tobef lnsuran.eNetworkrngNpws,January2, 2004 accessed al
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 n r o r m d .n lP.h n o to q yCdtr.epl .

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Net Wess ToddR., PrinrerMagc, conputeryartd,January26,
,da q \o !. b prt"aa ld Aattt I ?001 " . " "/ accessetlal ww .onPuteNartd.can.
ww.conputeMarld.con. Faas,Ryan,'ALookAheadiApple Canpute orld,D
^2AA4,
33 Ewar, Davd M., Donr Talk -l!51 l.ren lnfarnationweek, bet 22 2003,a..eesed ar w canputeryarld.can.
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cfisre6 lntornationWeek,Septembef
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Wht n q,Rc k "Dr uqm ak erlum
s ps t an RFi DT a g q i n oq r B o t t t e s , 50 By lhe Asso.ialedP.ess, "GroupsPromoteRecyclingor
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acce.seda\ M. bLsinessweekanline.can. February2, 2004a.cessedar ,ttp://tonputeMartd.can.
 Systems and Application

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 so;rr:re 5v.i.msardarp.rat.n lirrre | crnltd a

DiIFONMATION SYSTEMS IN THE GLOBAL ECONOMY

JONES LANG LASALLE, UNITED STATES
'.at ?rttta:,.t 8rrr. Ptaalttta Fr a6\*r,!
4/ k t 4,-lnteanaliinal

.-.s Lang Lasatle is ihe world's leading rca] estate serices and investment
-jragement firm, srving clienls in morc thm 1oo maxkets on 5 continents.
jalles 1?,600 employees provide property-management seNices, implemen-
:: rn services matching properties with bqyers and investment MDag*
:.r seNices on a local, regional, and grobal level to propelty ownels, tenants,

The company hs bullt a significant presence in the AEia Pmific region over
::: pasl 45 yeaB. But the company's lapid growth in the region resulted in a
::ir of standarchzed pretices ard iechnology--each of the ofrrces conducted
: :lrness in its own fashion. lntemationa.l director and head of mmagment ser-
: es for Lasalle Asia, James Wong, btanes the patchwork of disPaxate systems
: :1softvaxe for problems in mmaging ihe reeion. Disjoinied systems mturauy
i.:j to disiointed business pretices ihat impede the flow of information
roughout an organization. Wong set out to standardize the way each business

rle fouDd a solution in a business unit of Intuit. Inc., ca.UedMRI Rea.lEstate

:: uiions. (Intuit produces well known financial sottwarc Quicken, SuickBooks,
i:l TurboTd.) The MRI software is designed to handle the critical business and
:'i:encial operations of real estate management streamlining business opera
:1s, increasing operationa.l efficiency, and enhancing cusiomer serice.
$'hen chooslng software, a bllsiness must lDd a produci tbat matches its
1:nagemeni philosophies, approaches, md strategies. James wongputs it this
^ :r "Jones Lmg Lasalle was looking for m enterprise technology prcvider thai
::Celstood our business environment. MRI stood out from other solutions
: : .vlders because its offering combines industry specific features and services
. rh a eloba.l presence to suppoft our business.
llost soitware packages maketed to real estate and property-maragement
i :npanies arc generic packages that can be used for my one of a variety of in-
:-strjes. MRIS software is designed specifrca.Uyfor real estaie and p.opedy
-rnagemeni and includ$ "besi practices" features importal't to day-to-dqv
: : emtioDs. The term ,es t p.arrti@6 referE to i^formation nanagement practices
:at have beeo confimed to achieve the best results within m industrY. Pack-
:Ji g best prtutices into software implies that the soitware does not just
:::iomate existing routines but lnsiesd helps businesses operate in ihe most ef_
: ient and effective marner possible.
Jones Lmg Lasalle capitalized on the best practices buili into MRI
:.al Estaie Solutions to rcengineer its Asia Paciffc operations. The soflware
r:ntains features to support tenancy management, accounts rcceivable, ac-
rrunls payable, geleral ledger. and executive managment rcporting nearly
::.ry vital aea of Lasalle's organization. INtead of dea.]ing with a patchwork
:: differing soltware systems, Lasalle employees now inteEct with a single. in-
::grateal system that provides real-time ecess to their business data and is
r:cessible from a.lmost anJMhere at any time. LaSaIe's mltmge$ use the
P''tp J " i " ..* * T -" -r" e y c * * p r,

software's advanced reporting and araMica.l toola to accese up to the second

information, vastly improving their forecaating ard budgting, as well aa en,
harcing customel seryice. The software a.lso is flexible enough to meet the
unique neetu of the Hong Kong market ur.ency, reeulations, aDd cultue-
while supporting the org3.nization'E intelnationa,I standards.
Jone8 Larg Laselle continus to deploy MRI Real Estate Solution th.rough-
out its Aaia Pacilic operations- So far, the compary ha insts,lled the softwa.re iD
its offic$ in Hong Kong, Singaporc, Tokyo, and Korea. Can softwale affect the
success of a businees? Th world's laryst rcaI estate services and invstment
manaement ftrm is banking on it. WhiI in years past softrare msy bav betr
desigled to suppolt specific but limited aspect8 of a company's businoss prar-
tices, toalay's soitwar is at the core of those prccessos. defining best pmctices
and leadins compades to euccess.
Asyoureadthischapter,
considerthefottowing:
. How do cornpanies
suchasJonesLangLasaleacquiresoftware? at oprionsare
available,md what considentions allecr softme purchuing decisions?
. JonesLans ksalle decided to purchue sofrwae from u outside compuy. Vly didni
ir doelop the softwarc iael0 \7har benefis and drawbacksare involved in purchuing
softwre o opposedto developingyour own?

Soft*ale hashad a profound inpact on individuals and conpanies. It can makethe ditrerena
between proffts and losses,srrival dd bankrupt y. SmanSignal, for exanple, nakes sofr'
mre that c-anpredicr vhen nachines are likely to fail.r The soft*are can be used to predic
when aircraft engines night fail or power plana night naltunction, preventing potential

In the I 950s, when computer hrdware wo relatively rare and expensire,sofarare coss
w*e a compantively small percenege of total idornation systens (lS) costs. Today, the
situation has dramatically choged. Software c{ represent75 percent or more of the total
cost of a pmiculr information sysremfor rhree najor reuons: Advancesin hardware rech-
nolosr have dnnarically reduced hardwre costs, increasingly complex software requic
nore time o dwelop and sois morc costln and salariesfor sofrwre developer haveincreased-
ln the turure, as sugsesredin Figure 4.1, soFrue is cpeced to make up an even greate.
portion of rhe osr of rhe overall infornarion rysrem.The c.irical tunctiors softwar senri
howser, nake it a worrhwhiie investment.
 s o r 4 a f es y 5e m s a n d A p(pd '0 " 5 ^ I cuet"" *
"-"

@
The lmportancof Software in
Busine59
sincethe 1950s,
businesseshave
greatlyin-easedthe rexpendi
turesonsotlwarecompared w lh

OFSOFTWARE
AN OVERVIEW

:. of software's mo$ criti.al functions ;s to direct the workings of rhe omputer had-
r. As we saw in Chapter 1, sofmare consists of computer programs rlat control the computrprograms
' Sequencesot instructio.sfor the
,::krngs of compurer hardware. Computet prcgrms re seqtrencesof instrucdons for th
::purer. Doomentation dccribes the progmm functions to help the user operate the
: s)siem. The ptogmn displayssomedoomentadon on sceen, while other forns
-purer Texl that desoibes the program
r:er in external resources,such * prinred mamrals.There ce wo basictypes ofoftwar:
f u n c t o n s t oh e L pt h e u se ro p e r a te
: .-ms soft."are and applietion sofrware.

SystemsSoftware The set ol programsdeslgnedto

srens softwm is rhe set of program dsigned to coordinaE the activirid md tunctios coord nate the activitiesand fu.c-
,;::e hardwd md variou progrds rhroughout the computer s}'sten A p,nicul{ s}'sttls tions of the hardwareandvar ous
progms throu9houtlh compuler
,: r.are packageis designedfot a specific CPU design ad clas of hrrdwm. The omb;
-;::on ofa prniculr hardw.e configtrnrion and s/stems soFrare packegeis knom o a
aoputer sl6td pladorm. comPulersystemptatlorm
natonotaparticular
Thecomb
and
hardwareconJigurution
sysremsso ware p.cKage.

Apptcationsoltwarehasihe
gratstpotentiat
to allect
procsses thataddvatuelo a
busnessbecause it i5 desigied
o.ganzatonatectivites
for spcific

n/
o charlieWesterma
lSoufc:

Appt ic at i oSno f t w a r e
rppliation software onsias ofprogons that help uers solve panicuh computing prob- appticataon
50ftware
Programslhat hetp u5erssoLve
.rs. Both sysremsand appliotion soliware can be ued to meer the needsofm individual,
parlicularcomp!ting Problems
; sroup, or an enrerprise.Before an individual, a group. d ,n entrPrisedeid$ otr th best
.:p-"ch for acquiring application software, goalsand needsshould be amllzd eretullv
 Pst s I hrom3rr0ira.hmtoqlcmPpls

Lo t!s Note sis a n appt c at iont hal

e na bt sa wo rkg r oupt o s c hedule
meet ngs and coord nale acrvit es.
15 o!rce,Scree nCapt ur esor olhef
matef als O 2004 BM Corporalion.
Use dwth p rmi s son of BM
Cofpofation.lBM, Lot!s, and Not,"s
afe trademarksol IBM corporarlon
in lh Un le d Stdlesot
, her

S u p p o r tin In
g d ivid u a Gr Goats
t, o u pa, n d0 r g a n iz6 tionel
Eve.r orgdiation rlieso! the confibutions ofindividuals, g.oups, and the entire enrerPris
ro achide its busincs objectives.And @nvesely. the orsanization alsosuPPortsindividurls
groups,and the enrire cnrrprisew;th sPeciS.application sofilere and idfom,rion slsrems
As the power md reachofinformarion systens expmd. they pronise ro reshaPeeverydpecl
ofour lives: how we work and play, how we are edrcated, how we i eact with others, ho$
our businesses dd sovrnmenacondua d,& work, and how sc;ent;ssPerforn rcsearch
Apple Conputer, for enmple, wasone of$e fi6r PC conpaniesro developsophistiet<i
phoro-proesing softwm.) The sofrware from Apple, caled iPhoto, allom digiral canem
Thescop eo f p .obt em sandopPor - usereto flnd, organ;e, ard shrre digital inages. After the succes ofiPhoro, sweml compm;s
tun lies addressedbya arenow developingor markedngsinill products,such* Picasaand PhotoshopAlbum, ior
pa rtcuL aro f!an iz at ion
\Tlndows PCswith Intel chips. Inforhetion system arechanging vnuJly everymethod for
capruring, sio.ins, transmirdng, md anallzing knowledge, including bmks, newspaper.
maguind, movies, relevision,phonecals, nusical reordings, and rchitectunl drawings
@ One usefulway ofclusilying the nmy potentialusesof infornation sysrems h to identih
gtas5ifyinq rhe scopeof the problemsand opponunitia addresedby a Pafti.dar orsanizationTh; n
sollwarebyType
elled the sphere of inlluence. For most companies, the spheresof influcrce are penonal
andSphereol Inftuence
workgroup,md enrerprise, c shownin Table4.1.

mail,group
Etectronic Oeneraltedqef,ordereniryi
sharedwork
scheduting, payrott,
humanressurce.
 5ortrJ,r:5lrtems rid AppLrJtji so1darc | chepter 4

. rrdnerion sysrcms ihar operarewirh;n rhepersonalsphereofinfluencescrvcrhc nccds prsonalsphereof inftuence

ndividualuser. Thescnrbnnatior sFtemsenablerheirusersro inprort theirp.rsonal S p h e r o f n f t u n c et h l t se r u sl h e
-: n e d so l a n i i d i v d u a tu se r
',-:renss, increding rhc anounr ofwork rheyco do and its qu:iity. Sudr sofmarcis
, : refered to r personalproductiviry sofomre. l'hereatt nany ermplcs of suchappli- personatproductivity
softr/are
r: rvithin the personalsphcrc of iofluene-a word prd.dsing epplicationto cntcr, S o f t w a r t h a t e n a b l esu s r sto
..-- spelling.rdn, copy,prnrt, disrribute,and flle rert matuial; a spreadsheetapplicrtion mprovethe r personatelfecnve-
n e s s ,n c r e a s i nlgh e a mo u n to tw o r k
nuheri. dae in rorvsand cohunmfor analysnand de.isionm.lingi r giaphics t h e y . a n d o a n d r s q u a l i l y.
: -..lpulak
.irion ro perf<rmdrta malysisranda database applicarn,nt organizedetr forperoral

. workgroup is Mo or morc peoplewho work rogetherto achievea common goJ. A

'.i.oup n,ay b. . l,rg., fornal, pernrncrt orguizarioDalentift su.h as a se.tidn or Two of mofe peoplewho work
l o g e l r r elro a c h v ea co h m o n 9 o a r
. : -:1 cnr or armporarygroupfonned to conpletea speciticpmjec.The hunan tsource
-::rmcnr ofa ]arsefirm is an e mplc ofa formalworksrcut'.It consistsofsevdxl peoplc,
."nrl and pe'-,n..t enriry,and appea$on a tjm s drganiation chtt.
".ganiznionJl
.innarjon sysremlhatopor* in the worftgroupsphereof influencesupponsa work workgroupsphereof inltun(e
in an Sphereot inlluencelhat servesthe
- : in dc ananuenr ofa corrmon go:1.Usersofsuch applicationsareoperating
-rnmenrwhcrccommunication, ;nencn,n. andcollaborarionarccfirical
rorhe success
-: group.Applicarionsincludes-*temsthat *pport infornariol sha ng,gtoul, schdul-
: ircup dccisionnaking, and confdencing.Theseapplicationsenablememben ofthe
jnreract,and collaborate.
- r &, conmuDiare,
..irnadon sysrems rharoper e within the enterprisesphereofinfluene supponthe entarprisesphereot inltuence
n iB irtcracdon wirh ns environnrent.The surrondng cnvironmenrincludescuv S p h e r eo f n f t u e n c et h :t se r u sl h
'
needsol the f fm in ts inte.acl on
:r, supplien. sharcholdes, competirors,sp.ialinteres goups, dre firancial commu'
rnd governnrnt ag.ncics. Every enterprisehasmanyapplicariolsrhir operarewiihin
- . . rrerprisr sphereof influcnce.t he input ro rhesesystemsis deraabout or generatedbl
. business (dsacrions wirh someone ourside ihe business
enterprisc.Ihese tmnsacrions
.:Jc custonerordes, inlenrory receiptsand withdhsals, purchascorders,lreighr bilh,
:rcs,and checls.One of rhc rorlts ofptocesi'g tmnsactiondrra is thar tltc rccordsof
. -ompanyareinstaodyupdated.For cxuple, procesingthe nunber ofhous cmpLoyees
. -r updatesind;riduali parroll recordsuscdro generatethe; che.ks.The order cnrry,
-.redproductinvenron,andbilllnginfonnationsptensareexamplesofapplicationsthat
:.:rtr nr the enteLprise sphue ofinflrercc. Thcserpplicationssupportint*rctions wirh
-.:urcr and suppliers.

SYSTEMS
SOFTWARE
:trolling rhe opetatn,nsof compurc hardwareis one of the nost critical functiors of
::m soliware.Sysrenssofwar. alsonrpportstheapplicationprograns'problemiolviDg
:rbiliries.Differenttypesofsysrcmssoftwarcincludeope dlg sysrcnN,uriliryprcgFms,

Systems
S perat ing
.opdaringsystem(OS)isaserof."-p"terprognnsrharconttolsthe.dnpuierhrdwarc operalingsystemlOSl
.-r a.rsd an inErface$irh appllcationprograms(ee ligure 4.2). OperarnEsysremscu A s e l o f c o m p u l e rp f og r a m sth a t
conlfoLsth computerhardware
rrol onc compureror muh;ple computen,or thcy en allow multiple lsers to nrrcracr
a n d a c l sa s a n i n l e r f acew l th a p p t-
r orc computer.'l he variouscombinationsofOSs, compuus. and useninclLrdc:
. .t .tihglz Anputel uith d Si"gh U'd Thn systen is commonlt used in a personJ
' r ' pur - r or " h " .d l -e | l .,-p rr. rl ' rr J l o u . oneu.er" ' ti ne.
, 1 Siryle Conpuxt uith M'bi?lz User. This sysrcm is rypical of lrrger, mainfnnc
.oDputets thxi on acconmodarehundrctLsor rhousandsof peopl., .ll *sing rhe
computerrt the smrc tinc.
 Per s I rnromd onT4hiotoqycomepts

Mehi?h Con?at -fhk sysremis t?;cal of a nerwo.k of @nPutes, such as . hon

^.
nework that hasseveralconputen attachedor a largeconputer nework wnh hun&ds
ofconputen attached around the world.
S?Eial-Plt?os. Con?utzs.This systemis typical ofa nunber ofspecial-purposesystens
rharconuol sophisticated nilirary aircrali,the spaceshunle,somehomeappliance5and
a vriery ofother special-purpose comPuters.

@
s y s t em and
Th ro teo llheop ef at ing
othersystemssortwa.ers as an
iteriace or buffef btween
appLication software:nd h6rdware.

The OS, which plals a cenralrole in the tuncdoniogofthe conpleteo-putersprem,

is usuallystoredon disk.Alier a compter systenis staited,or "booledup,'ponions of rhe
os are rransfered to menory * they arc needed.Many conpurets alJowulul-boot{eattte.
which allows you to select the OS you rmt to use before the boot processis conplered
SomeOSs for snali cohputen se an "lmtant On" featurerhar significandyreducesthe
rime neededto boot a computer. A computer can also be rebooted by using the keyboard.
David Bradley,an IBM enployee,developedthe procedureof using the CrhAlt+Delete
keys to reboot a pemonalcomputer d.cades ago r "l may h""e irvenred n, but Bill [Grtes]
made it famoul" saysBradley. The collection of programs that make up rhe OS perforns a
varietyof activities,induding:
. te rrormi ngommon .ompue, h,rdw aretun.tron
. Providing a user interfrce and inpu/output nanagement
. Providinc a degreeofhardwre indePendence
. Managingsysrenmemoi/
. Managrng proce$inc t6ks
. Protding networkinc capabilit/
. Coor.olling accessto s)s
. ManacinC 6les
The hernel, d irs nue suggests,is the hean of rhe OS and onnoLs rhe nost critiql
The hearl of the operat ng syslem, proceses.The Lerneldes all of the onponents of the OS rogerherand regulatesother
wh ichcon t|otsthe m os t c r itc at

CommonHardwareFunctions
All applierion prognns mus! perform cenain rsks. Fo. exdple:
. Ger inpur from the keyboard or sone other input d*ice
. Rerriqe &Ie from disls
. Store data on disLs
. Displayinformtion on a nonibror prinrr
Eachofthesebuic tuncriomrequiresa detailedsetofirotrucrions. The oS convensasinple,
b*ic insrruction into the set ofdetailed ;mnuctions reqJred by the hardware ln etrect, the
oS acrsasinretnediary beoreen rhe application prcgm a"d the htdware The typical OS
perforns hundredsofsuch fitctions, eachofwhich is trdslated into one or more itutdc
dons for the hardwate. The OS notifies the userifinput/output devie needartention' ifan
enor hr occuned, and if m)ihins abnormal haPPensin rh s1sten.
U5erInterfaceandInput/OutputManagement
One ofthe n6t imporrant tunctions ofany OS is providing a user irterface. A ukr inrerfac
Elemnlof the operaringsyslem allom individuals ro acce$ and connand rhe omputer system.The 6rst user interfacesfor
thatattowsindivid!:tsto accessand mainfrane ond peronal conpute' s)srens were conmand b*ed. A ommand-b*d u*t
commrnd lhe comp!ler system.
 Pdtz | T*,' jr.!y t-*pt,
"r",." -

Conrrollinghow mcnory is adsed allowslhe .onpurt systen to cmcientlvand el

fecrivelysrorcard rrdevc dataand insructionsand to $rpPlyrhem to the CPU. Medoo
manaanenrprcsnds convcn a urei' requcstfo, d"ta or insrrucdons(.Jled a r's;r1,ta
ofth. dara)t{, the physicallocatior wherethe drta or insrru.ions are sroted.A comPute.
undersrands only the physicalvio ofdara-that is.thc specinclocetionofrhe datein srorugr
or menoryand the techniquesneededro aces it. This corceptis described u logicaiveru
physi.alrcce$. For dmple, the curent priceofan item, say,a Tds Imrrunents BA 3i
qlcuhtor with an nen code ofTIBA35, night alwaysbc found in the logical location
"TlBA35$." lfrhe CPU nccdedro fdch the priceofTIBA3S asptII ofe progm iDsttu.tion
rhe nemory-manasenrnr feature of rhe OS would tnnslat the logical location
"T1BA35$"nrto an acul phvsicallocationin nemory or sccondarv stonge(seeFigure4 4r'

@
An Examplol lhe operati$g
SystemConlroltingPhysicat
lTr3a3stl?
Th u se rp rom pt st he applc al on
softwarefor speciilcd3ta The 0s
tran5lalesthis PromPtinto
instructionsforthehafdwa.e,which
Iind slh e d atathe Ls er r eques t ed
Havingsuccesslullycompleted th s
task rh e 0 sth en r et ay s lhedat a
ba ckto lh e u se r v iat he aPPtc anon

Memorylhat a tlocatesspaceon lhe MosrOSssuppo.tvinud mehory, which ailocates sPaceon rhe h*d dhk to supplemenr
ha rdd skto supplem ent t hm m e_ rhe immed;ate. frnctnrnJ rneFory capaciry ofRAM. Vnurl memorvworls bv swapping
lY ol
d a te,fu n.t o na tm em or y c aPac prn' h.N een mem.' Drnd oF. or more J' \ dr yi6
o ro e ram' ,,r ofprosrJm. ' 'oncep:
.,tt." ap,gi .r. I h6 ,ed.;' C IU anJ i r. * * e' he number " r i ob ' r hr r ' r r r un r -
' dl . ' ;mc
pagin9
Processor swappr.qpfo!rams or
Proaessing Taskg
partsof Pfogramsbelweenmemory farures oftodal :
6n d o neo r mo r edis kdv ic es .
Ma""ging a p.ocesinga.tiviriesisacomplishedby rhctmk-management
OS.. r,,k..r,g"-.rr conPuter resour.es ro make thc best ue of eachsvstems
"lLcares run s.verar or tdl<s rI
asers. Tck-manrgcrnent sofrw.re an permir one lscr to Programs
rh c .a me ri re' mu| i rak nsr d,d Jl l o$ .e!crJlr* r. ro ue Lh.' se' m pur r
er r Lhe'am '

muttilaskin9 An OS wirh multitasking apabilnics allows r userto run more dun ooe aPPlicatnn at
Capabit it y t a a l was u s rtoru n
h tto the sametime. Withour having to exit a prognn, vou @n work in one apPli@rion'easih
morethanoneappUcation at the o ,,oi n ro anrhcr, anJ rhcr i umPbrck r, rhefi hr rrogrm l i ki ng up whcr evou let roli
'uen.
ri l l . hi l e1ou' . w o' ]kn8tn i r' eh' g ouad i n unc protsrd. onc or m or e'r herap-
"
plicationscu be chunins awan uoseen,nr the Da*32"/, srting a darabse' Printins a
d"cunenq perforning orherlengthyopentionsthat orhewisewould monopolizevou
"r
o n p u rer arJ l cl e vou .rl ,nts rt rl ,e" teenunJhl eto ger" Lher* orl do ne Vuhit r Une
.,n s re u,es r . on.i derablmounr e ot rrmenrd effi rr'
time-sharing T i me" hti ng Jl o* rhanonepenonro u' e ' ompurrr \) !em r r r hcum e t r m e
-" re dav be enteringsal* datr idto a ompuro
morellianon
aLtows
Capabitityrhat ror exmple, l5 iustoner servicercpresentarives
systemat
personto usea comPurer sysrcnfor a mail-or,tercompanyat th. same rime ln dorher cxe, rhousrndsofpeoplenat
ie simultmeouslyuing an onlinec"mpute. *rvice to getstockquoresand valuablebusinsr
 :crtrsfe sy{em.ani Ap0L-r oi:oitMre | c}Eptd 4

Ihe abil;ryofthecompurerro hardle an increasins numberofconcurentusensmoothly

::lcd salability. ThL feailre is criricalfor sysrensexprcredm haodlea largenumberof 5c.tabitity
T h e a bt l y o l t h e c o m p ul e r toh a n d te
-;:. sucho a nainfrane conputer or a Web *rer. Bccause personalcompurerOSsusual\'
a n i n c r e a s l nfgu m b e r of co n c!tr e n l
.:: uienredtowardsinglemes, the nanagementofnuftiple-usertasksohen is nor oeeded.
ietworkingCapabitity
--: OS can providefeaturesand c.pabiliriesthat aid sers in .onnecringro a.onptrrer
:-.ork- For example,Apple computerusen havebJlt-in networkaccesthroughtheAp
: :fitrre feature,md ihe MicrosoftWindom OSscomewith rhe epabiliry to linkusersto
::r d*ie and the Internet.
!:cessto SystemResources
.:;putes ofrenhandlesensirive dararharcanbe accessed overnesorks. The oS needsto
: .,de a high levelof securiry
against unauthorized acces to the user'data rnd programs.
- ::::11y.the OS esrablishes a logonprccedurethatequires usersro enrer.n idenrificarion
:c: and a narching pcword. Ifthe ;dentific*ion codeis invalid or if the pasword docs
:: ;o with the identificarioncode,the uer cannotgain a..es to the.onputer. The OS
, ., ,cqui.esthat userpesswords be chuged frequenlly-say,$ery 20 to40 days.Ifthe lser
, --rcsful;n logsingon tothesystem, rhcOS recordswhois usingrhesysen and fd how
r:. h some orgdizatiotu, such records arc alsousedto billusen fortimespent usingtie
, :n. lhe OS alsoreponsmyattenptcd breaches ofsecurity.
t i,eManagemnt
- -: Os perforns a 6le-mmagene"t tunci"n t" ens"rethat filcs in sccondarystomgeare
:.:blewhen nccdcdand thattheyareprorecedfton access by unarthorizeduscrs.Many
,rureB supporr mulriplc usen who storellles o. *nrally locateddisksor tapc drivcs.
-:. OS keepsrack ofwherc eachfile is sroredand who nav access it. Thc oS nust bc ablc
: :.soke whr to do ifnorc than one userrequests acct* to the same file rt the samctine.
, .i on shnd-.lonepesonal computerswirh only one ucr. file namgemcrr is neededto
:::. wh*e files re located,whar sizethey are,when they werecreated.and who creatcd

rl pcratingsprens havefi1emnagencnr convertionsrhatspecilyhow filescm benmed

;: orgrnized(seeTable 4.2). In Yrindows,for qample, filenamescan be 256 chancters
': both number aod spac* can be includcdin the filelaDe, and uPpdand lowddt
,: ::; crn be used.Windows and Linu don'r pcrnit cerrainchancters,suchs \. *, >. <,
lorneorherchadde6. to be ued in frlcnames. Opefat;nss)stms alsospeciryhow files
-.:
=: bc organized in foldersor subdir.crories.Organizing liles into nultiple folden or *b-
:.:rories makes it much e*ier to locarcfiles,insread
ofhaving all filesin one hrge foldcr

@
Convedions,or Rules.for

,u r rent 0pe r a t i n gS y s t e m s
:r:. OSswerevery b$i.. Today, how*a, moe advanad oss havebeendeveloped,ln-
only wnh mainfraneoss. Table4.3 clasifics
f,oradnssohe fee$respreviouly available
. ':* currentOSs bv ofinfluence.
sohere
 r,. z I irdmaroi T*h *r"sy c"rcept.

@
Potutar0p.r.lin9 Sy't.m5
arots All ThreeSpherasof

$6itdM AdF!.rt

{JNIX

'll:].],l!{riii

MicrcsoftPCoperatingSystems
Ever s;nce. then{mall .ohpany callcdMi.nxoli developedPC-DOS aDd MS DOS ..
suppor rhe IBM persn.l cohpure! intodu.ed in rhe 1970s,therehd beena.ontinuoE
md stQdy oolution of peronal .omputer OSs. Pc-ro.t aid MS-rOs had cohhanC,
driveninrerfaccsthat wereditlicuh ro learnand use.Eachnew vesion ofOS hasinprov6:
the easeofuse, processingcapabiliry,reliabil;ry,and.biliry to suppoftnq computerhrC,

Vindows 1.0 ws inr.odu.ed in 19a5. Wi aur 95 dolved from rhis earlyOS in th<
sunmer of 1995.\X/indows98 w$ dveloped and inrroducedin I 998.Wnrdows98 Seco.:
Edirio! followed. The %,/,as Netu T{hu/os, (NT) wolrJ'zr, OS wd designedto lar
advantaseof32-bir processos,and n fearurednultitdk;ns and advdced nelworkinse
pabiiit;es.Microsoli larerrenahedrhe WindowsNT llne of OSs Windou 2000. Windtt:
M;/k"ni"m Ed;tio" (ME) war designedfor hone ure and enablesoen novice compurer use-
to otganize phoros, nake hone inovis and rccords. ,nd play music, aswell * perform thr
usualcompurert$kr suchasacc$iDgrhe Internet,plalng gmes, and word pro.essins.
ln a blow to Midosoli, in February 2004, n was reponed rhar up ro 15 percent e
Mic.osoftt source code for windows 2000 md vindows NT ws leaked on rhe Inrerner '
The leaked sofrvde code coJd make ir eaier foi crimjnal hackersro dwelop vnuses d.
worms to attack computerswnh rheseOSs.6
wiadoa' XP (Xl rcpottedly standsfo. rhe wonderlul cvrrzra that you will havewiri
your personal.onputer) wa rclasedh fall 200 L Previou consumer lrrsions ofY/indo$"
were noiably mstable and c.dhed flcquendy,ftq&ins frusi.irins md rime-consuhin
reboors. Viih Xl, Micosoli hopes ro b.ing reliability to the consuner. The OS requnc
nore rhd 2 GB (gigablaes)of hard drive spaceand noie than u hour ro insrall. h o.l1
workswell on penonalcobpurerswirh ar leasi128 MB of R,{M and a 400 MHz or fa$c
processor.It5 redesisoedicons, rdkb&, dd window bordeF makefor norc pleas.ni viewing
The Sran menu is rwo columns wide wnh .e@ndy used prosrams in ihe left .olumn mc
qe.)'rh inc else(e.s.,MyDocumen*, MyComputer,andConnolPanel)in the isht columl
It omes with Interncr Explorer 6 browser software, which bo*ts improved securiry oc
reliabiliry features,including a one way lirvall rhar blocks hacker invdons coming in fror

Nqer OSsalsocone with nedia capabiliries.Media Playerby Microsoft,for example

en record TV progrms, play muic, and orgariz phoros. The software aho acrs as a T\
 sirtuere sr$cnsJtrdAppt.d or sDr'wrre I chaer6r 4

Window5XP Thumbnails Viw

0B B
'.*- atle W ndow sX P canshowsm altim a9es
oi pholosanddocuments,catied
rhrmbrrtls n fotderswhena usr
ct ckstheThumbnai lsvew n t he

.jfrffi

:- : \'licrosofrWildows Xl Media Ccrrer Edirion inorporaresaddirionalmukimedia

,,- ,:rs - Vindows XP en b run in the .r$r which is sim;larto prnious vesionsof
'{r,/r,
- - :ows, or the re6 iry1u, which is similar ro how lnrner sitesrun, including thc ability
,r prognns or openfolderswnh one dick ofthe nouse.\rindows X? can showshall
.;rs of photosmd d"c"nen:*, callel thunLnaik.ln folden by clickingthe Thunbnails
--. r rhe Viry Menu Geel-igure4.5). \Yindow XP alsohasVindom Error Reportlng
;:j.,. whi.hsendseror reponsro Midooftwhen erors oeur or rhe OS crashes-3WER
.:s oinf or m us et s o ffi x e s o ' p a rc h e s to a ' o i d tu tutcprobhms.R adi oshack,forexampl e,
, :g Vindows XP in nore thm 5,000storesro helprun poiot'of'saleterminalsand other
-
.: :s.) The nct najor revisionofthe \(indows OS (codenaned ionghorn) is expected
'- tl.r"Today.Microsofthsabout93 percentofthePCOS narket." Appleha 3 percent
.: market,Lind h$ 3 percent,md otherconpaniesaccountfor abour1 percentof the

loote Computer0pe.atingSystems
: IBM sysremplar{orns rraditionallyuseone of the Vindows OSs md Inrel micro-
"
- ::sor (oftencalledlt4NTTZ for this reason),Apple compurcrcq?ica[y uscnon-lnrel
- -:..pnressor designedb/ Appl, IBM, and Motorola od a proprietaryApple OS the
. :- ()S. AlthoughIBM and IBM-.onpatible computershold the largestshareofthe busi
: . 'a ndker, Apple computersare alsoquirepopular,especiallyinthefieldsofpublishnrg,
,:,::ron, graphica;s, music,novies, and nedia. GrageBand,for ennple, is Macinrosh
. : , rre that allows people to crearetheir own music the way a professionaldoes,and it can
. ,-l like a snall orchestra.'rPro Tools is mother sofrwareprcgrumusedto edir dignal
- :.'' \?hile sone peoplebeli*e rhar this rypeofsoliwa.eproduces"fiLe" nusic, other
-
'. :. erofrwarerbat m.n ipularesdignal muic will dominatenusic ptoductionand editing

The Apple OSs have also evolvedover a nunber ofyear and often provide featuresnot
. Lrble fioh Midosoft. The Mac OS t had a Multiple Usen featue. which allowedyou
:i1v sharelour Macinroshcomputerwitb othet people.Stdting in Jdy 2001, the M,.
: l{ Lvasinstalledon all nryMacs.It includesanentirelynewurer inrerface,which prcvides
-.-. lisual appearance for user-including luninous and semitranspateor elemenrs,such
- ::nons, scrollbm, windows, and fluid animarionro enhance
rhe useis experience.Since
::. os X hd beenupsnded with additionalreleues,nicknmed Jasuat(OS X.2) and
:r:n* (OS X3). One goal of the OS is to provide stablecomputing
 Psli e coi.epG
iromr m T.chmLoqY
I

I environnenl thd rhe Mac OS 9 os lt aho comes wnh ns featucs such as aurcnati'
networking and an insanr wake-iiom+leep capabiliq' for ponable conputen The
-new'
tdter
os X Pros.dmins codep.rmits edicr chadgs
"frhe 'nd
--. Unfonumtely, progmmsde"elopedto tun in earlierMacOS envi'onmens
-odui*.t-ct*"
inprovenents.
wiil norm with OS X They needto run in what ApPlecals de Cla$ic environmedt'so
whenyouopen one ofthe old prograns,youwaitwhile rhis envhonmenris establkhedrd
*rnri.lly nn rhe oldtr OS whhin the nw os X pLadorn.Cline, Davis& Mann' Inc ' a
New York advenising agency,sPeci,lizesin h$lihare i.dustrv camPeignswith mjor Phar
haceuricalclienrssuch$ Pfrzer(rnakerofvagra)' GluoSnithKline (makerofSesent' an
uthna inhaler),and lansen Pharnaceutica(maker of Risperdalfor schizoPhrenia and
Reminyl for Alzheimeis disease). About 90 percent of ihe cdnpulos fd the asencls 360
'd
eheloves ffe Mas, which are used mainly for graphics and creative work The firm is
an'ious rc nore m Ma. os X to take advantageof rhe inproved rel;abilitv and no flatures
Nser versionsof Mac OS X include 3-D effectsand betrer manasenenr of ndows on 2
display sdeen.rl Fewer virus anacks,ompared wnh Microsofis \rindows OS, are another
advantage ofusing Mac OS )ci5
Linux
Ziar is m oS doeloped by Linus Tomlds in 1991 as a studeniin Finland The OS is
under the GNU General Public License, and ns soure code is freelv availableto everyone
This doesn'tmean,however,that Linux and hs ssorreddisiribudonsare fre<onPanies
and doeLop*s nay ch*ge noneyfor it aslongas the sou..ecoderenainsava;lable'Linux
is.ctualv;"h the pdncl ofm OS, rhe put thar conrrolshardware'mmagesfiles'separares
prccc$es. and re forih sweral conbinatiom of Linu .re available, with vdious sets of
opabilnies and appiicationsto forn a conplcte OS Eachofthese conbinaiions is 'aled
a distibunon of Llns.
Linu is availableover fie lnternet and fton other sour.es.including RedHat Linux and
Celden Openlinux. Mdy individualsand organizarions de srartinsro useLinu Galileo'
rhe lrge rratl and ahline iicketins conpan)-, for example' 6s l,inux io run its lnternet
;we
site.r6 ue looling to deploy Linux wheroer we can," savsthe chief te'hnologv oficer
for the ompmy. Panasonic is uins Linu! to run one of its high{peed releviion iundsJ
A srwev roealed that many ClOs are considering switching to Linux and open'souce soh-
* rrc h e .ru.eol ' e.uri .).on* n' w i rFV :,ro' oh' " fi w ,re3l rrd.hosseri ' norwir hour
cont.o"ersy." On. conpany, for eunplq is claining that leadingLinux distributo$ mav
l0
be infringingon copy ghi and *ade secretrights A nunber ofconpmies' inclding Intel
lnv, I-ir." open softwareand te conttibuting funds to defendLinu
-d '.pp-t "nd rt
agaiost copyright-inftingenert lawsuits

Workgroup 0peratingSYstems
To keep pacewnh todayt high-tech societr. the technologv of the future nut suppon a
world in which net{ork usage,data+to.agerequirenents,and data-processing speedsin-
creue at a dramaric rare. This npid inoease in conmunietions and data-procsing
pushe tie boundariesof onputer sciencemd phvs;csPowertuland sophisti-
capabiliries
*a,l OSs aL reeded to rtn the seter that meet thesebusines needr for workgroups SnalL
busineses, for ouple, ofrcn ure oSs to run networks ad perforn critical
-orfurcup

WindowsServer
Microsoft deigned l%r/a u Seno 2003 a do thost of new ruks that are vitat for web
siresand corporaeWeb applicatiomon the lnternet'13For qmplc, Microsofr\findm
sener 2003 can be used to coordinate large dara entes. The OS also works with other
Microsoft producrs. It cm be ured to prevenr unauthorized disclosuc of infornadon bv
blockingrerr and e nails fron beinscoPied,printed,or 6v*ded ro otherpople.:a Besides
b e .g morerel i ,bl erhrn \V i ndow 'N T rhi ' O> i ' opabl eoi hrdl i ng* uemelvdem r nding
l r.an be runedro r ur on nr' h ne ' wir h up r o J2
..-i ," ,' ^ l ' ' uch o orderpro.e* rng.
micrcproeson satislyingthe Deeds ofall but dle nost denudiog of\reb openrcrs Fout
.".h;* *" b" d*t.'ed ,o Preventsewice intertptions, which aredisastrousfor \reb sites
 sofrware:
syripm..nd Appt.at onsorL}tre I chartd 4

R edH at
E ntefpfi se
L n uxASs a
networkoperatngsystemtrom

B orshotcopyr ght
[S ource] O 2004
RedHat,nc All rightsresefred.
Reprntedw th permissonlrom

:.'.i.tosoft lYi .us Ad"d,.ed Sen*, Limial Edinon, wxthe fim 64-bir venion of the
'i .i.s5 Scrvc.ftnily. lnfodu.ed in Augusr2001, it was dcsignedto ru on the 64 bit
:- un processorfron lntel (alsoknown asthe tA64). This os enabls Mi.rosoft ro begin
:;ting with rivel Lhu vendos (RedHat. Caldeh. srsE, dd Turbolinu), whhh
-::::r have 64 bit ftaniun versionsof their Linux distributions. In ddditnrn, Sun
-:rsystns rnd IBM havehad 64 bir UND{ OSsfor yers.
ti x
' is r powe!frllOS orisinallydevelopedbyAI &1 for miniompures. UNIX or be
:!: .n ndy compuier systen typesrnd pletforns. fron personalconpurers to mainframe
' :::r. UNrx alsomakes;r nuch eoier to moveprogros add dalaahons cohpurcrsor
,: - . nnc c r m ainf r a m e s a n d p e n o n a l c o -p u te rtosha' eresources.Therearemanyvari anrs
\lX including HP/LX from Hewlen-Paclod. AIX from IBM. l-rNIX Systehv fi.,h
':-\ SrsremsLab, Solarisfioh Sun M;oosysteds,ddSCO tioh Sdta Cruz Ope.adons.

... i, , z is anet work OS s o l d b y N o v e l l th a tQn s u ppotrenduserson\fi ndow s,Maci nrosh,

-;.i - NIX platforns. Netware provides d;ectory software to ftack conprters, prognns,
,. : rcopleon e net*ork, naking it easierfor largeconpaniesto ndage .onplex networl$.
.,:ii areuses@n los in fiom any @npurer on rh netwotkand sdll sertheir own familiar
:.rtop with allrheir applietions,data,and prefercnces.
HHat Linux
:-::trt Softq'areoffersa Lnru ncwork OS that tapsinto the talenrsoftens of thousands
, : lunr er pr ogra n m c rs w h o g e n .a rc a s rc a d y steanofi nprovenertsfortheLi nuxOS .
-' : RedHdtLi"w OS is very eflicienr er se(ing up Veb pagesand car nuage a
'.ffiork
,,-:r ofup m eightsenere.Tl\e filn Lold afthe Rins'uredLinux and hundrcdsofseners
, ::lirer many ofrhe specialelTecrs *en in the fLnishedfiln.r'Budington Coat Factolv
:::.d a new OS for nore than I ,250personalconputes to supponbeck officefucrions
,-.:i rs shipping,receiving,and ordd pro.esing ar 250 stores.RedHat Lin$ ws chosen
,:.:rse rhe OS is inexpensive and rus on *ardrd industryhardware,so riskswerenini
r i.J If RedHat Linu didnl work * *pected, Burlington could havc kepr ihe hardware
,-: rought dother OS. In iddition, Linu environmentsqpically havefser virus dd
. . .io p,oblemsthan otherOSs.RedHatLibux hasprovedto be a verystlble and emcient

rEc 0SX Server

'' : rttu OSX Settr ls rhe E6t nodern sener OS from Apple Conpurc.. lr providcs UNIX
.:processhanasemenr.Ptorecrednemolvputseachsericeinitsownweliguardedchunk
; :, mn icallyallocatednemory, preventinga singleprocs fron goingrwry and bringing
Put e I LnrorrulDir{hnotoqycoic+G

down the sy'stenor other senices.Under ptenptive nultirasking, a ompurcr OS us mme

crireria to decide how long ro alloate to anv one rask bfor siving uother tdk a turn ro
it to
usethe OS. PremPrinsis the act oftaking controt ofthe OS fron one tuk md giving
*it*ion for pteenpting is simplv elapsedtime ln more soph'sticatcd
"noth-.4..--o" tht
OSs, ceftainapplicatios can be given higher priorirv tht otho applieriom' giving
higherpriorityircgrams longer prccsing times. Preenptive multitasLins e' resrhatdch
pi.""-g.'.,i".igt', of CPU dme md tle rystemresources it needsfor optimal
"-.unt
dfr ciency and rcponsivenes.

SYste m s
0 Pe r a tin g
E n t e r p r ise
m a' r '
N e w mri n ftse comFu' etrpl ovi derhecompuri ngand romg< caprci ryro m t t
et
d a u .o ro e,i ne requi emenrud sener l argenmber otuerui rhhi ghperlor m "nce
r r nge of
," tt.,i ,,y * ..-,u" i t" U i ti .y. nrcng.ecuri D .od ' oJabi l rrv l n addi ri on u wide
naking it
applietion so6are hu beendeveiopedto ru in the maidfrm environment'
.'"'*;Sr" r"'"r'*...fu*re to .ddressalnost anv buiness problen As a resuh' mainfranre
'. ,t'. platformofchoie for mi$ion critiql busiDess rpPlications
"o-0"". --"ir ".-puting
r.o- ts^'{' I{pUx f.o' Hewlett-Packard' and Linu arethree
r- ,i..""..-r"rl*.
"/Oi
enmples of nainfnne OSs
zlos
it".lOS i' tSl,{t n*, e4 bir enterpriseoS It supporu IBM'S 2900 and 2800 linesot
zerodown
nainframes rhat can come wnh up ro sixteen 64'bit processon (The z srandslbr
to run
dne.) It providess{eral ns capabilitiesto make it esier od les *pensive for user

larqe nainframe conputer. 'Ihe OS hu improved workload madagementdd advaned
..i ...* * .,,i .y. i r' " raM /' eri e' mr;nfrrme l i ke P te\i ou'sencl l x' n' olTBM . m 'ir
l ra m e .,lesu.en ' ubd[ i deJ.i ngl e.omP U .er i nro muhi P l r' mJl (r ' cne^ er chor qhLh F
u p a b l eo frunni ngI di fferenr JP P | i ari onl r rc' ogni ri onofrheui J* preal poput r tr yot '
Li nuxos A n 'podr elm Jei
. mp e ri n e Os. zi bs el o" ' P Mrri on\to run' vcr' i onol rhe
for rumple. .ar upg,ade'o J mrinfone Lhrr tun' rh' Linu OS
MPE/|Xand HP-UX
oS for
Er"*rt* aith i'testztdl PosIx(MPE/inistheInternet'enabled
;Lti).g;*t,s
rheu'sLtt-padJrde3ooo fmilv of conputemsing RISCPiocesins MPE/Xisarobus
procesrns
OS desienedro handlea vniery ofbusines msks'includins online tnnsaction
I. on a broad mge of HP e3000 senee{ion entry-loel to
W.i"""ri.*r*.
-a
r" ,f." -,0 ' -a -ns
* ,* o' i ' .,eryen qrrhi n rhed:ucenrer' or l ' rgeog' ni zai ot u Ht Lr yr ' i
daL'b*
Os f,.. H*ter |^krd. The OS i' dsigned ro 'uppon Inrerner'
-,i.i-i l r an {ork w i (hha prcgram' and I i n uuppli'at oo
rn d a ' ri e ry ol bui nes appl i ati on'
T h e O s . omes i n fourdi fferent renron' :toundari enterpri
on mF'
se i oncn r r cdr 'ddr c\ n'
Hewlen-Packrd s comptten and those designed rc run Intel s
ur'-Ux *pp-"
"i"J.
Itmiurn proce$o6
Linux
n"ai" s.t**" **'"-d of'aal1zrLinu forIBM minframeanpuea
thearailabiliry
hasLinux versioro
in December200 r. This venion ofRedHat Linu neam thar the cornpanv
foreeryehing ftom handhelddoia' ro r}e largoL marnlrme''
enrerpri"e

O p e ra tinSyste
g s r Sm a [[Co m Pu te rasn d
m fo
Special-PurPose Devices
ptran-'l^di8i('la'sntsB
New Oss ,nd olhenoftwre:re changingrheu 11I e iNnxt "rfi
orher rpPlidce\' I heseu5' r'e rr'o (rN
llDA"), .ell phons. dieiol .ameru. TV' and
Lmbrd
tnbcddtd oti,arirtqsrmhecaule drq rre ryPi'aI) embeddedin d 'omPuter 'hrP'
of rh$r oS ' Jl ow han dheld doi o to
i .a * t" ,* i ' ,-i i r U l tti ." i ndu(rv ' som
rc' * i ng cri dl e' ubl e' ano conne' ti on Cellphone'J{
i i * l i ,-ir.a ' i rel e*
' i ,r' device:
*.l.iJa"a os' r*. rlgurei r,r' l' addiLion Lhe'erre oS' fonpe' J purPo\
on t}e spaa romPukr' in miliury $.eJPont
* rv .p S.*'.iompurers 'hulle
"' rhe more PoPUrrru5' ror rucn
and compurenin somehome rpplirnce< Hereare'ome ol
-.r,
 s:i:Lrare
5!3t.n!irlr!pt.atrn sonire I c h e l i .r a

@
M a n yc e t t p h o n e s s uch a sth s one
t f o m N o ka a t s oh a v a n n te g fa te d
m a g i n qd e v c e .P o i n t,u se th e co to f
d r s p l a ya s 6 v e w f n d e r ,a n dsn a pa
p i c t u f el m a g e s c a nb e sto r e do nl h e
d e v c ea n ds e n t1 o 6f r e n d .
L 5 o u r c eC: o u r t e s yo l No ka .l

: nrrte$, Paln hs hken wirh i$ 1'],r, als op.nting systehn m earendrhc capabilitirs
:.:\ devi.eso hore gne.ali?ed purpoks for its own .onpukn ind firr rhoscDade bl
:: ompanies.Today,rhecomparyhas|wo rnajorbusineses. The /r/zod lhc ofprod
. Ffudrcesd nuhber ofinnovarile hardh.ld .omp ute6 and $ar phores,nrduding the
,. I'jrlm,Zire,and Tungsrn.l L6c prodrds run the Palmoperaring svsrcmxrd r vIieN
-rflicrtions. Palmsourcclulcs 'h Palhoperatingsrsrnrharis uscdon over30 milln,n
.iheld computeNand smarrphonesb), Palhone and orher conpanics.Thr conpanv
. Jevek,psandsupponsrpplic.rions.in.luding business. rrulrimedia,gancs.productiv-
-.t!renceandeducarion,hobbicsrnd enrenainnent,ravd, spons,utilitics,ard r varier
. reless applietions.
.,trlmhasaddedfeaturcsro allow betterinregratunwirh desktopt Cs and enahedusr
:.1Jrpplicatiomtorhc de'ice.Man),Afple Macuers, fore&mplc, prefeiPalh opeoring
:rns for PDAs because thev areeasyro inregrarewirh Mac prognnr dd atfliarions.)-
:r Ilcxibiliw has enabledthe Prlh to.e,nain rclarivclycdv to use while addins sonc
:: rbiliry and capabilityrs I genenl-t'urposeconpuring platforn. Ar olfice supplies
:.. lor example,can us.wirelos ds,icescontainingrhe l'alm OS ro sc.n slipnen$, create
- cctronicrnarifestasdcliveriesare lorled on a truck, and captrc custoner silin*ures
, .-:ronically.Customcr crn ftack the $alur ofrheir o,des via irs wcb stre.Today, Palh
, rbour 51 pccem ofthe m*ker tur PDA or handhcldOss.,3 Mioov,li hasabour 3il
, : : m of r hem ar k e t.L i n u x h u 3 p e rc e rt,a n d o thcrcornpxl i src.omtforabourI4peN !r

@
MarketSharefor Personat
Digitit As5i3tant5
 P.d 2 | r1.,m;roi r{rmhry co(epi.

Wi n d o w s E mbedded
\(/indows Enbedded is a fmily ofMicrosoft oSs includedwith or embeddedinto snall
compurerdevices.windows Embeddedindudeswindows CE Net and VindowsXP En-
hedded. vinlous CE.Net Lsa Ley srep in taking MicrosoG .loser ro its risioi of an) vhere.
anltine ac@$ !o web-bded contentmd senies k is an enbeddedOS for usenr mob;k
devices, suchassmaitphonesandPDAs,and it qn aLsobe usedin a varieryof oth.r devices
such asdigitat cameras.thin clients,TV set-topboxes,dd xuromotiveconplters l'DA'
w;rh \vindows CE try to bring asmuch of the functionalitvofr dcsktoPPC $ possibLe rc
r handhelddoice. Such a PDA is a progrannable cohpuer rhai perfbrmsno$ of !h.
tunciionsof. dediceteddevice.
The windoat xP EnbeddcdOS is usedin d*ices suchashardheld compures,TVser
rop boxes, and automated indusrrial machines ft is bued on Microsofis W;ndows xI
ProfesionaldesktopOS and includesmote than 10,000soliwat .omPonenls,idcludins
suchfeaturesas a built-in chat feature$ar is Micosofr's answe.o AmericaOnline In. !
popularlnsranrMesaging.ln addit;on,it is designedto runappticationsin thcir orvnmem
o.j spacesso thar they donl intrferewith or cotrupt onc anorher'Ar wirh Windo\.
CE.Net, hardwre developes@n.hoose e piecesofrhe OS rh*need for ceftaindsi.t!
WindowsMobite
\firdows Mobile is a fanilv of Microsoli OSs for mobile ot portabledevicesWindos:
)'Thcse OSshr.
Mobile includesPocketPC, I'ocketPC PhoncEdition, od snanPhone
manyfeatures, includinghddwriting recognition,rheabiliryto bcan infirrndtion ro deli.ei
runn ing eithcr l'}ocketPC or Palmtnc. s compctingOS, MicrosofCsinsbnt mesagnrgt.h
nolosi, md suppon for mor. secu'eInternet.ornectionsThcv alsohareadvanccdtelecon
municarions discusedin more dctailin Chaprer6 Motorola' Sansung'Dell
cap.bilities,
Hewlett-Packard, and Toshiba havepn ucc drar run YrindowsMob;le wircicss seni.e.
fronVerizon. Cingular, mdothenareolien rvailablewirhdeviccsthat use!(indows Mobile

U t i l i t yP r o g r a m s
uiitityprograms Utility ptograns areurcd to ncrge and ut ses ofdata keeP tack of compurerjobs bins
P.oq ramsusedlo m efge 3nd s or l run, compres filesofdata bcforelhq arestorcdo! tnnsnnted overa nemork (hus svin5
se rsol d ata ,kee ptr a. k ot c om put ef spaceand tine). and performothcr nnportanttrsksr0 One udlity programis evenuscd!'
t ob sb e n9 r!n , com pr es sdat af t s rr
makeconputer svstensrun b*ter ud longerwithout problems Anorherq?e ofutilic
belo rellre ya reslo r dor t r ans mt
t ed overa n elwo rk and
, per r of m programallom peopleand organiations to tap ino unuscdcomputerpowet ovet a ntt
work.r'] Olien cJled 3rl rotu?"tins, the +Prca.h c n be very eliicicnt and less*pcnsne
rhan purchaing additionalhard*-. conpure. eq"ipncnr. Novdtis' a larsedtus .onl
"r
panr, Lsd grid computingroget nore donc for less AccordnBro a conprnv sPokesPerson
i'Ih. grid hd openedup a numbo of opporunities for us which w.rc
iLrr nd th{,
before."The compuy savedabout $2 million using sid computing by not havins to bu'
additioralhardwm andequipment.In iheturure, grid conPut;ns could becomeacomnor
feture of OSsand provideinexPnsive, on-demanda.ccssro comPuterpos'erand resourcc'
Udliry prognms oftcn come inralled on computer systems,but a rumber of utilir
progums.d.lso be Purchascd.l.ers look at somecomnon typesofutiliti.s
HardwareUtitiiies
Anunber ofhadware udlitiesareavailablefbm.ornpanies sucht Symantec,rvhichpto-
ducesNononUriliries. Hardwrc uriliiiescanche.k rhestatusofJ partsoftht IC includ;ns
rJ
ha.d dnks, neno.y, nodcns, speakusand printers Disk utilities.he.k rle hard disk:
boor rctor, file allocationtables,and d;ecroriesand malyzc rhe- to ensurcthar th. hrrc
disk hasn'tbeentamperedwiih. Disk udlitiescan also.,Ptimizcthe Placem.nroffiles on :

and-RecoveryUtititieg
virus-Detection
Conputer virusesfron thc lnrem* md othcr sources.an be t nuisencc and $ne n.i
cm onpletely disablea computer.Virus-derectbnand l'nu{e.overy softwa.e.an be io
stalledto consrandynonitor rnd prom rhc computei lf a virus is found' rhe K,ttwarccr
elininate thevirus,or "clcan"the virusfron rhe computersystemTo kccpthe virus dcrcc
rion and recoverysoftwre curent a"d nakc suretht the sofrwarccheckslor the latcs:
 solLr?are
!.Fiemr.ldrrp.r,ron so 1,* | cb.rt4r 4

.... u can bc casilyupd.ted thtuush rhe Inrernei.S,vnarrccdrd McAfer are mo com-

. . makcvirus detean n add {ecoverysoftwarc.
'har
=i.-Compres5ion
Utitities
: :,.,pressx,nfrcgnms can rcduccrhc anout oi disk space.equiredro srorea file or
-:: rhe tine it takesto rransfera filc ovcr the Interner.A pofular programon Windows
, \\tin7,;p(aau.ai"zi?.caz), whlch genefutes zip files.A,;p file hasa .zip extensnn,
: .. ile can Lreedsilr unzipped ro rhe origiDal filc. n1P3 lMotioh l,ilra6 E,?etrt Gtuup,
,. ' i'r f a popularfile-conprcssiorformt usedo sttre, tfanGr, and play nusl.. It.an
-::cs filcs 10 tincs smrllerthen driginalwirh neaFcD-quality sound.Software,suchas
.. liorn Applc, can be usedo store,organize,and playMl,3 musicfiles.
i,:mandPop-UpBtockerUlitities
' rs unwantede-mail (span) and h.vnrc annoyincand unwantedadsFop up oD your
: r: \.reen wh;l you are on rhe lnrem.l can be fru$reting and a big wsre of ne. A
:rr ofutility programscan bc nru ed to help block unwanted-mailspan dd pop
. .ji. inchdins Cloudnark SpalNer, Ihnespan, spmn;x, \4cAfeeSpamKiller,and

t:work and lnternel Utititieg

rl .angeofne*onr and sysrcmsmamgenent utility soliware;savailablcro monitor
i rfe aid ie6'ork pe*bmana and triggeran rlen *hen a web seNeris cnshirg or d
. . rrl problemoccu6. Alhough rhesegenebl nanagemnrfe uresarehclpftl. what is
..:.J is a way ro phpoinr rhecrue ofthe problen. Topazfrom Mercurylnrerdctivris m
:::c ofsoftwarc callcd an dddhdd Weblofomdne nannoi,g utilitt.lr ls deslgne.lnot
: n,und rn dhn whnd,ere{e p.oblemsbur alsoro lcr ncrwod<adninisrarorsisolate
'
: :rt llkcly crusesofth ptublem'. Its Arrro I{CA Gooi-causc!Dl}sis) module uses
,.. .:,rJ rnalysiswnh buiLtin rulesn, meoure sysremand \Veb pcrforn"nce.Actual peF
- :nce dao is comp*ed with the rules,and rhe resukscrn hdp pnrpoint whererrouble
: rrted in rhe appliotion rchware,database,servcr,nawork, or lhe securiryfeaturcs.
;:fvr and Mainframe Utilities
*. Lritid.s crhaDcethe perforndc of seNe.sand mainfrarnecomputcrs.IBM hascre,
:: nn.n$-nanagenent softwtuerhr allowsa suppor personro moniror the growing
rrr of dcsktopcompures in r businessatnched to a sener or mainfnme conputr.
. : rhis sofmare,rhc $rppon peopledn sn at their personalompurets and checkor
r:rsc problems,rch c a hard disk fdure on a ompur. on ! nerwork.Thc $,pport
r r ..n $-en repair individualsystensmvwhere on rhe olgani?ariontnc$ork, ofren
. { having to leavetheir d4ks. The difec! bennris ro rhe s}6rcn nan.ger, hut the
-::ssginsfronhavingasmoothlylirncrioninginfornadonsysrcn.Uriliryprograhscan @
- .,: rhe needsof an individul, a workgroup,or an cnrcrprisc,aslistedin Table4.4. They
,
Exalnples
ol UtitityPrograms
" u. . t u r r k ' fr,' n ra .l .rn gro b .ro m o n i ronngs.rcn i nr.gri r..

.q-e..,.
Software
rhatmanages anuninteft!pubte Softwarethat compafeslh conlentof
powersoufce!o doa contotledshutdown
ol onerile wlh anotherand identifies
thewortgroupcompute.lnlhevntofa
lo5s ol oowe'

.. usoer&tron
$llw.rc Sonmr. rh.r'epodrunrestulu6*to! 3ittwareuratrlpoitsttrestatusrlt a
or.tMprs p.nkubrcompuierjoh

:!herutitities
n progransdj$ lor dlhd$ everyconceivabler6k or tuncdon. Microsoft Windows
: :i. Managementserics,to. eaatuple,canbe ued with Microsofls Ofnce progranst,
 Pali s I onT{hrctoqycom+rs
nrormar

15ValueIT is a utilitv dnt can hetp :

manaeeand prorect imporGnr corpohte docu'nenis
l"
-'"*' ffi 1a";.r':'".i:;,:'
"-6_':T:i;'i::Hilii::i::i1fl;1,1:,
ro rhe chief financial ollar for Ticond'oga' e pe

;:m5:ffi;1:'Hii
**:f*ft;;*:**:lt'-'::fir.""'*:r\;ff usethc Interner'r'Thz
'..""". ..t1"".J *ut,t .r*r helpspeoplewith visualdnabilities
canbe emilv seen'rhere is evenr
i""r*.." i".* *a ,v'unl' into plai" an th't

tm:r:,H:ff
xi * *::,:
-"".*
l'::'i:'"'5:,T:l':"#;::J
tine thar enployeesareworking at the;r conPuter'

M i d d t e wa r e
od tnnsfer daratas
Middleue is softwarethat atlowsdifferenr svstens to ornnmicare
dient md sener computes on a netwoc
r, ; .r.- *"a an inte'faa beween
Soltwarethal allows difffentsvs- " u m interfac bawen the Internet and oldet' legacvsvste*
"rJr."i. U"
e t r ans ler
t emsto co mmun ic atand ii"rar*".
r.,*"-pr", ""' "r,. "'d beuerr rctrunsfca reruesr fo:T:ilifff:ff;:rt::tr
-iaar.*-. "u
corporareVeb snero a tradnior
customeron the
return rhe resultsto the individual on the lnternet

SOFTWARE
APPLICATION

lt*ilff:#il{.l'*};l--{i
:r','"'r :ll..;;^ii"",;::
iHi::l:
lik*'.iT"::T".','.f
m""*x::x;::;:t";::#'::ffi:'ill
*iil w
soft
#ff il5Tf.d bvapprica,ion

nm*:*,:$H#*ri'**".'.i**
l:ru,:11;.+|iilH#l'i"j{il:.::r#
[,:h:;+;r!liii*:+ix,.:,i*'t,1,+il
itTml{*1*I}rm:ff";""*l;;"*iT
r*qpig;,,,',,,.,
i{.;Hl#lffi
$.fiJ{:1;,5,'ii1t'it'ilff
ffi
i+'di#',,ij{f
iriesdncussedin this book involveihe lbe-oraPP
rhe mes and tuncrionsoFrPPlicarionsohsre

Typesand Functionsof AppticationSoftware

:ffi:frt:
fl:rffi",;"'i:':',.;:::::rjff
#:k::*ruH::?f
 .il. applicadon(.allcd proprietarysolimrc). l'ropriL.t.rrdnrle ir uuallydcrdopcrl proprieiary soltware
.rncd by thr cornpanyor organi,.rion rhxr $ill ur Llrcr,fnurc. \{',hcnan outsrlr A o n e o t r k n d p r . g a m f.r a 5 p e
rrrv buildsor rlevelops rhe $fF ire, ir is ofro.rlLcd,abrn etu,zn. A.on\p^nt.,!\ . f . d p p t . a t o n u t u r l tyd .r e L o p Fd
a . o o w n e db y : t n q r ..o n r p a n !
furch:sc acqui.can cxistn{ solisa. pr)g,rm (sonrerincs..llcd oII theshclf soli-
or
t bc s us eit c , n l i rc ra l l yb cp u r.h i s d o r rc { l u i redotfrheshcl f i orsrorc) The rel :tnc ofr-lhe-shaL, sottwa.e
,nger:nd disadvr.ragcs ofproprieuty sfnare rnd orl-rh. slclfsoliwre ak {rmm!, E xi l n q r o t t w a r e p 'o q r a htl r d l s
: n lable1. 5 .

E:wkl
Iypet of !,ppliGtio. Soltware
5omc ol l th. .heLf eotLw arendy be
modrt.d to al tow 5odr,"

'.hnr comp.li.s useoff{he shelfv,fnvart ro supponbusnrcss pro.es\es.Kev q,,csrions

.lr.(ingoff1h. slelfsoliwareincluJei(1) v ill rh. sot.w.i. itn or rhe()S rnJ hrRlwi'c
rl rc scltcrcd?(2) Do* the soliN:re meerrhc.$ctrrirl busncs rer;uiremenrs rhrr ltn GK
rellndl (3) rs tlE $riwm n,3nur.crurclinun.i.lt) solvd rclirbte?ind (4) Do.s
"nJ A C ompa.i .!r ri Pr opr ir t nr y
rrl.o$ o1pur.hasing,irsralling,and nnn anrnrs \oftwarecomparclarorablyro and cl t-th-A ' 5h0u
'he snit . *ar {]
\tc.reJ business bencfrs?

-,wffi igw*&x* sffiuw{t$:g*:t:

ind signil canl resources
lhatarenotrequircdand
devetopmentcosl5 ovef a

Th..e sa tow dr r5k i hai

opheil statt may be.ome
hard pre55edto prov de the
fequired levet ofoi qoing
su p p o n a n dm a n to n a dce er5t n9 teaturesandthe
0e.ause or press!re r0 9er

ce.nln9 ihe fealu.e5 and

:ipp liora nd /or c us lom er

r s posiblc ro modifv sone offihe shelfpn,gnms,in eilecrblcndingrhc ollrrhe shelf

.ustonizcd approrches.for example,a miivare developcrmr nritc r collectrn of
:rux to bc uscL{h rn auo l,.dv shoprhat in.hxlesiea resrogcncr.rccsrihater,order
.. rnd p'occssnNurincc.Body shopsofJl wpeshavetheseneeds.l)csigrcd proterlr
: .firh p rovisionstur liror trilorins fi,r erh user the srne $livafe pa.k.g. .ir l,r
'o1.1
 Pdts | .rofmat on rech mtoqy cmFpis

to ndy uses. However, since each body shop hu slighdy dilTerent reqdremenrs, some
modi0cations ro the softwm my be needed.As a reult, soft-are vendos ofren provide a
wide rangeofservices, induding insallrtion of their standad softwae, nodifiotions to rhe
software requned by the custoner, naining of the end uers, and orher omulting senices.
tuorher approachro obtaining a cusonired softwarepaclage is the useof an applicatioo
serviceprovider
apptication senice provider. Ar application senice prcvider (ASP) is a conpary tlnt cm provide sofr-
{ASPI ware, end-usersupporr, and rhe conputer hrdwte on which to run the software fron rhe
A companythat providessoitware, uers facilities. Ar ASP can also tale a complex corporate software packageand sinplify ir
end usersup Poft,and t hec om p! ler so rhar h is esier for rh usersto set up and manage.ASPSprovide contact cu$omization
hafdwereon whichlo run the5olr
ware from the us.'s faciLities.
of off-the+helf softwue, md they speeddeploynenr of n* applicadons while helping IS
managersavoid inplementation heada.hes, reducing rhe need for nany skilled IS stafl'
menbes and reducing projecr san'up expenses.Such an approach allows conpanies to
dwote nore time md resourcesto more ;nponmt tsks. The ue of an ASP nales the nov
sensefor telari"ely snJl, fasr-growing conpanies with limited lS reoures. ft is also a good
srntest for companie looking ro deploy a sirgle, functionally focusedapplicadon quickly,
suchmsettingup an e-commerce \reb sireor supPoningexpense reporting The "lotorma-
rion Sysrens@ Work" featurediscusses m oolinedaining systemIBM offe6 mdsuPPorts.
Conrracringwith m ASP nay makeles seose,however,for largerompanies with najor
sysrens th* heve their technical inF$nucture elreadyin place.
Using m ASP is not without risls-sensirjve infornation ould be comPronisedin r
nmber ofwals, including unaurhorird aces by enptoyees or conputer hacke6; the AsP
might nor be able to keep its computen ard rerwork up ard running as onsistendy as n
needed:or a disatet ould disabletheASPI daraenter, tehporarilyputting an organizalion
our ofbusir$. Thesede legitimareconcrns that an ASP nst address

P ers on a lA p p lic a t io nS o lt wa r e
There are lirerally hLrndredsofconputer applications that can help individuals at school,
hone, ad work. The featuresofpemonal application sotoqre aresunmrized in Table 4 6.
In addhion to rhesesenenl-purpose ptognns, thcre are literally tho':sandsoforher pesonal
computer applications to perforn specializedtasks:to helP /ou do your tdes, get in shaPe
lose weight, get nedical advice,write wills od orher lesal documents, make repairs ro your
conputer, fir your car, write dusic, and edir your picrurcs and videos (ee Figures4.9 aod
4.r0). This qe of software, oket called w nfazte ot P.sondl ploduct;,itt
'afude.ln
cludes the geneel-purpose tools and progrm that suppon individual needs.
 Eenefitsfrom E-Trainingfor Managers objectvewas to p.ovidea te.rninqprogramftexibleenoughto
meet the needsof hqhLydiversework environments and dem-
ands, white providng a consstency of st.lctlre and content for
,._ ,!st.atan tetecommlnications gbnt Tetstratlfned to
- _ these lundamental skitLs.
, : iq S ot lt of s l o f ma n a g e me ns tk tL stra n i n g n a
The trainnq programwas orignaltydevetoped by lB[4 for ts
r; . t s t r a nam e d ' F ro n t[n eMa n a g e me nFto !n d.ton
own manageB. Snce its creaton,lBl/ has saved $80 mtton n
,:r': ::Ml, n-ranaSe.s ffom affoss the organizaton recelve
train ng costs over folr yetsrs,wh te prodlrcng beiteftra ned
. ::.t managemenlirainlng,pdmarityth.ouqhonLne
manaqeE.jBl/ p.ckagests successf!tiearningsotutionssoft-
wa.e and custonrizest ior lhe lnique needsof t5 c[ents.IAM
' : :::-s progressthfolqh the co!.se al the. own pace,
p.ovdestheso{twa.ethebackendserveEthatstofeandrun the
': ' : : _. r ! I ewho! .se a c h!!e e kT h e c o L r.s e c o n ta nsavari ety
no da" 1 o " o d l a . o .e i .q d software.and tGlnng speciatists that adminrster and teachthe
" o e o m " rqp - tralning p.og.am.aswettasproviding ontnes!ppor1io.students.
:, : : :h as Leadership, man:gemenlfundamentals,slafl ng
'We betievethat this typeol p.oqiam s certaintyLheans!,vef io
r-,. - iid c oac h nq o n e m o d l tel tte d " T h el e a m B u i l dng
-e l ampl p rrd ng ddd dl 4.. . o- o.-Fc d e
r: : 3s ent sa t ! t o .a [o n i d e n ttn g l h e s y m p i o ms o | n- " "n
facng' says Rrchad Matthewm:nof BI,1Learnng Salltons
! i:ms l.4anagers readaboutsymptomsof an ineffectNe
AustralaandNewZealand
- ::;e eramptesofe3chsympiom.Theyanswefqlestons
., Tetsl.aplansto t.an 3,300managersin four yea|swth the
:-at p.og.esses fiom screento scfeento checktherr
system To date,the programhas.eceved hghty satisfactory
,,.: _r . ! T het lt o.a t c o n c tu d ewsth a v d e o o f a n a ci uat
n- d d l.o F teedback ffom indlvrdlaltranees aswettasevdenceola change
q.ao . ogd e a _ ,p r e .
'6o in managemenl apprcaches amongman.ge.swho havet.ken
,.,. _ :" ontinequestionnaire. Somequesiionnaires a.e gr.
.. -::.atty; otheE a.e srbm tted to 3 tve e factriatofio
'r: . de n. .d q". F"r t , ( o. - a n d
: with an ontine examiruiion Studentsmay retake DiscussionOuestions
-ies
fi - : : at snynmeunt t theypass. 1 Howhas BMs custoffisoftware sotulionasssted nmakng
' 'a q4 r' a'd o o. o r h" ld r o t in r eoli e . a . Telstfas trainlngmo.eeffectve?
:.fthere they haveaccesstothe nternt.thetr: ninq is 2. As a managerin tfainng.woutdyouprelerto atlenda lomal
|@r ctassroomt.: n ng
:_ no.matda ty fouline.PrevioLrs extended ira ningseminaro.workatyourown pacethro!ghan
r: : _:qufed TtskamanageEto t.ke folr weeksotf work e tr. n fg system?Why?
: 1 I
< F s s o 4, B) o a l..- g p- o l Lp o. <"
-
e tm n ng system fequi.esoniy Io!. days ol CriticatThinking 0ustions
)i i , ::.. ,ofk, altawng manaqe.sto reman on thelob whitein
3 As a traner, woutdyoLrpreie. to teoch studenlsthrough
ie ontne tra ninq and the ctassfoomwoikshops,ihe iacetoJacemeetings,in mulliweek5emnarc.o. wouldyou
., :
p.efe.to act as an eJacLitatofgud ng stldentsthrolgh the
F-r::- :rolfesses to a thrd phase,in \,!hch managersappty
.,,, , 6 . o^ c1 a . .4 e r . o T e trc ningsystemandassistng themwth lfoubleareaswhen
al" o .o b .
-: :_ie.5can retu.nto the tminng softwafeat anytime to
-.. 4 WhywoutdBM beintercstedn packaging
ts in housecou.se
: to othercompanies?
was the deat soft1,^/are sotliion for Tetst.as
-_ng trainns chattenge.
n, .::-...r AtanBdford,gefe.atmanager
6ooe , , o d d v d o 9 d " o 4 ,D e " to o e rr. ." d ' " SoURCESI1BM SuccessStof es; Telitra,- AM We6 ste, w.)bncon,
ac.es5dd February 21,2004; 'lBM Nelps Telstfa to leach Slail' News.
ni, . :'TcLst|as work env.onments-rcngiq lrom lsolated seed Februa.y22 2004;TeLslraweb ste,
[,i : ::.! f]eLdwork to .att cente. and offlcemanagers tuwtetstn coh a.ce$ed February ?l 2004; IBM Auskalia web ste,
Mtbn.an/aul a..essed February 21 2004: BM Learninq sotutions,
i .. . i r n qlet f a nr n g c h a L te n g e s fo rth -" c o mp
0 !ro vefal t
a ny. w306 ibn can/stunes/learhinq accesredFebruary21,2004
 nr0fm* on Te.hioloqy Con.epts

@
Ex.mptesof Personat
ProductivitySoftware

dabbNqgDphtrifdd.bedtm!

0b1ai. a b.oqd Di9 ot iirorm,iioi

peopre.id deurc?s lmney, rire, aid

b6mro0, i8!dd b @mPrda Prcj

w.*swithpo@nalfthpuleEsnd
h q[GdturidnpiikEb.Fab
hreh-quautprinrado!rpur, i.rud is krt
.id qraphb Er ouss!i6 or pis6 ..n

@
Tax-preparation prog.6mscansave
ho ufso lworkan dar ely pc at t ym or e l#gchtrltlblc contrlbuuon Informltlon
accLfatellrando ng a tax return by
hand.Pfogfams can checkfor
polenlialproblemsand giveyou
he tpan dad vicea boulwhat y ou m ay
havefo.gottentodeduct.
lsource Tu$o Tax DeLuxe 2003
s e en sh olco urtes y oiI nt ! l. l

Ikd-,tu@ lr
ffi*.T-
 Sortwir. 5y:t.m5 aid AppL.Jt on 50;ruare

.- @*itwgs@ii6tw,6sil':xi &t 1f1i-ixttj?isik!1:{iig*rd*i @

i.r4..3 6! ug
**l o i f t h e s h e t l f n a n c i a tm a n a g e m e n l
.1"@ . d"d .6;eE;; -:l
programsafe usetLtforpayng b tts
and rrac$nq erPenss.
l 5 o ! r c e :C o u r t e s oy f n tu l t.l

-#ffiF-

l :r d P r oc s 5in g
, r rirereporrs,lilets,or rcrmpafen,$ord Pro.essingaPPlicationscanbeihd;pensable
, :r ority of pcrsonalconputer in usetodayhavewordprocessingepplierions instrllcd
:pplications car beused to edir,aldPrint documentsMost come*ith e vast
create,
-
. .,i ferures, includingthoscfor checkingspelling,crcatingtebles,inse{;ng formulas'
, .: :,ggraphics,and nuch rnorc Geefisurc 4.11) This book (andnosr like it) was'nired
: { or.l processing aPplicationusinga persomlcomPuter'

El Nallonalhlslorlc landmarks
Program
word Processing
Wo f dp . o c e s s i n a
@
q p p tca tr o n sca n
be usedto wr l tette.s,frotdaY
grelingcards,work reporrs,and

Naiona histoiclandma s are placeswheresigniricant

historicae!ntsoccufiedwhe promlnertAmeacans workedor
those deasfiai shapedthe ration thatp@ide
ved, that represent
important lnromationabo'nour past ortnatareouBtandmg
examplesof designor consirucnon

Nationahistoiclandmarks gude us n comprchending

lmportanttrcndsandpattemsin Americanhisiory'Thevrormthe
coinmonbondstlat tie togeherthe manygrcupsmat setUed the
countryandp|ovideanchoFof stabiltv n a fast changingwond,
ensuringthatthenaUons heritagewil be accessibletogene.ations

*l
L.l

t"'j,tt- :' t! h - ji iili { i,n ,:,i. s --,r '

',
 Pa$ s I nrofmr m r{h mr.!y con.eprs

vord processingproghms ca. be usedwiih a iem or g.oup ofpeople @Lboruiing oi

a project. The arthos and ednos who developedthis book, for *mple, used the irack
chages" md 'ieviewing" featutesofMiaosoft word ro tnck and make chmge to chapter
fiies. You can imeit .onnents in or makersisions to a do.menr rhar a coworker c,n rsiew
and either acceptor reject.
Spreadsheet
Anaty5is
People ue spreadsheersto prepare budge$, lorcur profirs. malyze insurance prcgnms,
sumnaria incohe rd data md anabze invesrmnrs. ender numbeG a calcul,rioil
are involved, spreadsheetsshould be consider.d. \Toodwed Aircrafr Ensine Slrrems, fo.
*anple, usesspreadsheersro conpure rhe irvenrory laels it needsro manufacrur nsine
pans.arThe calculadonsmade in the spreadsheethavehelped rhe company redue inventon-
lsels io one third oftheir oisinal valuesfor sone pans and componena, rcducing inventon
costs.Fearuresofspreadshers include graphics,linited databde c.pabiliries, siatisiical anr,
ysis,built-in busines tuncrions,and mu.h norc GeeFisue 4.12).The business tunctio$
include calcularion of depreciarion, presentvalue, intemal rare of reiurn, and the monrhlr
paymenr on a loan, ro nane a fN. opd'nizadon is morher powerfin fea$re ofmmy sprad-
progrms Opriqunoq rllo$ , he .pread.heetto mainize or m'nimia r qurin
'heer
subjecr m cerrain @nsiin6. For exahple, a small furniture nm aturer thar produce
chair and rablesnighr wrni ro ndinize ns profirs. The consrrainrscodd be a lirnired supplr
oflumber, a linited number ofworkers tha. cm usemble rhe chans and tables,or a limired
anourt ofvariom hardware tuteners rhat nay be required. Using an oprimizarion farur,
such s Solve. in Micosoli Excel, the spreadsheetcm determine what number ofchair ud
rablesto prodrce with labor and marerial consiraints in order to nuimir profir.

@
Spreadshet Program
Spfe ad sh eeptro9 ram ss houldbe
consideredwhen catculalionsare

Database
Apptications
Databce applicrrions re ideal for storins manipularing, od rerri*ing dara. These appl;
catiom are particularly usetul when you need ro moipulate a large amounr of dara md
produce reports and docuhenrs. Darabse nmipdaiions in.lude hersins, edidns, and
soning data. The usesof a darabaseapplication are varied. You can keep rock of r CD
collection, the items in your apaanent, rx records,md expenses.A studenr club cm use r
datab*e to storenans, addreses,phom nunbes, ad duespaid. In businss,a databs.
appliotion .d help processsale orden, ontrol invenrory, order new supplies,send leffe6
to cstoners, and pay ernployees.Darabrc nmagenent systens can be urd to trrck and
 SolLwJ,! Svsrpru and Aprl :r: rn 5.lt,rf r

,.:,"c srk end bond pdces,amllze wtuhd dra td dale tureastsfor the ndt several
- : and sumror;e med;cal rcserch esuhs. A dasbar can alm be a front end to anorhs
.:r L.rrion.Ior exahple,a databar aFplicatiodcd be usedto enrei Dd storein one td
. : :rurionr the *ored resul* can then be exponedro otherapplioions, suchasa sprerd
i..: or ld-pieprdiod applioion (seeFigure4.lJ).

@
Database
Prosram
0nce enLerednto a dalabase
a p p l i c a l i o nn, r o m a t o f ca nb e
m a n i p u l a t eadn d u 5 edto p .o d L .e

:{aphicsPro9ram
rtren sid that a picrureis wonh a thousrndwords.\(ith todays graphicsprogran,s,it
-
. ::r ro dselop aith.tive graphs,illmtntions, rnd drawings.Graphic programsen be
:: ro dwdop advmisingbrcchures.announcenents, md full-colorp nsentations.ifyou
i::iked ro nake a presentationat rhool or work, you canusca gaphicsprogranto develop
, : Jisplayslideswhile you arc makingyour taik. A graphicsprogramcan be usedto help
.1.14).Beause oftheir
- irike a presenrrtion,a drawing,oi an illustrariol GeeFigure
. ::luiw, nany collegesand departncntsrcquirestudertsto becomepLolicientar using
' '=.'r i.rion graPhi.sProgrds.

@
Gr.phicsProgram
Graphicp s f o g m s ca n h e tpyo u
m a k a p r e s e n t a l i oant sch o o to f
w o r k T h y c 6 na l s ob e u se dl o d e -
v e l o pa t t r a c tv e b r o c h !r e s l l u sl r a -
t o n s ,d r a w n g s ,a n dma p s
lSource,Co!rtsyolAdobeSysl-"ms
 Paft2 | nrrmd or T{hioLa! c.ftepts

Manr graphicsprogrms, suchrs PowerPointby Midosofr, consistofa *ries ofslides

Eachslideon be displayedon e.onputer screen, p;nted s a handout,ot (moreconnonlr
projectedonto a largeviewingsdeen ftr audiences. Powerfulbuih-in eatutsallo* you tr
d{elop atracdveslidesand conplete preserralions. You crn sclecra templatefor a typec:
presenrationisuchasrecohmendinga strategfor managers. conmunicatingbed nom to;
s.lesforce,giving a rraininspresentarion, a breinstormingsessionThe pr:
or faciLitating
senrariongraphicsprogramtake' you through the PresntationsrcPby step, indudin;
applyingcolor and aitractivcbrmaniog. Ofcourc, you can atsocustom-design vour o".
presenrarion.All rypesofchans, drawings,and fornarring areavailableMosr presentatio:
graphicsprognmsomewith manypiecesofrlrpzr, suchasdnwings and phorosofpcop,.
meeting,medicalequipnent, rclccornuniqtions tqlipmenr, enrethinment,and mu..

Personal Manage15
Information
Perr.nzli"fomatias nahdgerJ fzMt helpindividuals,srouPs,andoanizarioDs storeuser-
informarion,srch asa lisrofrasksto conplcte ora listofnenes and addresses. They uruli'
providean appoinrmcntcalend* and a placeto mke hotes.In addirion,;niornation ir :
l l M,,n h e l i nl cd. l orr\rnprr Jou.rr l i rrL:n r;p" rrrmenr w i rh " ' J m "nr gc r l
appearsin ihe alendar wnh infornarion on the sles nanagerin rhe addressbook. Vhe:
you clickthe appointmentin the calendar, irfomarbn on rhcsalesmanagerfron rheadd'.''
book is automaiicallyopeied and displayedon the conpurer screen.Microsoftontlook '
an enmplc ofa PIM softwarepackage.ar
Sone personalinformadonnanagen allow peoplero scheduhand coordinatesro!:
meerings.If a computerorhandhelddeviceis connectedto a nemork. the PIM datacanlt
uploadedand coordin*ed with the calendarand scheduleof othersusing the sarneP1\:
v,ftwareon the nerworh.Sonc PlMs canaho beusedto oordinae e mailsscntand recr.:

OnlinelnformationServices
Onlinc informationseruicesallowyou to connectapersonalonputcr to rbe outsidewoc:
throughphone lines, cable.sarellne,or power Linesin somecases.UsnB an online seni.
you can gcr investdenrinfornation, makeravel plms, and checl newsfrom arcund c.
world. You cd alsogetprics and featuresfor mostconsume.itens,lcar! aboutcodpdi...
sende-mailro friendsand family, learnabourdegreeptogrds offeredby colleges dd ur.-
versiries
around the wodd, and se .h for job openinss in your arca(seeFigure4. 15)

@
0ntinelnformationServices
onlin eservice spro v de ns t ant
ac ce sstoinio rmaron Pf c es of c ar s
andtru cks lravetd is c ount s ,
nlorma Ionab ou tco m panr ess ,t oc k
market data,and mudr more rs
avatabtewith a fewkeyshokes
us ng an on t ne se rv r c e
{so urceThe A0Lcomt r langLe logo,
t he Ru nn ingMan ic on andA0Lar e
fegisteredtrademarksof America
0nt n e, nc.TheA0 L. c om
s cree nshoist O 20 04by Am er ic a
0nt n e,Inc.TheAm edc a0nt ne

t fa d m6rksa relsedwnh
 ! rr,fe rr.hms di d A pp | cn"pto n
- -" ".*

id-.4are 5uites and Iniegrated software Packages ' ' \oh

..-re i. . o l l e .ri o no l ' rn Bl e,p p l ' .rrr" n p r " gtum'P r!r8' d i n r bund' e
' uit e " A c o t t e c I o no f s i n g t a PPtca tr o f
.. . - , n in. lu d eu o rd p ro .-' o n ' o -c .d ' h e c ' d ' tbo' marrgenten' ' l tem" grrpr p r o q r a n sp a c k a g e idn a b u n d te
tools, organiars, and more Sone sJtes suPPorrlhe
.. : :rams. comnunications
tatrng, mo speech recognhion' wherc aPPlicadons in the
/ raenr ol Web pages,note
Tl ' ere I numbcr ol " dvrn' rg"
.' . . p, ' " i. . --.rn d ' o d rto rd ri ' ra r' r' ' r'
. ' ,;' . r r.c.fu r p ro g rd h re ban d+ rg* d ro r' uk rmi l nl r' o
" ' l*. ' . de cdv to leafndd use
r , , l*rn the basicsfrr one application,the otherapplications
,. . ,"i-*"; . S."aL"d suiie is cct elltaivq the progrdms usuaLLIseLl fot a fractn'n
,. : rl,cvwould cost individuallY.
Sun Microsvs-
' : rosoft Ollice, Cotelt Wordltdect Ofiice, btus SnartSuitc' and
ofiwrc suites fot personal
,,- s*.Orn* are exanples of popular gencral-purpose
a6Th; FreeSofvde Foundadon ofler software sinilar to
-:-r;, Geerigure 4 rO
"se* spreadshret' darabse'
. .1,:<,,ystems's SLOHce that includeswotd proc$sing' Pre
,,i , i" g. " pr , i. , , *a " --;l a p p l i c a ti o n s fo rrh e L i n uxosa' openomcei sdotherOfl :l ce
.. , . , li' u. aM ic r c p ftOffi c e v i a \rn re c m b e u s e d torunMi crosoftoffi ceappl i eti ons
,i - .. a,r-"gr' a"lures mal nor work d *ell aswith a MicrosoftOS. Eachofthcse
,: - ::: suitcsincludes --. a sp.eadsh'erp"'gnm, word procesor' d*ebase prcsran' and
! , - k ar . t" i' h ' h c ,b ' r" 1 ro -o ' e J ' ' u m ' ' t' d' r' rnd dLgtd rmung' Femr' ee
-.
.
' r r , i. , , * . ,," .' e ,re , a n or hen :r rnJ ose r-h+ pr' ' d' he r i nto
'p'e'd'heer
usingthe w.rd pro'cssingaplln'rion
- -:rnr creared

w
Software5uile
A s o f t w a r es ! r e s u c h!s M cr o so l t
Oflice2003,offeE a cottectionof
powerlutprograms, nctudlngword
processrngspreadsheet,database,
Pd{i;;nurtdlid,2003 graphics,and other Proqrams The
pfogramsin a soltwaresu te are
d e sg n e dt o b e u s dt o g e l h e f 1 n
a d d r to n ,t h e c o m m a nd s,co n s a n o
p . o c e d u r e as r e t h e $ m e fo r a l l

lSource:Courtesyof Mrcrosott

Lotus1-23

tl il

Micrcsofr Ol cesotiv'r
K
i.re are nor than a hundretl nillion user worldwide of$e Major ComPonentsof Leading
.prescnring the latcstverion of the prcductivitv rcft'aarea'The
,- . .''J Om* software Suits
^n:.-y
.r.:r:J suite offers .*-*'*" ovcr dlier versionsof Offrce' including new
 Pst 2 | n'rmdon r{hnoLoqyconcprs

collaborarjonfea$rcs.A shdePoint feriure,for danpte,lea peoplepostfile ad mesag6

on a central sire, making it e*ier for a group ofpeople to work oo onnon office documents.
Peoplecm work ogether, viwing documentsand making changesin real tine. As one persoo
is naking change, other peoplearelockedout fron chansiosthe sme doctrnent ihei!
nouse poinrer disappean fron fieir display screetr.In addnion, infornatjon fron Of[a
cu be inregmredwith corporatesystens rnd appliotioro. Vnh InfoPath 2003, for ennple.
informarion cu be savedto corporate databnes. Office X is Microsofti venion ofOffice for
rhe Mac OS X OS.
Micosoft Ofiie goesbeyond its role as a nainstrem packageof ready-terun applia'
ons with the srensive cuton developnent facilities of Visual Bsic for APplicatios
(\/BA) a buih-in facilityrhat is panofevery omce applicarion.VBA protdes a nedslor
uer ro enhuce off+he<helfappliationsto tailor the progms for specialt*[s.
since one or nore applications in a suite nay nor be u desnabb o the others, some
people still prefer ro buy separatepackages.Another isue with rhe use of software suhes;s
the largeamount ofnain nemory requned ro run then ellectively. For exanple, nany user
find *ar rhey n"s spend hurdreds ofdollan for additional internal nemory to upgrade
then peronal conprter to beablero run a softwaresune.Conrinual debatesrate one vendoa5
spreadshe* superior to anorher vendor's, and yer a third vendor nay have the best word
ptocessingpackage.Thus, sone usen prefer using individual softwarepackagesfrom d;ffe*m
vendon rather than a sofrwe suite from a single
"endor.
In addidod io suites,some@ npanies prodre integratedappliranonpaledgesrhat contat
soeral progrms. ror emple, \1<>1162003 is one program rhar conrains b6ic word Pc
cessing,spreadsheer,databre, addtes bok, calen&r, and orher applications.Althoush nd
o powe6l as standalonesotorate included in software suites.integnted sofrwte packrs<
oller a rmge ofopabilnies for lessmoney.Sone inregraiedpackages costabout$100.
OtherPersonatApptication
Software
In addition ro the softwm already discused, rhere re a number of other interesting mi
powerful applicarion soliware tools for individuals. ln some6es, the featuresand capabilnid
ofthese applicrior soliw{e tools 6 nde thdjstiE the ost ofan endre computer systea
TurboTu. for ennple, is a popular tu'prepamtion progrm. A nunber of*ciring soft$ r
packageshave beendevelopedfo. uaining dd distdce larning. Univereiry profeson ofta
believe that collegesand univerities musr invest in distme learning for then studenr.'
Sone uivenities offer complere degre progms using this gpe ofso6rue over rhe Intt
net. High school reacher en usesoftware, such * Plato, to deternine which srudentsne<
to perform berreron snte educarionminations.5' Dnsineers,rchitecN, md desisnd
often useomputeraided design (CAD) software to design and doelop buildings. electrie
systens. plumbing systens, and nole. Autosketch, CorelCAD, atrd Auocad are e{ampkr
of CAD sofrwrre. There re programs rhat perform a wide arruy ofstatistiel tests.Collego
and dnivesiiies often h.ve a nunber ofcouses h statisriq thar ue $is q,pe ofaPPlicaiic
solirare. Two popular applic ions in the social sciencesare SPSSand SAS.

WorkgroupApplicationSoftware
workgroupapptication wo*grcup applietion softwate is daigned to supporr teanwork, whether people :re ir
rhe samelocationor disperel around the world. This supporten be acomplishedrid
Soilwarelhat supporlsteamwork, softw,teknown assoupuare that helps gtoups ofpeople work togerher more eliciently aod
whe the r n o neto c at onof af ound effectively. Microsoft Erchoge Sewer 2003, for *ample, has groupwm ard e-mail f*
tures.5'zMonsanto, a chemical manrfactuing conpuy, ued groupwm to let menben od
irs agricultural cheniel group work together to de"elop no produca.5r Aco.ding to E
company oficial, "we determined that this application hx the potential to signifftnf
incre*e the productivity of our engineering group by making progrm nore accesible to
our youog engineers.' Also crlled ollaborarive software,rhe approachallom a tem of re
ages ro work on rhe sme production problen, lerting then shre their ideasud work ':
onnrcred conputer system. The "Three Cs" rule for successtulinplementation ofgrorg
wareis sumnarizedin Table 4.8.
 / | chaprda

Bgr
Ernst& Youngs "ThreeC5

nui r rnJ
ol wu rk ,o rp!r{ i \J r. i n c l u J eg ro u p\hedul i nr$hx tre' l t(rr" ni '
'!'k. c ' h J re i d c r' l o U N N ore'l rom l bM l ore\" mpregrve\
. r r : e r h r e n :b re p ' e ,,p l ro
i nrs-" e
.i . , " o, u i ti ^ ' o l s rc l r' k rs e ' nd ac 6.i rr(rl -( 'o
'r'. " i ,' ' .g o n . I or
r pr c . * ' c ' l r.rn ,l l o " ' g l o b ' l r(i m ( o $' rk' ' E erhet om r' onrmo' ' er
",c* ai.-sions usnrgthreadsofdiscussnrn' andscheduleteanneer
.,.*,. r'"'" a..-';.
Lotus added sewic* to it rnd reramed ir Domino (L'otus
.- t' ror* N*.. .**"d,
.. a* *-. ,,r e mdL package),and now an endre third-pdry marketh's
" 'r'e ofr*re ba'ed o" Donho' Thse Prcduds' which include
' :..,1 -* ,. t'"ira
- "S..,ire the butd- or Notes adninistntion and broadenrhe appli-
;;';i"*i;."-"'.
" r' r D om:no_bsed
,-.* 6" ' * ' ' p 1 .. ' r' . l n ' * n e r' F o rs J mP l ' D omi m D o'
'" Jnd rt' hi !i rrP l r" e' l t'
. , . " ' " " ' *" . *' rp p ,i u ' i " n ' rt' Jh
i. " :' r' b u i h :r' " orkl l " *
i" ' . ' ?' , ,.r..,i " .' ,.-r rh u g h ' h ' re ' :er' ' ppro\J puhl nhnE rnd' r' h^i ns
. im , Lr ly rh c q ' r* J l o r i n re g r-ri o rd n d " unp" d l or murrrP rc rnrr' rogrncx' 45
.
:.{riL'{ted approval.
: ; " ; . ' . pi; " ' * .o rn ro u n J i n ro r:nd' Fr" e' rB M r;r ' \JmP L ' ' Jc
' re ^
. " - i*" ' . r' " r" t" ,-. \rrrd l t^ J rn rh n' !or\' n ' nou' rrJ' " t eoi ' oJe'o' thc
; t' t l i l m l orn' J ro a drgi rJ ornur " l l ' e
' , " " " , , , " ,, rv ' 1 .* r,.- ,t. "'l"s
*ill . r ' e h o ,h ,:,a -n d m o n n w l ,l i , " | e n ,P * l or.i nrr' vi nF " ur
" * ' 1.::
re " n ' re ' " ' v " h c fl rPi n' ol \e' re w o' r\hop r" nonrK
r ' . r c r r .r n d g c n e fu re
rbout 200 screens ro a disital
, ,.,, *A r'li.-.ii, r.-" ,eamedup to onven 'nrena
Whcn inple'"nted'
' . ,, ,f'", ."0., nf- U"riburion and plavbck casier'55 'ompl'telv
in the United StatesApPlicadon
: rk will be the lrrgestdigiralcnremrtheaterchain
who usethe application
. .,." i. S-"-i"g * i.p"lar that rhac a' concstsfbt people
. . . c ' o. ' *r c : " J d r1 l ,l rn l n Bri tri n n o uor\group-rppl i ' rri on$i r$1el ^bcci
J l l o "rIevl co' l orrr^ri ' l d' on' h' rr(ern(r
. ; . . ' t or c . r ' e l ,u .rh .n rrro n J l o r(n "

5o{tw are
:n te rp riseA P P ti c ati on
. . nr r ben e ri r' ,n e n rrr. o rg ' n u rrro n u n ' l ' bcdrcl op' dor punhred A ft' r' l i ' od
' . . r . un, nl. m r' rh to re l o p a mrre r' rl ' o ' deri ngJnJdFrri bu' i on P r' :{" T' : ' ' i '
mrreri J' rl e
: | t u, h l ! i o o d l r' ' n .h i ' c Prt rh e n e ' r* J ryrJs ' n' l ' uP l l re' dur' ng
anJdisrribution prog-n et be developed^intetnallv ming
... fhi,
-"r-hl, i. -,l*ing
*. rs ieprnnort o' purchxed fton 'n oternal'oftwate co'parv
' i n I Fbl i nd
' ' li, . r c n rrrPi . rp p h rri " n ' * r" p ' v o ll pr" ri rn for { von' B Jci e'
",a '.*.-.
'c \" "rdi ng ro D _' rd C _mra' r.{hoIel P td
r J ir ' " ' sq ' ,n rh e l c o Iro mp u e
n nrr * rl rur' der\i ooo gooo
, , r \ e o, r ro l l rp p l i .rri o r' l h ' r' " r' n o rh i rg " ' go
l " hl c l () l i ' r' r l ' rmbcr or Jp
. , . , ' " . L,,1' , " o ' r o u r * trJ r" d o tl o m - nrh
ale movingro
,'.-.,f'., U.a.t!**d witir enterpristsoftwte Manv organiarbns
, ' . d. nr e.-"p ri .e ' o fru ,r.l | ' J | .| l P| u | I!\L o p ' \ .h:i nrtrn,gcm.nt
ir " nr t p p l :a ' rh r,' u g h' h i p m n rr o f l n F\' d g" od' enterPrisef esourcePtannin9
' 1.
tRPl
' ' . . ' . ' - , . *. ' . " " f..v ,' e ' p o n d ro m ' rL c r' h nee' rr' rnFmnrd' B rl edi nl " rmJ' bl A st ol lnteqratdPfogramsrnal
p ro .e -i n g v ' " * d rrF+ ron\ !rnrrnr' nguri m a n a q ea c o m P a n sYvi ta tb u s n e ss
. . l, - ed " n o re rn i g h ' "r " L' N rrc '
o p e r a t i o n s l oar n e nti r em u tl sr t
ob.o ' c ' er..h .J o s A re u l ' n :rrr
'.J rl u' rrJrr$c " rrP Jl ts
- e pt dnin g rL R Pr' o h w rr( J ' rro l ' n rc grreJ progrrm
-.'n
 Pet s I nrrmron r{ hnoLoey
coneprs

@
ExamDles of Enterrrise
AiDticationSottware 6rdaredtry
Arnneindui,lryop..tionr
l
Automaiic
tettersystems

Creditand chargecardadministration T.xptanning

andprepartion

ffil
Inregr.tedEnt.rprBeSoftwereloSuppodgupplyChalnl'lanagement

w vital bdsines operations for an entire nultisite, glob,l orgdiadon. Thu,, an ERP systeh
must be able to suppon nuliiple legal entities, ndtiple languga, and noltiple curencia
Useof IntegratedSupptyCh.in Although the scopeofrn ERP systemmay vary fiom vendoi io vendor, most ER? system
Managemenl Sollware provide integrated sofiwrre to suppon manufacruring md fimce. In addition to thse cor
businessproce$es, some ERP rystens may be opable of supponing additional busins
functions such c human resources,sales,and disuibution. The prinary beneffts ofinple'
denring ERP include eliminetinginefffcienrslrrehs, eoing adoptionof inproved work
processes,inproving accessto data for operational decision hakidg, sBndafdizing technol'
ogi vendos and equipment. Md enabling rh inplehentation ofsupply chain nanagenenr
 soli,are svsiPruaid applcatof lotr'm I cbaptd 4

, cisio Su
S o f t w a r ef o r I n f o r m a tio nDe
rp pt ic at ion n p p o r t,
rn dS pec ia l i z ePdu r p o s e s
othe ourpo* ' i '
1 . . " i/ ed r pDl: . r ,i o n\o ts rre ' o i n fo rm rri o n d c' i ' ron uppon and
.- . f ' " . J o' " a*' l c e n e rr,re ' e ac h e r' fo re \s P l e rrebi nsG' n\nronrovi ' uJi ^
th" hu-- g"nome Music s' qecutives usedecisionsuppon sofmare to help
'r. -"ly- 6O."-"sic producerin Btcelona savsthat rhHit SongscieNe efrware
--. .i.."rrt'it
:- r:;t picked Norah lones a succs beforeshe won a number of Grammv ewards
as
r , r c r J d. . i. i o nu p p o rL ' o rM re i ' n o \ b e i n BU ' ed rol n' res rheore mretorruno
' -
- : r e abourl 0 o d i m e re r c a n 'o f rh r.,n l e m or Lot rcr' !ea J u \ rewor rre rumor'
-'
, ."-r ,tr"" ofaoglesand dosesofradiarionto determinethe best
-',*
--::rion proerm.-*;a-,housands The soliwrc analvsisrakesonlv nirutes' but the sulis an eve vees
I ....,d., of-lif. f- th" p"tieni As vou w;ll s'e in furure chaPtes'informarion'decision
sysrems ereued in businesses ofall sizesandq?esto incrase prohls
r-:rr, and specialized
- .:*..*,.. Bur how are all rhesesvsrcmsacuallv developedor buii? The answeris
:- ::h rhe useofprogramning Languages, discussed n*t

LANGUAGES
PROGRAMMING
alled prcgtannitg tan
i :: oSs and applicarion soliware are wicen in coding schemx
-. . il p, i. , . yt" .,;o n o l ro ro g rrrn rn g l a n g u rg' i ' ' op-rc' i dern' rruri on' ,rorht
qorh w trf
. ,,"' ',. . o ,h a ' i r c a n g l o rm I p ro e -i ng actni .) 15P rdre\nol r\
". rnd ol rul e tan9uaqes
programming
r- e. m m ing lug ta g e r. " h i .h rc ' e r' o l l q + o rd " vmbol ' ' ' rrer ,l ot Sets ol keywords,symbots,and a
' r . r r ng r " r er e n r' b y * h i .h n u m J r" a n ' o mmuni ul s y s t e mo f f u l e sf o r c o n sl r u ctn g
I l ' ara u' er $rnr' ro J i nror code
. l, r er ir r c g, rm n i n s i n ro h s ra n J :ri n g ' omP I' h staremnlb s y w h c h h u m a n sca n
. q..;.0"':'.-
' ,nde'., tns'a- ndz:' $. <' t'l: '''1""''h' c o m m u n l c a t en s t r u c ti o niso b e
";.'.,sd ';
c lU r u p e rfo ' m.i r.L rr ' " rr, h i n go Pe rarron'l n rhe' i mP rei 4Ji nC \h' me " execuledby a comPUter'
- . rIe
l.
.f.od" ryp;..ily .ont"lns a singleinsrruction such as' "Retrioe the data in nenorv
.:-sX. As disosed in Chapter3, rheinsrructionis thendecodedduringthe instruction
$| i i i ng.J' ompu' ei
' o' r e m A h i n e ' ),l r' I i + " r;r:" g .' ' Po r o " p" P eri n I ngl :' h
ro l ol l ' cw2 rr or rure\'rrm
. , r n : n a p. og o mmi n gl a n g u rg e re q u rrerh . ep r.grrmmei
mrrnrng frsr rngurgearo
, : , r m inel, neu o e e u ' e .J ' e ro f' v m b o l ' l ' rr h " e ' P e' rJ
. .'.."...'.' ,,t.' .,l t" d rh ee y n tu o f.l -e l a ngu' gel hehngurge* nrrd(r' re' how
medni l sl l tlr1{ ru' ' A set oi.utes associatedwith a
: ' nbols . hou l d b e c o n b i n e d i n to ' rrre mrn tu P dbl eof ' or' + ng p f o 9 r a m m r nr9a n q u a 9 e
a ietter" is an cE nPle' A
: r: rc the CPU. A rule thar "variablenmes musr siln wnh
r ' u e' l ogram r:ri abre rmor' h o sA l ,Ls
o; i. , q, , n, i .1 ,i " r.-," t e o nd i ffe re nra
urrh a rerrer' w herer\ vrraD res
: llA lf r nd l Ol Al i o l l o r r\c ru l eb e ' " s e the) {r' n
and#POUNDS do not'
-: s %INTERIST, $TOTAI,
' , *. - . 1" * t" " * " * " ' * e re d + e l o p e d' o h e l p ' ohe prrnul l probl em' 5rncerhr]
ol Lhr
. . . , il a. . ig" ' .a l o r d rfte re npr ro b l .m ..rh e v . oarei ndi ' teren rrri bure' IaLh
languages falling so'nervhere
. .,b,utesio Table 4 to represenstwo ernemes,with nost
rheseexnenes.
'.r,cen

T heEv ot u t i oonf P r o g r a m m i nLa

g nguages
h slvhg hN
:: desneto usethe power of infomation Proce$ingeliicienllv P'oblen
l o ng* ge' f he ool :ri o ot prcgr mmi ng
r . J r h. , loero p me no. r n e ." , o ro g a mmi n t
NP i J l l y d i \r" e d rn re n n ' o fg e n * rti or' ol l Jrgurge' r' ee I Jh e a | '
- . " ge,' '
 put e | rormJru, Tr hn. L.qvcomeprs
|

@
ProqrammingLan9uage
attributes

Requi.esprogrammer lo w.iie proce- Enablesa progr6mmerto write non-

dure orientedcode,desc.ibingstepby procedure-o.iented code,describing
s te pe achacti onthecompul ermusttake. the end resutldesiredwilhouthaving
to sPecityhowto accompUsh it.

.hrmbnSt

r n i i ". : l ' ' a. if40 srur:

PRNTEMPLOYEE
N U MB E R IFO RO SS

First Generalion
@ The first generarionofprognmming languagesis zachine languge, whlch resrircd the u<
TheEvolulionol Programming ofbhary q.nbols (0s and lt. Becauserhh is de lmguaseofrhe CPU, rcxr filcs rhf ]r.
Languages rranslared into binarysetscan be readby almosteveD,ompulef rsrem plarforn.
Second
Generation
Developcr of prognnning languages artcrnptedto ovdone someofrhe difficulriesin
hercntin nachine luguage by replacingrhc binary digitswith symbolsrhar progranner.
could morc e*ily understand. Thse second-senerationlanguass use codeslike A for add
MVC for novc, and so on. Anothd re.m for dese t.nsn:rg.s s dstrnb| ln"saase, whi.L
comesfrom rhe prosrams (calld a$.-rl./t sed to ftabslaie n nno nachinc code. SystehJ
soliwde prosmmssuchasOSsmd utility progtamsareofrenwrirtcnnr an assenblylansuage
ThirdGeneration
Third-generationlanguages continuedthe trend rowardgr.areruseofsynbol;c codeand
away fron specilicallyinstructingrhe conputer horv ro completear operation-BASIC.
COBOL, C, and l-ORl'ttAN arc exdples ofrhird-generariorluguagesthar useEnglish,
like $atehentsandcomnands.This typeoflanguageis easierro lcarnard usethan nachine
and ssenbly languases brcauseir morc doselyresenblesenrydayhuman comnunication
 rd a|| , m!r dre | cbsprer 4

\iirh rhird senerationmd higherlevelprogrumminglanguffs, e(h sratehentin ihe

..nage rtanslates into severalinstu.tions in machinelanguge.A specialsoiiwre prognm
: rd a conpiler convera rhe programncls sourcecode into thc nachine'loguage instruc-
.j consistingof binary digirs,s shown in Figure4.18. A conpiler ffeetesa two-sr.ge A specialsoltware programlhat
converlslh programmers soufce
;-.t*s for progran aecution. Fi6t, ir rranslates the progrm inro a machinelmguagei
code nto th machine-languaq
.:rd, rhe CPU execures rhat progrm. Arother approa.his ro usean;nterPreter'which is nstructionsconsislin9oi binary
prognnming languageinro machine
- Iuuage translaror that convens eachsatenent in a
and executes the statcnent,one at a dne. Ar inte.preterdes nor prcduceacon-
-isuage
: .:e mrchineJanguage progran.Afte. rh. satemenr*ecutes, the machioe-lansuage snte-
:.rr is discarded,the proces @ltinues for the nexrsutement.and so or.

@
Howa compiierworks
A c o m p i l e r l r a n s l a t easco m p l te
program nto a compleleset ol
b n a r y d a t al s t a g e1 l o n ce th i sr s
d o n e , l h eC P Uc a n x ecu l eth - o
convertedprogramin lsenrifety
lsGqe 2l

Fourlh Generalion
: idh-cedrationprocramminglanguages emph*ize whrr outputesuls arcdesnednther
::n how progranmingsratemenrs *e to be writren.Ar a result,naoy nmagers md crc'
areusingfounh generation
-:,s wirh liale ot no tnining in conptter and progmnning
:.:uages (4cl.t. Ldguages for cesing infornation in a database arc often fourth-gen-
,:::ion languages. Prih ennpl.s include PowerBuilder, Delphi, Essbue, Forte, Focs'
.*house, SAS,andnmyorhes. Natft.l is a 4GL that an be usedwith \rindows' UNIX,
: lin ux.6rAmther popular fouth-sneradon langusc is elled srucrured Querv Languge
.LlL), whi.h is ofren usedro perforn danbasequeriesand nenipularions.

L!nguagesBeyondthe FourthGeneration
'i:' rhe founh sene.idon. it becoms more difrcult to.lssiry prosnmding ldguases
include milic;al intelligence,visual, md
-Jguases beyond the founh generation
r :cr-oriented languages.In generd, theseIarguagesare eoier for nonprogrummers to use
: npared with older genention languages.
P.oghmmiry languagesusedro crearedtificial intelliSen.e or expertsystehsePPliorions
;. oke" caXedfJih-genoat;ox laxguaget(5GLl. Flkh'geoeration ldsu.ses are sonetines
:ii:d natutal language becaue they use qen nore EnglishJike syntu than 4Cb Thev
: i{ prog.annes to communicaewiih the conPrter by usingnornal sentencesFor ex
.ompures prognmmed in fifrh'generation languigs can unde.stand quriessuch
-ple,
: How many athieric shoesdid our conpuy sell las nonth?" Filih'generarion lmsuags'
-:: example,can be usedro dererninewhereto explorefor oil and naturalgas.
vn dt tansudss nse r s^phical or visual interface for plogmm developnent. Unlike
r:licr languagesthar depended on wning detailed p.ogrdming sratehents' visuat lan-
:..ges allow progrmmets to "drag and drop" prcgramdlng objectsooto the computer
 Put e I nrormar
onT4hioLoqy
coneprs

scren.Msn)' of rheseldguases ere used io dwetop applicatjons on the Interner.

rir6
,all" ws ontuf the fist visuat prosrumnins ldguases. orher languaseswith visuaj
d@et-
opnenr inrerhces indude VisMl Basic.NET dd V;ual C++ .NET . Viedt Bali. ed
W,@
Ba;.Ir'tlcan be ced ro deyelopapplicarionsthar run under rhe \(.indom OS. C++ 6 r
postrtul nd{sibh prcg,mming lJnsuegeu,edmo{ty by(ompurersrem! profe$iora!
ro develoD\oh$de pa.lJge'. /,/z n r pro8leminC tsguage devetoped bl S;n Mi(,o"a
tems rhat can run on any oS md on rhe rnterner. S. *j . a*a.p
lau
appliaiions o smalhr applicttions, ca|ed la,a A?pbt!. Visul -" Bdic .NET, C+;, --pt*
andl&
arealsoexmptes ofobjeced-orientedtmguages,which m dhcused nqt.
The pr(edrng prcgnmming irngu'ge \eprruredau etemenr,from rhe p,o.edu,6 c
r.ri o r rh ,r w i l l beperfo,med on rhem.bur* other rypeofpos,rmmi ns tos; egr r ie. , ha
rosettte hro units called arjer' An objeci comisis ofdara md rhe rti;ns ;at;n be pe,
fomed on the dara. For e'mpte, d objecr .ould be data about m emplovee and
all !b<
ope ion. (uch J. paqoll c,lculdion., rhir mi8h be perfomed on rhedara.trcg,.mmi.r
hnsuge< !h{ de bAed on obiech i,e .Jled ,r/?., /4r ned png,ann;% tangks,,. '
b L ,rd ' ngp,ogrrmrMd Jppti ,.ri on,L.i ngobre,r-ori nrcdp.ogrmmi net sgur ge,n t , h!
@nsoucdnsa bu;ldinglsias prehbricaredhodulesor p-". n. .up. _".i.i"jir," a.-
i n rru . ri on,.ud prccdur- n r programi ng bui Jd" s ut..l . rL. * -..sj " . . i_. a*
or patr")(d beurd reperedlv.One ofrhe prim/D, ed,orJge( ofan objrcr n rhar,( conrJ5
re u .a b l e .ode. Tnorherw ord..rhe;nnru(i on codew i rhrnrhr( obj e.r (d be r esed in dr . . -
fqent prcsnms fd a kriery of applicarions,jur asrhe samebasicprfabricrred door ctu
b.
sed in two dilireni houss. An objecr can relarero daia on a produc! an inpur roriine,
o:
a ddd-prccesins rcudne. An objecr .an evend;ecr a conpurer to *ecure orher prograx
o o ,rr(r rewrd mJni pul are dIr. so. r .o i ns ,outi nede\rl oprdro, . p,),o r ppt i; uon
auld bf u.ed In borh r bi ing prosts and rn invenrorl ..--t p,"gi*. I;y *,.,"e
prcgram. code, progmrnem rre able to wrire proga-. fo. .p..ific ;ppli*ri""
;-bh.,
n d e q u i c kl yGeFi gse4.19).B /conb;ni nsexi sti nsp-gr" -.S ;ecr.* ;rt,. ***, p, -
stantmqs .an qsily and emcindy develop new object-oriented prognns ro accoinilish

@
Reusable Code in Object-
Oriented Programming
Bycomb inn 9 e x s t ng pr os r am

prog ramme 6canear iy and

elliclenllydevetopnewobtecl-
orienledprog.amsto 6ccomptsh
o rga n2 allo na tgo alsNot
. et hat
th eseob jeclscanbe eit her
comme.cialtyav6labteor destgned

,,.: ,:"li
. ,rl.: smalltrlk. obieaorienredprogmming rrnguage.: ,onf or +e mo{ poputr
in.lude vnuatBsi( .NLI . C+-.ard Jrvr.soneotdtr8u.se..*.h a cbBOL
hm beennodified ro supponrheobjecr-oiienred approach.6r
A5nentioDede,rlier,Jav.!
an lnierner progamning lansuasefron sun Microsl"r.-, th"t on ."n o" ua.i"w o
rompuren andOSs.in.luding U\|x. Windoss. ,nd M&inro,hO\.. "
 sort,arei andAppl.alron
systems soltl,{" I CbPtd
'

rreccorienred progams o ken tre nethodr' *iich rc instrucrions to perform a specific

,ur . rhe prcgom.63 The following instructioi$ in C++ cm be used to cornPute the are
r , *--rangle, givd the width ud length.

\{erhod ro Conpute the tue ofa Rerangle Given dr Widtl md kngth

nL: Rectugle :ConPuteAJd ( )

'-:m dth' lengthl

:nd ofthe Conputetuea Merhod

'-.c developed,s part ofa C++ Prognm, dt instructiom or method can be used in
,-. , . ,be rre of a picm ftme. r living room r frcnt lawn or uv
'oq,"-' sother
,r .rni-tion rlut requiresLheme of a rcrangle Belowa'e e few in.rncrioru in
--pu'.
CompureAro mernod o be wd ro ompute rbe
- . re'm rhir .how how d,e above
c ,: r pic$re ftme.

.{sign Data atrd Comput Afta

-ne object -> SetDinemions (fime\qidth' fmneknslh);
-neAre = fmeobiecr -> CompureA.a( );

s.t ec t inga P r o g r a m m i nLga n g u a g e

r-,:rg the bet programning lansue to se for a Panicular pmgm involve balancing
11r:rciion,l chdactristic' ofrne hnguage.
rlrchine md asmbly language ptovide the not diret con[ol over comPuEr hard-
*r For this Iwn, ndy vendon of popular appliorion sftmrc Prcgnr$ t'le th' dn
ot .non ro codeponions of their lerding prcgms in Nmblv languageto maxinir.their
r---.. wh.n a p-s."--"r requira a high desre of onnol over how vuious hadware
l"c.rn.nrs are ued, thse language should be usaL In sele'ring anv prognmmmg l'n-
r*;,hean"untofdirctcont."lihatis nededovertheopotion ofthehardwaembe

rt.',e reent prcgr*nming larguags *e q?ic,[v nore onplex tho anlier program-
*-1.-gu"s*. Ailho'gh tt'esrnner langueses aPPrr to bc"inplerbcau thevm morc
:*r.likc, eachcommand cm drive omplo rcuLino md tuncuonsinrr oPente Denrno
n ..nes. lt takesles drne to d*elop omputer program using higher'levd languagd than
u-; owerloel larguages. This meac rhat dt cost to dryeloP compute' Progems 6 be
,,rd(ially l6s wiih .hse nore reent prcgrming language Aklolgh naining pc
ro u< r-he*hisher' lml progn mming hnguges mav produa high up-Font<csu
rrre^
u,c: rrsherJoel LJngue on rcdue rhe roelo's todflelop @mPus Prcgram 'n ue

mav be the turure of

- od Jaw borh hae ad@t gs nd dnad@bges bur hw
to lern. and * a re'uh. pople beome pmdrcdw much
re-mmine. Jam is far e{'ier
*h. t.arn C t mur spend I lot of time debugging mdrr the leaJnins
..-'. r-s;;."
enlncring techniques. An in redi's number ofcoll%s in rhe United Stats e
";--e ldguas is also nore porabl*with rhe abilirv
*'e h* ,i th"i' n-."t p-s"*ing Java
OS. t'".a* Aowqq, C*+ will nm disapPed anltine soon A large
--. *
' --" prosrams -i is inialled ud r-here a'e a lrye number of user beeue Mimofr
iue .n t +,
od Interu-
r- ., lor prog'mming The Amerien NationalSrmd*ds In'drure {ANSD
fo. St*daidiarion (ISO) standdds commiaees hrve also bcen working
,".'.t o.g""i'lri""
Brr- it is appaenr rhat pople wifi conrinue ro us C++ within or
a - ud'C++ since 1990, od
crde a Microsoft envircnment.
 Becausesoftware is such an inPo.tani ptur of today's @mputer svsrcms,isstressuch d {!--
w*e bugs,lictroing, upgmdes,and global softmre srppon h.ve receivedin'reakd ted&E
\re hishlisht severalm.jd sofrqte ;ssuesad trends in this section:softvare bugs,opvng-
s,ftware lieming, ope"+ource oftw*e, sharrue md otho public donain softmrc' nr
tiorgafiational sotsr*e d*elopment, sofrwareupgrades,and global solivarc suppon

SoftwareBugs
A oftwre bug is a ddect in a omputer progrum rhat keepsit frcn performing in the mm:a
Adefectina comp!lerProqramlhat inte"ded. Some buPFde obviou dd que the prograd io rermrneteutrsPedenF'
'oftware
keepsit from performinginrhe Other bugs are subtler rnd :1low erro'. to ceep into your work. Computer md sols-
tell that si.- humans deign and progm hatdwrc and software' bugs *e *
"."dos ""
qiuble. lo fac, aording to the Pentagon and ihc Softwde Engineering lbstnut-
CarnegicMellon University,rherearetypicatly5 to 15 bugsin oery 1,000linesofco&
rhe software instructions f]lar n.ke sens. only to computeB md Pmgremnrs'
Moi soliwre bues rrise becauscmanuflcrure 6 ftlase nw softwe x arlv u porsi
imreadofwaiting until all bussdeidentifiedand rcmoved.fhev *e underintemept
frcm cutonen m dcliver the sofamre riey have announcedand from sh*eholder to
seling the ns prcducr to incease sales.Mearwbile, tlre sofmm nanutacturcr's 9t
p-pl. n4, t.,ing barde for nore teting time rc idotilv ad remove
^."*"- " *hen to rela* ns softwrc is basedon a fine line' rhe indug
Ahhoueh ihe decisior of
clsily f*ds relea'ing $ft@re edy and with defecrs.Afro all mftware onpanies nl
noney o. s there is litile in@ndve ro achide a Perfect fist rele* Table I l
"pgmde,
sumnarias tips for reducing the inpact ofsofrware bugs.

a n dL ice n se s
C o p yr ig h ts
Mo$ sofrwG producr are prorected by law usi"g topFight or licensing provisions ll
provisn:ns cm mry, howqer. In sone @ts you are givcn unlimited ue ofsoftware on
or two onputer. This is qpical wirh mdy appli@tionsdeveloped for penonalcompu
In orher c*l you pey for your uagc-if you ur the software nore' vou pav nore
rpprorch n becomingpoprrlaru irh .otruar pL.cd on neruork rtr lrget (ompu'eF \
.i * * p ,,," .,i .* p* * " r vou from copvrng' oi rw ar. md sn i ns i r ro wir hou'
you u3"tc' or ;rtaarz it -oh el
before it can be i
striaions- Sonc rcli-re now reqdres thar
ued. Regisuation od activar;on $netims Ptrt softwr on vour htd disk that
acrivirisand.hangs to your conPuter q6reh.

@
HowtogeatwithSottwaregugg Checkt he manul or read me fitesrorwotra rounds

Instaltlhe L.teslsofrwareupdates.
 sortor . srsrm.?ni Acpt.aLcrsortrrrc | chept.r,t

. SendJ, softsare manutr turcrs$'anr to li.enst thc; soliwre tu lock in I src.dy.

: -,.tblesircdmof Be.ue lion cusrones. Soft$drenarufaclures alsorvx lo cncou!-
! ,!,omersro movero lhe htes eLctesofthe; oftw*c prcducrsro mininize thc cffort
--t to suppon ort-ol-darepbdu.s. There are numerousrypesof soliwt licenses to
: .ronplish theseobjectives. includingdre followng:
. ;gehased Liinst. Lnthis rtgemcnt, soliwak l-ees arc basedon the e.tuJllsasc of
-: mrnufaaureis products.l.icensees arechargedin mu.h the samcwal' tharcusromen
'riliry tirns erechargcd-b)' in.rercd f.cs lbr in.rded lsc ofPowef or watd
. .::ttity-ba:edLicenc. Vith capa.itytr.sed licedses,the fces paid to thr sofsarc
:rulicturer areb*ed on thc processing powerofrhe comPdteron which rhe $rlbvare
ijralled. Use6who run dreirsofiwareon amorc porvertulprocessor paymore lor the
. :rrrre. The fccschargedd" not rclareto rhe ,ct.,al uscofrhe producs
. :t dreasa Netuotk Scz,iz. \Yhen softwareis accesedasr nemork tnice' the sofrware
:rullcruret makesits producrsavaihblcthroughthe InterDcr.l he aduntat$ of ihis
-r of usageis drat the solirv*e rnanufaaurerautonaricdllyorkrs $os bug fixcs'
. :mcemens, rnd other updatesover rhc web and chrgcs a subscriPftn fee for iirc
rnd rssoci.rcdservices-
" .-"rre
nription L;a,i"g. Wnh subsdipdons,usercomffies sigr a ruhi}'ear dert wirh a
:nutreturerfor individual producrsor a coll.tior of producrsand then pay annud
:,c riptn,nfeesbxcd on the nunber ofPCs theyhaveAs discusednert, sornesoft'rare
: ..f'r haveresficrivecoDright or liccnsingagrcehenrs

: !e n - So u rc eS oftw are
in r forn that can be sollware
open-soorce
-.: ,ourcesoftwareis s,ftwre that is freelvavriLrblcro anyooe
:,odifled. Thc Vearher.c,n Wcb site,for exanple,usesopen+oute sofnvareto cur Sollwarethal s freelyavaltabteto
,.
a n y o n ei n a f o r m t h a l ca n b e e a sr ty
. ., 50 pcreni.' more comparedrvith traditional rhrvrre'1 According m Dar
,q. CIO 6r Vether.com, "Vhere it makesscnse,we willalwayslook rt open*ource
. .:.es." The Open Sourceldriarive is a nonprofir corPoradond.dicaredto rhc devei
- . : :nrl promotionofopen sourcsofrw*e G.c rhe OSI s lreb sitcrt uruz,r2ezsoare
, : r,ore nfornrarion on the group\ e*bns). Uscn ca. d".nLord rhc sou.cec".1. od
: :rc softwrrerhcnrelves,o the sofnvrres devdopen can make executrblcvenions
:: along rvith rhe v,urce. Opersour.e sofiware developn.ni is a
.,rtivcprccss devclopers aroundthc *orld usethe Intcrnctto keepin clxecortact
..rL rnd ro downlord ard submii ntw soflare. Major sofr$'arechansescm oc.ur nr
, :h{ than waL\ or nondr. Open+ourccsohvare ;s ar thc hean of many ot thc
, .: , nosr popultrrsedccs, includinge nail and the Wcb A Dumberofopen source
, . : prckagesae widclv used,includnrg rhe L.inuxsysrcmi!-rce USI). xnodcr OS;
:. r popularWtbsencr Sendmail,r programthardelivcrsc-nailfrrr mostsystcms or
:n*rmd Perl,
aprogrannnrg language uscdro devdop Inrcrnetapplicatnrnsoftware
, ::,gl'rcnedcorce.nsabout the secur;v ofcomputet sysens, Microsoli decidedto
:.,e..ment agcnciesth. sourcccodeurd to ds'elop its \rinclows OS to convince
I, renr rgenciesthrt rhc sofrwarcistcurc and saie65SeeTable'1.11fotsone errnples

@
':" ExamDle!of 0pen-5ourc
:.:llr-iir*l:
.

.: .r',{yr.Or'.-. :'. ,

. rdb;;r:
 Ptr$2 | nrrmt onT{hioLoqycoi.+G

wlry would an organization run ns buines using software that's freei How @n eG
thhg thafs given amy over th Inter.et be stebleor reliable or sutrciently supponed to pbc
at the core of, conpany's day'to-day opentions? The answer is surPrising<Pen-so@
software is olien zot reliabLerhan connercial software. How o this be?Iirt, by mat<iog
a program s source ode readily available, userscan fix any problens they discover.A tu r
ofren availablewidrin hoursofthe probtem'sdiscovery.Second,wirh the source.odetd.
progrun aaesible to thouatrds of PeoPle,ihe chancesofa bug being disovered md frci
before ir doesany dmage are much greater than with mditional software package Rai
the "Ethical and societal lssues"feature to learn about the rend rowrd government c d
open-source software.
The question of sofrware suppon is the biggest stmbling block to the accprmce J
openrource softwareat the coryonte levet.Gerrins suppon for rradnional soli'aare pack4r
is esy you call a conpanls toll-free support nunbe' or acces its \feb sne. But hos n'
you ger help ifan op.n+ourcc packagedoesnt work u expected?Since the open-ous
com munity lives on the Intemet, you look ture for hclp. Through ue oflnrernet discusir
{ea, you an communiie wirh othen who usethe samesoftwae. and you nay evenej
someonewho helped devdop it. Usersof popular open<ource packagesco get corect *
wen m then techn;cal questionswithin a fm houn ofasking for help on the appropri*
lnrcmet forun. Another approach is to contacr one of the muy cohPdis ene.ging '
suppon and serice sucl softwrc for example,RedHat for Li'u' C2Net forAPache, ali
Sendnail, Inc., for Sendmail. These ompoies ofer high qualiq" forpav technrJ

Shareware,Freeware,and PubticDomainSottware
Many software uen ue doing what they ca to mininizc soli-'are cosrs.Sone de rumq
sharewareandfreeware ro shmre md free*tr+soliwarc thai is veiy inexpensive or free, usuallv fot s I
Softw6relhat is ve.y inexpensiveor DersonalcomDuteis, bur whoc source code onnot be nodified. shamre mv nor bt I
iree, but whosesourcecodecannot p.*."ru * bur sone pople get what they ned ar a good price ;r
$me cds, you ----.iA
re -ftwarc
the opponunity to ry the sofrwre before s"ding a rmi"'i.i=
siven
ro the sfc ;.e d{eloPer. sone sha.wae ud freewre is in the public domair, olien caii<d
nblic lona;n sortuai. Thr softwre is not protecred bv copright laws and cd be 6e'r
*"a.,U't o"gr' sharwm od freeue cm be free or inexpensiveto acqune-
".pi"a ""a ." rse and mintain over time compded with sofrware thar is PF-
*" S" .rp"*;""
-*"
chred.6 Ifrhe soliware is hard to use od doant perforn all rhe required funcdons' tu
cost ofmted time and lct productivity can be ft greater than the cos ofpurchxing b':r
softwre. Sharware, ftesare, and public donain softmre is olien nor oPen sourc-ti'
is. rhe sourcecode is not available md cmnot be nodiffed

a tftwa r eDe ve lo p m e n t
M u t t io r g a n iza tio nSo

cornhybrids.6?Oneomp,nyrmableto usethesoftwarero increueprcfitsbv

$5 nillion.
 the Bnefitsof ODenSource terrorists.M crosofthasaLsofundedstudiesthar haveioundthal
-: : ryol Mlrnichdecrded to switchits 14,000 computers Wrndows hasatow.costof owneEhipthanL n!x.
! :: tovemmentemptoyes j.om l4lcrosoftWndoMto Whlteworklngio discredilLinux,Microsofihasmademovesto
: : : len s o! r c e 0 SOp e n -s o u rc
s oeftw a re
s d s rrrua(eo open!p somof itscodeunderaninltlatvecatted'shared sou.ce.
.i ,1o o d ar 0 th d ' - e .\.. Lo.
The sharcdsourceellorl aLtowsce.tainapprovedsove.nmenrs
"d ".d c1 "1 9 "
r lc r os oft
s C E0 S
, ta e Ba l m e . h e a rda b o l rM un and largeco.po.atectientsto accessmosrof the Wtndomsoft
r'_: : rlewthe.eto lobbythe mayor In the negotiations, wa.esourcecodeThislimitedaccesshetpslVc.osoftassurepur
r' :_ lent as t3. as matchngL nux'sp.rce essentialty ctuseE thal Windowdoesnt conraI seffet secu.tybackdoors
-' vcrosoft Windowsfo. free and sUltthe mayof N4icrosoft hasatsomadeavaitabte po.tionsoirhe sourcecodefor
::rn. The.aiionaLe? Cityofficiatssaid the decsof WindowsCE,the l.l crosoft0S for handhetd pos and mobitepho
_. : !t p.nciple:Th mLrnicipalty wantedro controrrls nes.so athe.scanmoreeaslydevetop appticatonsfof ir.
r F , r . l d i d o w .h .o p d e ^ F ! . o n . q ol The one majordrawbackof opensou.ce5of\^/are-andrrje
_ lle handsof a commercrat vendorwtrh prop.e- matorchaLlenqe fo. ihe Linlx Os-rs the bck oJapptcatonprcg-
-r-:_
:ii ::_r: inat s accoLrntabLe to sharehotders l"the. thanto ramsior pe.sonat compLrt ng Sincef.4icfosoft hotdsanronopoLyin
the dsktopPC0S ma.ket.the vast majofiryof soflwareis wn n
n: :. nenr growng amonggove.nmenrs a.olnd the for Microsoft W ndows.Thesoftwa.edevetoped for LrnuxE much
. o, 6 o^ . 6 rd 6 d (d , rl t ' . o o e .. n e . d g en.re, smrllef n quantity, variety,andsomemayargue n qlaLity.White
i:, :' :-or sesbuyopensourcesofryare.chtna s workinq an nexpensNe atiemativeto Mic.osotlotltcecaltedStar Ofice
, t. becomesetf suffcentand secu.e.india,Japan wa. wr ttento rLrnon Linux,and a W ndowsLikeinre.tacecatted
-:rea are ako aggrcssvetypl|slins opensou.c; Lrndows io. LinLrxis av"itabte,
mostuse.sa.e mo.e comfortabte
,..: : frlic.osoft s so|naafe.n rhe unted states sGre, w th tl-retamliar Microsoft soita.re S ncea sotidbusnessmooer
: : :ty governme.tsare equal rn rheir intefest n fo. open'sou.ce devetopment s sti[ in th btlep.nt stages,dev
:: :.f-,ware.ln Fto.da M ami-DadeCountyrsconsider- etopefshaveUttlelncentveto creatsotrw..erhat wlt be gven
r : r : rl rtsI 5 000copesof M crcsln W ndowsfor Linux awaylo. iree.CompanessLrch asiBM hawever. a.ef nutr9 slccess
- - - :' ndlstrya.e foltowng governmenr s lead.Slch in distributing Lnux to their customerc,and pro|t[,g ]orr ne
"ate design,t|arninq,and sLrpport
iri,,.- lhe technology indlst.y as lBM, Novetl.nd SLrn aspectsof Linur basedinfomation
,!:-: 3.e swtchng or haveswtchedthen internatope
-r t\4any othernontechcompanies afe imptemen
onso' . 6 o o e ,a to ,. f o ,Av o ro , . o m p ".yr, C ri ti catIhi nki ng0uesti ons
tr.: : .Lrxrormlch or rs server + ry d computing
(o mo L ..9 wthl /L targ
ta.9a 1. W hy do you th nk Fo.d s usi nq Li nuxon i s back- end
:, : : ::]z ngthetrt fof Llnlx.indlstrywarchers
antjc- serversbut not on l s empl oyees' desktop P C s?
;' . rtherbusrnsses
ofattsizeswitLfottow 2 H ow can so{tw a.ecompani esLi kMi crosoftcom per e
q: : fussove.sofiw.re?Aswe saw in f.4unich, tr 6nr agarnst the trendtow ardopen-source softw are?
-. : : ; pr c e. T he re a s go of v e rn m e n l s a n d b u s n esE esLi ke
.:, :: :crtware s ts accessibilty. open-solrcesolMarc
'.::-.r edrted,
WhatWoutdYouDo?
andd ssected whenever neededr it atsohas
:.- -':rdtonat, prcp.ietaryticensedsoftwarcs jlsr the As headol the technotogy groupat Seab.eeze SecuritySystems
i-- : .ne bq secfet Usng soltwarepackages suchas Corporation.Tom Gaskins hadexperienceda LotoI pressureto cui
:_ jods s srmitartoowninga carwth no hoodto acc- cosrsov.rhe p.sr bro years.He was exilinga meetingwiih the
. - vou p qr, |. 5e. .n-e.t_'". e ClOwhenhe !s gven hrsbggestchaLtenge yet:ro reducerhe
" "-e ovopd ^ r a
: ::e.ng wheet,and pedats-butit you are cLrious lechnotogy budgetbyone,thi.doverrhenextyear.Theoddsoi be-
. r.ks orneedto repairri,youa.e o!t of lLrck. ng .bte to meetthat chaltenge seemedp3.tnrLart small qrven
.,r;::, :_: or opensource sonwaredevelopmenr have a that thiswasiheyeartheofganizauo. \ryas
scheduLed to upg.adeto
I r' ::rphy: When programmersc.n .ead redst,,u!re, the talestve.sionof Mrcrosolr W ndou6and ofi ce lhat solMrc
.. o. r 6. od e . .o F w d re F ,o !a ,o re ." f7 o.es nvestmentwoltd put hm 20 pe.centover tasi budget.
'hF
::::: imp.we it peopteadapt t and peoptefix buqs Tomcoutdputo'I the lpq|adefor anotheryear o. r^/o,
'ars
blt it didnt
r_: :!F happenat a speedthai,compa.edwirhthestow look as thoLrgh the budgetwouldbe any beter in the foreseea-
' :_ionalsotNva.edevetopment seemsasronshtng bte luiure How coutdhe redlce costs?Shouldhe tayoft staff?
:: :_:i o1tlreopensou.cemovementslch as Micrcsoit, Shoutd heinvestgate atiemativsroMicrosoft?Changing pEm.ms
: : d scredt thesoftwa.e.They haveslggestedthatthe v\,outdmean qlite a bit ofwofkendsignif,cantstafitEtrr n9.
i , - : : : olt hes of t w a re
ma k e srv u l n e .a b te to h a c k e .sand
 P'it E I nfofmr onrrhmroqy comePts

_Microioft
lJ you were Tom. how wouLdyou calcLrlatethe cost of SoURCS| at the power Poi^\," Econ.nist can, Sep\.n&
2003, w.etunohisLcad J.6n Lettice. 'Mdtor 6iant Foru re
c h6nging to a n a tte .n a tl vpeta tfo rm s u c ha s Li nuxagai nst L'nur, rre Feg'lireaSepiembert, mA3 w.th.rcgister.con Lln!\
the cost ol the typicatWndows/olficeupqrade? tuw linu,.orsl ac.eesetlFebrrary3, 200,1:open sourceInilialte
Howwou l dth e c o s tso f c h a n q i n sp ta tfo .msdi l fe. ov. tu..Dpn-oLac dl
",'"\
ed Fcb rda 3, 2004: \Ln M r,05)rea
01,c W.o ,n., M3Lt.tua/<otuaft/<E.. tanql c'.0,
t henex tf iv ey e s rsa n dm u tl i p l e!p g .a d e so l W i ndow and
s
0ffice?

S oftwa r eUp g r a d e s
Sofrwarccompaniesrcviscrhcir progrdr and sellnew versionsperiodicaily.In som:
rhe revhedsofrvareolTe6,,ewand valuahleenha.ccments.Inorheroes, rhe solis;-:
conpla progrm codethat otrerslittle in re.msofaddirionalapabiliries.ln addirion.::
softw&e.an containlrugsor 1106.Decidingwherhefto purchaserhe nvesr sofn e:
!e a problemfor corpohtionsand ind;vidmk wnh a hrge invesrmenrin sofrware:
rhc ncwcsrvcsion be pnrchasedwhen it is rdeased?Sohe orsanizations and;ndivid:
not alwa),sget dre most cufient soli]rae upgmds or veffions, unless rhere are sigrj
improvenents or .aprbilities. Insead, they may upgradeo rewo rcliwre only wher
ffe vibl new feruies. Soliware upgradesusually cost much lcs than rhc origin..l p:

6baL S o t t wa r eS u p p o r t
Lrrge.globalconpanieshavelittle rouble pereuad ing vendos ro sellrhen sofrwarcl
for eventhe most fi llung outp.stsofthe; company.8ur en rhosesarnevendoa p
adequte supportfbr their sohwarccustomcnnr a[ lcrtioN? Supportinglocal
is one of thc biggcsrchalcngcs lS teux face*her putdng togerherstandardized,
wide sysrems.In slowertecbrolog growrh narkcrs, mdr as Elsrern Europe an; -
Ancrica, thcrc rnaybc no officiJ vendor presencen all. Itutedd. largevendoB suchs !
IU M ,rn d H frl eu.l ' a.k r11,nrl y,onrr.r our,uppoi ri ol hei r.ol qre ro loJ p
' rd
One approachthat hasbeengainiogacprance in NorrhAmericais ro oursour..
support to one or more rhird-party distributor. Thc sofrware usercompdy may siL
riareits licensewirh rle softwarevcndor dnccdy,bur it then huds overthe global
@nrracrto a third-paq-supplier.l hc supplicraca asa middlemanberweensoftware'
dd user,ofren providingdistribudod,suppon,and idvoidns. Afrerican Home P:
Corporation hmdles globri suppon for both Novell Nt\(/{e Micro$li Oli..
"nd
atioN rhis way-thrcughour rhc 145 couniriesh which it opentes.Americd t
Products,a phalnaceuticrlrnd agriculturalproduco conpoy, negodatedrhe
dncctiywith drcvcndor forboth puch*ing and maintenance. but finfilhent ofrhe
me ,rri , hrnd cd o.tu.i vetl by | hi l dctphr bscd \ofFmri i . Jn i n,ern,,ionJ. Lf -
softwre and senices.
In today'sconputer systems, soliwarek an increuinglyccitiel component.ul:
approachindividurlsand organiationstakeo acquitesofturq n n imponanrfor o :
o be aw* ofrhe curent r.e..t\ in rhe irdurry. Infiornedusersarewiserconsunr.
they .an hake betterdecisn,ns.
 iofLnaru sylLpmsandApprrdlon !orw# I chser.4

:}IMARY

I ke W i i dow sX P ,..e ILrttyf!nct on.t OS El hat do no t need

D 0S A pptccouputefs!se pfopri etary OS sti kethe l Vac0S
an operatingsystem,you must con-
seLecling
.nd Mac 0S X U N IX r. pow r' l t 0S that can be l s ed on
:hecurrentandfuture requirement5for appti-
manycomp!tersystemtypesand ptatl ormsffom pe . sonal
@rE softwareto meettheneedsoftheorganization. compl l cfs to mant.ame system5 U se ol the U NI X 0S
fi ro:ition,yourchoiceof a particu[ar operating5y5- make5t e.5y to movaprogrrms.nd dataamongcom p! t er s
rit" becongistentwithyour choiceot hadwa re. to 6 o.dp. oo o pur 6 o, o 6
-ust rcsou..cs L n!x l s i he ke.netoi an 05 w hoseso!..e code 5
, : : ! r s s t s of pf o g rc msth a t c o n i fo tth e w o fk n g5of
l r.ety nvrl hbteto evryoneS evefatvaf at ons of Ll n uxa. e
: - r ef har dr c f e T h e rea fe ti /o m a n ra te g o fiesof
avatabLew th setsol .apab l tl es afd appl catons to loir n ii
. : v s t em ss oltw a rea n d a p p ti c aol n s o ftw a reS . ys
.ompteteOSfof erampLe, R edH atI nLrxz/0S a.dMP E/ Xa. c
, ! a. e is a c o tl e c ot n o l p ro g ' a n ' rsth a t fL o .acts
_. . dwar eand a p p l c a l i o ns o fl w a re S 0S s fo. m:i nframecomp!ters A n!mber of OS shaveb- "en
. y s te m ssoft
devetoped to s!pportcons!merapptr:n.ess!ch as P .lm 0S,
: - " r 3soper at in g s y s te m sL, rti ti lpyro g fa ms.n d m rd
W ndow s C E N e1.W ndow s X P E mbeddedP ocketP C,and
. ic pt c at ion s o l tw a re e n a b te s p e o p l e to soLve
. : r id per f of ms p e c l cJ ta s k s Ap p l c a l i o ns o ft w afe
U t l ty program5are Lrsed to pefi ormm.ny !sei !t laslt s
: : pr iet ar yor ol f th e s h e l f.
ai d oi ten.omei nstal l eC on
compLrl ersi rlgwof i l hLhc0STh; s
: : : t ing s y s t e ml o s l s a s e i o f c o m p u te pr ro g . .ms
sottw a.ei s u5edto mefgeandsortsetsof d.ta keepl . ack of
compl ter j obs beri ! f!n. compressf Leso, data.pr ole. t
. : is 0S h: f d w .re 1 !n c to n s b y c o n v .rl n g an
aqai !t l rafmf!t.oi npl te.v r!!e5. andm.i i tor hardw. r eaid
: _ f : om . n ap p tc a l o i n l o a s e t o f n s L frc tons
netw ofkpri orm.n.e M ddl ew ares sol tw a.etl rai at t o\ ls
. r e ha. dwa reT h e0 S a ts os e rv e srs d n i n ta rme
di i fe.entsystem5 to.ommLrncate.i d tfansferd.ta ba cknnd
: - anapplic al ropnro g ..m s .n d h a .d w a i ea. tto wnq
, : iependenc eM e m o ry ma n a g e me n vi o tv e scon.
: : . ! eac c es s a n d !s e b y c o n v e rti n !to q .a L .e quests
, : r LLo. aiions a n d b y p ta n cg d a ta n th e b e s i s tofage Principle
: r ps ex pand eodf v rtu a tme mo ry Do not devetopprcprietary appticationsoftware
_ : r . gem enta tl o c a te s .o m p !te ..e 5 o !.c el hsf o!gh
unlessdoingso witt meet a competling busines5
I andt im e-s h a rn q .W th m!tt ta s kn q !s e fs ..n
. j. oneappL rc aotn a t a trm e I me 5 h a .i n g.l t ow s
needthat canprovidea competitive
advantage.
A pptcaton softw :fe apptes l he pow .. ol the complt er t o
50l !-"p.obLem...dperfofmspecf c task5 0ne!sef!l wayof
: r yof a c om p !te fto h a n d l ea n i n c fe :sn g n !mbe. | po o o
,)
: _t us er ss m o o th l y5 c.tted 5.r1rb1li a feat!re to i d.nt l y Ihc5.opcol p.obl cm5nnd.ppod!n t cs.ddfcss. d
l o h .i d te a ta rq en L rm b e.of by a p.n.!hf orgafl zal i onor i te sphefeof nfLLref ceFof
most .ompan.3, th. sprrcfcsol i nl t!c.cc ar. p..son: L
: !o p .ov de s a Lr s ef nt e. f ac e,wlr . h alt ows ! s e . s w 0rrgfoup anoenrcrprs' r
d o nn o dr r a o. p 6, o- m . lbo
^ U sersol tw afe,orpef.oi al prod!ctvtysoftw rfe ncL!
, d. s
'li. D, r o^ n". d. o "d
": generatp!fposeprog.amsi h.terabte !se.sto i mprovet her
'"r""t uj.. r.wi don ." o
" pe.:D natel fedi vene5snc.easng the amo!nt ot w o r k t hat
.an bc doneard t5 q!E tty S ol l w a.ethat hetpsqfo!p s wo. k
.op 'dlo ..m . i Lo 0q r oL g toqethe.s ofteo.efered i o as w orkgfo!pappl .atronsor l
d 6 ho9L, l. r , adir P r oq "
"o w a.e. E xampte5 of 5!.h softw areri ct!de 9.oup sched! lng
m" AD
"og r. " ' . Foo: sol tw a.e.ei ect.on. m. t. and other :ottw afethat enabt es
. ho ,rh". , g o, d" d d " .o r
" peopteto sharei deas E nterpri 5e 5oftw arethat bene t s t he
_t o pr o dp d d6q. 6 o Lo' d o l organi zati on..n devetoped
^ ot enl i re atsobe of p!r.has," dM any
. :| so th at th e lnder t y ing ha. dwa. e c an c ha n q e D rqanzatonE a.e t!rn ng to ente.pri sereso!r.e pt annnq
::.:s:.ty re qu. ing a r ew. t e of t he s of t w . . e softw afe,a sel of i nteg..te.lpfogram5l haiman.qea conl
pai y 5 v tal b!5i nes5aperatroi sfor3n ent fe mLrtts te,! Jlobat
. a .-rd pop .t"r 0 L o.6 b6b d6.dLoD4o

- r e 5ev er a tp .o p ri e ta ry0 5 s !s e d p .m a ri ty on Threeapp...chesto devetop ng apptc.t on .oftw of e. r e

: : M S DO Srs a n e a .ty0 5 fo r B M .o m p :t bLes as IoLtow s
b! td pfoprei af! appt.at onsoftw .fe,buyexisiing
s !5 e d w i th D 0 S N e w e r!e r! ons.
r : . ' r s O S s a. e G U
 Pdte I nrcfmrtionre.hi.Loqycon.-.f.r.

p. oqr m so ff th e s h e tf.o . u s e a c o mb i n aon t ol c!stomzed Th6.4.o dqe.e.a o of d qLag.

E nd olf t he s h e tfa p p tc .tl o ns o ftw a .e Bu tdng p.op.l etary bly lenguages;ttte.e la.gaages s!pport lh. use of :
s ot t wr r e li n l ro u s e o . c o n tfa c te do !tJ h a5 the tottow ng and w ofdsratherl han 0. and 1s The th r d gcf c. . l :
adv ant aqe sth : e o r!.r z .t o n w l l L 9 e l s o l l w n.e| rat mo.e si 5ts ol many hi gh tevetprogr.mmi ngL anq! ages :
c t os et vm a l c h e il ts n e c d s b y b c i n q fv o tv e dw i l h Lfrcdevet E ngtsh ti kestatements and commands. Theyat so-
opm entt,hc o .q a n i z a ti ohna sl !rth e ..o n t.o tove.thers!ti s convefted to machl neLanguage by spccrir t solLwaf: :.
andt he o. g a nz a to n h a s mo rerte xb l ti l yi n m akrn!.hanges compi Ler b!t afe ease. to w rl te thanassem bt yo. r : :
T he d s adva n ta g ens c tL rdth e e fo l to wn g , t i s l kety to i ak," Languagc codc. These tanquaqesnctudeBASC
t ongerand .o s t m o re to d e v e l o pth e i h o Lrse 5taffw i l l be F0R TR A Nrnd othe.s A fo!dh-qeferaton t ang! a. : :
har d p. es s e dto p ro vd e o n g on g s u p p o .ta nd mai ntenan.e. procedu.aLand mo.a E ngtsh ti kethanth r d qene. ; ::
andt her e s a q .e a te .ri s k th a tth e s o ftw a refeat!resw Ltnot g!aqe5 The l ourth generi toi Lang!aqes incL! der : :
wor k as ex p e c te do . th a t o th e . p e rfo rm a nce p.obLems w lt andq!ery tai gu.qe5sr.h as S 0L
B eyandfoLrrthgefer.t on trnqu.qes it becor : :
P ur c ha sn g o ff th e s h e tfs o ftw a feh a sm anyadvantages. d If c!l t to ct:ssi fypros..mm ng tanquag esFllt h _ee- : -
T he nt i. t c o s t s to w e r.th e fe l s a L o w e rri skl hatthesoftw are proqrammnq targ!aqescombl ne.!tes b asedcode:
w lt ia Lt o h ' o .ka s e x p e c te dd,n d th e s o l tw arei s L kel yto be Lon componenlmanagement, vs!at pr ogr am m . _
of h ghef qu a ti tyth an p ro p ri e t.rys o fl w a reS . omeol the d 5 n q!es. .!se manaqemenl .
d a d . p., e" v
"d."r "qa
does not n e e d ,th e s o ftw a rema y l a .k l mportantteat!.es obl ecto. enLed proqr.nrmi nq tanql aqes- s! cha: 5r :
f eqLr l.ng ex p e n sv e c u 5 to mz a to n a n dth e sy5temmayw ork C * * , and.l ava use g.o!ps ot.etateddata nst . ! . 1 : :
n s uc ha w a yth a l w o rk p .o c e s sre e n gn e e . nq s requi red pfoccdurescEttedoble.1s.wh .h :etue a! reLrsabt-" : :
S om eo .q a n i z a ti o nhsa v eL a k e na th .d app.oach cus n v 3 . i o ! s p r o q . a m s T h e s e l a n g ! a g e 5 . an fe d L r ce._ :
t om z nq s o ftw a rep :.k i rg e s T h s a p p ro a c hus!al ty nvotvcs devei opment and testi nqti me Javacai b e leed t . r :
a m ix lur eo fth ep re .e dn g .d v a n ta q easn dd s.dvantage5rnd rppt cat onson the nte.net
m Lr sbe l c a re fL rttym a ..g -" d S c t e . t n g t h e b e s t p . o q f a m m n q t a n g l a g e to L :.
A i app Lc a i o n s e rvc e p ro vd e r { AS PIi . a companyi h.t pafti c!ti f prog..m nvotves
batanci ng
thet ! n. t ioiaL: :
c an pr ov ld es o ftw a .ee, n d !s e r s L rp p o rt, a id l he computer t c f l s i . s o i t h e t a n q u a q ew t h c o s t , . o n t .o t, a n d .._ :
har dw. r eo n w h c h L oru i L h es o l l w a refto m thel sef s l r. t
t ies . A S P sp fo v i d ec o n tra c tc !s l o mrz a l i o nof ol i -the shetf
s of t w: r e a n d th e y :p e e d d e p to y m e nDt f n ew appt.at ons
whit ehet pn q S ma n a q e .sa v od i n rp te m e n tat on rreadaches
Principle
Us e ol A S P S.e d l c e s th e n e d l o . ma n y sk tLed S stal l Thesoftwareindustrycontinuesto undergoco
m em be. sa n da ts oL o w e rs a p .o l a c sl s ta .t !p errenss changeiusersneedto beawareof tecenttrends
A t ihou g hth e .ei rreI l e ra ttyh !n d re d so f compul er.ppt issuegto be effectivein their businessand pe
c 6t ons Lhr tc a n h e l p n d i vd !a t3 a t s c h o o t,home andw ofk, tife.
'L6p o , op p dpo" q. p
-"d ""
anat y s isda ta b a s eg.ra p h.s a n do n t.e s e a ces A sol tw a.e S oftw afeb!gs, softw a.el censrngand c opyf lghtn!
s ! it e. s uc ha s Sma .tS !te .W o .d P e rfe cS
t.ta .Oi fi ceor offi ce so!rce 5oftw .fe,shafew afeand f.eew ar e,m ut r x_:
t.nal softw aredevetopmei tsottw are!p gr ade5. r : :
softw ares!pport afe .l t i mpa.tantso lt \ , ! ar ess- : :

Principls A softw arebug s a defect n a comp r le. pf ogr :

Choose a programminglanguagewhosefunctionat keepst from perforn ng n the mannefinlended: : '
characteristics
areappropriate
for thetaskat hand, bugsare cammon,even n keyp ecesof businessso
takingintoconsideration
the skittsandexperience
of S ol tw a.emai !factu.ersare devetop ingf ew app': :
the p.ogrammingstatf. to l censi ngl h. sol tw areto tock !n a st eEdyp. e: :
sl reamaf fevenLre from ther.!stomers. som eof t h: : :
A t l s af t w. rep fo q ra m sa re w r tte n i n c o dn g schemescatLed approachesnctLrde!sage basedl cens es,capact :
pragranning languages \thich pravide .sl.Lrct ons to a tcenses softw a.eas a netw o.kse.vce,and s! b: :
c om p\ r t ert o p e rfomf s o mep fo c e s s i nagc tv ty.Thefe aresev
er at c t as s e os f p ro q ra mmi n ta
g n q ra g e s n cl udng nrachne,
as s em bt yh, q h te v e l q u e rya n d d :ta b a s e ,obl ecto.ented to anyonei n a form thatcanbe easi tymodf ed 0! en : :
an0v Ls uaprro g ra m mn g rs n g u a g e s softw a.edeveLopment and ma ntenanceis a . oLt a: :
P r ogr a mmn q ta n g u a g e sh a v e g o n e t hroughchanges p.ocessw th devetope.s a.o!nd thew orl dus ng ihe _
s inc et heir n ti a td v e to p m e innt th e e a rl y1950s n the trrst tokeepnctosecontactvi ae-ma tandto do wnt od! n1:
gener alr o nc,o mp !te rsw e re p ro q rs m m e dn machrnetan' n e w s o f l w a . e 5 h . r e w a . e a n d f f e e w : r e ca n .e d u ce :_ :
g! aqe o. bi n a ry c o d ea s e fi e so l s ta te m e n ts
w ri ttenn 0sand o i s o f t w a r e b u t s o m e t q e s t h e y m a y n o t b e .s p o u :-
 sorlvarcis,stemsandAppt.ar
onSoltw4e I C15pt4 4

Atso,ther source
codeusuatty
cannol Software!pgrades are an imporiantsource ol ncreased
-erciatsaltware. reven!e for softwaremanufacturersand can pfovidusefut
{Jlt organizationaL softwaredevtopmentis the process new f!nct onaiityand nproved quatityfor software!sers
r". : . di 9 \ of war " d e v e l o p me ibt e y o n da s i n ge o rqani GLobaL softw aresuppodl san mportantconsi de . at ion
f or
'. ! r l r d ng olhp r5w ' o 5 _ a e ._ e ,a n e b -s n e s sp-ob targe,gtobatcompani es putti ngl ogei herstandardized.
com -
:^C invotvingthrn in a commondevetopmenieffort. pany-w j de
systms. A commonsotuti oni s o!tso!rc nggt obal
supportto one or more th .d-party softwaredistnbutors.

CEAPTER 4: SELF.ASSESSMENT TEST

'nle Fle.ting m opnting slsten, you nust onsider the 8. Sofrware usedto solve a unique or speci0cproblen rhai is
.uar od tuore tequirernens for applietion mftre to usualy built in-house,bur en alsobe purchasedfton m
--he of tl'e otgoiation. In addition, your choie oubide .omDinv is called
'oE "eeds
m r :.rnicular openting rystem muct be oruistent with your 9. vhat 9?e of soliere hu the grearesrporenrial to afect
the processes thar add wlue ro a busines bcausc rt r
d.signedforspecjfic orsahiarionalacriviries
andtuncrions?
i:ar is rhe heartofthe OS rhar @nrrolsrhe nosi critical
a. peronal productivity sofrwac
b. operaring qxtem softwre
c. uriliry softw*e
d. applications softwae
J, CPU Choo* a progming largu.ge whose tunctional ch@c-
. :ommand-based teristic are appropriate for the task at hmd, taking into
userinreface requnesrhar rct on-
comjdemtion the slilLsmd *ptrioce of rfie progmming
r" id. begr v ent o r h ec o m p u ,ero
r p e rl o rmb ti ( a .ri vi ri e,.
sutr
_ is rhe processofswappingprograhso. pdrs 10.A built-in scriptingfacihy that is pan ofevery Micosoft
,i rrcgrams betweennemory md d;sk. Omce applicationdd providesa neds ofenhancingoli-
:: file nmager conponent of the OS con$ols how lh{helf applicarions to allow uses to tailor rhe progros
tcrory is accessedand nainizes available hehory and
.::trge.True or Iatse?
a. Visual Bsic
$ developprcprietaiy application softwc ules doing b. SmallTalk
*ii meet a conpelling busines need that lI provide a c. Norron Uiilities
d. Java
-:: primary tuncrion of application softwe is to apply ll.A dass of applicarionssoftwarerhat helps grcups work
e: ;ower ofthe omputer to give individuals, workgroups, togetherand collaboEreis called
r': r,\c entire enterprise rhe ability to solveproblems md
I 2. Ech prognnming languagehd irs own set of rula, called
r:irn specific tuks. True or False?
the ofrhe language.
. a lrc $ar enablesuses ro inprove their personaleffec-
13. A special sofrware prognn ciled r .onpibr perfotns t\\e
r:..ss, increding the mouni of work thq, cd do dd its
convereionfron the prograhmeis sou.e code inro rhe
nachinelanguageinsr.ucrionsconsisdnsof binarydisi$.
pe.sn.l productiviry soft@rc
oPeratingq6ten soliwre
CTIAPTER4: SELF-ASSISSMENTI'EST ANSVRS
(l) c (2) True (3) Peshs (4) Falk (5) rrue (6) a (7) a
rrmization can be found ir which tlpe of applcatron (8) proprierary (9) d (10)a (11)works.oupappli@,
softrpare
rionsoftwde(12)synta{(13)True

: word procosing progens

: dahDde prognms
: presenrariongnPhic Progfhs
 Pd, I .. oi r , hnooq\Lo i e p r s
^r o

KEY TERMS

programinterface
apptication (APll icon147 sharewareandfreware178
147 kernet146 bug176
software
appLication
servlceprovlderlasPl160 m ddteware 158
software143
applicaiion muttitaskng 148 144
sphereof inttuence
command-based !ser interface147 soltware159
oll the-shelf syntax171
compiter173 opensourcesoftware177 systernssoltware143
conputerpfogramE 143 operaiingsystern {0Sl145 time-sha.ing 148
computer systemptattorm143 pa9in9148
personat prodLrct
v ty software145 programs
utlLity 156
resource
enterprise ptarningIERPI personatsphere 145
of inftuence virtuatmemory148
169 programming tanguages 171 workgfoup145
sphereof inftuence
enterprise 145 proprietarysoliwafe159 workqro!pappticationsoftwa-'
graphicat lGUll147
usel.interface 149
scalabiLiiy workgroup sphereof infLuencE

REVIEW QUESTIONS

1. Wllar is the difference between systemsmd aPPlicarion 9. Identifr the two primary sourcesfor acq rins
softwre? Give four *mples of pereonal prcductivity
10. at is an rpplication seryiceprwiderl 'irhat
2. How do softwae bugs a&e? in co$iderhg the useof one?
3. Identily and briefly discls two t1p.s of user interfaces 11. What is open+ource softwee? Wlnt is rhe
pro"ided by m opetating rystem srumbling blck with r}re use ofopen<oue
4. \6at are rhe rwo 6isic rl"es of software?Biefly descdbe \2. Vhat docs the aconyn A?l stand for? vhat k 6c
anAPI?
5 . Name four operadng sFtems Ihat srlppon the personal' 13. B.iefly discussthe advatages rnd
worfuroup, md enrcrprisespheresof influence. liequentsofrwe upgrades.
Vlat is middlqarei 14. Descibe rhe rcffi cnte,?*e Boa/ce ?tahni4
7. \tlEr is nultitdking? rycez. \{4ut tuncriomdoessucha slsten
8. Define the term a',ry so{trere atrd give wo MPles. 15. Ideniify and briefly discus four different rypesof

DISCUSSION QUESTIONS

L Asune ihat yod musr rake a computer Prognnnnng 1. Describehow the OS cannd.ge rhe@nPuters:
coune nqr *nester. \{hat languagedo yod think wourd 5 . You are using a new rcleaseof an aPPlicarion
be bestfor you to sudy? Vhy? Do you rh;nk rhet a pro- p" . kl ge.Y ,' u hi nkrhl youhr* d;. r o'e'ed,b, - '
'
fesioul programnernecdsro k.ow more ihan one pro- the approrch that you would ulc to co"firn
gramning language?\vhy or why nor? indeeda bug.\c1mt acrionswouid you takeifn r:
2. Identi$ the threespheresofinfluen.e and briefly dis.uss a !ug?
tfu software needsoferch. How can applicarior softwareinprovc the effe..
3. Identify the threefudmellal rypesofapPlicetionssofF a largeenrerprisc? whar aresone of rhbnefits
ware. Discuss rhe advrntages and disrdvanragesof each with implemenation of an edterpiiscrcsource:
system? \X4at aresomeofrhe issues that couldka
 sorLwarc
sysrems
andAppLnai
onsoriwrt I chrptsr 4

: .nrerpris resouce plenning v,ftwde f.om being 9. Contast and comparc rwo popular OSs for peronal

.:1rc rhc rern applnaion ttuie troids.v\^t !.e sone | 0. l f )ou sne rheI I m:nagcrforr hrgemmuL, ruri ngcom
' :ie rdvantage md disadvmhges of enploying an ASP? pa!y. what issues might you have with th ue of
. u preautions night you take to minimizc rhc risk of opcn sourcercliwre? \X4nr advanragesnight there be for
se of sfth softmre ?
i ::tly oudine the evolutionof progrmning lad6udscs. il. Idendly four rypcsof sfrwee licebss frequ.""y
vour inasimrion dd creativityto doelop a brief "*".
which approach does the be* job of ensuring a seady,
-
:....brior of rhc sixdr generationof programmilg lan- p.edicrablcsriedn of ievenue from cusromers? Vhi.h
: --5rs. How would thcy worki \Xhat son offeatures m ight approach is most fair for the shall comp.ny rhn makes
intiequenr useof rhc sofiware?

OBLEM-SOLVING EXERCISES

: . t an applicatioo softwareprckase rhar mishr be se expensq-fo. dre nor six nonths (mal<e up numben
- : r careerthar inrerestsyou and dwelop r sir+lide hrher rhin usinsacru.lonet. Now ue . sruphicspackrge
":. rrrion of irs history,curcrr lcvcl of 6age, trpi.al to plor the totalnonrhly in.on and honrhlyqpensesfor
rr .::lons, easeofuse, erc. six months.Cut ard prste both the sp.eadsheer md rhc
.prerdshedprkage to preparea sinplc nonthly
' : graph into a word-pioccsing docrmenr thet summa.tzes
*r.: f,..-,t you c6h Row-borh itrcone aM your fi nancialcondition.
".d

ACTIVITIES

r group ofttue or four classmaes.Find anicls from 2. Form a group of thre or four dsmtes. Ideffily Dd con-
periodicals.sear.h th Inrernet, or inervis peo- tacr d individffil with . local 6rm. lnteniew thc individual
,* Jreropicofsoft*rre bugs.How frequenrlydo rhey md desribe the application sofrwarerhe compmy usesad
rd how seriou are rhey?Y&n cm oftwre wr the imponanc! of rh softwee ro rhe orgdiation. Vrite
=:ourage defect-liee sofrvre? Compile your results a brief repon summdzing your findings.
:c r cl$s pieienratiod or a mittn reporr.

EXERCISES

B M / lor u ' . :n d (' o ,e l " r( rh . i h p o nrnl 2. Do rcsearchon $c wcb rnd developa Mo-pase repo.r
-, rl pcnonal prodncriviry softwaresuites. Do summarizingthe latestcorsumer applidc OSs. \rmich
- a{$ $e rel.dvc succesof thesethreeproducrs one seemsto be gaining rhe most widespreadusage?\?ly
,r '.:les oftheir softwrres tes.Do ),ou rhink,r rs do you drink this is the ose?
r l{icrosofr will becone the only providerof 3. Do research on rheweb abourapfl;qrion softwarerhar is
, -.:::l \i'ould thn be goodor badi \(hy? \Y/rirea uscdnr an indutry thar is ofinreresrro you. Vrnc a brief
-:i - .unnri,ing your tindinp and conclusions. rcporrdercribinghow the applierion softme co oeuseo
ro nrcr.ase profits or reduce @srs.
 Paft e I irofmaton le.hf,ologycon.eprs

CAREER EXERCISES

l. \fhat penonalcomputerOS would help you the most in 2. Think ofyour ideal job. Describe five software paL
rhe 6nt job you would like to have after you gtaduate? rhat could help you rdvme in your career.Ifthe sor
\?hyi'Jvhat feeturcsare the nost imporrant to )oui packagedoesoi e;sr, deo;be the kinrlsof sofffar
agesthat could help you in your ereer.

VIDEO QUESTIONS

watch rhe vido clip P2P's Cloudy Futu.e a"d os** d'*e 2. Iftie courts were to make it illegal to produce and
disdbute P2P software such as Morpheus,
Grokster, md l(ua, or placc r.srrictions on such
1. Sofrware, such as Morphu and G.oks.er, prevides usr
softwm, how night it rllccr innovarionwithin
with convcnient nethods for errying our lesal and illegal
the softwre indutry?
(or unethical) activitics md violations of copyrighr lam.
Should such softwue od the moufacrurem of rhe
soft*a.e ber any ofthe respomibility for how ir is used?
\?hy or why not?

CASE STUDIES

CaEeOne \ol o ly cou.d l\F o l h t a a p d l l o r 's p l r r ' l h "" r "c :

\orl B on/ w ou d enl oy ri o d ! "r d
PACSat NorthBronxHealthcareNetwork " dd " l ' Fea

hav eneve rd o n e a n i mp l e m e n ta ti oonfa n ysystemthat has The P A C Si mptementati on w as i he l i natst epin d, t -

so d.amaticaltyimpaciedthe waywe do business, saysDan ot N orl h B ' o" / H edl r' (" r" N prso,l r " o d I
"lt
B e n g a b t e L oa d v e " i , e lull/ d gildi L-lo
M or r eat e,C l 0 a i N o rthB.o n xH e a tth c a re N e tw ork,oneol si x -elr d\ "
regionatnhvorksestabLished by New York City Heatthand o dttrd.rl he besl. edi rarpe .ornFl Th "dv"n "9"
HospitatsCorp MorreaLes referring to the No.th Bronxs . !ul drl y i -porrd L i ri g' ' l -bor ^ " rkp a, o" ia
new $6 m itti o np i c tu rea rc h l v i n ga n d c o m m unrcatl ons soff s!orldgeorgood l T l 'p b 6 r p o t p \o n o r .1
"dioogi
ware tPACSj The softw:re captures, stores, and d sptays wor\ wi t- PAIS ba d"sp ir dlor ' "- o bp -o a " -
pal enl x raysand othe. imaqes n digitalform.
Y oum iq h tw o n d e rh o wa me d i c alla c i l i tyj usties l a $6 m t' D l qi ti zi nqrecofdsand i mageshas m any ot he. :
lion technologyinvestment. Mo|reafecoutdctearlyshowhow l ages. D i gtat i magescan be seft i o m ut t ipt ephy:
lhe s y s t emw o u tdp a yfo r ts e tfl nl h e m a tte ro fa i ew years.In si muttai eousty. x raystravetbycourer r fo-
T.adi ti onaL
, s h o w e dth a i th ere w s o f tw arew oulsave
hlsc at c ula i i o n hs e d to.l o doctor,ofl enkeepi ngdoci o.sand palient 5wa:
Nor t hB f on xH e a tth c a re N e tw o rka L mo s$t 2 mi l ton pe.yea. dayso. w eeks' o- res-l rs. P ry-i .i d^5 ."n - d ipL'. '
by et imnatl n gc o s tsa s s o c i a tew d i th fl tm- a nd paper-based zoom ronl hei -age,l o ocuso _edLd p oblem
x-raysareeasyto
copyand betost.Also.l-
tessliketyto
. computernetworks,doctorscan sharx rays\drthE
$t m . t o - I o m ro o .L p dl ,t--p ro c " < .,r" g(osr<
aroundthewortdandbenefitfromconsuttaiions
. $400. 0 0 0ol rm p l m n d rn g l " b o | o s l \ rorl ' l - D roce.si ' o
Allhougt DACC h.ve baen u\od
. abouttw o-thi rdsof U .S .hospi tats havent p ur chased
r:
$130, 0 0l0ro m to w e ..e a l e s l a l ec o s ts ,b e cause
the orga
temyet,est matesJocetyn Y oung,a heaLt hcafindosr
e ,
nizalionno lonqer needs5,000squareleet of ltoor sp.ce
l y-l rr mrrtF re.a.- h' i ' m l D ' . B _ rl .Fddva^aqe, : '
. sottwarefo. cost sav ngs, impfovedworkftow bettef !
q u a ttyp ro ducedreports
e ti m i n a ti nm.n
$400, 0 0 0 l .o m
 5ofrr.r. :FremrancAp:r.aion sohwre I crr4ltd 4

r o. " . " d" o o rr- opr" . C ri ti calThi nki ng0usti cn.

'"1 ot
^-e 3 W hat othe. ph.toqr:phy.nd i m.q ng nd!st . e: . o! r r l
: . m s nc r 8. sn 9 typ o p u ta .n y e a rsIo .o me
bcnei i tt.om the dl qti .ton ol tr.dt,oi at pr pcr br scd

4 H ow canP A C S .ffectthe
medi ci rLi e.v
cesp.l cnt s. e. ei!
_! w c . n m edc i rt l a c tti e s :a v e mo n e y b y movn! to kom m!tt pteh05pi t.L5do.tofs.Ji d speci ast t s,

_ow does s wl c h n g ffo m a t.a d ti o n a Lr ra y sysl emto So|TRCES:.lohiWebnef Fospcl nag nq Systems,ATouqh sett a,D
' , o" rh ' " " raLMed.aLmaqeManage menl C os tsw th
EMC centera re.rrfrcerf...or, Jane l, 2lA3 w|| te.hinfa.enter.on
AGFARadioLoqysoLuronsWeb ste waf$con i.ossed Febrtrary3.

:lse Two h.d to m.ka more than 40d f{ erentdat. feq!estst o pr od! ce
qtaskaAirtinesDropsSabrefor Speed ofe sffeenof,l na.:ryopl ons now w edoi tattwt honet r p
tothedat.S oLrfce. rTAs P C sctuef basedsyste mf ! n: at go
: : { a A if t nes t h eI n th ta .g e s ta .l n e n th e U n i tedS tates .i thms that .tl ow t to anaLyzea rfffcs rnd .out ng opl ons
" di or " ." d d. Dd n9"do q " .."
6 OP Y .r6d
o. woL. b " " d < ," b ra c o d g o p aL.e or u o ob ro. d6 q.i o
""
: . ped t he t r c t c o mp L rte ri ead rl n e rc s e .v aot n systems provi de rei rb tl y l o Lhe softw a.e E ach co m ponentis
' . e 1960sand h a 5 e v o l v e do l e . t m e to n c l udethfee proq.amm0das an i ndependent. sel f .oni a ned oblect The
obl ectsol Lhcsol tw afe ntef..t w i ththeo!tp!tof one: . t i!
or" -- to.o .
i' . v elo. it y lhe m o s t p o p L rLoan. l l n etrn v e ts rvce ^.,do. "
eff.i ency 5peed,ai d retab Ll y R al herth.n d. l. . . q! . sls
r r bf e T r av etN e tw o rkw , h rc hi n c l u d a sth ew o rl ds tarcesl
.ompeti ngw l h eachather',n onel :.ge sol l w !. m . t f x. t he
r ! bald s t r bu t o r s y s l e mIG D SIc o n n e c ti q t.a vel agenl s
ol ora " d p o
: . d t . av els ! p p ti e .s wth t.a v e L e .s
handl eea.h daL.req!esLtor maxm!m 5peedP f olr t em st hat
iabf e A . t ineS o l u to n s .th e te a d i n gp ro vd e r o f deci son
mi y .r se are mo.e easi tydentf ed i n the sma t tm odlt e n
: ! ppoit t oot s ,re s e .v a tro nssy s te msa, n dc o n s utnng se.
w hch theyocc!.. Ll eb!gqnq n tl rl stypeot pro gr amar . h
Lect!ra.eq! .ess qn trcantty tesseffo.tthanl arq em a nr r am e
, : ' rbf e s ev ot ll l o nh a si o t b e e ns l tft e n o !g h ,h o w el er,fo.
: : i; A . t nes! nd o th e rsw h o h a v eo p te dto d ro pS abfefof OP Xatsored!.es costr.l arv s s.ys thai a Webs t e a r
. , a. et f om T AS o ftw a fe ,n c IT Ac l a m s l h a l ts 0P Xsoft tne l ravetrqency. o..oserv-tonsystemr: nq 0PXc: n book
: . 5 t hewor t ds f rs t m o d e fn . rfa rep .c n g ,a rf areshop and t cket rny i l ncr:ry 10f a hact on of a dotta fper t cket .
: : and s er t av a ta b l l tym a n a q e m e nst y s te m .C an ths comparedw i th the $15 or m..e fo. booki ngsmadet hr o! ! h
: 3. t c onpanyd e i h ro n eSa b reth e l n d u s tryg i a nt?ITAh:s ' ts " a9" at" 6d,L61tD , I o, p. 6r
' : r dy s qnd0r l r tz , Ai r C a n a d aA, ta s k aA i rt n e s,A mri ca ger revenue th.o!gh tsW ebstel n2!03 30percent . ft st ot at
: : : A r t nes c on t n e n ta Ai t ft n s ,G a Lte o A c c o !a ,3ndoLh revei Lre.U snqoP X softw afe. thopesto n.feaset hsam o! nt
: . r ' h. 1does0PX s o fl w a rep ro v i d eth a tSa b res unabteto to $1 b tti oni n 2005
oboLo F ol l o o9
" "
: oeed 0P X c a nd oi n s e c o n d s w h aS.b t .ed o e s i nm nutes mptemented by TA ntate2001tai no!n.edaslm iLa. ef t or t
/ o ,d " , tot..nstonfr.m B M transa.ton processi ng ma r nr r cm eet
"r"(rFOdnd " " .," " -. "
.n , f^ . {. r-".).-
l t-g - esi matedthati snew systemw outdtake atteast t hr eeyeaf s
-ts
.9 a to comptete A skedw hy A taskaA ,ft.e. co!td r l wat iof
" " o .d
: : p ng que.es i n te s sth a ntw o s e c o n d sa n d .o m p.ehen' d d /\.
-o n l re
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bestn
.t thelndustry,
!, 14 oY andwe needed
to move
i 7
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: . . 5ingt y pop!l a . te c h i o to g i e sa n d m e th o d o to!es: l l l 0iscussion0uestisns
- r bas ed dls t rl b !te ds e ry e fs a n d { 2 J o b l e ctori ented pe I . n.d e i
: : t . . m m in!
- he B \ 4 m a nf ra m ec o mp u te rsth a t Sa b .e!s e s.re very
2 ra l^. "^ e.e pa q . o ^ a e e ...
: , by t odays s t a n d a rd sS te v eJ a n ri sA ta s k .A rll nes vi ce "
A t a s k a A f t n e s n n c f e a s . g l t s f e v e n ! ffo m o n tr i e
: : ; lent of e c omme fc e a n d d s tri b u ri o n ,s a y sl hai w henthe
s a t e s f f o m $ 6 l ] 0 m t t o n p e f y e a . t o $ 1 b t l o n p e .ye a r ?
, " e! ! as us ng t h e man fra meb a s e d S a b fe s y s tem toi ten
 Pet2 ir o fm a t.n r e .h in .!y.o n .e p r 5
|

Cr it ic alT hink i ng Q u e s ti o n s SoURCES,Dan Venon, Alaska Airtines opG lof Lhux-br!.: :

Ens ne,' Conpute.warld, )anra.t 27. 2AA4 M.canpot.tu rln : :
3 W hydo yo ! th i n kSte v e.l a .vs o l Ata s k .A i .ti nesbel eved !odr 9. w Ab 5.Ar '

h s . om p a fy c o l td n t w .i t fo r Sa b res n ew systemand
neededt o mo v e?
4. A t t e.S ab reL rp g ra d ets
5 s y s te m sw, h a i a dvantaqew lt t
hav cov e f T A?W h a ta d v .n ta g ed o e s T A haveovef5ab.e
elen af le rSa b reu p g fa d e sl ts 5 y s te ms ?

Case Three probtemsbel orethe..usl ome.sdo.ena btbet n! ( e,: :

n addi ton, a sh ppe.s fi nai ce depa.tmentcolt d - : :
UPS ProvidesShippingManagementsoftware to
coi f fmed delveryi otr.e to automatcattyt. gge| . _
Customers
andthenv ew atlori tsl andng C 0 D ordefs Som e. ! : : -
86o. o' i 6pop o o," - use0!antLrmV i ewN 4anage to hetpmanag enveir . r
"ir " W" b d d ," 1 t
nnov aiionsn s o fi w a .ed e v e to p me ntol o ts .manyof todays U P S .!stome155eemto tovethi sfew fr eeser ! . :
s o{ t war epr o g fa msa re w fi tte nto r!n o n Websetue.s!s nq cLrstomefsw ho te5i edtheprodudhaveadopt ed lt , n : : :
W e bo^ " "
! t ar ly f ond o i W ," bd e ti v e re ds e rv c e s ,s i n . e they provde Q!ant!m V ew 14anages an ercetl enet xam p: e:
un lef s at ac c e s sb l t' i ya fd a .e e a s yto d e p to yand ma,ntai n. companycan l el efagesorl w afeto w . a com pe!t . : : :
UP Spf ovde s m a n yWe b b a s e ds o ftw a rea p p ti calons fof ts hea!Lynsoftw afeovef t he, : : :
taqe U P Sh.s i nvested
. us t om er sth, e mo s tre c e n lo fw h c h s c a L te 0LrantLrm
d V ew mani ans Ls ow n nternatonalcomp!te. net {: '
M anaqe. emptoysover,1450tech.oLogy empt.yeesandw: . : l
ouant lr mV e w f' 4 a n a gi se a c o n i p .n e i to J t heLarge.Q!an- .ne ol the besi pta.es 10 w .fk n l T by Cdm r - :
u v ar r . " .^ l hn ul" 4 6 w 6 b bd dd.oo d.
t iois lhat h e tp b L rs i n e s s ecso n tfo t th e r s!ppl y chans U s ng a!tomatedand handhetdbar codesc. r r : :
Q uant umV e w M a i a q o s a n a p p l l c aol n th at atl ow sU P S s abLeto tfacl ithe 13 m Lti onpLuspackag es r t hai: : :
s m at tpac k a q es h i p p e .sto 1 r:c kp a c k a g em o vemeftsw th n day.W i l h th s sophi slcatedtfacki nqsystemand . :
t he r own s l p p ty .h a n s . t L sd o sg n e d fo r c l stomersw ho pt..e. t w as a s mptem.l ter for U P Sto ofq anlze: ': I
s hip on ale.a g e 3 0 o r m o .e p rc k a q a sp e rw eeka.d w sh l o pe.t nenti nl o.malon to c!sl omersandassst t her
t r a. k pac k a g ecso m n g n a n dg o rn q0 u l ng ng the l towof qoodsthfo!ghthei f supp t ych. i.
0uant umV e w l ' 4 a n a goefIe rsm o rec o n v eni ence thantra I
d ilonat t r ac krg s o ftw :reb yp !l t .g .h i p p i g 5l atLrsnfo.ma 0i scussi on
0uesti ons
t on at ! s ers fi n q e .tp s U PS s p o k e s w o man Laufi eMal ti s 1 W hai advantagedoes W eb-basedsott waf er :
s ay st hat on e o l th e p .i n ' ra ry b .i e l tE o f th e s ofl w ares thai bLrsnessessuchas U P S ?
c Lr s t om efdso nt h a v eto d rgto I n d o . e n te r trackng nfof 2 Wh a l f s k 5 a r e i v o t v e d f o r c o m p a n i e E th i ::
m alLof T he s o ftw a .em a l n ta i n sa n d d l s p taysal t sh pp fg W eb basedsoftw aresu.h as Ql antl m Viewr ': :
nf or m aiion l o r a a o .g a nz a to n n a n !m b e r o l userLrl report m.nag ng the I ow nb!srnesses?
io. m at 5 C! sto me rsc a nc o n lg u .e th es o l tw a.eto vi ewshi p
m entinior m a ti oino r m !tt p tea c c o u n tss,oth eycanseew hef
C ri ti catThi nki ngQuesti ons
a pac k ages p .o c e s s e d .w h e ire t s n l .En s i t,w henta.r!es
or whet hera n d w h y t i s d e ta y e da .c o fd i n qi o f.4atts 3 U P Sadve.tl sesi ts ove.al tgoat as enabt iiqc
T he s of tw a fep fo vd e s m a n y{ e a l !re sfor l l t mate .!s afol i d the gtobe H ow does Ol anl lm Va, .
t om erf t exbl l i ty .l t s h o w sb o tha n n b o u i dv r ewof !a.kaqes assst LIP Sn a.h ev ng thatgoal ?
.o. i d6. hp o po. 6. o o rpptr L oi .
be ng s hipp e db y y o u f v e n d o fsa n d s u p p te .sto desi gn.ted
loc at lons an da n a !tb o u n dv i e wa b o L rt p a .k a gesbi tl edto your manufactu.ed
p.od!ct H ow co!td0u:nt ! m V, e. '
UP Sac c o! n t." C !s to me rsc a nc u 5 to mz e th e nl o.matoni h.t mprovethe m.nagementol shppng bet w'"
iheyr e r ec ev n g , b e c a u s ed i ffe re ndl e p a mentsw l thndl l '
le. entc om p a ne s h a v ed i ffe fe nnt e e d s .M a tls erptaned Fo.
er E m pt e, s c !s to m e rs e rv c e d e p a rt.n e ngl m htw anttoknow 50URCE5:L nda R05encran.e,
prterwa.td Fe5trary L 2aEL, ww .onputetuortd..ah; lPs C:.'
whet he. ap.c k a q e w a s s h p p e d orfrth e re s adetayw hatthe Chan WindowwthouantumViewMan.qo Arrlnesst?raFeb--:-
. L r pp 6 .. ,F d .id " .o L"
ou d I b "n o n o i. .d.
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 Psi e I nrtrmirn T{fr.otay comeprs

6l Zak Diane,' An lnf oduc uonlo Pr os r am m

n g w t h c ++ 66. MacCorhackAlan TheTrueCostsof Soflware,
fechhalag!,zaB p.629 A ususl
18,2003, p 44.
Kn9, Ju(ia, A SunnyForecasllor 0pen source, 67 Jones, elal .," ManagitheS
P hl l i p, ng eed-cor
Supply
n Cha'
laces-ranuary-February2003 p.804-52
65. Bank,David,'M fiosoft to let oovernmenlssee
StreetJaurnal,January15,2a43,p. 95
 Organizing Data
and Information
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 0,qan zn-cD ata:ri i r.fmi .n I cl api d 5

BIFORMATION SYSTEMS IN THE GLOBAL ECONOMY

DDB WORLDWIDE, UNITED STATES
- ! .:i l-Jelalraser
to l.rrdarslafid6{rt Feei!nrs

llB is a globa.l adveriising agency ba.sedin New York, with 206 offices in 96
::rf,iries. As an advertising agncy, DDB'B primary objective is io generate
::as io selr its clienis products. To be succe$fu], M advediser must thomughly
:jerstand prospective customers what interests md motivates bwers. One
:: ire founders ofDDB, BiU Burnboch (the B in DDB), put it this way: You car
r; rhe dght thing about a product and nobody will lhten. You've got to say it
: .uch a way thai people will feel it in their gut. BecaNe if tr|ey don t feel it,
::::jng will happen-
lo underciand whai customeE feel "in their gut," every iwo yeaxs DDB con
: ::s marketiDg research on 21,ooo consumers in 23 countries. The parlici
::x:s reEpond to 600 questions relating to bland interests a.rld purchGes,
i::tyle attltudes, intelesis. and opinions-ven seemingly inlevant inJorma
' ,:: such as how well they thinl< they'd do in a fist fght.
'Traditional\y. a lot ofadverthing strategy was prepared based on thingts that
;:.e emy to mara.ge, such as mar'onthe-strcet intsrviews and focus groups,"
Jmice Riggs. a project director at DDB- While those ae interesiing
-:ains useful, they're not necessadly statistical\y valid-" Riggs h in charye of
:-j : 3 s Brmd Capital project. Brard Capita] is DDB'Swortdwide bnnd perception
; : coNumer Uf4tyle pr.oject designed to help ctients position md market their
:r:1ds globauy. Brand Capita.l generates mountains of data, which can only be
;:,!zed aDd maraged with a powertuI database management sysiem. DDB uses
, ::iabase mmagment system flom leading database compary SAS to "mine"
::: r 2.5 million consumer responses for nuegets of valuable inJormation.
3t using sophisticated data-mining tools, DDB is able to tum terab}.les of
:.: :su mer data into usetuI business inteUigence. An esmple of the ttpes of va.lu-
{-: insights produced by DDB s Brand Capiial is the discovery of a correlation
:+3een sports and greeting cards. DDB discovered that people who attend at
i:: a dozen professional sporting events a yer are also vry likely to send
i-:ing cards-useful inlormaiion for a card compmy. DDB used this informa-
::.- as a splingboald to desig! different Ireeting card advertising stmtegies to
: -j on custome$' loyatty with tean sporiing events. the team's city, and even
:r historical events to genente exciiement about a pr.oduct-something that s
. :g to be talked about tomonow.
:he advertising industry has histodca]ly shied away frrcm such intense and
:::ough ma.iketing rcsearch becaNe agencies don'i have the time, talent. or
:::y io turn raw data into intellignc and to present resulis in a-nasylo
repoft. SJ.tems such as those provided by SAS are making reliable and
-:r
:;:.ugh research convenient and afiordable. The SAS system makes the cen
; :jed datab3se available to DDB'8 3OOstrategists. ana.ll,-sts,and clieDt-seniceg
L-q.:rors worldwide through an easy to-use Web lnierface thai requircs no
E _lledge ofcode or complicated queries. "We've ta.Lenout the pain-iD-the neck
:a- of it, md we free people up to apply ffeativity and imagination to the
::.rnation ihey'le given." Rig$ says.
PEt 2 | T{h""L"qYc""*Prs
^frmar ""

thev
Since a,UDDB employees a.re working ftom the same infomation'
stor has
to clients with a udfieal voice Th ea.sirv acce8eibie huge data
new client' rat
csrltlv a.ltered the way DDB emplovees work When thev sig! a
l
than;ushing offto creato consumer focus groups to coltect their opiDions
databae
smptoyees sit alown at thoir computels and run queri8 on the
plovided in the ti
tai;iDe the responses thai consumels bave a'headv
maxket and location
Bsfore implementing tbe SAS database svstem, a single narket studv
now we t
coulal take two days anat cost a lew hundred thousand douars "But
md at no extra cost " sevs De
those requests axound instsntareouslv
tools for
Menitt. the DDB soitware alevelope! who helps develop softwa're
acting with brand and lifestyle alata
Beine abre to collect, storc, aDatevaluate large quantities of consumer
over
ions ha.s given DDB rc insight into human behavior and an edge
intellignce ibd
peting ag;ncies, whicb ar sirnprv unable to provide tbe rvel of
not find cool stutr in aI of tb{
bDB offers- 'Ibere is nwer a time when we
People rea.Iv are intelesting 'to
Riggs says.
A5youreadlhis chapter,considerthefottowing:
. How do databasesand daiabse nmagement svsremsatlow busineses to do things
they couldn\ PreviouslYdo?
to
. V4r considentions and precautionsare necessarywhen developing databoes
and lead'ratherrhm nislead
thar theytullysuppon anorgdizarion\ requirenents
decisionmakingprocess?

objective
Like orher conponenrs of a .omPuter-bded inforhation svstem,the overall
qn onrribure ro orga
databaseis to help m orgadiaiion achieveits goals.A databse
ri.nal .""4* i" ofways, including rhe abilirv to Provide ndasen and deci
" ""-b.. also
mker with timely, accunte, and relevant infornarion bded on data Datab{$
acttrili
comoaniesgenerateinforma.ion ro rcdrce costs'incrcareprofits' irack Pasrbuines
.pponmiries. For exaaple,lo &hiqe bertq custoner edsladi
"".* daBbases)sten ro cusomizf, seNice ' The new darabase$s
Hilton Horels is-*L.,
-a^op"" using ia
"ast
provide deta;led information about Hilton customes A recprionisrat a Hikoo Hord
i'1"*Y..1, f.. *"-p1., .ight apologir to a customer for not huing h* rcom cGae'l
u she wmcd du.ing a reot stay ai a Hilton in Odmdo The nor rysten' calhd or
allowsH;lton to sroie and rerrieve a tremendousanount ofdera;ledcusronersatislac
informrion. OnQull also help Hilton nake bea* drcisionsto net custonq nee&
a resuhofthe data conta;ned in OnQ. rhe recepdonisrat the Hilrcn in New York
 orq.i riq Dahand nfrmrm I ch.pt4r 5

:::ide to offer a cusronera speciaiure or provideaddirionalsetui.eb$d on infornarion

-.m $e.uroner's stayin Oflando.Hihon hopesrharrhisinformarionsupponwill inprove
,i!me6' $aysand in eae profils in rhe lons ru. The PaManoresiaurdt in downrown
:.'er usesa darabase ro srorecusromrinformarion,su.h as binhdey, anniversary, and
: .:.i.encesfor cen in rypesof food and beverages.?
The abiliry ofan organizationo gatherdara,interprerir, and ecron it quickly cm dis,
:::uish winnersfroh losen in a highly conpetitive marketplace.In his 6ook Spinaing
=it ;rto GoU: rhc Masic of Trnins Ddta ikta GoU, lohn Miglautsch describeshow
r::bse mrketing can rduh in hishe. proffrs.rMisL.uach *reses the inponane ofnr,
. .: ns only to cusiomer who havea high proir potential.A darabdccanalsohelp s.ienrinc
:rizarioro obrainthen goals.lAccordingioloanna BaBrone,directorof IBMt Life Sci,
: -.s SolutionsDepannenr, "Datacanresideon dilTerentconrioentsand deparmenrs.Nor
- do scienrisrs genenrenore oftheh own d2ta,ther haveto look ar other people's*
. . r ' Brirain.which hr the large* narionalsroreof forensicDNA smples, will now have
:: largesrDNA medi.al dembde.More lhan 20 univernieswill be involvedin collecting
\.\ samplesin England.5Databases can cen help religiousorgan;ations.For example,
. :r overa million entries,rheAnerican TheologicalLibraryAJso.iationdehbde is one of
: . .argest databasesconrainingartidesandreferences on religionandrheolos/.6UPS,a large
:pnrg conpany, usese databdeto pro.e$ alnosr 60 m;llion darabsenansacrions every

\ databaseis criticalfor nany aspecrs ofan orgdizarion'sinformadonqsrem. lt provides

rsenlial found.rion fo! u orsanizarion'sinfornation Dd decisionsupporr sysren.
. :rouragood databce,qecurivesand ndagers will not g* the infornation rheyneedro
::r.sooddec;s;ods.A darabase isalsorhc foundationofhost systemsdevelophe.rp.ojecrs.
i darabueis nor dcsignedproperly,rhe sysens developnentellon can be like a house
:rds. collapsing under rhe weight of inac.urare and inadequaredata. k is also critical ro
::.u..ess ofan organiation that database capabililies be alignedwirh rheconpanys go.ts.
:,::use datr is so.riti.al to an organiarions success, nany firms doelop databasesto help
:,r accesdatanore eficiendy and usei more effectively.This rypicallyrequiresa good
:: :.3senanagementsvstehand a sood darabseadminisrruro!.
\ databasendagement systeh (DBMS) @nsisrsofa group ofprogramsthet nmip- dalabasemane9e mntsystem
,.:: the database and providean;nrerfacebetweenthe darabase and its user end other IDBMSJ
i r.arionprogrms. A DBMS is nomally purchsed from a darabdecompmy. ADBMS A g r o L p o l p r o g r a m st h a t m a n p u
- l a l e t h e d a l a b a s ea n dp r o vi d ea n
- iides as ingle p o i n to fh a n a g e m e n t.n d @ n rrol overdataresources,w hj chonbecri ti cal
i . l e r l a c eb e l w e e nt h e d a ta b a se a n d
:: r inr ainingt he i n te g ri ry a n d s e c u ri ry o fth c d ata.A database,rD B MS ,andtheappl i eri ton
h e u s e . o f t h e d a t a b ase a n do th e r
- :,ams rharutilizerh darain rhe darabasc nake up a database environnent.A databoe
oinistqtot {DBA) is a skilledand traincdlS profesionalwho directsall activniesrelated
r uganizationi datab*e, induding providinssecuriryfrom inrruder.3 database administratorIDBAJ
L-ndentmdingbxic danbesesystencooceprscanenhanceyour ability ro usethc power Askitled lSprolessionatwho directs
-. r;mputerizeddatab*e q,rh Io suppo.rISand orsanjzlrionalsoals.Direcr,mailorder attactvties reLated to an
-tanies. for ddple, can usea DBMS ro sendout new caraLogues to cusromers.
These
-:.rnGs fa.e the difii.uft questionofhorv mmy timesto senda new catalogueto curent
, r porcrrialcusromers.lPriniing and mailing costscan be 25 percentor more of rotal
:.nscs,so ifa ompany hasroo nany milings. it costsnore for the revenuegeneared.
: if n schedules too few mailings,sals could sulle.. Dec;d;nshow many rincs ro mail
: osueshasa direct inpact on profihbilit)-. Ce.man compan)-Rhenaniafacedrhis in-
dccisio!. Thc compmv, which sellsCDs, bdoks, dd rehted p.oducrs, nails
: -rnr
i.gues ro cu$ohers 18 times a )'ea..The companr useda darabase systcmto obtain
::rnant customerpreference ;dntrharion.The infonarion ftom rhedarabase wd fcd inro
:Nicrl analysis progrm, whi.h reveled th* proffs couldbe maxim;ed ifrhecompany
, nut.atalogues between20 and 25 timeseachyear.ln contrst, t']ortCiryMeralsSesices
. ulsa,okhhoma, usesa daraboemanagemenr spren to idenri$its besrcustomer and
::nrifuporentirl cusronenwirh rhc sme characreristics " The conpany fabricaressreel
- muufactu.ine @mDadcs.
-.lbf
 Pcre I num at m r - hnoolv . m r ep h

DATAMANAGEMENT
Virhout data and the abiliry ro processit, an organiadotr wodd nor b. abtto
complere nosr businessactivnis. Ii woutd nor be ebtero pry enployees, *nd out bills,
nq inventot-, or produc infornation.o asisr ndagea in decision mating. As you
dara @nsistsof aw facts, such c enplolce number and satesfigurs. For data io be
formed inro usetul information, ir must firsr be organi4d in r neaninstul way.

The Hierarchyof Data

Daia is generallyoigdiad in a hierarchl, dni begiff wirh lhe smaltsr piee ofdara us.d
conputets (a bit) and progreses rhrcush rhe hieffchy ro a databae. Ar discused in
3. a bit (abinarydign) reprsnis
a circuirrhat is irheron or ofi Birscu be oreuird i
unir. cJledr/?r. A by'ei, cpicall) 8 bir.. la"h byrerepre,enrr chm.*.,
Bas c bu ld ng btockofinformation, basic building block of inforin.rion. A characrer may onsisr of uppercce "t "t i,
consistingof uppercaselelters, (A , B, C ,..., z),l ow ercsel efteF(a,b..,. .., z),nuneri cdi si 6 (0, r,2,. . . , 9) , or
(owercasetetlers,numericd 9its,or
synbols (., !, hl, t-1,/, . .).
Charaaers are put rogether ro forh a fietd. A ffeld ;s rypielty a narne, numbea or o
fietd bination of chamcter that dscribs d dpecr ofa buines obje.t (e.s.,an enplolB
Typicatlya name, number or loarion, a mck) or aciivity (e.s., a sale).In addirion ro beinq enreredinto a darabare,
combinationof chafactersthat
can be compured f.on other frelds. Cotutlted fct* include rhe total, averase.m*io
d escib sana s pec lof a bls ines s
rn d m i ri mum vJue.A (ol l e(i onof r(l areddro fi etd,.r r@ rd. B y@ mb ; ningdr \ r iFi
ofvaious aspecrsofan objecr or a.tiviry, a nore compleredescription ofthe object or ri
is obtained. For instatr@, u enployee record is a @llecrion of fildr about one mDlo
Acottectionol relaled data fretds. one field would be the employee'snane. dorle. hr addres, and still orhe6 her oh
mhbe., pay ie, earnings mde to dare, md so fonh. A cotlection of related rords i
file ffl+for *mple an employeefile is a collecrion ofall compmy employee re.ords. Likdi
Acottectionof retatedrecords. an inventory file is a ollecdon ofall inventor/ recordr for a panicular onpany or
zation. Sone darab.sesoftware refers ro files * tables.
At the highesi levelofrhis enrchy is a dtabate, a alection ofinteqn:ed and EL
hierrrchyofdEta nle.. logefifr. bir., che,re^. field.. re(ords.Lie,. rd daub&e, fo,;lhe hie,r,&
Bils, characlers,fields,.ecords, dara (ke Fisure 5.1). Character are combined ro make a field, fields ar conbined lo
a recoid, reords de ombined to male a 6le, md ffles are combined to nale a
darabde housesnor oily all rheseloels ofdata but the retariotrhips amons rhem

@ Hlerarchy.ld.r. EnmDt!
Th6Hior.rchyof Dsta

i!_;iii,i!li,ir.j
iiaitiria,.!Lil daraba*r
tpmjcr
i --s"ri:ii!.b.
_l
i 093-40 r3t0Frel (s
srel ei 01 05 i 935 i
54e.77- 100rurr(r.y.311102.17reTe l P e.sonnetfi { el
I 0!-5_-,',0,-_{1'-r-rilr::Frer!
ry '9 q7.1,'7l
l R e c o r d( o n l h .r 9
rq35I SSN,rasl and trr5r
n6me,h,fe darel
 rrqii z 110];tr .r irrn:lj, I ch3pte 5

0 at aEnt it i e sA, t t r i b u t e sa, n dK eys

' .:itics, attribures,and kqs areihportant database .oncepts.An entity is a generiliad dis
reoplc, plrces, or things (objecrs) fir wh;ch dan ;s colleced,*orcd, ancl naintained. G e n e r a t z e cdL a s so l p e o p tep ta ce s,
'
o r t h i n q sf o f w h i c hd a l a s co tte cte d ,
:'rmples of cnriries include enployees,nrverrory, and cutome.s. Mo$ organizations
s t o f e d ,a n d m a n t a n e d .
:rnize and sioredataaseniiries.
{n atFibute is e chaacteristicofdn entity. For cxanplc, cnployeenumbcr,lastnamc, atlribute
.: rame,h; dare,dd depanmentnunberare anribL,rcs for an employeeGeelrisurc 5.2). A c h a f a c t e rs t i co f a n en tl y
..nrory dunber, desciptior. numberofunits on hand,and the locationof dre inventory
,-r in the werehouse areemplcs ofanributesfor itenx in inventory.Custonlernumber,
.::r. addres.phonenumber,credit ntnrg, and contactpersonare *amples ofatrributes
-lsromers.Atribtes aremuallyselected ro capturcthc relsant characreristic ofentiries
,.,. asenployeesor cut"mers. The specificvalueofar anributc,callcda dataitem, canbc
r i" r hel' ieldo t th e ,e .o ' dd e ' h i rg ,n ,n ' i r-. T h es p e c i f c v a l u eo f a n a r tr i b !te

@
!ti r0 6 ltl 247
Ihe ky f td s th mptoyee
177 t 1A \ B tt a 2 17 1979 432 n u m b e rT. h ea t l r b u l s n ctu d
tast name f fst name,hire dal
..0 I]7n 0 05 i 9s5 598 : n d d e p a f t m e nnl u m b e r

:lributes and daraircms .re usedby most organizatbns-Manr governhenrsuse rt

r ' - r anddataitens to hclp identifiand locarepos;bleterrorisrs. As a partofits Homelmd
efforr, rhc U.S. Starc Depaftnenr is shding its databaseof50 nillion visdappli.e
- -',6
. irh rhe IBI to help ideriify po$iblc rcrclis$.r L I'arriallyasa response to the threat
"
::rlism, $ne governnents re incrcasngly using databasesro nack and prevenrur
,.' :J pcopletrcm enreringtheir country.The U.S. gortrnmcnr, for cxanplc, is rsing
:::lrffins daGbases to mck tens of thousandsof suspectedterLorisaoL visitom of
- rrrlsecuriry conccrn"asdreyenterthe counrry.r'7Thedanbasecontainsvisualinages
'i:rprints. Thc NarionalSecuritylintry'lirit RegislErbn Syeemntempts to.lose tlE
'
, ::, () suspccrcdrcrrorisrsby comparingrhe fingertr;ntsofentering visitorsaganNta
. :::hensivedarabase. Durnrg thc first year,abour 200,000 sitorsdre expectdb bt
:. :rinted rnd screenedby rhc sysrcn.Sharingar$;hutesand data itemscan als be a
r -: irdor in coordimringrcsponscs acros divere tunctn,nalareasofan organiation.
,-. Jtrcussed, e collectionof ficldsabouta specificobjectis a record.A key is a field or
, , : : lc lds idar e. o rd th a ti s u s e d ro i d c rti fy th c record.A pri marykeynadel dorcof A l i e t do r s e to f l i e l d si n a r e co r dth a l
s ! s e d r o i d e . l i r y i h efe co fd
, : :lrrr uniquelyidentifiesthe re.ord. No orhcr rccordcan haverhe s:me primary key.
, ::,orary key is usedto dist;rguishrccordsso rharrheycanbe rcce$ed,organ;ed, and
'r. ::hted. For ao employeerecord,suchrs rhc orc shown in Figure5.2, the emploree
r. -r., s an exampleofa prinry key.
a parriculartecordthat nees a specificsct of criteriamay requirerhe ue ofa A f e t d o r s e to f f e t d sth a t u n q u e l y
-:rnrg
.,-: rrion ofsecondarykrys. for e*rnpie, a custorncrmight call a mail-ordercompany
- .-: rn ordo fbr clt$*. If the custoner doesnot krow his prinary key Guch as a
... ::r runbs), a *ondry key (nch aslastmnc) can be used.tr this 6e, the order
I :rrrs rhe lastnahe, suchasAdms. If thererre scvcralcnstomer with a last narneof
'
,--.- . rhc clerk on checkorherfidtts, suchaslddres. fint namc,and so on, to find the
. ,,, e, ,eo'd. O"ce the <xer custona tecord is obtaincd,thc ordcr can bc
-: :::d -ston
ard the clothingnemsshippedo the ursomer.
 Psr2 | iro,maroi r{hmroqy corcepr.

The Tra d it io n a tA p p r o a c hV s r s u st h e Da t a b a s eA pp r o a ch
Sincethe finr useofconprners to pcrhrm routinebusiness tunctiods;hrhe 1950s,compa-
nieshaveusedthe rradirionalapproachto process their rnnsacrions.Thn approachis bascd
on usingseparate filesfor eachapplicatn,o,suchaspayrollandbilling.\ftile sonc conprnrs
still dsethe tnditional approach.mo* organizorions todayuserhc darabasc appro.ch,which
ltilizes a uified and inregrareddahbar for mosrorallofa conpmy's rrusacriors.h thi'
section.we will exploreboth the teditional and database approach.
TheTraditionatApprcach
One ofthe host basicwa{ to managedaraisvia filcs.Bccause aile is a collectionofrelater
records,all recor& usociaredwith a particularapplication(and thereforerelatedby the
applic.rion)can be collcredand nanagedtogerherin d dppli.ition{ptrific file. Ar one
iimc, mosrorganizarionshad rmtousapplication-specilicdata files;fi,rexample,cusromer
traditionat approachlo data rccordsoften wcrc maintainedln sepmte files,with eachfile reladnsro a speciccproces:
compleredby thc cornpary,suchasshlppingorbilling.This approachrc datamanagemenr.
A n a p p r o a c h w h e f e b yse p a fa te d :ia wherebyseparare darafilesarecrearedand storedfor eachapplicationprogran, is calledrhe
i tesare c.eated and stored lor each
raditional apprcachto darammagmnl For eachpartic ar applicatbn,oneor mored:r:
filesarecrearedGeeFieure5.3).

[*3-
The TraditionalADoroachto
DataManagement

-F
I*g- -@
I-g* -[**";
g

I-g* -l='"-';
t-

with the tradirionalapproach,one or nore dam files *e oeared od usedfor cven

application. For exdple the inventory contol program can have one or more fil* cor
itning inventor/ data,suchasthe inventoryiten, nuhbd on hand,and nem dscript;o.
Liksise, the invoicingprogm canhavefihs on cu*omers,inventorynemsbeingshipped
mdso on. wnh the raditional approachro datamanagement, it isposible ro haverhe sam:
data,suchar inventorynems,in severalditreteorfflesusedby differenrappli@rions.
Ooe ofthe flawsin this uadhional file-o.ienrdapproachro daramanagemenr is tha:
nuch of the dara-for *mple,.urotuer nameand address-isduplicatedin mo or mor;
Iiles.Th;s dupliedon ofdaB ]n sep@le ffles;s krown asdarareduodancy.1he problen
D!plicato nof d ara ns epar at ef it es wnh data redundanq is rhat changesto the dara(e.g.,a new customeraddres) mighr U
 orsan: ns lata afd rhflnrtd, I cbpia 5

-::. in one file and rot.rorher.'fh o.der-procssingdeparrmenrmight haveuPdrd its

, o the new addrc$, but rhe bill;ng depmmnr might siill be sendidghills to the old
r::*s. Drtl rcdundanc,v, dreretirre,onfli.ts with datain.eg.it)--ihe degreeto which the dataintegrity
::: in anyonefilc isaccurate.Darainregrnyfollowsfron rhe@ntrol or elih;nalnrnot detx T h ed e g r e e t ow h i c ht he d a ta n a n y
.::r:drncy. Keepingacusomcls addres in only one file decrcases the posibiliw that the
-.rurcr sill have so diflerenraddrcses sroredin locrtions.
dilTereni l he emcienroper
, r ofa business requiresr high dcgrceofdara inregrity,which is onc ofthe advantages of
'. Jlabrse rppuch.
-}le Database Approa ch
i.:: r\e of drcproblemsssociacd with the raditional approch to daramnagemenr,nany
a moreefficientandeffectivcrncansolorgan;ing dm. The re*lt wt dre
-,::s*s.varrcd
approach to data managenenl In a dxtabdc approach, a pool of telated drta is databaseapproachto data
-::base
.i:rJ by multipleapplicariorprograms.Rath* thu havingseparate daraffles,eachappli
jo;.ed or relatedin the database. p o o to f
A n a p p r o a c h w h r e b ya
::r usesa anltcdon ofdata dur is enher
retateddala is sharedby muttipLe
Ihe drabdseapproachofferssignilient advanngesovcr ihe rndi!;odal fil'bsed dp
- :.h. one is thet by corrrolling dararcdundancy,the databmeapproachcan ust storage
;:-t morc elficiendyand increasedata integrity.The database approachcan alsoprovide
. rrgrnizationwith increasedfloibilirl in the useofdata. Because daraoncckept in two
i .. i\ nowlocde.l in the sdc database, ir is ersiettolocrternd rcquestdarafor manyrypes
":r,ccsnrg. A database alsooffcr rhe abiliw ro sharcdataand infornarion resources. This
:- .e a criri@lfacror;n .oordinaringorganizalion-wide responses acros divereetuncrional
:.:. ofa oryontnrn.
To use rhe daubce approachto dara manasenentiaddirioD.l sohwar-a dalabde
-r.rgcnrenr s).srn (DBMS) is requircd.As prdiosly discussed, a DBMS consistsot a
: ' : r of pr ogr am s th a tc a n b c u s c d a s a n i rrre fa cbenveenadarabasandtheucrorthe
: :l':se ard applicationprognnx. Typically,rhis rftware acs x a butrerbeweenrhe ap-
: ::,r,n programsand the datebrseitsell Figtre 5.4 illustatesthe darabase approach.

@
The DatabaseAloroach to Data

---f;;I
 r r .f m r o r T e .h io lo !! C.i.cp L j

Table 5.1 Lisrssonc of 1heprima,r ad\"nr.scs of ihe dabbaseapproach.There dr.

@ howevd, disadvanrases
GecTable 5.2).
Adv.ntagesof the Database

lmp.oyeddataintegrity

Eas ier hodif ic alion

and Withlhe databaseappm6ch,the DBMScoordhatesupdatesand data modifications.
Programme.sand usersdo not ha! toknowwhere thedata is physkallystorcd.Data
s sloredand hodif ed once.Modlication:nd updaringsatso easie. becauseth data
rs slotud al onlyone tocetionin most cases.

indi.ndenc6

M os t0 B M S sh a v e $ f t w a r et h 6 th a k e s r e a s y t o a c c e s s a n d r e t . e v e d a t a f r o m a d a ta b a se .
In mostcases,slmplecommandscn be givenlo 9et importe.t iniormation.Retailofships
betweenrecordscanbe mofe easityinvestigated and exploited,and applic6tion5can be mo.:

!riJaia.'
standardiiation I
I
a
-{
d
a
ra
I
I

,d

;
I
@
Disadvanlages
ot the Database

d
Mofe d llicult to recoye.kom a fa t!re Wi t h i h e l r a d l t i o h a l a p p r o a c h l o l i l em a n a g e m e n r
afailure ofa iile onlyallectsa slngleprogram. th
With a databasemanaqemenlsystem,a failufe
canshrl downtheenufd database.

{
 0fqan: nq LJ ;taai d nr ofm 3l oi

Vrny nodern datrbasesareenerp;se,wide, en@mpa$irsmudr ofihe d.taofrhe enrirc

':rnizarion. ofren. distinc yet relareddatabases rre lnrked ro provide enterpr;se,wide
Much planningand organizationso i.ro rhedevelopmenr ofsuch databases.Ior
-:rbases.
:idple, BestBuy is a specialtyretailerofconsuher electronics,personalcomputers,enter,
: rmcnt software,andappliances. it operateshea.ly2,000rerailsroresand comnerdalWeb
:f, dnder the nmes BestBuy, MagnoliaHi-Fi, Media Play,On Cuq Sm Coody, and
::n.oa$. BestBry 6es inlormadonabourrhebusinesandirscuromentotaildrheproducr
: r o its custonetbue, nininize the rimc itcns areheldin invento.yto reduce@srs,and
'.:rond quickly to custonerneeds.Ar rhe cerrerof this stetegi. jnfdrhadon is a darabasc,
. rLchconsolidates informarionftom abour350 difrcrcntsourcesacrossthe enterprke.

HO DE LING
ANDTHERELAT I O NAL
DATABASE
M O DEL
:r.ruse therearesonanyelemenrsin rodrys busincscs,ir is critic.l ro keepdataoryuizrd
. :hat it cm be usedeffecdvel)-.
A darlbaseshouldbe desisncdro sroreall &h .elevai! ro
-: husiness dd provide.luick acessand eoy nodificarion. Moreover,ir mur .efleft rhe
:rrnes procses of the orgaoization.V&en building a database,u organizationmust
:::tully considerthesequestions:
. Llzrar: rVhat data should be .olle.trd and ar {nar co$.
' lceg: Vhat data shouid be providcd ro which usen and when?
. Logicallttuct rc:How shoulddatr be arnngedso that;r makessensero a given$er?
. rylical ol1d"i%not: Ulhere should data be phl s;can)-loered ?

0 a taM o d e Li ng
... c ons ider ar ion s i n o rg a n i z i n s d a ra i n a d a ra basei ncl udedetermi ni ngw ha!dat.i srobe
:.lccredin the database,who will havcaccesto it. and how rheynightwish m userhedara.
r.c rhesederermnudonsare madc. a datebase cm then be deared.Buildins a darabde
::rires two differenttypesofdcsigns:a logicaldesignand a ph)sicaldq;gn. fhe ,{,..21
::1a ofa darabrc showsan abs[act nodeLofhow the dalashouldbe sffucruredand !r
::sed to neet m organizar;on's infbmarion needs.The logicaldesignofa deribde involves
:..rilring iehtbnsh;ps amons rhe dilTreDr daraircmsand groupingthen in an orde'ly
jion. Beausedatabsesprovideborh inpurand ourputfor informadonsy$ehs rhroush-
,: r budde$, use.sfrcm all tuncrionalarcr shouldcsist in crearingthe logicaldesisnro
:.rre thar rheir needsare identified and addresed. P/1d.zl l*ig, $ens from rhe losiql
::brse designand fine-runesir for perfornancemd est conside.arioos (e.s.,inproved planneddatardund.ncy
.:\ronscdme, reduccdsoragespace,Ioweroperatingcosr).The peson who fine{unes rhe A w a y o f o f q a n i z i fd g a i al n w h i chth e
::,,ical designnusr havem in depthknowledgeofthe DBMS ro implemenrrhe darabde. tog catdarabasedesignis alleredso
. - : exmple, rhe logical datab& dsign ni)' need to be ahered so lhar cenain dara enrities t h a tc d a i nd a t ae n r i t i e sa r e co m -
b n e d , s u m m a r y t o t a tsaca fe r i e d n
-:: rombined, sunmary toials are .aried in the dal. records rarher rhm calcularedfron t h e d a t 6r e c o r d s . : t h e r th a nca tcu -
,:rental dara,and sone dataanributesare repeatedin nore rhan one daraenriry.These tatedtrom etemenlalddta,and
:.': *mplcs ofplmed data redundd.y, which is done to ihprove rhe s}re n performance s o m e d a t aa t t r i b u l e s ar ree p e a te dn
.: :har Ner reporrsorqueries.d be.reatedho.e qu;ckly. m o r et h a no n e d a t ae n t r ytoi m p r o ve
databaseperformance.
one of the tools databasedesigneBus ro show the losical relationshipsmong datr is a
:r nodel. A data nodel is a diasnh ofenrh;es a.d theh relarionships. Data nodeling
involvesundentmdins a specificbusine$problemand anallng rhe dataand in A d r a g r a mo i d a l ae n t i te s a n dth e i r
.-rllv
-rdon neededto delivera solutioo.V/hen done * rhe lnel ofrhe enrireorgmization,
- .. :s cmed enetptir data nad"lins. Enterptise d^ra lodeling n an approachrhat stans by enterpri5edetamodeting
: . .srigatingthe generaldaraand inlbm ion needsof rheorganizationar the stategicl*el D 6 t am o d e l i n gd o n ea t lh e te ve to l
iJ (hensdining morespecificdaraandinformtion needsfor thevariou tunctionalre*
-:J depannentswithin theorgoization. Variousnodels havebce. developed to help nan-
r.:s and darabase designer analF dara and infornarion needs.An entiiv-reladodship
:r:,.n is an qample ofsuch a daranodcl.
 Pui2 | hro"marctrr{hmroqycmcepis

entity-retationship
teRl Entity-rlation'hip (ER) dit"m usebasicgmphical symbolsro show ihe orgfiado3
.lia9rams of and reladonshipsberweendata. In most caes, boxes&e usedin ER diagrms to indic-
Datamodelsrhat graph
usebasic data itens or entities contained in data tables, md diamonds show relarionships betwo
cal symbotsto show the organiza-
dara irens and enriiies. In other wods, ER diagrams *e used to show data items in tablc
t on of and relalionshipsbetween
(entities) od the warr thev are relared.
ER diagam help emure thar tlE rel iomhips among the data entities ir a databse c
rcrrcdy struawed o that dy appli@rior prosrms dalopcd de cotuisrenr wit}t buin-
operarionsatrd userneds. In addition, ER diasrms cd seryed referen.e docunen$ oE
a daBbaseis in use. If chmges arc nade ro rhe danbme, ER diaghms hlp design rheB
Fisure 5.5 shom d ER diagrm for an oder darabase.ln rhis deubse dsign,one salespeE
sefles @ny cstoners This is an *mple of a one-ro-nany relationship, a shown by &
one-to-ndy synbol ("crowefoot') shown in Figure t.5. The ER diasrm also shows rir
each cusiomer .an place one-tcmany ordes, each order includes one-to-mmy line ircc
and mmy line items cm speciry rhe sme producr (a mey-ro-one reladonship). There 6
also be one-to-one relationships. For exmple, one order genentes on invoi@.

@
An Entity-Rt.tionship
lERl
Oiagra.nfor a Cuslomerorder
Database
0evelopmentof ERd agramshelps
ens!re ihat the to9icalstructureof
appLcationpfogramsis consistent
wilh th e da tar et atons hipsin lhe

T h eRe ta tio n aDa

t ta b a se
M o d e l.
Alrhough there are a number ofdiffercnr databue models, including flat ffles,
reLational
modet dd network models, the relational model has beone the nost ooprlar database
A dalabasehodet that descf bes md use ofthis nodel will inoease in.he tuture. The rdational model desoibes dan
da rain wh ichaLt dat 6et ehent s af a standdd tabular fornac In a darabue strucrured acordins to rhe relational nodel, all
pla ce din two - d m ens ionat lables ,
catted.elarbrr that are the togical
elenents are placed in mo'dimensional ables, called r&tar, rhai de the logical equi
of file\. Th ubles in relrrion,i d.bbre, o,g,i;e darain row, md cotumro. si
dara aces and mmipuletion. Ir is normally easierfor managersro undertmd rhe
rnodel GeeFieure 5.6) rhan orhe. d,rabde nodels. Databassbasdon rhe relarlonal
inJude DB2 frcm rBV. O(le. S)ba!f. \Qr Sener ud Acs frcm Miao,oh.
MySQL.
In the telational model, eachrow ofa table represens a data entity, wirh rh
the uble representinganributes. Eachanribute can take on only enain vrlues. The
valuesfor thse rnributs are called the dornain. The domin for r prnicular anributc i
Theattowable
valuesfor data eres whar values en bc placed in eachofthe colunns ofthe relarional able. For i
the donain for m atribrte suh as eender would be limired io mde oi fenale. A
for pay nte wodd not include negarive number. Defining a domain cm inoe*
accuracy.For enmple, a pay ate of-$5.00 could nor be enreredinro rhe darabse
ir is a negativenmber and not in .he donah for pay nre.
 c f s d n , , n ql r 'n l I c u " p t ""
" , , . . '" " "

Dd r r T r b o l Pr o te d T a b lP
@
A Retationat Database Modl
i55 n l h e r e t a lo n a tm o d e l ,a Ud a l a
elemnlsare placedin two-
612 d l m e n s o n a t t a b l e so,. r e l a ro n s.As
Longas they shafe al Leastone
c o n m o n t e m e n tl h e sfe l a l i o n s
c a nb e t i n k e dt o o u t p utu se fu l

DataTable2: Dep:rimenr
Tabre

Da raTab le3
M ana9er ' I abla

?57

BIL

t niputating
Dat.
-;: datah* beenplacedinto e ieladonaldatabse,usen en makeinquniesmd rnallz
;-: Basi.datahanipulatiodsincludeselecrins, projecring,andjoining. Selrctinginvolves selectin9
-r-:nring rowsa.cordingto cenai. criteria.Supposea prcjecr rableconrainsthe prcject Datamanip!lation
thatetm nares
:-:5er, description, anddepartmentnumberfor all projecmbeingperfornedby a onpany. rowsaccording
tocertain
crlera.
-:: rresidentofthe conpany mighr wanr rc find rhe deparrnenrnumberfor Projeci226,
. :5 ma.ual projec..Usiog selection,the presidenrcm elinimre aii rcws but rhe one for
,-: ..r 226 and seerhar rhe depannenr nunber for rhe deparrnenrcompletingrhe sales
:r.ral prcjecris 598.
P.ojectins involves elinin.rins colunns in r rrble. For uanple, we might har a de, projecting
::rcnt tablethar ontains rhedepannentnumber,deparrmentnme,md SocialSecuriq' 0ata m6nip!lationthat etimin6tes
:urber (SSN)of thc managerin chargeofthe projec. The silesnanaser rnishr wanr ro
:-::: a ncw tablewith only the depanmentnunber and lhe SocialSecu.it).numbrof rhe
z::eer in chargeof the salesndual projecr.Prcjectioncan be ued to elimina.erhe de,
;:-renr namecolumnandcreateansable containinsonl),depanmenr numberand SSN.
loininginvolves.ombiningtwoor nore tables.For example,we qn conbine rhe projecr Jornrn9
:-- : and rhe depanmenr table to get a new table dr the prcject number, prcjecr descriprion, Datamanipulation
thatcombines
f,:1nent number. depaftmentnmq and SocialSrcuricyounber fbr rhe managerin

\ long d the teblesshaleat leasrone common daraatrribure,rhe tablesin a relationai

r--:ise en be linLed ro prcv;de usetui infornarion .nd repora. Being able to link tables tinking
, ::;h orhu drrough common data anributes is ore of the keysto rhe fl*ibiliry md power 0aramani pul atithat
on com bines
,.:irrional daltbdes. Supposerhe p.esidenrof a compuy wana to find out the nameof twoof moretabtesusingcommon
dataaltributestofo.m a newrabte
:c ranagerof the salesmanualprcject and rhe length of time the muager hr beenwith withonlylheun qued:la attf buts.
 Pet s I nrom3rioire.hmLoqycom+G

rhe compuy. Assume that ihe company has rhe mmage!, department, end projecr tabld
show. in Figu.5.6-A simplificdER diagm showingthe .elationshipbeseen thcserabk
is show. io Figure5.7. Nore rhc crow's-foorby the projec iable.This indicaresthar a ijd
parrnenr qn hsveneny projects.The presidenrwould makethe inquiry ro the datab*
perhapsvia a personalcomputer.The DBMS would stan wnh tbe prcjecrd*ctiption rai
searchthe projecrmblero find ort the prcjecCsdepartnenrtrumber.It would then uses
depanmentrunber to searchrhedepa*nenttablefor the noagcls SocialSecuritvnumts.
The deparrnentnunber is alsoin the depannent tableand is the comnon elementcr
allowsrhe prcject tableand the depannent rableto bc lhked. lhe DBMS then u< n
managcr'sSocial Secur;r/ nunber to searchthe manapr table for the managert hire da
The mamgeis SocialSecuritynumberis the comnonelemenrbemeenrhedepartmentut*
and the nanager table. The ii"al the nanager's nme and hne date are present<i o
'esult,
rhe president* a response to the inquiry GeeFisure5.8).

@
ASimptifiedERDiagram
Showinglhe Retationship
belweenthe Manager,
Deparlment,andProi6cl
Tables

@ g
LinkingDatTeblesto Answer
an lnqulry
n lind ing thn am eand hir ed: le oI
th e m:n :g rwor k ingon t he s ales
pr esdentneeds
ma nu atp roje ct, lhe
three tabtes:project,deparlment,
and ma.a9er. The projectdesdip-
lio n lsate sMa nu aUleads lor he
d ep arime nln um ber15981 n t he
prqecl table,whlchteadsto the
ma na qe r'sssN1098- 40- 13701 in r he
d ep artme ntra bt e, whc h t eads t or h
ma iag er'sna meI Fis k elandh r e
d are{o t-05 -19 851n t he m anagr

One of rhe primary <lvantagesofa relarional darabaseis that it allows tablesto be

asshown in F-igure5.8. This linkageis especiallyusefrrlwhen informationis needed
ndtiple tabtcs, as in our example. The nmager's Social Sccuriry number, for exmpl:"
maintrinedin rhe nanagerrabh. If rhe Soci:l Securitynunber is needed,it canbe obo
hy linking to rhe nmager table.
 ofeai zi eD ab' N ,r" .,.r,n I o' .pt"':

I he rlrtionaldarabs modd is bv far thc nosrwidely used.ftiscasiertocontrol, more

.!ble, )nd nore nnuitjve lhan otherapptoaches becauseitotguizcsdata in tablesAsseen
Fisure5.9, a rclatioml dalabar nlnagcmcnr s)atem,such* Acccss,prcvidesa number
:ipsand tuolsfor buildins and usingdnaba* tables.'lhisfigtle showsrhe databded;e
: :, irg i|fbtmaion about dararypesand indicatingthat addnirn:i help is available.The
. liot oln, k r ebt n ,n a l trb l e s J s o a l l o w s u re n to r el rrcdatai nnow aysw i thouthavi ngto
.::rirc complex teletionships.Becauseof the advrnt.gcsof lhe elation'l nodel, many
. : , plnc s ueit f orl a rg e c o rp o ra re d * a b a ts ,s u chasthoefbrmarketi ngrndaccounti ng.
- : retationalmodelcrn be uscdrvith personaL computenand minfrme system.A trtvel
.:iition company,for ennple, e" de'.lop r farc-pricingspten by sng rclarional
:::hase rcctrrologythat cm handlenillions of drily qucriesfrom onlinetravelconpanies,
, :r:s Ltpcdia,Tnvelociry. and Orbitz.

.d @ @ rd.s $nq !6
@
.. r-i. , , ! -.- 3.. l- m- [I-.
:1r1,...I Building and Modifying a
:t :!. 6+ frA. Q. Retationat Database
R e t a to n a td a l a b : s e s p r o vd - om a n y
4F gFa. Ee." x rtr t o o l s ,t i p s ,a n dt r i c k sto si m p ll y th e
p r o c e s so t c r e a l i n qa n d h o d l fyi .q a

''

! la Ct eanup
'. riscusrd in Chaptcr1, thecha cterisdcsofmluabledaraincluderh* th e datais rccurate,
rplcte, eononical, flexible,eliable, relcvarr,simple,tinrely.vcriffable,accesible,and
. r R'. l he purposeof datacleanupis to doclop dar: with th6. characle.isdcs A drtabdc
T h ep r o c e s so i t o o knq l o r a n dl i x n q
:- .onlain eftors.forcMmple, a sutveyof a thousandelecfic ut iiity co aniesfiund that
rnp
rr nconsistencies to nsurelhal dala
,.rmcr dahbaks wdc only 45.6 pucot accurate The erbrs w.rc causedb)' imccurate s a c c ! f a t ea n dc o m Pte te .
:-:: trrry. Vhen a databrseis cued sirh data from multiplc sorrces,rhosedispante
. f..s nal sntrediffcrcnrvalLres frx the samccusromerdue to sPellingrrcrs,hultiplc
:.,unr nunbers,and addrcs vriations.
Qrsider a danhar for r frines centetdesigledto tnck memltr ducs.I hetableconnins
. rnibutcs name,phonenumbcr,gender,duespaid,rnd datepr GccTrble 5.3).As t
.- rds ir Table5.3 show.Anira B.own and SinThomas havepaidtheirducsin September.
. r hrs pJd his duesio vo installnents.Note tlrrt roprnnatykey oniquclyidenrifieseach
.:rd. Aswe will seenext,this problemmu* be corccted.
lle.duscSnn Thons hN paid duestrvice in Scptembu,dre drta in rhe dalabaleis
':.' redundant.The nme, phonc rumb*, md gcndertoL Thonrs erc rcpeatedin uo
,-ords.Notice that the datain rhc darabar is aLsonrconsistentThomt haschangedhis
.:rne numbcr, bur o'ny o"e of rhc recordsreflcts this change.Iurther rcducnrsthis
::base s reLirbilitvis rhe lic thet no prinarykevexiss to uniquelyidentifySnn lhonu's
.-rrd. The llnt Thomascnld be Sin'lhomas, brt rhc secondmisht be SrevcThomu.
.re prcblemsrnd iresulat;tiesil datarre crlled azazaltai. Das anorulies ofren resuh
 P6t P I nromrionr.dmrrDeycomepts

inincoreft jnformaiion,causinsdaiabe ur$ ro behisinfomed aboureruat condnion!

Anon liq musrbc cottled.

g
FitnessCenter0ues

468,8788

:r:,fllw'i::
To nJve rheseproblehs in rhc fitnss cenrers dahbs, we can add a primarv kev, caled
4 c h b ft n" nb4 Jnd pd,he d./ i n,,, r$o ubte\: ) t-,rrr$ ( M.-t.i. , "ut "
sendtr. phone numbei.and relaredinfoh.rion, dd a Duespaid -,"tablewirh ducspaid-jd
;,r.
dareplid GeeTables5.4 and 5.5).-Asyou cansee both tabla inctudethe nember nunbs
aitibute so thar rhevcan be linled.

@ E
FitnessCenterMembers

468.5238

E
0uesP aid

\i/irh rh relariotu in Table 5.4 dd Table 5.5, we have reduced the redundano od
e l i m i n rrrdl heporei ' i alp.obl m oi hr\ i ng rso d fefi tt on. n* S " " fo,,t.
ber. Also nore rhar rhe nehber nmber siveseachrecord ' ". Menbec
" - ". .
in rhe FirnessCenrer
rableap.inarykey. Be.aur we havetwo paynot enries ($15 each)listedwirh rhe me
nembi nunber (SN656),we know rhat one peron mde thepalments,nor mo diffeem
people. Fomaltud approrches, s!& ./ntabdtekandlizarior, are ofren urd ro ctea up
^s

DATABASE
MANAGEM
ENTSYSTEMS
IDBMSI
Crating and implementins rhe rishi databs sysremensuresrhar rhe daiaba$ wilt sppon
b o rhb r.,n e,,a.ri vi ri e,
rnd 8oat,.B urho" do w eJc,uJt)c,eate,
i mptme" ,. ur , , nd u; Lk
r database?The atuwef is found in rhe darabse nanagehenr sysrem.Ar d;jcused erlier, r
databa.se mmagemenrrystem(DBMS) is a grcup ofprogEms usedd d interfa berwee.
a databueand applicationprogrms or a darabase and the user.The opabijities and twe
of databasesysrems.hooer, ary considerabv.

0verviewof Database
Types
Databxe managenent systehs an mge hom snult, inexpensire sfrlfue packasesro sG
phisriored sysr@scGring hundredsof thousmdsof doitirs. Followingde a few poputd
 0f9anzn9 Daiaand Inromation I chlpte! 5

FtatFite
I dar fil is a sinple databe prosmm tha. hd no relationship berweenirs records md is
, ien usd ro storeand ntanipul'te a single tableor file. Flat files do not u* my ofthe datrbae
ralels discsed prwiouln such * the relational nodel. Many spreadsheetard word pro-
:sing progrms hare Rat file apabilities.Thse $ftmre packagescan on able, and n le
:mple calcularioroand comparisons. OneNote, dqeloped by Microoli in 2m3, w$ de-
* :ned to ler people put ide, thougha, md notes into r omputer 6le.'a Fach car be placed
ar* hereon a pagein a OneNote lile. Ide*, thougha, and note en also be placed in a bc
: t z prge, czlled a eoaain. PaAere orgdized inro sectionsmd sub*ctions dnt appea
; ;olored rabs. Once entered, rie ideas,thoughts, md iiens in a OneNoft 6le can be re-
::*d, opied, and pcred inro other applicatiom, such x word pro<sing and spread.sheet

SingteUser
l*ab*s for peronal onputers u ncr often neant for a single user Only one peson
use the databareat a tim. Aces and Quicken ate eunples of populr single-wr
-lB\{Ss, through which Ulen aore and manipulare financial date. Micrcsoft's IifoPath is
io$er *ample of a single'merdatab*.'5 The darabueis pan of Mimoffs office suite,
tJ it helps people collect and ogmir infornation fron a variety ofsources. InfoPath has
:riLin form thar en be usedto enter expemeinformrion, time-shetdat", dd a wieiy

XuttiDteUsers
:ge nainfme conp uter systers neednultiuser DB MSs Thesemor Powerld, exPensive
:rems allow doem or hundreds of people to aces the srme databm system at the me
rc. Pop n rendos for nukiuer databaseslntemsinclude Oracle, Sybue, and IBM.
.{l DBMSS shde sotr @mnon tunaions, s'rch * providing a u*r *, physically
r rins and retdeving data in a drrabue, allowing for databae nodificrtion, nanipuladns
::o. od senerating epons. The* DBMS are capableoftrandling the nost complu of
:a prcssing t*ks. A mdical clinic, for aample , can ue a datab* like IBMi DB2 to
<. elop m all-indusive datebm @ntaining patint recordr, physician notes, demogmPhic
:u. genedcdata, md protomic (proteiuelated) &ta for millioro of patients

a U s e rV i e w
P rov iding
:erue the DBMS is responsiblefor acces to a datab*e, on of th firt stePsin instaling
r j u ing a databmeinvolres telling rlt DBMS the logic.l md ph)sical $rutut ofthe daia
relationshipsamons rhe dara io rhe databae. This desciprion is called a cchena (a in
-i diagtm). A schemaen be pan of rhe databae or a spuate rchema ffle. The A descriplionolthe entiredatabase.
-tnatic
l B\{S can referencea schemaro find whete to acts the requcrcd darain relarion to another

1DBMS,ls actss a userintefac by providinga viv of the databoe.A uet vis is

= oonion of the databasea uer cm ces. To oeate difTercnt userviqs, ubschenas te
reloped. A subehem is a 6le that connins a dsc.iption ofa sub*r of rhe &tabae md
;<:rifies which usn on viv md modifr the data items in thar sbset. \qhile a schena is A l i l e l h a l c o n t i n sa d e s$ i p l i o n o fa
s u b s eo l fl h e d a t a b a se a n d i d e n l i fi e s
: ::*riprion ofthe entire databae. a subschemashows only sone of the reords and thir w h i c hu s e r s @ nv i M an d m o d i l yth e
--tiomhips in the databae. Nomally, progranmea md nmrger need to vio or acces data ilems in the subsel.
: -i. a subsetof the datab*e. For enmple, a sies repreentative mighr ned only data de'
L-:bing curonels in his region, not rhe sles data for the entire nation A subrchma could
r u*d ro limh his vi* to data frcm his region. \rit}t subschem*, the underlying st.uctlre
:ithe daraboe can change,but the view the userseesmight not chmge For eenple, even
i rl the data on t}te southem region changed,the notheart region s,l6 reprcseftative s yiew
nor changeifhe accsed dataon his region.
':,"1d
\ number ofsubschenas on be developedfor ditrerent usersmd the various appliodon
:r:sams. Typielly, the databaseu*r or appliorion will acces the subschema,which then
.:6es the schema(se Fisurc i.10). Subsheros c.n alsoprovideadditionalwuiry be-
rre prosnrmerl managers,md other uers ue gpically allowed to view ody cetain pans
 Pst, n oners
I ' iio n r Ph io Dq i

@
Ihe Useof Schemas
and
Subs(hemas

C reat in ga n d M o d if y in gt h e Da t a b a s
Schemasmd subrchem *c entercdinto rhe DBMS (usuallyby database pesonnell
';
dat. delinitiontanguage
IDDLI a data definition lmguge. A data deffnition lmguage (DDL) is a collection of imtr-:
of in s t r uc tons and
A co ttection tions and <,nnands usedto dcfine and describe&ta and data EletionshiPsin a spe'.:'
comma nd susedt o delineand databue.A DDL allowsrhedatabase's creatorto descr;bethe daraand the dararelationshr
de s-ib ed araan d&t a r eLalionsps h themanysubs.henas.Ih general,a DDLdescn:<
rhataretobecontainedin theschemaand
logiol acessprtls and logicalrcords io thedatab*. Figuc 5.1I shows asimplifiedex:=
q. l evcr l j
p ,. o t Ont * " a \hemr' the X ' i n Fi gua
a." A oDr general o'
' o "hn'
"

@ s a i r I M A D E 5 C RF ', lC N
Usinga Dala0eflnition 5c!rEMA NAMt:ls \l\\
Languageto Delino
a Schema

I 'I L I N A N 1 E ! X X X X

F 1 L NATIFlli IX\\

ARFANl\l',lL 5 XlXl
R E a 0 n l i - 1 E 5 c fRr 0 N
RFCORD N A M T5 \ I X I
t?tacRLl D Slxxx
roaatoNMoD[l]\\\\
w I fllNxxlx AR!aFR0M
xxxxi r-l11!rxrx

5L;1NAMI S X\\\

M t . M I I F Rt \ \ \ \
 (]fqat nqDeLa
arr rr.rm.rr chali6r 6
I

:iorbarion @Dcernirgih danhoe k ro bc entered.File dscriprion,arer descripr;on,

.:.o.d descdprion,aM setdescriptionaferermsrhe DDL definesand uscsh this exampte.
\her term and onmands.an be ured,dependingon the pdricularDBMS ehployed.
,\norherinpoftmt stepin crering adaiabrk n tdesrablishad a dicrioMry, a demilcd
r.jcriprion of.ll dataurd i. rhe darabde.Tk dala dicrionaryconrainsthe nameof rhe A d e t a l t dd e s c r i p o
t n o l a ttth d a l a
rre irem.alidses o. orhef nanes rhat mav be usedto descnbcrhe iten, the mnseofvdlues
rtrtcxn be used,the t"eofdata (uch as:lphanumericor rumci.), theamounrofsorase
:--ded forihe iteh, a norarionofrhc penon responsible lbr updarinsit andthe mrioN uks
-ro canaccesit, andal;srofreponsthat usethedatairem.Adaradictionlv canalsoirclude
: . r ' r , on" lt ur r ' o s .rn e w rv rc .o rd .re ,{ g :ri l e d . j rddJraprde.,rgreqJi ' fr.r,..
: :ure 5.l? showsa wDjcaldaradicrionarven$v.

N0RTflr/VESTERN
!IANUFACIURiNG
w
A TypicatDataDictiona.yEntry
D. BO RDW E L L
DA ' E 04AU6U5T2 0 0 5
.] EDWAFOS
DA lE] t30cl0BER
2c05
VERS ON

DA'AELEM ENT NAM E.

DE5 CRI PTI O N: NVFNTO FY
P A R TN U ] i 1 B E R
0TflER NAI'IES
r00T05000
NUM ERI C
4 PC5l0N5 0 R C 0 L L T M N 5

For eurnple, the infornarion in a datadicdonaryfor rhe pert nunber ofan inventory
:.n @n includerhenameof rhe penon {ho nade rheddiadicrionry enfr,r(D. Bonlwell),
:: daterhe enrrywas mrde (Ausu{ 4, 2005), rhc llde of ile pdson who approvedrhe
,:,o (1. Edward$, the approvaldare(Ocrober13, 2005), the vels;onnunbcr (3.1). the
-mber ofpasesusedfor the entry (l ), lhe paft mne (PARTNO), orherpar Mnes thar
be used(I,TNO), rhe mge ofulues (pan nunbem cd rangefrcm t00 ro 5000), the
-rf:c of dara (nuneric). and the sroase requircd(four positionsare requiredfor the prt
nbo). The followingm sohe oflhe r,vpicaluks ofr datadicrionary.
. Ptuddz a ndndnr.l
+fini';o" oftent dnd.ldtd elen,r' This srandardizetion can help in
progranmiogby providingco$istent terhs and Eriables ro be usedfor all prosrams.
Ptugrahne.skDN whardataelemmtsre alreadvtaprured" in the databseand how
thevrelit ro orhrdaraelmcns.
' A$ht ?logdwne5 it dz'igni"g dd tufit;ng?ngrdn'. Programncs do notnad ro know
$hich storage dwi cesareusedro voreneededdara.Usingrhedatadictionery,progranners
specilv rhe required data elemenrs.The DBMS locaresthe necesarydara. Morc
inrponan! prognmnes cm ur the datadicrionaryro seewhich programsalreadyuk
r pieceofdataand,ifappropriate,cancopyrherelevarrseciionoftheprogrum@dcinro
rheirnew progran, thus elimimting duplicareprcgranming effors.
. Sin?li|t datdbae nodif.d'1,,. If fo. any reasona dar. clnent needsto be chansed or
delered,thedaradicrionarywouldpoinrro specificprosransrhatutiLit the dan elenenr
rhar may neednodificarion.
i jr dicrioDaryhelpsachieverhe adtulases of rhe darabasc approachin thesewavs:
. Redued dz'd leduhdancr.By prori ding stardrrd defini rions of all dara ir is lc$ likelv that
the smed,tanem willbe sroredh diFerentpla.esunde. difGrenrnamcs.foiexanple,
a &ta di.tionarywould reducerhc likelihoodthr the samepar! nunbd world be stored
s twodiFerentitms,suchd PTNO and PARTNO-
 I'. 2 | iromr m Te.hnDLoqycomeprs

. lflftdyd datu reliabilitf. A dara dicrionary dd rhe databde approach redu.e rhe chaF
rh a rd dJ w i l l be dcrro)edor l on. In,ddi ri or. i \ moredi fi c;tr [,, un,u r ho,iuedDeoor
ro g a inruei . ro \ed,i Ived.E bd i ntortuU on.
. F^td ?tosdn ddelo?n,r wirh a dara dicdonary, prosFlmer an delelop proghJB
fdier. rhey donl havro denlop nanes for daia item beauje rhe dah diJo;d; d6
,hJ fo hem.
. Eanet nodifcdtio of data and infomttion. The dara dictionary .nd rhe datab:r
rp p ror.hmdkemod,C .{i on.,oddo esi rr be,au.e6er. do n" , needro tn6 s he, ed.
datais stored.The pason makins rhe.haose indica.esrhe new vatueof.he vdiable af
i R n . , (h r. pr number.,h,r i " ,o he.hrnged.fhe dJrubr.r.hrem l ocr E. , hc d. a
and haxesrne n<essarvchanse

S t o r i nga n dRe tr ie vin Da

g ta
As jusr des.ribed,one ftncdon ofa DBMS is ro be d i.rrface betweenan
prcgram md the drraboe. Y4ren an applicarion pro$am needsdata, it requeststhar
drough the DBMS. SuppoF ihar to catcutarerhe rotat price of a new qr. an auro d
p ri .i n gp r ogramneedspri a dro on !hesgrne op,;on
" xqti nder,i mreadoir heqa
l ' o u r.)l i nder..fhe:ppl nari onprogrm rhu reque!,rh,,dri e fmm,he D BM \ . I n
o, rhe appliotion progrm follos alogiolacces parh.Nqr, rhe DBMS. wo*insin d
Juncron *rm wrous s/srem soitwde prognms, accesses. sorage device, such as d;L
tape, where rhe daia is srored. \ihn rhe DBMS goesto rhis siosge device ro reriae
dala, ii follows a paih lo rhe physiql locatio. (phlsi.al aces pathj whoe th. price of
oprio! isstored.In ihe prici.g er.ample. the DBMS mightgo toa disk drive toretrieve
pricedatafor six-cylinds engines.This relarionshipjs shownin Figure5.13.

@
LogicatandPhysical
Access
P.the

l'=,**r'
@ F r@
This sahe prcces is uedifa userwanrsto get infornation frcm rhe darabN. Fi6r.
userrequests the darafrom rhe DBMS. For*dple, auserinighr gile acomand, sud
LIST ALL OPT]ONS FOR \Y'HICH PRICE IS GRIATER TH,{N 2OODOLIARS, T
is rhe logic.l@e$path GAP). Then $e DBMS mighr go ro rhe optionsprice secror
disk ro get rhe infornation for rhe uer. This is rhe physical acce$ path (pAp).
\X4renuo or more peopleor progrrmr Jnmpr ro a!(e,. rhe *n re.ord in the
database arrhesme rime,rherecanbea problm.Ior eumple, an inrentoryconuolDro
m,s h ,r,rm p o reduel hei n\enrortereli o,rprodu., hi ,*
justshippedroa custdinq.Ai the sanetine, a purchasinsprcsrm -i "h;shrarremprm
b* .,* ,e" ,;i" inc
the inventory loel for the sme prcducr by 200 unirs beqm nore invenro.J, ya
 orqanziq l]3t;:nd I chipte 5
"r",..rm

, -. red. \0irhour properdarabar conrrol,oneof rheinvcnroryupdatesnay not bt .ordtlr

-,Je. resultingin an inaccurateinvenroryloel for the product.Cancurrencyconrol on concurrency
contror
., red to evoid rhis A m e t h o do i d e a tn g wi th : sl u a l i o n
FdtenrialpDblem. One .pproachis ro lock out all orh* appiication
: -:umsfron access to a recordifrhe recordk beingupdatedorused by anorherprognn- i n w h i c ht w o o r m o r epe o p l en e dto
a c c e s s t h es a m er e c or d n a
d a t a b a s e atth e s a h e l i m e .
r {aniput a t i nDga t aa n dG e n e r a tinRe
g p o r ts
::e a DBMS hasbeeninstalhd,ehployeesaid managescan useit ro gencrarcreporrsand
: :in inporunt inftrhation. Somedataboesuc Qrerr-b-trnn?h (QItE),vhi&ts
,- approch to developinedahhasequeriesor requesrs. ^i
l.ike Vtudows and orher GUI
:j*ing sFtens you can perfotmqueriesand other database trks by opering windows
: J icking on the dm or fearuresyou wanr GeeI igure5.14).

!rtd F !!{Id rt'd .i .!4

@
ri : 'l l . i : s o m ed a l a b a s e !ss e 0u e r y- b y-
I rr lit Q : s 3 7 I n Rrf,! . , - E x a m p t l Q B E l l og e ne fa ter e p o n s
4F tae$,'ts" I x i '" :- :;.

q g:a-l 6
@
@

:n orhercasa,databm comandscan be usedin a programminglanguage. For mple,

commandscan bc usedin sinple programsthat will accesor manipJate cenain
'BOL
: ::r ofdatain thedatabm. Herei anotherexanpleofa DBMS query:SELECT* IROM
: .lPLO1T.EWHEREJOB-CIISSIFICATION = "C2". The. tellsiheprogran ro ;nclude
- :,rlums from the EMPLOYEE able. In general,the.onnands thet ar ued m manip,
-.:: thedaab*e te prt ofthe datanmipulation langue (DML). Thisspecincbnsuase, dat. rnanipulation
language
- ided with rhe DBMS, .llom nanagersand othu databoeusento acces,modifr, md IDMLI
::.:: querlesaboutdatacontainedin the draba ro gedd*e reports.Again,rheapplicarion T h e c o m m a n d s l h aafe t u se d l o
. :ams go through s$schemar,shenas, and rh DBMS beforeacually gening ro the m a n p u t a l e t h ed a t ai n a d a ta b a s

--.:icallv sroreddataon adevicesuchc adisk.

:n rhe 1970s,D. D. Chambedainand other ar rhe IBM Research l.aboraroryin San
= Califomia, dftloped a srandrrdized data manipulrrion langrage called Stwttuted
.rt Langaage(SQL), prctoulccd like rhc woid r.4,./ or sinply spdlcd out as sQl, The
: .IILOYEE queryshowncarlieris wrirrcn in SQL. ln 1986,$e AmericanNationalSta!
: i.lnsriiure (ANSI)adoptedSQLr thc standardquerylarguagefor rclationaldatabaes.
::: ANSIi acceptance of SQL, inieresrin naling SQL an intesral part of relatioml
:::bses on both mainframeand peronal computer hc increased. SQL hr nanybuilt-in
-,ions, such as avmse (AVG), the largcstralue (MAx), the snallcr value(MI|O, and
-r'. Tablc 5.6 contanx eumples ofsOL commnds.
 Pmt2 | r r oiNr r u, TL. Loqy c . r ept .

@
Ex.mDtesofSQLCommands

SELECT CtientName, CtintNum. Thi scommand i s an ercmpl eolajoin

0 rd e rN !mFR 0MC Uent,0rderW HE R E comma0dthal combinsdaiafromtwo
Ctient.CtientNum=Order.CtientNum l abtes:
thecl enttabteandthe or der t abt e
IFR0MClient,Orded.Thecommaid
ffeats a newtablewiththe clienlname,
ctientnumber,andordernumberl5LECT
CLienlName, ClieniNum,0rderNuml-Both
tabLesindudethe ctientnumber,which
attowsthemlo bejoined.lhisis iidicaled
in lhe WHERE.la!se th.t slaiesthat the
ciientnumberintheclienttableis the same
lequaltolthectientnumbe.inthe order
tabLe{wHERECtient-CtlentNum=
Order.ClientNuml.

SQL lets prognnrncn lcaxr ore powerlirl query languagedd use it on sy$ds r.ngi.{
fn,n PCsto thc largcstmainlhme computen (se F;sure5.15). Progturmercand darabe
user also6 sQL valuablebeauseSQL srrtenenrscanbe embeddedinto mmy progrm.
ming hnguages,su.! x thc widc\ urd C++ and COBOL lansuages. Beork sQL us3
srand*dizedrnd simplificdproccdurcsfor retrioing, storing,and mnipulating daa in :
dalaba* systen,the popdar darabasc qucrylanguagecanbe easyto tndenmdand use.

@
Struclured0ueryLanguage
SQLh asb ecome annt egr atpar l ol
most relalionald:tabas packaqes,
as sh ownb ylh issc r eenlr om

One a datab* tas beenscr up ard ioadcdwith dara,it can prcdu.e desitd repo.r
documenr, and other outpurs G.e Figure 5.16). l heF ourpursusuilly appearin scrd
 nre.i7 i! D.ti ri.r inm,rLd, I ch.et.r 5

:.:'Jrvs or ha <opy prinrous. 'l he ourput-ontrol tianrrts ofa databasc

progrm al1ow
r ro selectthe raords and fields ro appcarin reporc. You ar.lso nrle calcuhtions
:.rincally for the repon by nanipulariDg darabascficlds. Fomrarinrg .onrols fd
:ruarionoptions (like reporrhcadnE hclp you rocustomizereponsmddeac flcible,
r.enicnr, ud powcrfulinfornarion hrndhrg tools.

@
j DatabaEe
0utput
J ep A d a l a b a s ea p p t i c a l ioonffe r s
sophrst.atd f o r m a ttn g a n d
o r g a n i z a l i oonp l i o n st o p r o d u ceth e
r i 9 h ti n i o r m a to n n l h e .i g h tfo r m :t.

\ drtabar prognn can prodrcea widevariewofdocuments,reporc.andotheroutputs

:.:;an helporgmizarions achlevetheirgoJs.The mosrconmon reponsselectandoganize
:- r rc prBenr summry infomation abontsone rsped of companroperadons.For exeh-
.:tcountingreponsoftensmnarirfinocialdatasuchd.unentandpai-duea.ounts.
.i 1 .ohpdies bde rheir rouritu opdating de.isiotuon resularst!tus ftports that show
: , rrogressofspecifLcorden towxrd.onpledon end deliverv.Incre$ind),,ompanies de
- e darabes to proride improve.l.utoher servre.
i reption, scheduled.
ad demrnd rcpons,fist discusedin Chdpterl. highlightevnts
: - re.tuireurgentndagenenr aftenion. Datrbaseprogrms .an producelirenllv hun-
: ..:sol documentsand tepons.A few eamples includethese:
' iorn lenen wnh addres labels
' rafroll checl$and repolrs

. irdcrs for roterials and rpplies

. \ r.riery offinalcial performancerepons

9a ta b a seAdmi ni s trati on
:u onedearlier,a database (DB A) isa hishly skilledsystensprofesional
adrninistLatoL
Jircctsor perfornsall acriviricsnece$aryro mi nt in a succeshndatabmeenvirornent.
. DBA'Sresponsibiliries irclude designing,implementing,and mainrainingthe database
.n rnd rhe DllMSr esrablishing policiesand pLocedures perrainingro rhe nanagement,
. :-:ry, maintenance, and Lueofthe database management srstem;and t.ainingemployees
' llrDase ano ue.
'nanagerreDr
1 DBA is expecrcdro havea cLearundesrandlngol the fundanennl busnresol the
-::niation, be prcfici.lr in rhc uk of sclccr.ddarabase managementslstems,ard stay
. -* of cmcrgingtedrnologicsand rw dcsigr approachcs.Typically, a DBA has a
- :-:e n cirhcrconputcr rcicnccor manxgcrncrinfornarion sysrems and somcoHhc-job
. rrng with a particulardatabascproduct or morc *rensive experience {irh a rangeof
 Pet s I nro.hd onrechioroqycomept5

The DBA work wirh ue6 io decide ihe correnr ofthe darabase m dercmine eecdr
w h ,' rn u ri e\areofi nrere$r nd w l -arr(ri burs de ro be ft.oded ,bourrho, een, i( ie,ThG
.
ir is imponmr for nonJSpesonnel ro ha\ soft ideaofwhar ihe DBAdoes and whv dlt
funcdon is importanr. The DBA an play a crucial role in the derelopment of eFecnrt
informarion s',sremsto bdelit rhe orgmizadon, irs oployees, and is mnagers.
The DBA alsoworks wirh progmmen o rheybuild applicationsm erourerhar rheir
proSrus conpl/ virh darabasemanagemenrsysremstandardsmd convenrions. Once d.
databue is built and openiing, rhe DBA moriros operadotr logs for securitj, violarioB
Darabe perfomane is rl$ rnonirored to emue that rhesrtremt resDomeiime meersNR
ned, .nd fieur operare,efi.ienr ly. tf rherei. a probhm. rhe DBi arrempnro cone,r r
beroren be.oms,sios.
Sone organizariotr have alsocreateda posirion calted the dzu adninnttator, t nomec!
nical, bur imporraDr rote thar effures thar d.ta is nanaged as an imponant olgmizatiorJ
dataadministrator tesource.The data adninistmtor is responsiblefor defining dd implementing corsisid
catposlionresponsibte
A nontechn principles for a wiry ofdan isues, including sening data standardr md daradefinitioE
ford efii n ga nd m plem ent ing
c on- rh{r apply acms rhe many darab.Je\ thar an organiarion nay have. For exanple, rhe d":
srslenlprinciplesIof a varielyot
administrarorwouldensurerharaietm suchs "cu$ome!,,isde6nedud ffeatedconsistei;
i n J l .o ,pomtedrsbJl 6. Thi , per$n J\o w o* . w i rh bu< i nesrutuqer( ro iden, i6 sbo
shouldhi,e rerd sd/o, upd,,e a<e.. ro cerain daraba6 rd ro rtc;d {lnbu$ q,du
dose databaes. This info.marion is then communicared to the darabae adrninisrrator Ic
inplemenration. The data adninisnator an be a high,t*et position reporting ro rop 1o-J

P o p ul a r Da ta b a se
M a n a g e m e Syste
nt ms
The latest genenrion of darabde management s/stems maks h posible for end s6 a
build thei. own datab,.seappiicarions. End 6eis {e usinq these rools to eddresseven&
p ro b l e n s.,u.h ho$ ro marugea mouri ng pi Jeoi i ntor;,ri on on emptolf e, cu,
. r ot r n
inventory, or sales.^
Thexe darab*e nanagenent sprens are an inportant personatpodur-
dviry tool, along wirh word procesing, spreadsheet,md graphiq sofiware.
A ke)-ro making DBMSSmore Nble for sone dar.bses is rhe incorporarion of..wizr&.
rharwalkyourhough how ro bdldcusromiud darabdes,nodi& redv-to_ru aeDlicadon!
ue et;.ung rcord remplare,.rd qui.lJy lo-re rhe dar you wr. t t *.
"ppt;.,,io* "C
i n d u d ep @erful neq re{ ure, s.h o hel ps1rem.ud \qfb_publ i .hi ng; pabijir ie.t .q
dmple, ue6 cd crearea conplere inventory slsrem dd then instandy posr ir to rhe \Cei.
u h e e i t d oe.doubl edurys s eh.roni . oral ogu.$me of rhemorepoput r rO gVr . r c
e a d s e n incl udeV i .160F\ A (t' $ Jnd C oret\ t,d,^. ne ,omphi e a" ,a Sr , em oae+
mrn t.o fs a re r{ ke, en.ompse,.ofs,re u,edby p,oG$i onJprcg,rmmeb, ndf idr r B
on nidrdge, hainfrane, md supercompurqs. The eftire ndket gene.ares$10 billion pc
yearin rwenue, including IBM, Oracle,and Microsofr.Afthoush Microsfi rulesin dE
d e .h o p PC .ol urre merke' .i 6 .hJreofdrubae { tr$.e on bi gge,." mpure, , i. . t ut .
Like orhersofrwareprod,ras, rhereare a numberofopen-murcedatabase svstems.ir,
L l u d i n gro,rB re\Ql Jnd MvsQl . b V ysQL L Lhe p.p,t,, opensu , r dd. b&
nuagenenr sysrem 6ed by rravel agencie, ndlfacruring --' conpmies, md orher comp-
nies.''/The us of MI SQL ha in.resed by hore rhan30 pscent in sme 1,e{s,omp,!
wirh a 6 percenrgowrh for orherpopulardaiabarepackases.'B Ac@rdingto Ch.res can ,i
lhe Metacroup, "I get callsnow fron customen,not tad<ing,lShouldr useanopen-se-
databae?'burinsteedir's,'ShouldI ue PGrgftSQL orMySeL?,,,'ernaddirion, mmy r:
d i ri o n :1d :r aba,e
progkn, arenos on ,,pen_,our.
e opeari ng,1ren\ Thepopulz
^r,trbl e
DB2 relarionaldatabs from IBM, for eknple, is availableon rhc Linux openring s}
teh.r The Sybde IQ darabaseis also avthble on rh. Lnu openting sysrem.,, S&H Co I
which offen S&H Greenpointsro rewd loyal retailcusromen,is consideringrhe ur d I
s ) b s l Q i unn,nson rheI i nu opeE ri ng.nremr ' w < fnd Li nur ro bever y.o< elle.r r <
and powerfd I;r whar we hn! to do. k s rhe besr se of Gnancialresourcesro eo wi$ a! {
o p e n -o u n epi rrform. .ay, Fmnl Lundr d4,bMdi re.r,,, tor\& H ( o.

d
 0,qan:rq D ataai 3 rr.fmi .f

S pec ia[ -P u r p oDs a

e t a b a sSe y s t e m s
: rddition to thc populardanbasemalagnent systensjst dis.s*d, rhse arc a number
:,pccialird darabasc packages usedlbrspecificpurposesor ib specificindusrries.Sunna-
n end Concordance, for exmple. is a special-purpordahbae sysremusedin la{ finns
orgarizelegaldocuments.| CaseMaporgani^ nrformadonaboura cdse,dd LiveNole
.
-scdro displayand anallzr rLanscriprs.Thcscdarabascshelplaw firns developand oecuc
: nd lirisarionsrraresies.'1lrSonish lntclligenccDarabase(slD) is usedby the sconish
rrg tinlbrcementAgencyto sharecrinc reportsard up to dateinfornation about crime
--J crininals.zaAccotding b Deteclivesuperinrcndenrrai Mccandish, "s]D will allow
-j<rs accs to dm frcm the Sherlands !o GrcnraGreen.Criminalsmay rravclrhc lengd
:J brcadthofscodand,bur ifwe hold lhe irlellisenceonrhem irwill be availableto froni
:. otlicetsirtespective
ofwhercrhel are.'GlobalSpecisa specialized darabascfor enginees
-J product designer that containsmore than 15 nillion pars from abour 9,500 pars
::,1ogues.':5 ArchirecrsWinberly, Ailison, Gong & coo usca specialpupose detabasrto
, ? rnd ndipulatr threedihensb.al dnw;ngs.:6I.P. Morgan Chase& Co. uscsan
- memory"database to speedrade ordea fron pensionfunds,hedsetunds,and various
.:irurioml invcstors.)"ln menory darabases usee conputers nenory in$ad ofa hafd
: ,i to sorc and manipulateinportant drta. The databdecan proces hore than 100,000

3e te cti n ga D atabas eManageme nSt y s t e m

:. database adninhtrator ofrensclccmthe bestdatabasenamgement systenfor an orgr-
:: rior. 'l heprocess
bcgnrsby anJizing databrseneedsandchdacirhtics.The infornattun
.:J, ofrhc orsarizarionalkct rhe rype of drta rhat is colle.tedand the tvpe ofddabar
:.r$mcnr qrsem lhrt is used.Inportanr chrracteristi.sofdrtab*es in.lude rhe s;e of
:: l*abase, runber ofconcurrenrusers,perfornance,rhe abilitv ofrhe DBMS b b in'
:::ted rvith othersystens,the feamrs of rle DBMS, vendorconsiderations, and rhc cosr

:.:tabase Size
::rbrscsizedependson thc numbcrof rccordsor filcsin rhcdarabrsc.The sizedetermines
-. rrcral] sroragerequiremenrfo! $e darabasc.Mosr danbasenanagcmcnrsysremscan
': Jl. relativelysmalldatabuesof les than 100 million bytes;fcwercar muage terabye

Todav,companiesaretrinming the sir oftheir databases

to maintaingoodpcformarce
:: =ducecoss.:iAccordingto a projecttumasd at KenbaneEl,"Ou. overweishrd abse
r ronrhs awayfrom cruhingdue ro aceedingour producriond;k{pace capaciry."'lhe
::rany wo able to saveabout $700,000 in additionalhardwarernd sroragecos$ bv
: : d ing ns database.
ti m ber of Concu rre n t U s e rg
. nunbcr ofsimulrancousus.s rhar can acce$ rhe contentsof rhe drrabxe is alsoan
. r {unrfacror. Clearly,adatabase that isued by r lrrgeworkgroupnust beabletosuppon
. -,rber ofconcurent usersr ifit conot, thenthe efficienq'ofthe nenbes will belowe.ed.
' . ern mkb itl ts sonetines Bed ro dsd;b how well a dakba* perforhs as lhe s;f,
:-: danboe or the nunber ofconcurienr usereis ircreased.A higbiy scalablcdatabasc
. .rgcmenrrrrem is desirable ro providefl*ibiliry. Unfbrrunately,manyconpaniesnake
. : rr DIIMS choicein rhis Legardmd rhen larerue forcedro coren to a new DBMS
. .r rheoriginaldoesnor meeterpecrariors.

- .. tar rhe databaseis able to upd*e rccrtL cm be L\e nost ihpoitanr pdfofmance
' :.::on tir sone orgaoizarioos. C'edn ca'd a"d a;li.e companies, for exahple,musrhave
:rrse svsrems rhat can updarecusro-e' reco'dsa.d checkcredirof hak a plaDereseF
:r l in seconds, notminutes.Orh er applications, suchu pal'roll,canbedoDeoDceaweek
..r fiequendyand do notequire umediate processing- Ifan applicationdemandsim'
-: . : + , nalodt no&ta p i d re u ,re ry i a c i l i ti e s i n th eeventthatthecomputersystemshuts
 Put s I , iirmr l ie:hmL,.qr:rrf,,r!

down temporarily.Orher performanceconsiderarions includc Lhenumbd of con.j

use6thara! besupportedandtheamounrofrnehon,rhdtisrequiredro execure dredrr;:
nandgemerrprogran. Onedadbascwasablc ro processI,I84,893 rransaclions per mi.!
on lkngr. reds a newwo.ld re.ord for spced.,'orsaniatnrns often undergop-4,,r,_
tzz:aj to ircremedatab*r specdard srongeefficiercy.pefo,man* ning i.;olves
,d i L . ,i ( nr.,, rl . d,r. l -.,.c, errh" r.e ov.r. r perton" r.c. -aL:{

A d ala ba sem af agm enls y s t em

u se dby on tn e s t of esm us t be abt e
to sup po ftatar genum ber of
co ncur nrus e6 by quic k ly
checkrnga customers fid t card
a no Pro ce ssn q h s or her or deriof Il| I I T NY

0ut400rr00ms

D-*................. _,t...._l:::::;
.. ....... .....,.....,
..........

Integration
A kcy asper ofany database nxnagementsi,srcmis irs abiliq-ro be inregntd{irb :
dppiicarionsand ddtabas.s. A key dererninant hcre is whar operatingsysrcnsir cr
under-su.h asLinu, UNIX, or yrindows. Some.ohpaniesLsescvehtdarabds
ii,l
fereDtapplicarionsardiffcrenrlocations.
A manufacturingcomp.nywith lour ptanrsir
dillerent statesmighr havcd separdedarabesear crch t*,i",. i.t .t;ti,y.r" a",
progran o impot dam from ard expon detato orhe. darabases "
and appliotions cr r
criricrl consideratioD.
Featureg
T h e ;Jrure,, l c drr\r.e n" ,,rg.ne,.,,1,r.n c, r,t.o n,t., bi g Jr t ier cn, . . , . r
d p ui rm. .omr w i ,\ ,e. I i r) o,oL.du,s. nro,r.Lon. rnd J vr f l) ". . . .
' r-h 6 c tri \:q
Orhd fearuresGn i'clude dte .de oi ofrh. darab*; p".k"s. th.
".e
narNalsanddoonoftion to help the organizationgct the mcr fron"n,l "u"ll,bit_
rhe<latab* pa;.:
Addirional
feantres
suchasw;jrds andrc;dv-ro-use
rmpjaresheipimproverhee$e.:
Becaucofthe prcsurero reduccIS budsctsandrhe .r."p"**.a a,t,l*
"*.ity
hrnrrrators,oaniariols aredcmandirsd{abascsotivrrc tha!coneswirh feru,-_
sinpli& danbaseharasehenr rdLs.
TheVendor
Thc size,reputation,andfinancial$abiliry ofrhe vendorshouldalsobeconsideied
in
J " ' rbre pL,.hx.. \o,nc \,1dor .e re.| f..c.t n ,he t\ i ao r.rD , nd t , r\.
'n) " ,.
.u /p v ,r !.I ro6 \ e r.. rn" rce.i l 1..e" J) {sc rr.bti .t-eu,Idfi r,r.i al t ) . _. ur cdr
companyis nore likciy than othersro rcmaintn busincss.
Cost
Darabase packages fi,r pcrsonatonpurers cancosta few hundieddollar, burlarsedri:
\.' e n . fo mdn' ,me.o,npr er.,,r.or hundred.,.r,,oL.rnd,o, d,, rF I n : Jd j
L
the initial cosrofthe datrbasepackage, monthlyoperarinscossshouldbe considered. I
 oranznq D araand i rofmaton

lrrabde companiesrenr or lede rheir darabse software.Monrhly rental or lede csrs, nain-
:.mnce cosrs.addirionalhardwft and softwarecosrs,and Dcsonnelcostscanbesubsrdtidl.

U s ingDat a b a s ewsi t h o t h e rS o ftwa r e

Datab*e manasemenrrysrcm &e often used in conjunction with other sofrwarepackages
rr rhc lnterner.A d.rabse mdagement s)sremen acr s a ftont-end applicrrion o. a
n.k end applicadon. At,,rend dp?hatio, is one that diredly ;nreracrswith people or
r;en. Marketingresea.hersoften usea darabseasa fronr,endro a staiisticalana$is pro-
. , m . lhe r c . c u" h e r,e n re ,rl -ere ' u h ,o f m rl c r q u< ,r' o.n" i rc.or.uruer' r.(o J dJubae.
. hc darais rhen trdsfered rc a sadsrical ,nalysis pros.am ro dercrmine the porenrial for a
r.w producr or rhe effecdvenes of an advenising cmp li]n. A bd.I,ek.l dpplicanonintercts
:rh other prog.os or applications; it only indirecdyinreractswith peopleor uses.Wlen
r.ople reqre$ informarionfrom aWeb siteon the lnremer,rheWeb sitean inreracrwith
: Jrabdse Ghebacknd) rhar suppliesthe dstd informrion. For *ample, you cu connect
: a u ers;ty \reb sne ro find out whether rhe univcsiq,\ library ha a book you want to
':rd. The \reb sire rhcn iniencts whh a d.tabase rhar conttns a etalosue ofiibhrr books
.rd anicles ro dereflnine whetho rhe book you want is availahle.

DATABASE
APPLICATIONS
.r1ay,there is a shi6 fron simply accessingrhe &ta conrained in a databue ro muaging
tuanipulad.srhe conrenrofa dehhde to produccNeful inforhd;on. Comnon na-
-l
- :ulrtbns ar searching,fihering, synthesizing, ad rsimilating the daraconrainedin a
::::baseusingr nunbcr ofdatahar appli@rions. Thcseappli.atbnsallow uses to link the
rprn)' darabses ro rhe Internd, ser up dara wrchouses and hafts, use darabces for
--rregh busines intelligenc, pl,c dara differcnrlocarions,useonline prccesing dd
r.n connecriviry sranddds for increasedproducriviry, develop daBbasswirh rhe obtcr,
::uted rpproach,and se*ch for and useunsrrucrureddatasuchas smphia, audn, and

- ink ingt he C o m p a nD
y a t a b a steo th In te r n e t
ijrone6, supplics, dd conpany employecsnut be able t{, acce$@lporatedetab{es
--rugh the Internet,intrmets, md utnners to ncct vaious buinessneeds.For emple,
::: rer custonersneedto acessthe corponrc produc drtabse ro obdtr prcdrct infdr
-::io!, includingsize,color,qTe, and prie dettls. Suppl;e6ue rhelnrernetdd corpoore
i.::dcrs io viN inventorydarabmesro chcck the levelsofEw marerialsand the cuftenr
: Jucrionschcduleto dee.hinwher and how nu.h ofthd. produc$ nusr be delivered
rppon jlsi in-tine invenrorymanagcment. Conpny employees needro beablero ac@s
: rorare databacs ro support decis;onmakins rycn when they re locared In su.h
..j. rhey nay use laprop computers and accessrhe dan via the Inrernet 'enoreb.
and compmy
. an{. Readthe "Infornarion Sysrems @wo*" box to seehow one cfuiseline hs helpcd
, :nployees:ccess and useirs dara.
Web-Based
DBMsEmpowers
CruiseLinePe6onnel becme Lessdepndenton the lS staff by lrainingon the .r
In these days of vatLrnri\en,performance-based info.mation system.Wth i henewsystem,shecan log onto a Webslle to ac(:
systems,manybusinesses are turnlngto new databaet6hnG repodsin whateverfonnai she wEnts-Excetspreadshet. Wra
togisto streamlineoper.tionsand savemoney.RecentMNotiand document, of po.tabtdocumentfLe{PDFI."ltsvryhandy ?
AmedcaCruiseUnestradedlts otd,comptexmainlEmedatabase driildo n niocomptete detailsotthe booking
bytra!tagency .-r
system-0nethatontyacomputerprogrammef coutdunderstand-
for a ne,{ system with r+rich ord nary emptoyescouLdinteract The companyis timited howeve.,becauseol the sizeoarE
direclly. existingmainirameDB1\,4S. lt ptansto toadthe infomationin! !
Thegoatoftheu pqrade\a:sto increas rsnuesby$1mittron strmLineddatawarchouse,where it can be accessednF
ainuatLyby speedinginlomation to empLoyes ior more efficient quicktySpedandaccssibitty ol information acc5s. afts atl +
sales,ma eting,and revenue management. Pnorto the upgmde theattrlbu,tes
thatwilt ncreaseproductiv ty and re@nuesThed
databaseprogEmmersand tech staftwouLdprepa.eand distri vaLueof the newsjEtemat Hollan d America,"Bitt Hostman..rr
buteweektyreports to addressother emptoyesad hoc inqui.is anatystat GartrerInc, s.ys, is how it rok6 rt easierto der-*r
andwouLdgensd,e .cqedrledrepods o assessLhcompdnys anddEtribulebusiness management information to mo.eus-:.
rer'enLednd '!e lvy, r' coding ro P--l G"igsbyse^iorrernue a timetyfashionaroundthe wortd than@e. beforeand ths-
managerat HollandAmerica.The new reportingsystem,caled more tuttytevrageexistinglTinvestments.
WebFocus, connectsto lhe samemainframedahbaseasthe oLd
DBMSbutproviiesmorepo rtu IanaLysis, queryinq,andreporting Discussion0uestion5
toots ihat are accessed throuqh an ntuitive Web based user I H@ dF\'6e new epon^q sysLem at loli.rd Aman.: r.
empowerrevenu management perconnet?
FufitljngdenrandlEportrequestspra/iousty look upto twodays, 2. Ho / does ihe new system attow the lS staff to Mrk r.:a
butwith the nse slstem the lS stafi can fine llne requstsandgive
reportsto end usersaLmostimmediately. Wth a bit of t|ahing,
some end a. interactrngwith the sistem d retlyto creie Criticl Thinking0uestions
'rse.s
lherr ctrln reports. Thosewho work with the d.ta most, sLrchas
fevnuemanagenEnipfsonneLbeganusingthe syste\nfitst. The 3. Thechangein inlormation accessat HoltandAmedcaL,-EE
newsystemhaditsskeptics at thebeginnng,s3's Gngsby. We are ind[tsiiveof a genet trend n many industres:N.. 5
yietdmanagers,not computerprogEmmers,and I was frankty emptoyees are asunring traditronallS staffrcsponsbt:{s
slspiciousaboutputtingthe repodingfunctionin our hands,'he Doyouthinkthatthistrende\ot\dpuretyolt oteffonstc ::
explains.Howevr, afierilaininqanda qoodtyamount oftnatand moreybyreducinglSsiatr,orare theresubstantial benef-:a
error, we beqanto seeth re4rds of empoweringthe end usels. bdnginglS po\arto thepeopLe? WhatmLght thosebenefirs lea
Afterrunningaqueryandproducirua repod,emptoyees canatter 4. ls ll rca[stic to expectnontechnicalemptoyees lo acclf!
the vie,rof the databy resortinglt or invoducingnew fietdsinto higher-le!ltechnicatskills, Wll the nonlechnical st.; !!
the inqulry-without fonnatt rcquesting witUngandabtetoasslmethetask?
a nw repo.tfrcm the lS
deparlment.Grigsbysays, lt maks both my time and the
informar:onsFtemsdepan'nenl s memoc pflicpnl sOURCEs, Ma.kLSanqni,"CruiseLineChanqesAlTack, eo-purtu{.
Ocroh.t 6,2043, M.cohpdetudl.doE InlormanonBuildeis W.L i-
TeresaTennantrsthe managerofonlne communications lor M. inla natb nbuilde.s.con, a..esed Mar.h 5. 2004: HoltandArnenG
the shoreexc'rrclon depaftment at HoilandAmrca.Sheptansto Web site, wwhoLbndn*e.@r, aae*ed March 5, 2001.
 tD anT n! D * aai d i r c fm i l oi

Developingaseamles integrarionofrrudirionaldatabseswith the Inerner is ofrencalled

. tantic web.3\iAcarding ro Tim Berner-t.ee, crearorof rhe world Y/ide web (\v\{/\O,
. xeSenanticV/eb isabourlakins rhe .elarionaldarab*eandwebbingit. A senmric Veb
- r* peoplero accs aod manipulatca numberoftradirional databad ar rhe sane dnc
::ough the Internet.Mmy softwarevendorFincluding IBM, Oncle, Microsoft,Macro
Inline In!e..et Sptems, and NetscapeComuni.ations-re incorporutingrhc
-:Ji!,
:::rbility ofthe Internetinlo rhen prcducts.Suchdatabdesallow companiesro crearean
lrner-acce$ibleqialogue,which is nothing nore than e datehase ofhems, descriprions,
;] prices.Simplesr-Shop, for *mple, usesrhe web to sellcohpact discson rhc lnrer
-:: I The compmy ollersa weafthofinfornarion on eachcompacidisc.includinsproduc!
: :.ws.The Web site nakes it appearo though the conpany hd a largenmber of eh-
: **, but the Internu hu allowedone pe6on, Calin Uioreanufron Ronania, to serup
': sneasa sidebusiness.He is a full-rimesoftwareengineer.AutoTradeCenter,Ioc., ho
;ed irs lreb sireto u Orrcle darabase.'The dihbase supponsabour24,000 frunchise
::.lershipsand 80.000independentdealenhips.The database helpsAuroliadecenrer cus
irs. includingHonda, DainlerChrysler,Volkswagen,Subru, anong orher.
In additionto the Internet.organizarionsaregaining @es to databuesrhroughnevorls
:r goodpricesmd reliableseNice.CarholicHeahh,for exanpl,hs developed a network
rik,w physicids to accss patinrinlb.mation from lemotelocations.riPery Manuhc'
-:Lngid Nonh Carolinausesa networkto allow its mdages ro havcaccesto *mail a.d
rer inlornation storedon irs darabase. Cornecting darabases ro corponte Web sitesand
:.:vorks can leadto porenrialproblens, however.One darabseeryen belides rhar up ro
. percenrofveb siresrharonnecr to orporate darabsesa.eslsceptibleto hackeEmkins
rplete connol ofthe database.ra By q'ping cerraincharacresin. forn on someWeb sites,
: -rker is ableto issueSQL cohma.& ro @nr.ol rhe corporaredarabase.

0 at aWar eh o u s e o
s ,a t aM a r t s ,a ndDa taM in in g
r: raw daia ne.essaryto hake soundbuine$ decisionsis sroredin a vdierv of lo.ations
rirmals. This data is innially eprured, srored,and namged by transactionprocesing
-.,1
rremsthat are designedto suppoft the day-to-dayopcrariom of the orgmization. For
,:!des. organizations havecollecredoperarional,sales,and financialdatawirh their online
:;ruaion procssing (OL'fP) s)s!ens. lhe daracan be uscdto supporrdecisionmaking
e J r D qr r . h. r .... J ,tu mrn .. rn d d ,rr mrr n s.
JataWarehouses
. datawehouse is a databaethat holds business;nformationfron many sourcesin rhe
:-rrprise. coverlngall aspectsof the co-pany's p.oceses,products,and customer. The A d a t a b a s et h a t c o l t cl sb u s n e ss
:,:: r'atehouseprovidesbus;ness ue6 wirh. muhidimensionalriew of rhc datathey need l n l o r m a to n f r o m m a nyso u r ce si
the enterp.ise,covefingatl aspects
rnal)z bsiness conditions. Data varehouses allow managersto .hU dour ro get note
ot the company'sprocessesprod-
::ril or rol z7 to rake dctailcd data and generateaggregle or srnnary repora. A data
::e|ouseis designedspecificJlyto supportnanagenentdecisionmaking,nor ro ner rhc
.::Js oftnnsacrior processing systems.Ace HardwareCoryorarion,for exmpl, usesa dara
:ehouseto analp pricingrrends.35 Accordingto the conpany'sdan waehousedesigner,
r e had one srorcrharonly soldone wheelbuow a year,hutwhen he loweredrhe price,he
. J lour in one monih." The price reductn,n was suggesEdby rhe dara warehouse.Officc
. :rot dcvclopeda powerfuldna wrehous t, give employees betrerinformationon em-
: and storeperfornuce. According ro a conpany spokesperson, "Somerirnesdara
-ee
::ehousingcan bc ignoredby the storesunlessit provid* dired hsri.s on how rh srore
:erforming."r6A datawrehoue sroreshisroicaldatathar hu beenextracredfron opcr
nnal systensadd qrer.al darasoucs Geelisurc 5.17). lhis operarionaland exremal
:r.r is cleanedup" to removeinconsistencies xnd inlcgratedto ccatc a ncw infornation
:r.ibue thar is moresuirablefor busincs analysis.
Datawuehousesrypicallystan our asvery largedrtrbases,containingmillionsand even
ridre& of m;llionsofdam records.As this datais collcctcdfron thc variousoroduction
,rms, a h;sror;el databse is built rhar busincs analysrscan use.To keep it freshand
:-:urare,the darawarehoue receives Legularupdarcs.Old data thar is no longerneededis
 PNt s I r{hnotycotepls
rnrormalioi

@
Elementsol a DataWaahou5e gug
gug
ee+
9........_9...._..._
UU
+*'".",.Q9

purged fton the data warehoue. Updating the &a Mrehouse musr be fmr, elTicieq.,adi
autonated. or ihe ultimat value of the &ta wuehouse is sacified. Ir is omon for a dza
@rehouse to onttn from 3 to10 yers of orrent and historical dara. D,ra-deaing tool
cm nerge data fton muy soure into one database. automate data ollection ut
verifietion, delete unwanied data, and mdntain data in a daab*e management ststea
Data warehoss en dso se: dara from uoique sources.orade's Varehouse Managemer
software, for umple, o a@pt inform*ion fion mdio-ftequency identifiedon (RFIDI
rechnologi, which is beiry used to tag prcducr as they are shipped or moved ftom oc
locationro another.r'/

t Etev.,e convenienceretaiLchain
withmorethan25,000sto.eswo.td-
wide,used0r.ctes E-Business
Suitelo consotidatehu.dredsof if
divdualbusnesssyslemsintoan
integraledsystemlhalenabtes the
business to trackpurchaslng,
as-
sets,costs,andpayrott.
@TomWasner/c0RBls
{Source:
5ABA.J
 Suppo.ltransactionprocessing S!pportdecison s!pport

B u sn e s stra n s a c t i ons M!l ti ptefi tesdatabasesdata

nternalanderte.nal tothef rm

: 3t a a cce s s illowed
us er g Readairdwfite
: 'ma ry d a l aac c es m
s ode Sl m p l ed a ta b a suep date
ard query S i mpteai d compl erdatabase queres
w i h i ncfeasi ng
useof datarni nl n!to
recognze pntlerns n the data
r 'ma .y d a ta basm
e odetem p to y e d Retaiional

D ta i tetfa
d n s a cot o s Oftensummafzeddata
1;a tabLityof historicatdata Very!imil6d-typicalLy
a few weeks
or monlh5

o n L i n eo,i q o n 9 p fo cess
astrans- P eri odiprocess
c oncepefw eek

Roulinandeasy C ompl ex,

musicombne dal ahom
manyso!.cesidatarnustgo
througha datacl eanup
prccess

E a c hn dv i d u atra
t n sacti on
must Majo.-orfo.tto "ctear" andrntegfate
dE tai fom hutt !te sources
 Pde I nl. , n3r . f r . . ht t ' q! . . iFPr s

rhroushout the woild as well as our xnalvsts pie@ of inforntdoc !

"
d e ' e ,i o e d D rru mi n:rs h+ ,ro beenued i r' r. ai rl ne pr-enger prol l l : ng \ r ( r '<1
b l o i . r' pecred,e,ui ... rronrfl .i rg and ' re l otr I l l ormdr;on A qre r '* r : er -
'o rt I
.rhich attemprsto detectpanernsofteroris acrivirv Orgadzatio"sre alsoinvrstin:
svstemsfor ,laranining to meet new gove.nment'egularions, as the "Ethical ard Soc;a
ksues"featurediscusses.
I
Data ninins s obicdveis ro enract patterns,trends,and rulesfrom datawarehousc
which in tum will imprcve a'r-
e'aluate(i.e.,predictor score)proposedbusinesstmtegies,
peririvene$,improve profit,, t.,".6.^ bsift$ Prce$es. l: *:d
"ndretentiori cross4ellingopportuntttesi " canpan :Y11._' nanl-
markerineto improvecustomer
pricingmalysis;and customersegnentadon malvsis (espec:h
t,.t'"""a,
-""c -it narketing) ".a
one-to-one In shorr,daa-nining toolshelp end user find arswen to quer::r
rheyn*er eventhoughtto ask
+
E conmerce Presensanorhermajor opponuniry for dfective ue ofdata mining
be next to inpossible ia
$actinecustonersto onlineWeb sitesis toughrkeepingthen cao
exanpl, when onLineretail\reb siteslaunchdeep-discount salo' thev ennot emilv rg--
|:E
out how mdy tu${ime custonere are likely ro come back and buv again Nor do the\
awayofundeistmdingwhichcustomecrcquireddurinsthe Mleare price rsitive and
thr'-:r9
ljkelv ro iunp on futuie sates.As a rsult, comPaniesaresatherins daraon userrrafiic
nining rechniqus r'
rhei; \r;b lires inrc databd* This datais rhen analvzedusins data
personalize the Veb sitc and developsalespronotiors tugeted at specific customes
Predictive malvsis is a fotn of data nining that ombines hislorial data wirh &$r$
d
Alofm ofd atamin ng t hat c om bins rios abourtuture condirionsto predictoutcomesof wents suchasfuiure Producis'l'
predicdve analr:: I
h isto ricadt ataw r t has s um Pnons rhe Drobabilirythat a cu$omer will defaulton a lom Reraildsuse
a bo utf utu recon dltonst o Pr edic t .*i",1" into frequent putchasersbv predicting what prodtca tho
'lll
o !tco mesof ve nlss uc has lut Lr e "r,t -ers incntive. Genalytics'Magni!' NCR Toadata,
S.!;r.r-"a -..s;.*t 'sAs Inst-e'
pro du ctsa tesor ih pr obabr lit y t f r at
a custome rwltldef a! t ton a loan rish$,rd, \t):"" "pp-p.i"c .* t'"* a*.
,"a O-a edicr
P i' e
'rJv'i'
ruol tredi'iv(rr"
"p(d
'i*,'..-t.""a."",lyzer.ompanl'.
rrone l:'rand"re' '"orho 'Je d I
find new narket segnens that could be pnrfitable.

FaL lofds,a U K r et alt efof c ar par ls ,

b ike s,an dacce s s o. iesus edSPSss
Cle men tinea pr edc liv eanat y s r s 0&' o.gg/d t,*
da ta mln n gto ot lo dnt t Yt he
mostp rofta btes les t o bu t d new
sto fesa s pa ft or t s ex pans r on
 3rowingCostof Data-Retated
Regutations HIPAA.ausedheaLthand medcat org:nizatonsto sc.ambteto
ri 1 : : I qovemmeni regLrLations arefo.cingmanybusnessesto sec!.e medicaL recofdsn pfivatedatabase systems
r: :heI data database systms, andstoragetechnoLogres Mo.e .ecentty, the Food a nd DturgAdm nistct on ssueda fLrtng
{
.' -:1 agncies suchas the ite.nat Revenue thai .eqlifes phamaceuticai companies to appty bar codesio
Serycehave
_::r.ed thou$ndsoJprescdpton.ndover the-counterdrugsdspensed n
' r aboultheacc!r:cyandsecLrrty otrecofdssto.age
hospltats. The FDA beteves the move wtt save lNes by fedlclng
, -: rvenlon of the compute. Recently,the molnung
medicalerofs butestmatedrh3titwoutdh t thenations 6.0!! ptus
rx" -: :' varynggovrnmenl agencesnaveoeenlransrofmed
hospltatswth a $7 bitlon technotogy btt fof batrcode.eaders,
'd i ,. : r lr s lhals r ec o s ti n g b !s i n e s s e s b i g b rc k s i oi mptement.
: .!.ke of co.porctescindatsand in an effortto make databases and m3 nagement loats.
Info.mation systemcomp;nesare desgnlngsystemsio hetp
' -: !rokersanddeatercacco!ntabte fo.thei.pEcticesthe
.: :"c Exchange CommlssonlSEClslppo.ted passage ot businesses and organzations comptywth the many new taws
and rcgltaiions. IBM recntty unvetedan nteg.atedsyslemto
.::_:s-OxteyActof 2002.Amongthe acts rnanyprovrsrons
hetp userc preserve electroilc documentsfof fegulatonsslclr
':-':nent for b.oke.sand deatersto tog and recofdatt
- : ::mmun catons.slch ase ma L,lsing wrte once,read as the Safbanes OxtE Act and H PM The system.cattedIBM
.\ b M. 6. Ln o, ogv AO DV r . r oogr e. 5. e. . - r r Toiatsto.age DataRelenton450,combinesse.ve.,stofaqeand
' : : r nnot bet am p e .e d w th .te . softwa.ecomponenlsif a seclfe cabnet.At a.osi startng at
'! r:C .equlatory.eqli.ements competLed Jay Cohen $141,600fof a3.5TB confgLrrati on,systemssuchast hsar ecost t y
b.r' e.e.," \ ro,omo1 qo q " nl ' " g' Ld 04.
c : : rmptaflceofficerat TheI4onyGroLrpto rnstattan EIrlC ^i i h
= ::.age seruefslstem and datab.seapplicatancalted Wth budqets a constanl worry, financaLand medcat
'i :nart and nstant l,4essagifgl,lanagementSotution ofqanizaionsare complalnng that regutatonshouldbe backed
p. ans . I A ihe o. b - wiih financiat assstanceto hetpthemcomplywiththe reglrtatorc
" L Lo. en e a.
n the meantime the costs fo. e-mait a.chving.prescrpton
trr :- rhesatesfo.ce. eitherncomingo.outgolng, goes nto
... a - :t d , h\ " . ) 5 e he . , , r "t r p- - a. " - . j br codereaders andcomptexandexpensvesystem st hat suppod
seclrreand pdvalerecordkeepi.gw tt mostt ketybepassedatanq
! : : : _ : r m m lnc ail o n a s a re c o fd w th a u n i q u e l d entfi ern:
n n q l e fl e s o n th e e ' mai tdata to clrstomers
i l i .: : : nr ns lr at or s c a n i h eru
in theformof h qherp.ices
:- : :-tuelltance, seclrity,andaldtt.aits
! - : - : R, t heUS A Pa tri o tAc t,h a s p ta c e d a s i g n fi cantbLrrdn Crilicat Thinking0uestions
"d' : ;erucellrms.Theyafe nowresponsibte lo. monto. ng 1. W hy has i he govefnmentsl eppedup effo.tsto .e gut aie
I : :-:-s to ensurethat theyare not Lalndering moneyfo. recofdkeepnq n f nancal andnredcal i ndustres?
2. W th many medi calorqanl zat ons atreadyst.appedf ol
cash especal Lyhaspi tatsl s i l fa r for the gove.flm ent to
fofc i hem to compl yw th expensl ve new .eg!tat ons?
i"r, :: :erucesnsttul onshaveatsoreactedtothethrcaiof W hoshol rLd beari he f nancl atb!rdenof secureand pr i
.:. : ::(! by investnqheavly in lndest.uctbte dataware vaterecD .dkeepng?
!: :-:!ter nento.ks,and ha.dwa.e.edlndancy, andthy
= : :aed aLtpape. recordsto etectrcnicafchves.The
WhalWoutdYouDo?
,: : :stmales that by 2007ihe globallnanciatseNrces
r -.ve spent$523bittionof ope.aiionai.esilency As Clo olthe PnmeMa*et FinafceCom yoLrafe.esponsibie lo.
,r,: :lGdesford sasterrecovery, businesscontinuity,and comptying wth new taws that feqlireyou to permanenllystore att
etect.onlc comm!nicat ons. P.ime Market empLoyees clrrentty
-' ::- ..en 2003and 2007To\4ercfoup pfedictsthat U.S
::i'.: : rae wLl spend$l I b ttor'r,or 4 4 percentof their sndand recev200,000 e'mait meEsages pe. day Onethfdof
: :,dgets, n rcsponse to 9/11 Expensve ariflcat the e mait recelved s lunk malt-spam one third of lhe e mall
rF':: :jstems wlt drive the apptcalions,tooking lor sent ls not reLated to the bus ness Yo! a.e consderng ihe lBlvl
::,.tonsrom thenorm Totalstorage Data Retentlon system, but {iEt yoLrneed to detef
rl" :' :-: allndl]st|esbucktedown, medicalnduslrieshave mine how much data storage witl be iequ .ed Estmating that 100
n6^ s o!q n e n r,e s .td .a n r' o -o p k o a6rhe e mail messages equat I MB of storage space. yo! catcltaie that
.i{t! _ - .. t olHealthafd HumanSemcesestabtished natonat 200,000 e maLmessagespe. dayamolnt to 2.000IVBor 2 GB
r.oiect the prvcyof persomtheatthinformation That amolnts to 730GB pei year,and mo.e ihan 7 TB over 10
ye.rs. t appeaE that BM s tow-endsystem, \ i chslrppoirs 3.5T8,
- e I eatthlnsLrrcnce PodabittyandAcco!ntabit tyIt
wtt notmeetyolrstoEgeneedsoverlhetonqhaut
 I'.ft 2 I n'rmron I{hnarayconRprs

3. W hal poic e s a n d i e c h n o to g i em s g h i y o u impl ementto 17. 2043, w..onpute.wbr1d..oh; Lucas Mearan Sidebar ReguLari'!
vorumeand CapacityAddArchivi.g Pt.s.!rc " C.npLtetuorld Febtra.! :
r ed! c et he o v e ra tta m o !n t o l e -ma i ts e n a t n d rccerved? 20AA w..nputeMartd un Lucas Meanan,'CompliancaLawsVs _
4 W ho s houtdb e a . th e l i n a n c i a b t l rd e n o f a fchv ng data The usA PatriDtAd ls keepi^q Financial Fnms Blsy conputeryc-.
t htm ayor ma yn o t b e n e e d e da s e v i d e n ce i n co!rt? Seplemh.ta, 2443,M.cahputeeold..,@ ThomasNorlman."rEMTa :-
BundlefofP.esenrng Cofpo.aleDara:lnteqratedSysiemloA d nReguG:-r
ComptiancErto.ts Computeyorld, Fe6trary ?3 2AA4,tuw.onpL.r.
S0URCES,Lu.asMearian,
SECFolds
FastonW0Rlu
Standard
lorSecor
ties ||ottd.coh Ba6 Btewn FDA lvandate3 8.. Codes on Druqs Use: r
Ftns, Conputerydd, Marc6 9 2443, M..anputeN.rldconi Mr(n Haspirals, C.nputeMortd Fehttary 26 n01, w.conputeMort.l .ar
Betts Editor'sNote:The Ne Rllesalsrotaqe," cfiputeMorld,Navembel

TreditionalDBMS vendorsde well awareof$c grearporenrialofdeta nining. Tl-

@ conpaniessfth as Oracle,Syboe, Tanden, and l{ed Brick Systensare all incorpor::::5
commonData-Mining data nining tunctionaliryinro rh# products.lible 5.8 sumnarizcsa few ofthe nor
quent applicadonsfor datahinidg. -

B u s i n e ss
In te tlig e n ce
Closelyiinked ro the corcepr of dara nining is $e of databases for business,iorelliq::d
b!sine5sinleLtigence purposes.Businessinteligence (BD n the procs ofgathering enoughofthe righr lr':"
The pro.ess ol galhr ng enoughol mation in a timely mannerand usablefrtrh and analr?ingir so rhai ii cin havea po! a!
the rig hl nlo .maton n a t m et y inpacton business sftdtegy,ta.ti.s. or opra rns.Business
intelligence ruru dar! inroL,i=rl
ma nn era ndusableio. m andai:
tyzrn gitto h aveapos l v e m pac ton infornarion that is then distributedthroughou d enkrp.ise.Companiesuserhis inh-:
busrnessstrategy,ract cs, of rion ro nakc improvedsrrategicdecisionsaboutwhich harkes to nter,how to sele.:jd
rnamgekry customcrrclationships, and how to selectand effectivelvpromotepndu.r
incrcde profirabiliryand m"rket share.
Today, a nmber ofconpanies usethe busineseinrelligence approach.nankfrri.:
CorporarionofChiego usesir to help targerpromorionsro bank cuyorners.ao O*tr. !
Minor, a laryemed;cal$lpply companl uscsbusircssirtclligencesofrwarefron Bu.:
 o.qanz i q D i aai d n,o-"* cupto
|
"

'b ecn ro mallze salesdata.arAccording to Scort Wiener. chiefrechnoiow officer at Ccrtive

r oor J , ion. r od r). rh . n o q i n n o ,a ri v cb u .i n e * -,nrei t,B ." .e
reJ* i os/ i . ,bte ,o re..
1mnd rhe opdmalcouse ofaciion baed on busiDess rules,representing the ffrst srepin
: a,mared decision maling."4r V/iener prcdicis thar businesyinrellieence sofiwtue mav
- , 1r e , he nee dro r r tJ rs rn u mb c ro f mi d -te v et mrnrs." . I .o.p" ,;" , ,u.h 8." ,nl
.:nr icecrem proce$ and storehugeamous ofdara.arThecompanyo ecn"dara ,
on all
. 000pinr , ir p ro d u .e ,rn I, fa ,ro e , e a c hd r1 . ri rh J rhedJ; b,,.s,hi oped,o,he
: aprny's headquarresin Burlington,Vermont,which js a liw mits fr"n i$ firs;srde ihat
, i opcnedover25 yers aso.In rhe narLetingdepdtnenr, rhe nssive amounr
ofdara;s
;:1rzed. Usingbusines-inrelligence sofrvare,rhe @npanyis abteto cur costsand inprove
sadshcrion.Th softwareauowsBen and leiq, s to match rhe over200 cals md
-.oner
. rtrils r<eived ach wek wirh i.e crean producrs and supplies. Today, rhe conpany can
:,- -k1y determine whether a bad batch of nilk or eggswc used in producrion oawhether
i.\ ofits ChocolareChip CookieDoush isgaininson the No. I seliinsCheny Carcia.An
:inmc and fina.ial sfrices companycan ue bmine$ inrclligenciogain an in depth
' rFhndins of its curomer-fron the proirs they generare,then rare of .erenrjon, ;od
: : .rpporrunities theyoffer to cross-selt the conpmy,s products.Employees an obtainrhe
!:: neededro,ero in on prcblemareas,obmin a dera;tedpiciure of rheproffBbiliry ofany
._.:inrer,and seewhich producGaresellins
and which de not. rfsalesdecline,rhevcan
:, . \ o. edeJ ine, t o ' p e .i fi ,o tr.e .o re ' rn ro i n d i ' rd ual .al e,r.pr to pi npo nr prcbi cm.
r::ake immedlatesrepsio remedyrhen.
Cbmpetitive iotelligence is one aspec ofbusiness inte ieence and is limired to infor compelitiveinlettigene
- . n, bour c or p e ri ro nrd ,h w " y h a , k n o $tedser* eci $ategy.r:, r,.,. ana 0neaspect
otbusiness ntettigence
r . Competitlveinrelligencis a onical part ofa compan),t abiliry to seeand res;old " peru. l i h t e d t o i n f o r h a t i o nab o u tco m p -
. . . 1 " nd appr o p ri a re,o J l rh e .h " n g i n s ru rl ,e ,pt" !e.
i ompeuri ve e t i t o 6 a n dl h e w a y s l h a tkn o w l e d g e
i n,e sen.ei , n;. e..
rhe ue affectsslraregy,taclics,and
-,: ofilleg.l heatr to garhe! inft,rnadon. rn fact,alnost aUrhe infornarion
, : :-:gc
npetitive-inrelljsence p.ofc$ional Deedscan be colleciedby eeminins publishedin_
--rion souces, @ndrcrins inierjes, dd uJns orherlegal,erhicalnerhodr. Usins a
.r ::' of analldcalrools,a skilledcohpeririveintelliseDce profe$ional.an by deducrionfiI
: . o. n inlor m a ri o a r tre J dgy e rh e re d .
lie term comterintelligence desc.ibesthe srepsd organizarion takesro protect infor-
-:: r soughrby "hostile"intelligencesaiher6.One ofrhe nosi etrecrivecounrerinrell; T h es t e p sa n o r g a nz a to n ta ke sto
l.i:: neasurs is ro detine"(ade srcrer"inforharion reldanr ro rhe onDanv dd @nrrol pfotecl nformationso!qht by
'hosr te ntelligencegalhefers.
howledge.mdagenot is rhe p.oes of.apru.ing a conpany\ collectiveexpertise knowtedge
management
rr rcsrdeFh computers,oo paper,orin people'sheads dd disnibutinsn wher T h ep r o c e s so f c a p t u r l n ga
'-:-:.er
''' . ,n help.prcdu.erhe bigser payoff | he soJ o. kroqiedge mJ",s"-."4,. ," g", companyscouectve expdise
E... ro reord knowledse(asopposedto dara)md rhen shareit. A}housh a variew;f w h e r e v rt f e s r d e s nco m p u te r s,
o n p a p e r ,n p e o p l es h ea d s- a n d
.j os ie. .r r { rp o n i ,. (n o w l rd s en rn a s e m e n'i , rQ y .bor, .hrnsi ;s popte., b._
d i s t r b u t i n gt w h e f e v ef I ca n h e tp
6 : ro nute rheir qpcience and cxpenise availableto orhcrs. Knowledge managenent p r o d u c e r h eb i g q e s pt a yo i l .
d :! {arr in large @nsuliing li.ms and ha qpanded ro nearty ever- indBtry. pharna-
,:::r.:l conpuies, for ermplq musr have aces ro various databuesfron different
!r::. nolosyconpaiies ro ensuredey nake informeddecisions.

&s t r ibut edD a t a b a s e s

.i'r::ued proesing involvesplacingprocesing unissar diffdenr locationsand iinking
i,ri .:a teiecohnunications equipment. A disributed <latabas+a datab*e ;n whjch thi distributeddarab.se
iL be spreadacros sqeral snaller darabdesconnecredvia relecohrnuniations A d a t a b a s en w h i c ht h d a tam a y
-a' workson much ihe sane principl.
r!" ,::- b s p r e a da c r o s s s e v e r asm
l a tl e r
A userin the Milwa*ee branchof a clorhinq
o r - j. r er . lor e v m p l e . mrg h ,m rk e l e q u .v to, da,, ,hrr i . phri .Jj y t,,ured d a t a b a s ecso n n e c l e vd a l e l e co m -
" r,,,,-
r0(-r: heddquanesin Milan, lialy. The userdoesnor have to know wherc rhe data is
(n,' :-lf rored.lhe ser nakes a requesr6r data,and the DBMS deiern;neswhererhe
il'Ir i rhsically locaredmd retrides ir GceFigu.e 5.18).
 Put z I nrrmahn re.hnoLosr
corceprs

@
TheUseof a Distributed
Database
Fo r: clo thin gm anuf ac t ur er ,
computrsmay be localedat
corPoratehadqLaftefs,n lhe
reseafchand deveLopmnl cenler,
in th ewa reh ou s e, 6ndin: c om pany -
owfed reta t store.Tetecomm!nic-
al on s syslemsU nklhe c om put er s
so th at u se rsatat Lt oc 6t onsc an
accessthe samed str butd
d:tabaseno matlerwhere the dala
3

Disnibuted darabasesgive corporetions more flexibiliry in how databoes are

and used.Locd ofiicescm creare,nanage,and usetheirown darab{es,and peoptear
offfcescan ces and shareihe data in rhe loql darabases. civins local siresnore
accessto frequendy used data can inprove organ;zational etrecrivenes dd
signifionrly.
Despneirs advutages, distributed proce$ins crearesadditional challengesin mainrai:
datasecuricy, accuracy,rimeline$.and confomdce ro $ddards. Disnibureddarabas
low horc usesdirectaces at differentsiresrrhus,conrollinswho accesses and chanees;
is somerimes ddncult.Also. because disrribureddarabases relv on relecommunicarions
to rmspor. dara, &ce$ ro darr can be slowe..
To reducetelecomnuniations costs,sone ogmiarions build a replicated
repticateddalabase A replieted darabue holds a dupliete ser of frequerdy useddata. At the beginning of
Adstab aseth al h ot ds aduplic ales et dal rhe ompany sendsa copyof inponant darato eachdisrribuiedprocessing locnion
ol treq!nlty useddala
rhe end ofrhe day, the difTerentsiressendrhe chansed&ia blck to update rhe main dao
This pro.es. often called /, td ,flchn,itutkk, ls sed. ro hake sure rhar replicared
areac.unre, up ro dare,and consistentwith eachorher.A railroad,for dample, .an
replicateddaiabase ro increase puncru.litr, sJety, and reliabiliry.The primarydatab$e
hold dataon tues, routinss,and orher esentialinfornation. The daraan be contj
replicated and ddwnloaded on a read-only basisfron the narer darabasero hnndrei
renote serer acros the counrry. The remote locarioro cu serd back the larest frgrrs
dcker sals and reswarionsro rhe main database.
 ofqaizrqData3fd.r.,."." I e '. p t " .o

0 nt ineA nat y t i c aPt r o c e s s i nlg0 L APl

:.rnee.li lwo decades, muftidinensionaldamb.ses and rhen analyticalinfornation display
' r em ,h, v epr o' rd e dn a h y q l e , p ,r,e n u ri o tu ,n drade,howd.mon5rnri on.. A t.1ouhJve
' do F *k wher er rn a i n p ro d h I j ,.e l l i n sw e l l ..o"exrmpl e.rnd a @ tortulrubte.how i nq
. per lor m ance b 1 re g i o np. ro d rc rp te . a n d ri n e i ame ruron:Lt.rl typoo, up on rhe
-
rreen. Called online malyriel procesing (OtnPl rheseprograns re now being used to ontineanaLyticat
procos5ing
.tre dd delive! dara warehouseinfornation et-ficienrly.aaOL\p atlows uers to exolore TOLAPI
. oo, r e dau ir om J n u mb e !o t d fte ,e a pr e r,p e c r i ve,. Softwarethatatlows lsers to
O[-AP sere6 dd deskrop rools swporr hishipeed ana'sis of data jnvolving compler e x p l o r ed a t al r o m a n u m b e r o i
:ltrdonshlps,suchasconbinationsofa conpanys produc6, regions,charnelsofdistribu-
:nn. reporlinsunns,and drneperiods.Speedis esenrialasbuine$es growand accmulare
:de and more data in rheir operarional sysrens ,nd dala wehouses. Long populr wnh
:.ancill plannes,ol-AP is now beingpui in rhe hdds
oforher professioDals. The leadins
- A t . of r M r e v e n d o \ i n L l u d eC o s n o ..C o m,h re. H )peri on \otuuon..OruJe.Mi nel
::re, Vhirelighr, and Microsofr.
Consumer goods compdles use OLA? to dalire rhe niiiions of onsmer purchase
:." r d, c ap, ur ed b1 ,u n n e n J , ,l -e .L ,e .k o u,'r rn d . Thi \ dJ,, :. urd ro .D - ,"
.- " . e. " ndr or elr , ,a l e .v o l u me ,o tro mo r,o n .r" d rore.ordi ri on,..uJndnpt:l " -d ,,and " ..
: . r r heuer r f er .oL AI ro o l .l e rn " n a s e ^rn J v k b u i ne" drJ u,i ns mut,,pte d ;en,i on,.
;,:h as prodlcr, geogruph),. rine, md salespeison. The darain thesedimensions,c.Ied
is generally aggregated-for example, tonl or averagesalesin dollan or unirs, or
-:.rarcs,
: -lse! dollas oi sal$ forecastnunbds. Rarelv is the data srudied in ns nw, unaggresard
:,:nr. Eachdimensionalsoan containsone hierdchy. Ior
exampte,tn rhedne dihension,
-< * may *amine databy year,by quanr, by nonth, bi, week, and evenbi, day.A geographic
jrension may cohpile darafron ciq-,srare,region,counry, and se, hemispher.
l hevalucofdaE ulrinarelyliesin lhe decisions it enables.powertut;nfornation,ahalysk
, . i r dr e| . u. h a O L A P r.d J ,u m i n i n g .* h e n InLorporured i nto r dr" w ret-oJ,i nq
. ec r ur ehr ir g m a rk e r." n d i ' i o n , i n ro .h ,,p e r fo.u. and hetp orgrni ari on,deti vei
::rter.onperilivevalue. OLAP providesropdown, querydrivendaraualysis;daraninins
- . de. bonor - up . d ..o ' e r)-d ri v c n rn a J 1 " r.OL A l . regLi ,e,reperi ri re,^,,.g.' ,." ;
':rinated deoriesj daramining requiresno assunpdo.s and ;nsrd identifiq faclsand
:..lusions basedon pafternsdiscovercd.OLAP, or multidinensionalanalvsis,requircsa
: . J , iloll' , m r r in g (n u i ' 1 " n d rn e ru c ri o n " .rh thedr,,br,erocndi ntorm.ri o;i nrhe
::rbrse. A uer ofa data minins rool doesnor needro figureout whar qresrionsro ask;
-.,:ad, the approachis, "Here's thc data,tell me whar interesringpairernsnerge.' Ior
,.:rple, a dan-nining lool nr a cedit cardcompuyi cusromerdarabseen consrruc a
::i leof f iaudulenta c i i v i q ' fro mh n to .i q l i n fo rm a ri on.Then,rhi sprofl l eanbcappl ted
.ll inconins rdsa.rion dararo identib-and sropfnudulen! behavior,which nay other @
. g- undc r eLr,dfrb . l e c q c o m p r,, rh e OL A P .rd dr a-ni ni ng rpor.,.t-e. ,o ar" Colrlparisonot OLAPandData

Typeof anaLysls
supported qury-drivn
Top-down, data Bottom-up,discovery-driven
data
 Pets I nor m ar : r r . . hi. qr ! c or . . p:

O p e nDa ta b a se
Co n n e ctivity
l0 DBCl
oPendatabase
connectivily To help widr darabdeintegratbn, marl @npanies rely on open databue omecti'iy
IODBCI (ODBC)strndards.ODBC sundardshclp enslrethd soliwaleco beuscdwirhdr ODBC-
Stan da fdsthaens
t ! r et hat s ot r war e conpliant datrbese.nakins ir e6ier ro nnsfer dd acce$ dlra anong different databls
ca . be usedwlh any 00BC- c om pt - lorexamplc, a mnager nighr enr ro rakescver.ltablesl;om one darabase and in.orpo@
rhen ino an,nherdarabserhar usesd dilTeren!dambue management system.In anotru
cse, a manasermishr wanr ro rransferonc or more darabase rablesinro a spreadsheerf:,-
gram. If rhn $flware neers ODBC standa.ds,rhe daracan be imporredor expolIei r
other applicirionsGeclisure 5.19). For qaDple, a rablein d A..es darabas can be 3
pdfted ro a Paradoxdarabrc. Trbles and dara can also be inpolted usihs ODLIC. :-
eunple, dteblein a FileMikerl,rodaubase.anbeihpofted inroanAccesdahhas. Link+
allowsan applicationto usedat! or id objecrsroredin arother appliotion wirhour acru:;
imporrinsrhedaraor objectinto rhe applicarion.The Accs database, for qmplc, cd li:r
to a rableiD rhe Lons I 2 3 spreatLsheet.
Applieriom rhatfollow the ODBC srandard
usc rhesepowerfulODBC fea$resro shde data beseen differentapplicationsstorear

@
Advanlagesof 0DBC
FiteMaker Pro
oDB Cc an bels e dl o e x p o rr,
mp o rt,
of t nk tabtesbetween different

0D B Cmport

Access Paradox
0oB CE xpoft
database d a tab ase

oD B CLnk

Lotus1-2-3
spreadsheet

ODBc-complimr productsdo suffer fron th# all,purposenature, howser. Thr

overullperlbrmanceis usuallyles efiicientthan rhar ofproducrs desisredfor usewii}I:
specificdarabase.Yer, morc and nore vendor ue b ld;ns OD8c-conplidr producir .
bushesesincreasingly usedkfibured databases. Many organizatiomareusingsuchtoolsrc
allow rheir worken and ndugers edier a..essro a variely ofdarabasesand darasou(6
ODBC srandardsalso rnake ir eder for growing compani* ro inregnte exisring darabar
ro @nnecr norc us.rs irio the sane database,and ro nove applicarion progms fron PC
oriented databasesro larger. wortstation-based darabases,and vie versa.
 o,qar:iq D.r JiL ,rm.ir", I c h & pt r 6

0bjec t -0r i e n t eadn d0 b i e c t - R ela tio nDa

a l ta b a se
M anagem eS n ty s t e m s
..: objet-oriented databae usesthe srme ovenll rpproach of objected-oriented progrm objcForienteddatabase
rhar ws fint discsed in Chapter4. \rith this approach,both the datr ud the Dalabase
thatslo.esbothdalaand
-,ne c prccessn9 nsrru(ons
:'oiessinsinsrrucriodsarestorednr the drrabase.Ior example,an objectorienteddarabasc
-:rldstore both nonthly *pensesandthe instuctionsncededtocomputeamonthlybudget
:n those*pcmcs. A rraditionalDBMS night only storerhe monthly expenses. In an
: <t orienrcddatabue,a zcrrol; a pro.edoreor acrion.A solestax method,for exanple,
: id betheprucedureto compurcthc apprcpriaresalestu for o orderor salc for example,
-Jriplying the totrl enount ofan order by 5 percnt,iftlrn is rhe locd salcstax. A zer
:.? is. rquestto executeor nn x nerhod. For examPle,amlesclerkcould is e a nesage
: ,he ohiect-orienieddarabaseto computesalesta for a nm order.Many object-otieoted
:::$ases haverheir own query l^n1tase, cllled oAd q"ery k suzse(OQL),whi.hissln;tu
aQL, discusredp.qiouJly.
\n objccForienred databa* ue an objer-oriented databas magement systen object-orientd
datab.se
OODBMS) ro providea userinterhcemd connccrionsro orherProghns. A nunber of mana9ement 5ystem
rp"ter vendon sello' lese ooDBMss. includins eXcelon,V*smt, Poet,and objec- {00DBMSl
' A q r o ! p o t p r o q r a m sth a l m a n i p u
:.:o. obiecr-oriented d*ab*c m used by a numbo of organizrtions.Versands
tarean object-orienteddatab:se
rlllBMS, for *ample, is beingusedby compuies in th telecodndni.ations.findcial a n d p r o vd e a u s r i nl e r fa ce and
.1ices, nansportedon,dd defenseindustries.a5 J. D. Edwrds is usnrgan objecr-oriented c o n n e col n s t o o t h ra p p l i caot n
rohelp itscutoners nake fmr andellicientforecasts
oftuture salesandtodetermine
-::base they haveenoughnaterialsand suppliesto meettuture denend for produc$ and
'::tler
tr rc*.a6\rirh an objecr-orieneddatab*e, custonen en quickly go a varietyof reports
:: rnventoryand supplies.The object Ddtd Sta".lnftl;s r designstandardby the OlTar
.:nb$e Matusetuehtcturp (tutuu.odnsld for developingobject-orietrteddalabat

\n obiect-relational daubase nmgenent s'sten (ORDBMS) providesa complcte set dalabase

object-retationat
,::larional database capabiliriesplus the ability for third paniesro add new datatypesand mana9ement system
.*r:r;ons o the darabase. 'l'hesenw datatypescan be audio, imass, unstu tured rext, IORDBMSI
A 0 B M Sc a p a b Loef ma n i p !ta h n g
.:rial, dr tine seriesdarathat requirenew indunrg, optiniadon, and iedel"l feaiures.
a u d i o v, i d e oa, n d g f a p h i cadl a l a .
:;h ofthevendon offeringORDBMS facilitiesprovidesaset ofapplicationprognnming
:r rfacesto allow uren to anach aternal data definitions and methods*socined with those
rlnrions to the databue systen. They areesscntiallyofri;ng a stmdard socket into which
..:s can plug specialinsrrucdons.DataBlades. Carrridges,and Exte.dersire the nues
;:lied by oracle and IBM to describe the p1q im ro rheir resPeclivep.odu.ts. orher
i rs iN se./es interfacesio Web sewer.

v is ual,Au d i o a Syste m s
, n do t h e r D a t a b a se
: :ddition to raw dala,organizations areincredinglyfinding a needto storeltge mounts
' . sualandaudiosignalsin an organ;zedtuhion.Credirerd compoies.for example,input
: ::uresof chIge slipsinro m inage datab*e usinga scanner'The ihags.m be sored in
j: dxrabseand latersonedby customer,prioted,and sentto cusromers alongwith their
-.. nthll-sratemenrs- Inage datrbtes arealsoused6y physicians ro srorex-nys and t.msnit
' T , o c linic , sr) i ,' m rh e m l n h o ' p i ra l .l rn ,r.i ,l ..,' i ce..i n.unnce@ TP " n' e. rd
: ,romenr brmches are also using inage daebses to storevital recordsand replacepaper
r Lrmen.s.Music.onpdies ncedrhe$;1ity b storedndmanipularesoundFoh recording

\-isualdatabass cn be siorcd in someobject-relational databoesor special-purpose

: rb*c systems.Putdue Univeniry ht doeloped an audio darabascand procesing rcltware
:irc singersa voicemakeover.a? I he databasesoftrarec.n corectPnch ddsandmodify
:i parre.nsro inroduce vibrato and orhervo;ce chraocrisrics.Accotd;nsto the project
:::cror, \re look at the results fron good singer dd those of bad singus, and try to
::crerand those dilTerenccs."Drus cohpanies ofren need rhe abilit b enalyzea large
',nberofvisual inagesfrom laboratories.{3 The I'etroview databrseard amlyis toolallows
 Pds I r r . r m , Loir ( hm Lr ey c o f t e p r s

to da11zegeographicinformationto hetp $ern determn,ewhe.:

|elroleum.oghel
drill for oil md gas.4'Avisualtingcrprinrdatabxems usedro &rve
a 4o_yearoldhn-
.e e i ncrl i forn,r.t r\efi nseror.nrdrrubffu,.r $040mi ui ^np," j e . , , , : r ed
( ombmi ns il t r .
" ,,d,rJtqi 1c d" ,r hon .epJ e rnd ,o," | ) di fi e,.n,d"r aha. c.i. . :
re A ' ngry,rmpoi rn, drkb-, chaJteng-. GtobJ bu,i ne-e..tor eump,e .. om cr im e.r e:
'
analpe salesand acounting dara sored around rhe wutd in difleient
ttarabxe sw
CompJnle,.u. h tu tBV Jre devetoptng rinta! da,aba..a . "t.". a;m,.", ,t,,",
rc I,:qe,hd a.,, ed dmb,.e,y,,em.. U .i ,,s i 1 "^
t B V vi trudrd", r hJ c ) . . e_.
:\ .rmdrb ^u1,fi
borr" r.h t,rm sa rbt. ro j nreguredi tr ftum di fTden,drk b&e, r hr 'rr \ ei
l
frTl:le md rypes.DiscoeryLink,oneof rBM,sprcjecrs, is aro#;;i
fr:.htijdats ru .e ro oeii,esFrer.Accordins r,,RJimnnd v/ n,towpror(- -
91,a
Dromedrcr 9ille:mr
eng,hrenngr1d. ompurer.cien.
e ud Jrre.ro,or rheI enrerrorc"rdior,_
Bi o nforhl ri L..Md Modeti nga, tohn, H op(i n. U ni ve,i ry.-r" ,.,_,,, ""
_i. f . , . -
u r\o verl Lrnkl provrdew ay\ i nq\!h IoL.u mi l erh..ehugedJr" ,e . . . ' t he( en, eI
D i ' e $ econ,,ol ,LD (' al .nnr. rneprobem of i nregfurrngdi cerenr
da r ab^e. f he r -
n J . n ore rhrn t00 drr/b^e. on tari ou, d:\ae.. \e.(hi ng rher
dri dbae, , o, o, D ,
infornarion on disears such c SARS Gwere acureresprrutor),syndrome)
can be difij(-
In additionro visual,audio.and viftual databdes,rherede a nutuber
ofoihe. sDe_
purpose daubasesysrehs.53Spatiat,r'atatechw/ogt ilolves rhe use
of a darabaseto sr@
I acre$ dataaccordingro rhe loadons ir describes and to permit spariatqueriesand anal
I Maplttrene is sparial technology softwae from Maprnao rhat qrcnds;
6-t d&be
I nd-manipulatelootion_baseddata.policedeparments,for
I mpt.. on re rhn rypcor .otsre ,o Drins,oge,he,
(,i.",t"* ."a .,p ,1. i., ,,.*

a .p ti rl edl ouri on* i rhi nrrerE ngte." $ven.Jdi u,orapotvgon,uc}r apr e, in. r . i
fl d D r e. r portreoH ,t' r.b reqr^r r In of Jt ,i quo,!ore. ki ,hi 1
a 2 m : . er udiuro I
I p rc .i l .L B Li l der.rhd de.p at d" tu ro mal ,ed e. , , . on. , et , r t r ;
.1i ,r1 a,rr ca ocn he r.ed .o i rprove nnan.i r
1 ,.,-, ] l :,,4srored ri .k m anagem rer
;nformation by invesrmenrryp,curency rype,nrieresrtes, ard time. "_r

Sp ata tda tate c hf ot ogys ls ed by

NASAtoslore dala f.om salellites
and Eafth stal ons. Locatiof
spe ctic iflo rm at on c an be
accessedand compard.
lsoufce: Courtesyol NASAJ
 o|!"i 7 i l na r ri d i ri mr n

. - : cip le the donai n B asl . data mani p!tatons i ctLrdeso t ect if q,

provides p.ol ectng andl oi n nq Theretaton.t modetl s easef t o . of l
-. databaseepproachto datamanagement
trot,moreftexl bteand mo.e nt!i t ve than the othe. m odet s
,ilq-ficantadvantages
overthetraditionatfite-based

: i ' e . f lhe m o s tv a tl a b tere s o l rc e sl l r.t a I rm pos Principle

: L s or gant r e dn to a h e fa .c h yth a t b ! td s l fo m l he
. Lem entt o t h e ta rg e s tT h eE m .tl e s te te m e n its l h
A wett-designed
andwett-managed database is an
- : _: r y .extremety vatuable tool in supporting decision
: digt A b l a e l a c h a ra c te fs u c h a s a L e tte.o.
: r qlt l s m ade !i p o fSb tsA q ro u p o f.h a .a c te .s5!ch making.
' : of f ! m ber , s c a tte da ,e l d l a i o b l e c tlA c o ttecnon
A D B [4Se. gfoupof prog.ams!sed.s an i nterl acebet ween
: r : et ds s a r e .o .d a c o tte cot n o f fe l a te dfe c ordss
a databaseaod ts l sefs and other apptL.ati on p.og. am s
. ' / e T he dat a b d s ea t l h e ta p o f th e h e fa rc h y.s an
W hen an appti c.ti onpfogfam .eq!ests data f. om t he
: : i . ot lc t iaia f .e c o fd sa n dl i te s
u" ! cL . , t
: : t y s ir gene fa | z e dc l a s 5o f o b j e c tsfo i w h c h data
of the data fol tow sa physl calaccesspal h R ecordscan be
: : d s t or ed an d ma n ran e d .A i a ttr b L rters a char
consi dered i n i he samew ay: A togcat .ecofd E what t ne
: . f an ef t ly S p .c fi c v a L L reosf a ttf b l l e s c al ted
fecordcontans; a physrci rt feco.d s w he.e l l re .e cof d s
: : c anbeiou n d n th e l e td s o fth e .e c o fd d e 5cfrbng
stofedon storagcdevi ces. S chem.sare !sed to descrlr e|r e
A dat ak eyl: a t e tdw th i n a re c o rdth a t ,. L r sed to
ent re database ts.ecofd types,ai d the. rel aton shps t o
! r e. o. d A p n m a ryk e y!f q u c l y d e i i i fe s a .ecard.
Ihe D B MS
: . . of dar y k e y l s .l i e td i n a .e c o rdL h a ld o e s not
A database managemeisystem
t pfovrdesfo!r ba s. f ! nc'
l- . ntt y t he r e .o .d
tons: p.ovi dng user vi ew s creatn! and modi f yng t he
: iC t onatap p ro a .hto d a tama n a q e m.i th .s beei
databrssto.l ngai d retf ev ng data,and mani pLrlat ng dala
and gene.atng fepo.ts S ch.mas and subsche m asaf e
rmrA ,
entered nto the compute.vi a a dal a defi nl i on i .ngLr age
: : : , r . f e. r edf o f n e w s p p tc e tro nds a ta th a l s com
w hch des..bes the data .nd .t.tonsh,psl n a 5pecf c
: , d v dLr at lfe 5 b e c o me s .e d u n d a A n lts o ,i l datns
dal abase. S !bschemas.reLrsedto de{l nea !se. v iew.t he
: - . ne f t e.t ho s ec h a n g e m s g l rtn o tb n ra d eto ol he.
po.tl onol Lhedat:basethata Lrserc.n accessand manip!
: , _ . ! . ar a nr e g rry l " r" A rol r- .0 .Fd dorobda^" r"
: r . . L f t e or e n te d !D p t.a i i o n s Ere o l l e n cl raf
d ct ona.y.w h cl r cont3i nsdo1.teddescfpt ons of.tl dat : in
: . y pr og. amd a tad e p e n d e n c em. e a n rrgth a t Lhoy
's o . or bd 6od b
"d "^on6 Oncea D B | .4S
ha5 beeni fl natted the di ri abase
m ay be
r r : m s . T o a d d fe s sp fo b L e mso f tfa d ti o n a ti i te-
accessed.modi fed and q!e. ed ! a r dal a manr p! laton
: m anr gem e n lth e d a ta b .s ea p p ro a c h w a s d evel i /ad dd o
1" 9 .-J" ro'p o"
: . _: ' 1r of t h s .p p ro a c h n .trd e .e d !.e d datE ^ " '
the query tanguaqethe most cornmonbei ng S l r L. t ur ed
: r m p. ov e dd a tac o n ss te n .ya n d n te g .i ty,e rsc.
0!e.y Lansu.ge IS 0LJ S 0L s Lrsed I sevefatpoput ar
: i , f d { r pd a tL ndqa, l aa n d p ro g ra mn d e p e n dence.
databasepackagestodayand can be fst.l ted on PCs and
: r i on of dataa c c e s s.n d mo .e e ff c i e n tp .o gr.m
P opLrl af end LrserD B l ,l S si nctudeC o.et' sP :.adoxand
' ir et ooLslh a t d a t.b a s ed c s g n e rsL rs el o s h owthe
Ml crosofts A ccessTheseD B N 45s p.ovde w zards t ohelp
: . s . m ong d a tai s a d :tJ mo d e l A . d a tam o d et 5 a
endLrse.s cfeatea new database 3ndto.d d.ta arrd10pedof m
o- od
" many othef f!nctl ons l B 14 0f.cte Jnd l vlcrosoitaf e t he
: nq lnv ot v e rn s a ty rn g l h e d a l a a n d i n ro r maton
teadl ngD B MSvendors
. _ enl f e or g .n z a ro n . E n ti tyfe ta to n s h l pl E Rl di a-
S eteclrg a database management sysl embeg,. sbyaia
be em pt o y e d l o s h o wth e .e L a o t .s h i p sb e tw een
l yzng the l i tormatronneedsot the orqanzrl ron. mpof t ant
, - do f q a n z at o fl.
chafacteri st cs of databases i nctudethes zeof the d- t abir se
r d- as t m ost l te x b te s t.u ttrrc s th e re Lai onat
n!mber of concufrentosef5,performancethe ab tly ol t he
r h . h dat a s s e t !p n tw o d n rc fs i o i a t t.bl es
D B MSto be,ntegrated w th othei E ystem5. thei eat!resoi t he
: be t nk ed b y .o m m o n d a tac L c n rc fL sw h ' ch are
D B MS vendarconsdefatons and the .ost of the d ilabase
: - . s sdat . w h e nth e d .tn b s s c . q ! . e d E a .h row
mai a!emenrsysrem
: a . ec o. d c o tu m n s o f th e r.b L .. .fe . aLted
: . r r d auowa b te v a L !e sfo rth e s 1n]l L rb !te .a re catted
 nro.md on 14.hirLoqy..n.alri5

Principle .apl u. nq a companys cottectve expedisewher : - -

'" l "_ m 4 o_
Thenumberand typesof databaseapptications witl " ".1.
di 5t.i bl ti nqi tw herever
t canhetpprod ! cet he b gge: r : i l
conlinuelo evotvandyietdreaIbusinessbenefits.
TheqoE tolknow tedge managements t o gel peopt e1. :
t on/"dS "".oppo6d odd.. d d ,6i
T r adt on a l o n Ln etra n s a c ti opnro c e s sn q l 0LTP isyst.msput
dat a n1 od a ta b a s e!e s .y q u c k L y.c ti a b ty.nd efi c enl ty.b!t W th the n.reased!se of tetecom m Lrcat n ion5. - :
t heydo n o t s L rp p o ft th e l y p e so f d a taa natysl needed
s today w o.ks di st.i bl i eddal ab.see,w hl chaLLowmple!
Lr lt! . :
S o or g a nz a to n s ..e b ! td n g d a taw a . ehol ses w hi ch a.e d ffefents tes accessto datathat m.y be st or ed n c '- :
. et at r o n a td a ta b am.n s e a q e me nst y s te m sspeci fcattydes g physcattocatons,areg.rnng n poputrr
ty To.edu.: :
nedt os u p p o rtmE n a g e m e n td eo.lnsmak ng D atama.tsafe o .0.4a9- r "o bLo :
s ubdi!s i o n so l d a taw a re h o !s e sw h c h a.e commonty devo database5. w h ch hol da dLrptcal eseto {I r equnt t!ys: :
t c d t o r p a c ti c p u .p o s e so r I!fc ti o n a tb u si nessa.eas M!l t di mensi oi aldatabasesand onl ie . nr t yl . :
Dntrm n i n g .w h c h l : th e a u to m :te ddrscol ery ot patterns cessi q l OLA Ppfogfams
l afe bei ngu sed1oslo. e . : :
o o . i o 4,p o . r'o
. nd. et a ti o n s hp s n a d a taw a fe h o !s ei.s eme.qnqas. pfac 'rr4 d.,d : n."b" o
t c at ap p ..a c hi o g e i e ra ti n gh y p o th e ses abo!t the p.l terns perspectves.0peridatabasecoi nectjvt y l0DBClsr : - :
andano m a ti e r. s th e d a tath a t .a n b e !sed to predct rr o^ 1""" d-"b"doppr d o n t o ,o 6 o
' !tLrre
P r edc t v ea n a ty s i s . fo rmo f d a tam nl ngthatcombl nes approa.hof obl ected-o.i ented proqram mng f . st c : :
h s t on.a td a taw l th a s s L rmp ti o n ae
b a !l f LrtLrrecondi tons to i C hapter4. W i th th s .pp.oach bot lr t lr e dat ! : :
f o. ec as o t u tc o m e o s f e l e n ts5 u c ha 5 fu tL,reprad!ctsaLes of pro" :.gi c o, d" o" d. "d". D" "
t he pr ob :btl y th a ta c L rs to mewf i l t d e fautton a toan. .etrti onaldatabasm.nagementsyst eml0RDBr r l: :
B ! s n e s srn l e l tq e n c es th e p fo .a s so { qel ti ngeno!qhof des a compteteset of .eLati onat databasecapabt i: :
t her ght n fo .m a L o nn a ti me ty m a n i e .and!sabterofm.nd the ab tl y i of th .d pa.t es to add new dat at ypes. ir : :
analy zn g i t s o th a t t c a n h a v e: p o s i tl vempacton busness t ons to the dat.base Tl resenew datat ypescan b: :
s t r at eg yl a c l i c s ,o r a p e .a Lo n s C o n ' rpet ti ve ntetl gence s v d e o . a n d q . a p h c a l d a t a t h a t r e q ! i f e n e w l n d e xi n q .:
one as p e c to l b !s n e s s n te tl i g e i c eLm ted l o nfo.maton t on, and fetfevatfeatu.es
abo! t c o m p e l i L o .s i rn thdew a y sth a t n fo . mati on al l e.tsstfal - .w oa .. o_qa_ta f o_ ar 6 _
egy ,t . c t c s a n d o p e ra ti o n sC .m p e ti tv e ntetU oence s not f nd ng a needto storel argeamounteof v sualand. L : :
es pona q e -th e !s e o f i tL e q ame t a n sto gathe. nfo.mai i on nati i n an ofganzed fashon Therea r e also a n! - :
,-ga-r7. o- speci atpufpasedataba.esystemsS patat dat r t c: _
t ak est o p .o te .t ffo .ma t o n s o u g h tb y h oette ntetti gence nvatves (heuseol an obl ect.etaLonat dat abas
to s : i
accessdai . accordng to the Local i onst des. f b. : :
P'""
permi tspataLquedesandanatyss.

CHAPTER 5: SELF-ASSESSMENT TEST

The databae approach to data nmagement proyides signif 4. Theduplicationofdata in sepanteliles is kno*r:
ient admntages over the tnditional ffle-brsed approach.
a. derr redundancy
1. A group of programsthar nanipulate thc dataorc anrr b. datainregritv
proridc an intcrfaccbemeenrhedrtabde dd Lhe$er of c. drra rehtnnships
thc databar rnd other appli.tion progrms. d. d.t" .mi ti es
a. CUI is a d.ra rrodcling applo"-
D. oPeianbgsNem r. . F' r .cr g.' rrrg l . g.rfl I d, , , . ' r d r lo
c. DBMS needsofthc organiarion ar rhc srrarcsicLcvclai:
J. pn,ductivityv,lirvare exrmining mofc spccifi. data and infornation n..:
rlr variousfuncdonal arcasand dcputncna wiL,
2. A(d lus !o rehrionshipb.rwedi ns
rccods ud n ofLenuol tostore rnd nmipullr a sinsle

6. The nor populr rlauttse noJel n

3. A prnnary kev n a ield or st of fields that unktuelr
id.!tines rhe recor.l.True or rilse?
 ..ean: nqLrd;andr-.,,., I cupt""
"

12. Th e abiliw ofa vendor ro prxide glob:1supponfor largc,

multinationalcompmiesor cohpdniesoutsiderh. Unir.d
Staresis becomingincrearinglyinpomnt. True or False?
.. designedand wll-mamged databax is an ertrenely
,,-i-.:. tool in suppo.tingdecisionnaking. The numberand rypesof da.abase applicat;onswj ll continue
to ewlve and yield real businessbenefits.
is e highly skilledrnd trained
.:rns profisional who d;ects or poforms all rcttvrttcs rl A(n) holds busines ;rfornation
::ed ro nannaiDjngasucce$tuI database environnenL. from mrny sourcesin rhe enrerytise,coveringrll *pcts
:e drtahasbccnptrcedinro a relationaldatabae,users of the conpany'sprcesses,produds,sd curotus.
, , k . inquin. ' ,ro J n J ' e o ,u . R " ' r J r' , n ,r pu r4. An nrformrrion-.nalysisloolrhar involvesthe autonated
. i. , c lLde' e l e .,i rs . r,o j e . ,rs . " n J discoveryof paaernsand relationshipsin a &h wtueho(se

:.:ruse thc DBMS is f6ponsiblefor providingaccess to

$. on. ol, h c 5 r, .re p ' rn i rr ' i n g rrJ u .i rg,
:,bir invohesrelling th. DBMS the logicalandphye
c. predictiveanalysis
. ,trucrurc.fthe datl md relatiorxhipsuong the dot.r
d. busbessintelligence
d,e d.mb.c. This desciprion is called a(n)
l5 -i sacol dnuousprcces i nol vi ngt helegal
. romnands that are usedto aces and repon and cthical collcctionof infomation (about otho con-
.::on tiom rhe drtabrserre pan ofthe pdriesor orsanizadoN),analysisrhat doesni au,id unwel
come conclusions,and conrrollcddisrmination of th*
tlrta deiinition language
inftfnadon to decisionmakds.
r darananipularior language
. dah normliation Laryuagc CHAiyf llR 5: SEI.F-ASSISSMENTTEST ANSWi]RS
(l) c (2) flat file (3) l rue (4) a (5) Enterp;sedatr modcliq
::..s s a popularDBMS tur (6) a (7) databue adninisrator (8) Falr (e) s.hema(10) b
personalconputcn /l l ' fl l ) | ru(l l J\drrrrJel -oJr l 4)hl l < ' aompet it iv,
-
graphicsrrorketions
computen
'na,ntnhe

EY TERMS

object-reLationat
database
I ::: ntettgence224 management 199 management systemIoRDBMSi
database management system 229
-:.:/eintettgence225 IDBMSi195 ontne anatyticatprocess
ng t0LAPl
:i.y controt211 d str buteddatabase 225 227
:--teltignc225 domain202 opendaiabase connectiv
ty t0DBCl
, ::-nstrator2l4 enterprse datamodetng 201 228
i ::i!p 2 05 entity197 ptanneddataredundancy201
: :i - r on tansuase
IDDLj208 entityretationsh p lERldlagrams
202 pr marykey197
) : . )nary2n9 f etd196 predlctive
anatysis
222
, : -ty199 fite196 projectins
203
:- 197 hierarchy of dEta196
,, -:' Dutatlon Lanquage
IDML) loinns 203 retatonatmodet202
key197 reptrcated 226
database
knowtedge management 225 schema207
.s 221 linking203 setecting
203
: ::t 201 oblect'orienteddatabase 229 subschma 207
.:,ndancY198 tfadtionatEpproach
to data
management
systml00DBM5l man.gement 198
:: r: rdm nistrator
IDBAI195 229
 PdtP I ilomatun rechmLoqv
comepts

REIIIIEW QUESTIONS

l. What ir an arrribute?Horv is ir relatedto an effiqf? 9. What is the diffcrrlce bcrveer a data definition
2. Deffne th sm .Jataba'* How is it diffErenr&om t (DDL) dd a deta manipularion languase(DML)i
darabase managem.nr/srem? 10. Whar is a disdiburod darabde s'-stln?
3. \(&arhaflarfile? ll. \{4lar adknrags does the opcn database
4. \{&.r is rhepu|posofdat deanup? (ODBC) srandard offe'l
5- How wouldyou dscribe the raditional apprcachto &ta t2. \(&at is a data warehoue, ad hq is it differenr
manasmqr?He dG( i, di$er Fom rhe d,,rbM tndnionel databaseusd ro suppoft OLT??
r3.What is data minins? Whar is OLAP? How ,E
6. Vhar h data modling?\{&at is it' purposetBdfiy differcnt?
describerhreecommonlyuseddaramodels. 14. Mar is an ORDBMS?\vllat kind o{dara canir
7. \fhat is a databasc
schema,andwharis its purpose? 15. 'ivhai is busins itri lligence?How is it t]Jed?
8. Ideniry inponaff ch.ractrisriqin s.lctinga d1tabasc 16. Give an exarnplcofa vhual darabue.
nan gernentslstm.

DISCUSSION QUESTIONS

1. You havebeenslecredro reprernr the sudent body on a eacndahb$e and how often? Is ir possibleforyou ro
projecrto developa new studenrdarabseforyour sh@I. a printour of rhc contents ofyour data ftcord fror
Whri e.tions nighi you take to tulfill rhis Bponsibility to darabr.e)\qlar drra pri,,cy concem.d" you hrve
esure thar lhe project heers rhe needr of sruden6 md is 5. Y ou rre rhevi t' pre.i derroi rnl orturi on r e. hnolo! ,
l ee. mui ri nrri od..on.umer pr* grd good.. o
Y our ( om p rn y q o u l d l ,k e ro i r.F s e rs enuc\ fi om i ,, { e.s..P rodcr& r U ni l ner.or Cillene) .}ou
existingcusroners.H @ car daram ini ogbeusedro rccom- -mbl e.
nake a presenmtionro persuadethe b@d ofdi
invesr $5 million ro esrablkha cohperirive,in
L You uegoing todesignad abde for yourcookingcrubto o{ged;arion-indtrdins people, data-girherins
track its recipes.Idenri6,rh d.rabase.hanclerisdq m6t rd ol rurre rool ..w h,r l ey poi nr do lou needr
imponant to you in chooing a DBMS. \n1lich of the i r fl orofrhi . i nverment? \[taurgrme N, un yo-
&tabce nanagenent sysrens decribed in lhis chapref iparerh.torhe6 nighr make?
would )ou choose? Whl ls ir inponmr for you to know BrienydcscribehN visualand ardio darabdes.an he
whar sort ofcompuier rhe dahbasewill run on? Why or
7. B ri efl r dncu* i mpa.rJ" ra fri vrc y lcgi. Lr o-
v ik e i I i .r o i ,h e d a u b a ,6i n $ H . h d J u Jbour) ou c\n,, " har
h" ' e on ,he bui l J,ns rnd u* o., u.ro m r rr nd en
How is rhe data in eachdar.bde optured? who updates
r[
&

PROBLEM-SOLVING EXERCISES

gr. Developa sinple daramodcl for the hobe6 ofa srudenr itehs: Movie ID No. (prinat' ke)), Movie Tide.
club, whcre ea.h row is a srudent.Fo. eachiow, whar Made, Movie T)?e, MP,{d Raiing, Number of
arniburesshouldrou aprure?vhar witl be the 6ique key Hand.and Qunrry owned. Moue rypesm
for rhe re.o.ds in your daiaba? Desclibe how iru tuishr fanily, dem, horroa rienceficdoo, and westdn.I!
nrinss areG, PG, l,C-13, R, X, aDdNR (notrard
A videono;e renralsroreis uing a rclationaldatabueto
@,. store inforhadon oD movie rntals
an cnd userdar.bas mnagement sysen to build :
enrryrcreento enterrhis dara.Build a smalldnal,&
quesrions.Fach enrry ir rhe databde conr.ins ihe foilwiog
 c(anzn. D a:aai c nrofnarm ] chaptd 5

inprove sewice ro rheir cust,mers,the saiespeople a. Add the daterhat thc movic wasfirt rvailablcto help
: :trc video rental storehavepropo*d a lis of cLanges Locatethe newestrelerscs.
9 . or r de ed f " r ' \" d rr" F r' . In l -.o + i o :' e ro -.
b. Add the dnectols namc.
n thislist,choosetwo dasbasetuodificarions rndmod .. A dd,h. rrm. of.l ,r.cpri n,.q ( o^i nrhl rovie.
l( dr u er . n ..,r' 1 J o r. rfi ,es d. Add a r:ting ofone, vo, th.e,o! fbur sta6.
" ' .rp rL ,r " l d
c. Add drc rurnbcr ofAcadcmyAwardnominatiors.

AM ACTIVITIES

- . groupofthree orfout cla;snates,interviewa databae Thosewho scorewell on the applietion will be accepted;
,rinistrator (DBA) {br a o'npany in your aree.Describe those who score exeptionally well will be considered for
: : penonkdutiesand responsibilities. Vhat arethe career lower-ratelous. Preparea briefrepon tur your insructor
crrunities ofa DBA? addressingthesequestions:
' , k . m of J ' , . o , l o u r .l r,m rre ,, i n re ry i rub u.i ne*
What datado you needfor erh loan applicant?
--.rgen from three dilierent businessesihat Ne daiabdes b. what data night you need that is not typielly
::1p them in rheir wotk. \flbn date entitiesdd data
' requestedon a loan applicatior forn?
r-:,iutes are contained in erch database?How do they wlere night you get this data?
the database to performmalysisiHavethey received
-::s d. T:le a flrt cr at designing a databasefor this applie-
::.ing in my query or reporringrools?\trha! do rheylike
ion. Using the chapier naierial on designing a data-
r,:r then darabase od what couldbe inproved?Do any
6*e, show the logical*ructure of the relationaltaotes
,::rem usedata-miningor OLAI techniques? \reighing
for this proposeddatabxe.In your dcign, irclude rhe
r. ,nfornation obtained, selecr one of these danbases as
&ta aaributes you beliele are necessaryfor this
:. rg nost sirategic for rhe firn and brielly presenr yuur
darabue,and show the prihary ke)'sin your rables.
t :rrion and the rationJefor rhe selectionro the clcs.
Kep rhe sire ofthe fields and Bbles assmall asposible
:Jne rhat yoLrand your cl*smaies are a .esearchrean Fill in the
to minimizerequireddiskdrivestorasespace.
e-:iopirs an inproved proces for evJuating auto lom dauba' erabl e.q i Lnrhesmpl e d,r.l o J.n.n.r r r r ion
;:i,canrs. The goai of the reseachis to predicr which puryoses(10 recordr. Once your designis conplete,
;:l,qnts will becomedeiinquentor forfeit their loan. implementit usinga reladonatDBMS.

.IFEBEXERCISES

, :\'.b searchensine !o find inform*n,n on oneofthe @npany, lcquesilirthef informationfrcm the conpany
ropic: businesintelligeoce, knowledgemanagc- about its produca.
'ng
-..:. predi.dvelnalrsis.Find adcfinitior ofrhe term, an ' . | .e " W h ro fi rd rhne.onp.' nr e. r r r n
-anl ' ergi ne
..,ple of , .onpany using the technologr,ano ttrree i ndustrythati nterestsvouthatuseadarabascm anagenent
::nio that providesuch sofrw.re.Cur grphics and svstem.Descibe howdatabascs areusedin eachcompanv.
, . " J t . n ,1 ..\e b p " s e ." d d fx ,e ,\fm ,n.o " Couldthe conpxniessunivc without the useofa database
. :: pn,cesingdocumentro creaica two-pagerepor! on ndegement slr$en?Yrhv?
-: ;electedropic. At rhc home pageoi each",ft,"are
 CAREER EXERCISES

I Ior! crree.arcaofiDrcresrroJ,ou,dcsoiberhr d.rabases 2. Horv qnd vqt usedira n;nins e) hcip

trEr corld helpyo! or th job. ),ou n,J.e
dccisor rt rvork?Cive nve rpcciticenrnples.

VIDEO QUESTIONS

Wdt h rirevidco clip predicdng Huge Surf.nd.nsrve. rh.se

bN da'' aid rine hr Lfu contesr,{4tn rhe surr $r

E? .ln. |' . \u,r ( o, ,r., n- .ernt.,i,e,t.r \fo.,.

Mrvr,:.
' r .,. .ed,.,t-c\L:"8.- o.1irr. , . . , , f i, , r.\ it , , , 2. 1l ' c r.;-" n. .l ) h. ,h." ,h, .u,r . on e, r jr
, ol. do .l J ' rh .\(.t 1 .,\.r l -n , t .{ ." t-,t vr" prcJ;,,,hc sonrc dmescJld with onlyiouro ofnorice.Ho*,
$l,uld you guess,doesJeffgetthc rvofd our?

CASE STUDIES

Caso Ons l o appl yaddi tonaldi scountsW th n no rim e peo de ; :

B.aziti.nGrocerGetspersonatwithCustomers had I 73 mrtl onhousehol ds s gned!p for t he pf ug, d-
oo..ddo'o.doo
G r ! po P aod e A .L l c a .i s B ra z i tsta rg e s ret t ai rcompanyand to grorrppu..hasesby cLrstomer. and a fo ! ndator o. . -
G br . nd Pa od e A c L i c ai.p o .t!g u e s efo . S !ga.toaf, R o de to bui l dpow effut.fo.mati of systemsan dsr vice5.
J ane/ . cs r a m o !s m o u n tan l s Bra z i st n ro stpap!b, sup-" r P 5ode A cl car.al ted i n dat.basespe ciat isttso ; : : :
m s r k et P a o d e A ti c a r a tl .b u te s ts p o p l tafty to the per h4o-ob. !. npe-..eo:odo
06(a,
s onar?eds e rvc e i r o ffe .srl s mi I o n s o f c u sl ome.srrom rts ^
sol utronto anal yzecLrstomef acti vty da t a They ! cL.
433s t or es Yo . ! m a yw o n d e fh o w s u c ha l a r secornpany can deveLop ng a datama.t th:t organi zedrhedat aso r f . -
pos s r bt olf
y e r p e fs a n a tz e ds e rvc e i o s o m anycus.ome.s vr0Lrar trans.ctons of eachcustomercouldbe , ewr :
P ; o de A c r j c a fo
r i rn drh e s o l rrri o inn d a ta b ases, oal am n ng, dal amafi s usedto cfeatesi ati sri catmodet s. el. t ed r: :
anddat aba s e m a n a q e m e nsty s l e ms tamer segmentatl on, consumpri oo profi t esblyt r 19! . :
TL p " o o"
' ouo " -0 . o n rro mF to .a ' , ^
.." - o ..0 si ty and othefn-rean
ngfutrepo.t5Thi si nf or m at! , 1p,
that c!siomers iodayare go nq ro fewer g.ocery stofes rhar..l vat!abtecl stomef nl ormari ordndrnsl ghtinlot her fr nl: -
t hey us edt o a n d b e .o mi g mo re to y a tto a specn. sto.e
B as edon t h i s i n fo rm a o t n , M .i a m Sa L o m-oma.kerrnteI Thenew progrrm tormal tynamedN 4as. por r ug! e: :
genc em an a g e .fo . P6 od e A 9 L :rc as.e r o !t to anatyzec!s Mo.-" ,attow edP 6odeA cncafLo.e{ at w rh c! st or n! : : ,
t om ef p! r c h a sn g d a ras o th a t rh e c h an c o !td detrvermorc vrdual tyC ustome.s recei ve
a pe.sonati zed m air ingt id : : l
per s onat z e ds e .v c e s .H o w e v e ..th e c l s to me. data beng sateson tems thai theyhavep.evra!sty pu. chased o. :
c apt u. edan d s i o re d n th e c o mp a n yd a ta b ase w as nor c!s, l o. new p.odLrcts feLatedta thoserhe c!st om e. ! ses
t om ef s pec i tc . Atrh o u g hw e h a d a L o t o f datd ,.or. our memoersarso re.eve specat tfeatmen i. nd per k5 . _r
c hec k oLr t s -d e ta l te rndfo rm d l i obf y p fo d u c id, ay.ai o stofe shopprngA s!r ey nd catedth.t cuE tom er appf s ec; :
t his dat a di d nt b rn g u s a tfu e u n d e rs ta i di nqof oLrrcl s pe.sonat.e.0gnt on evenmo.e than the f inancat be- :
t om er s . s a y sS a l o me o We n e e d e dro c re atea uew or rne N 4i .l am
S atomi j obeti eves
that geri i ngto kn owcusr om : - :
dat a lhat c o n s o l i d a teeda c h o n e o f th e i c kets [cusromer Indrvi dLral s provdedthe stofew tth a com pelr ve e: .
has
'-
" o
. d.d o . d .. d .0 r ", l ageove. i s .omperri D n W e knowol r clst om e s. d. :
".
T hes t o. eb !n c h e d a c l s to m e rre ta ti o n sh p pfog.amrr-rar knowtheyprefefa more prsonatcusl omi2ed . eLato- :
c enler edar o u n da to y a ttyc a fd . C !s to m e fsi nrcres(eon I m sLrrcrney.ecaqn,eLrsrs a di fte.entst or e Th s p. :
r ec ev r ig pe rs o n a tu eddi s c o !n tsf l t o u r a s h oft regi si raron t on sttho!gh nar easi tymeas!fabte,i s vef y , , , pr . :
r or m10r ec e rvae to y a tty .a rdw h i c hi s s w i p e darrhecnec(out maybethe most mpoftantpe.cepron of a[ . .
 n r q a , z 'q & r i o i d . . , n ; r m I c h s p t 4 !5

ar ee w h," icu5t om e.
4. W hai.dd t oi atbenelts and s.Lres
o_oo o D od" ddL. s combned froni seve.aLd ffefentl ypes ot r et aI
P "a L "
6 Lo, d a La: o _ o store5 s!ch as l he nformaton .5socatedw tb . t yp. aL
""d

aCdil ofrt r n fo fm a t o n .a n b e a cq ! r e d !!h e i c!s

dentt y s ass o c i .tc dw i l h c h e c k o l ld a ta ? S 0U R C E SP , i odeA .Li .afMaknqMLl Lonsoi C unomersFeeL Ll eFaml Ly w i h
sAs M s.s can/.rcces.lpa odeacu.ar bi'l a(essed Marc1r 6, 200t
Grupo P5o de Atircar Web .te wtu tud , .on brknglh.netndu 4p
r : T hink ing0uesa i o n s w.sas tDh/te.hhatD-
g E s/anaty ti. s/d. tan tnrns r.ce esed Mrr.h 6 2004
pr v a. y s s ue s c 0 m en l 0 p l a y w h e nc u s l o merrden
: r s 50.. Ledw th c h e c k o !td .ta ?

Two
-.: Lncomereportsi mmedi ateLy
onl i ne,f3the. than w ait ng 10.
]xr! UpgradeFacesEmployeeOpposition a6.d
Ie, a f0'6d.
"
: jr ad f 9 a da ta b a s ema n a g e me nst y s l e mIDB MS I .esotveexceptons tems n an a.c.!nt batanceth at dont
'"J" b " | h " o" m.tchtheffed ts " W eveatw ayshadal ol otdata nthebank.
" d u " ." d
_ : s nr el wit h . e s :s ta n c eb y th e w o .k fo ..e T h i s w .s b!t l t w aeatw aysseenLnrow sandcot!mns N ow w ecanhave
: when Hun tl n q to nB a n c s h a re sn c a $ 2 8 b tti on bar chafi 5of m smat.he5,say5A tW efne.vi .epfesdent or
bank hot dng c o mp a n yb a s e di n C o l L rmb us, oh o, co.po..tesystei ns.H untngto. now ha5 a sta.d..d set of
: - : NE W Dt s M S met.cson:si qtarepo.tthaL ea.h branchcai Lrset odeier
: r o ! pd3t nq ts s y s l e m .H u n l i n g ta nB a n c share5 mi nethe' heatthol h s/herbfa.ch
! .Io B r' I .. . "d g p" ar
: a pape.. ep o .t c a tte dth e b a l a n c ee h e e ti ccome "
pape.h.s i ot beena !ni ve.s.Lexperei ce tho!gh WLt ht he
' d " d o r o ' rl
: 20! . 000pa!e s th e e q uv a te n to f 4 0 c a rl o ns of o-P " . de " d. " P " o " o
"
i Cet aled I n a n cEl n fo .m.tl o n T h e c o mpany el y l n manycasesl l re opposrte has beei trLreC om pLr t e. s
: : w. s t m et om o v e to a p a p e .l e s sW e b b a s e d system generate amazi ngamo!i ts of!sel ut .fo.mai on .nd pf nt - "d
'a I l I' l .-' o " ' -n report!are the normi n most co.pofatons.P rperco nsum p
: - pagespe. y e a r Emp to y e essh o !L d.e te b ra tes!cl r t on by U S compani esl s grow nq 6 to 8 prcei Li jnf Lr at t y,
. : - s hoLr Ldn t th e y ?L l n fo .t!i a te tyH !i t n q to nB anc accofdng t. doc!menttechnoi ogy !se. qroupxptorI nt e. na
: : _pt oy - " esha da d l ffe re n.e t a c l i o nH. c re s a s ampl e tronaln Io.rance C aLIorni a.
S t tt. new gove.nmentprogr:rmsand regLrtaone t af e
d o.do gool . " 700 1_oo"
. - : nagef s ay s h a v eto h a v eth e s el p a p e d .e p o.tsl o. .rc<A d rha ah4.r a prrnn fn. rFF ) -r a,.r o
. eler ym 0nl n 'l " ' ly
. kfow n as C hecl 2l w hrch al tow s banks to vct unlar
goaa' ob" " b " o d o .0 b " . o ,e .a
Q. haqb6e o o.- "\o. ""do
' : i ir os sbt yas k m y p e c p l eto te a rnth ,s I L th a veto do "q"
paperchecksH !nti f!l oi Lsi d ngthec.estoi aw ave or br nks
: hemev er ym o n th .
. tryi ngi o go papeftessw l th
onU nebankrnq statemen t st o s6! c
nay hav es : v e dp .p e r,b u ty o ! i ra l ep s t d o !b t edmy
money.andto compLyw l th new .eq!tatons,3ays A ! vahL t a.
ai ai aLystat Gartnerl nc The tfend st..tcd tw o ye. . . ago
' nade t hisde cs o n ?
bl t i the testnl i e month!.l t s reattybeenmovng r l- r ead
: : : r on5et o t he e m p l o y e eIe e d b a c kR .y m o n dHe,zer,
. : : . er de.f o. c o rp o ra tep ro fta b ti tys y s te msa t H !nl ' d o.L.d t, rt" d!. 18"
: : r 5 " A s lar a s o !. u s e rsw e re .o n c e .n e dth e sun theyhrve stoppedmournng the tossof thei r betov edpape.
: er e. ! m or n,.g ,.n d th e yl l o i th e i fb a t!fc es h e etand .epo.tsnow l hat Lheysee l he beneftsof the data b: seand
: t ilem ent de L v e reto d th e r d e s ke v e rymo n thcnd. reportngtooLs,W efner5ay5 N .w they' resayl nqW ow t h. sc
: t . em ploy e eo p p o s iot n H !n t n q to n Ba n csrra.es i rrpfetr!fi ce featLr.es
r " Lt q " d " r 0 ." .1 a.o
. : f ! n I iq on a U N IXs e i v e .a n dp u r.h a s e da .e p o.lfq
Dis.ussion0ueslions
' r m Cr y s la tD e cs o l i s n c T h e ro tl o !t to o k ro!f
: r d. os t a t ilL tem o rol h a i $ 1 m rl to n T h e b a n ks now 1 W hat afe the benefts ol v ew n! d.rabaserepor lsof
: : l: ! ! 0pe. y 3 r n p a p c rc o s ts o to n e ,s a y s A tW efner
: . Ceit ot c of p o ra trs y s te mB s .L rtth e r," tl rro nn l est 2 W hatafel hebenef
l sof bei ngabtetoni efactw tht hednt .
. r beenf ! t z . d n rre a s o th e rth 3 np a p e .!a v n qs
 Pet 2 I nlonr dm r - r f ' Loey . on - p r s

Cr ilic atT h i n k j n gQ u e s ti o n s S 0(rR C E S ,Lrca5Meari an'B ankTri esroB reaIrhepaperftrbtr

wortd,A\grst L 2443,M .anpoteryodd cahtH$\i^gtdn Ban:: -j
3 W hy d o y o ! th n k H u n ti q to n e mp toyeesfea.red so we6 ete, Mhuntngt ncan a.cessed March 6. ?004: L!!d:
s r . ong ry
1 0n e w so t th e n e wp a p e rte ss system? 'H u n t n q t o n B a n r s h a r e e M o v e s r o A t X l o rs.a L a b i l r r y.
&,r u r ./r :
4 W h: t w i L ti t i a k e to t!.n b !s i n e s s e saw ay Lom rne. 2an3.||w..anp utermrt d cah
depei d e i c yo n p ap e r?

Case Three . 0.gaf zatonat chari s pe.sonnel . ecof ds : - :

HyundaiShootsfor
#l withExecutive
DBMS .0unl s t.om the h!man.eso!rcedep ar t m enr
. D a Ly:ndmonthtysal es. marketshaf e andm r . . :
Hy ! ndaiMo to fC o mp a n h y a ss e t a l o fryg o a tafbecomi ng the y5rs,rom dome5ti .sal es
lop a! t o p .o d !c e rl o . th e tw e n tyf rc t c e n t!ry tt s co!nl i ng . Foregn erpo.ts,dai l yexpods.tocatsat es i. ve: : .
0n r t : data d .v e o i fo .m a to n s y :te msL otake t there The compel nveanatyss from forei gi sate5
3! y ear ot dc o mp a n yh a sra p d L yb e c o meone of rhew ortds . p.od!ctonperfacto.yandpermodeL lar get a- : :
t 3. ges t aL rto
p ro d u c e .sr5 b L rE n e s s s r.a te gy.evoLves a.oLrnd andi actoryoperaton t.om pfodLrcton
us ng adva n c e d te c h ro { o g toy p fo d l c e to p ql atry reti abte
H yl nda ha5 l ol nd that the besrw ay t o p. or s: _
v ehc Lest h a t s a l s fy c !s l o me 1 5W rh o v e .4 7,000emptoyee5
i rvestmentsi s to nvest n systemsro managev. L! : : :
andc apt al e rc e e dn g $ 3 5 0m rl Lo n H y !n d atw oto. C ompany
and nl o.natl oi . R atherrtran
feactng i o ma. ketnr . . :
s r e Lar q e snt d e p n d e nma r n !f c ru .i n ptanr
g i f K orea H y!fda canbeproa.t!e andi .i ovarrve I ot her t r :
ny ! nda e mp L o y a s n e i te rp .s e w i d e DB MS .cal tedan
E nt ef pr is e n J o rmaol f a n d M a n a g e m e ntS ysteml E tMS l .
wh c l- rs ! pp tre sv a t!a b tel n fo rm a to r to ,t s manl factu.i ng
plant s n K o re a T o k y o P e k ri g ,D e t.o rta nd F.a| ( un. ano Discussion0uestions
s ! bs diar e s s !c h a s H y !n d a iMo to .A m e r i ca.H yundaA !to I H owcan H yundarsF MS assi stnranagef ir
s :: -;l
T e. hnic at H, y !n d a rM o to f F rn a n c eC o m p any,and H y!nda
N4ot o.ndi a H y !n d a c o !n ts o n th e d e c s i ons!pporr i nfor 2. W hatfeatLrfes
ofa OB MSmaketespe . allyus. -
m aiions t or e di n l s d rta w a fe h o u s to e d re ctdeci sons made
3t at t t ev etso l ma n a g e me n t.
T hes y s te me m p to y ss e v e fa tdffe re n t.eporti ng rootsto C ri ti caL
Thi nki ngA uesti ons
k eept 0pm a i a g e .5n fo rm e do i th e s ra te otheconrpany
f They 3. n a d st. bl ted o.ganl zat
on sLrchas Hyund. - : .
r ec e, v peri o dc .e p o rtso n th e c o n rp a nsy progfessl ow afd
datrbasefepo.ts be d str b!ted !n fo. m ly an. : : -
t ong' t er mg o a tsEx. c e p ti o n .e p o nps.o vd ea w 3.n ngsystem,
l enttyacfossthe organzati on?
at Low ng ex e c !tv e st. v i e wa tt te l e tso f s a te sandprodLrct on 4. N a doubtH yLrndai con-rperrto.s
s ats o em pt oy:
v 0t ! m esan d l 0 t0 c a tep e ri o fma i c ep .o b l e msby compa.n9
cateddal abasemanagement toots.Whai f a. r : - :
I gur es wr th a n e s ta b t5 h e d w a rn i n g p o i t
o'p09o obF,o.ut_" dda o
s uppondecs ro nm a r n g 3 n d p fo \,d e t me^ ,tanyothe.feportE -or0
ty.cces! to mai - c0mpettrveadvanrage?
agem enrle v e ti n i o fm a t o n
T o as s s l d e c s i o n ma k e fs ,th e E M S d ata w afehol se
SoURCES:
Technotoqy
DrivesDe.i.ons ar lryundai SAs 5 ,-
s t of es nlo .m a ti o n ffo m a L t o rg a n i z ati onatd vi sons, s re, M sas ram/stcGss/hyundaLhtnt, ac.essed t/latch 6 2aa_ -
we6i\e, MhtL.dat.an r.ces.edMarch6,20M Hylnda Hp.::
Auro rndusrry Marure, rhe korea )letatd, odober 23 20Lr ,r",

NOTES

Sou rce slo rt heopenngv ignef t e,

Thos ec . et ot The
f s u c . e s sD D Bl r s e s A t s e v eJr e n nf e r 'R e s r a u D n r(se e p T a b s on
Dtn e .s F.
SA5@to Expl dr e! ! hyHowCon5(
, m eE
R5pondt o C e rnl a E r a n d s ,S A S tatnNews,Febttan 22 2A04,p K1.
we6 5i\e w||w sas can/sr..ess/ddr.rhl a..ess.d March5,2004;oDB schetl,Erne "SpinningStraw ntaeau CatatagAgeV.
ptets k t w||.ddb..on/5 nedia/downloads/pressktt.par ac.es5ed
Mar.h 5,200,1r'Btt EumbachSad ||w||ddb.oh/5 neujd/,own G y n n eP e t e r ,M a n a gn qt h oL t e S . e n c eD 3 l aD e t!q o .
taads/bb qDatespdt ac.es.ed Marcn 5, 2aA4 -:
and Ptuteant$, May A1 2003,p 39r \4 tsdi Ctare :
rnwsrmenr, lr'rws.7p,rit May1A 2a03,p 25
1 B n kL et C hr 5t lDa Sodn t he Dos kCler kW t L k d o w A ( A b o u r N a m r L t oDna, vd , B r o L dcga (D a t a b a s e 5 A r eAe .o h i n.g .
\lar rh. wallst.eetJ.'rh.t
Mays,2003 p 04 ahle rhe WallSt.eetiDD.nat,tttay l9 2003p Rt2
 o,qanznq Daraaid nro.m:rm I chaptd 6

..ndedich,CLllofd, 'ALTARstigon Database,Libr..y Jaurnal 30. Thibodeau,Patfck 'TheWebs Neil Leap CanpoteMarld, Apt I
j:/rp rs, Ma y15 ,20 03p. 137 21,2043 p 3/,.
::i.rmn ,Matth ew ! PSEy es aFulur e0on9Far Bey o n d P a c k a g e 3 l Peter,'Smoorh
Loftue, TaLk,"
rhe WallStreetJaurnal,
Vatci 31,
,. !e.y, U.S.News& WarldRepa1,Jantrart26,2aal,p de2
::-se ca ,Bria n,'DBABound3r iesBlut rn9, ef leek ] anu a r y2 6 , 32 Fonseca,Bfian, 'ATC DalabaseUpgfade Suppods Growth,
lmprovesRetiability el4le.k,Janlary26.2004,p 33
c R a ,6 d 0p"ai7- 9o.d1dr d.vd 0,0.,8.. a... 33 Raddnq Atan SSL Vflual Privale Networksare Simplef to
:rb.e9 lanuary2003,p. 50. Setjp Canputerworld, Apr l2A 2AA3,p2A
:. Carot,"Lookn9to Expand,AtaB,MayS2AO3,
p.32. saran, Cliff, Codlssue Afiects 40% ol websles C,rp!rc.
:: Todd "StaretoShareDarawrhFB Clql4agazineMay1r, Weekly,Janua.y13 20U, p. 5
::] l5 Bett5,Mrch, !rnexpected ns sh\s CanputeMoAd,Apt\I142443,
:_.r oenn5, New DFS Border Plan Scrttnrzed, eweek,
Anthes Gary,'Best ln ctassi DatawarehouseBooslsPfofls by
:' Mo6lUt tites FatlShortonCustomerDat3
Accuracy,Urfty EmpowerinqSalesForce ConputerwartdFebruary24, 2003,

::5 be fg Wa tter " M ic r os of t s0neNot eTuf nsSc r ibbt e ldd e a s 37 Sultvan, Laure, oracre EmbracesRFD, lnfornatian Week,
CdmputerFtes rhe watl strcet JaD.nat.acto6e(3A 2403,
. l8 VertonDan, FB Beqns (nowledqeManaqemen\FaceLlr, Can
. :,nis Davd, lntroducinq ntoPalh lntetlqent Enterpnse, putewarld, Apti\ 21,2043 p 14.
l9 D a v s , A d n 0 a l aC o l l e c l i o5i L l p S h a r p l y F o l tno9w9 / 1 1,Ih e tl r 1 l
::-.r.leanette,'open-Sour.dDBsGa
B gI ne lntel|gehtEhter- StreetJournal,May22,2003 p. 81.
ii February7 200!,p 3 AnthesGary,TheForrestsCteat, Canputetuarld,Apt | 14 2403,
: Mark,'MySOLBfeaks a tn. DataCen\et annputeMarld,
Leon,Mark,"Keysrothe K nqdon CanputeMarld,Ap(|142a03,
rq Rick open SourceoatabaseAan\^s,tnfarnationweek,
S ener Scort TotalAulomaton Canputetuorld,Apt114 2N3,
: ::.a Bran ,'Dat abas e0pennq
Up, ewel J anuar y1 2 , 2 0 0 4 , p 52.
Schlosserlutie Lookingfor Intellgenceitr lce Cream Fa une,
: t..y N ck, 'D2 Ve5 for Top DalabasePo6ilon, trmprldf
.:4il -)a^rary27 240/.,p lA Sta(, The Stare of Busrness ntettqence Conputer Weekly
_ 9 Rick,'Syb asand
e BMReadyDalabas es f Lornux / r l r .
: :nweek,)anuary26,20M p.49. Vaa5,Lisa ToolsGivelns qhtsintoDaraba5es, e'teer,-ranuary27,
. fg Rlck,'Syb asand
e BMReadyoat abas es f of
L nux / r l o . 2 0 0 3p . 9 .
: i4week,Janrary26,2044p.49. B a c h e t d o rB, e t h , '0 b j e c l - 0 r i e n l eD e p e e dsOu e re s,"
d a r a b a eS
eds. Mark, 'Ready to Rumble /re Anerican Lawyer lntorhatiahWeek,Matcn 1a 2A$, p t9
iohnson Cotn TechGvesTone-oeafa VoLceMakeove. Ele.
. ::: Sarah ScotrishPotce FatcestaSttateData, CahPutihg trotc Engineenrgnnes, May5,2003,p.51.
oerra,Skip lmaqeAnatyssSollwareSlrowst5 Ftexlbtity, r.ug
tartneE inSuppty. res,?r lr'ews,Janrary12,2444,p 5A Discawrrand,evelapnent t4arch01,2003,p 61
: .. lohn,"BtuePfintlorChanqe lnfo.natianlrteekJanrary26 Slaff 'software SysiemAttowsGeograph c D sptay,Anatyssof
UpstreamA.livry, onsrdru,Feb.uary2003,p 53
rq, Rck Stock Trades Get a Boost lrnorhati.hweek 5 0 Wo.thenBen,"DarabaseCracksMrrderCase ClOlLlagazine May
t,2003
, :: DBw, TheDatabas0er, Canput{||o.ld, Ma.crtI zaal. 5 l Vaas Lsa, VntuaLDatabasos Makesense out ol Va.iedDara
ew.ek March31,2043p.12
. OfadeandHPSerWdrLdReratd,
VARRDstn$s,
)anraty26, oiqnan Lary, 'Diaqnoss Disconnecled,' ,aie[re, May5 2003.
53. Thomas,0aniet,'0nlineAgevettcar6n c.nputer wdkly, May
 J

a-\

E fte c ti v ec o m m rn i c a tto nasr e essenti atto De:-. tlre ,..n:e ..1rn!i..it..: I t)

o rg a n rz aot f a t s u c c e s s . ..nttttnt..l.rs a ^ . : 4 . . . b - ! - . ...r l :.
r a t.t..otr - rf .a: .r ! si:r:l

An u i m i s ta k a b l etre n do f c omm!ni cati ons il.rtir' hr!id i.t.!.f-:. ! 1 . . - n r !|.:

te c h n o l o g ys i h a t mo re p e opteare abteto n r . d . . r I i l s . r i : L l r eb . . , i . f : a . L r ' :t
s e n da n d .e c e i v ea tLfo rm s o f i nformai i on jpr. r. nrfd: tftfr
o v e r9 re a l e rd i s ra n c east a fasterrate.
Da.r, be i.a. T . l e ( r {. r k .
F r r L : _ 1 ^ r i j , ! e . . t e i ! . . r n , m ! n r j .- i
'l i , r : o n : , , l n d t h . i j . , . e . - . f p.!,i i l .
0 e n r , , r - E L : . r '. ! t 5 i . : . i _ i L . d r t h : i e i ,
m r' rrt oni , ctror[
tlf f. :hi' t.r n ,fr:,r,i r t ) L . t . q t tr i t) ..

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f r L ; : i d i l . r ' . e i r r e a r . r . t E . ! - ,r r !n :;
f . . l : j j i t f r e - . t s t . r L r L , r i!t. . r : i s n n.r t
L ! e : : d C : . ! . : i t h e r . , ; . f e ; r ! ,!3
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intl !irqaf /tt o...ri. l!..ir f r.,, r ::r :
-i
 T.L.ro.trrli.Jl mLJrd Nrrwo,ri' I o''p""u

INFORMATION SYSTEMS IN THE GLOBAL ECONOMY

THE BARILLA GROUP. ITALY
: itd 0ia n i UsesWiretesgNetworlinqt o L ib e ra t eE rn 0 lo v c e E

r 1a7? Pletrro Ba lla opened a bread and pasta bakery in Panna, Ita.ly. Toalay.
r28 years later, Pietro's three greai-grandsons. Guido. Luca, and Paolo, control
faai has become Itabrs largst food-processing company: Ealilla. With 29 pro-
:iction plants distributed around the world. prcviding 1,265,000 tons of rood
: bducts to more than 1OOcounties. Baxilla is undisputedly the worrd's leading
ide in pasta. Baxirra is a grea.t fanily'run multinational, squeely set on the
:loulders of lour generations of the Barilla family.
BaiUas business philosop\y incorporaies the metaphor of a.n iceberg: ihe
part of a pmduct is wllat is eaten, directly perceived by the consumer. But
-stbte
:-:e the tip of the iceberg, it i3 only a paft of the entire product. The hidden paxt
-. enormous, made up of rcsea.ch, intuition, design, control, and study-the ac-
:: iti$ that are part of the Barilla Qua,lity Aystem. Bariua considers its human
:gsource its greatest aset-the key to its success-and fostem employee talent
promotes thei. lea.de.ship with a managerial style based on integ?ity in de-
-d
=ion mal<ing a.nd conduct.
Recently, the Americar brarch of B.rilla @nstructed a new feility in Bm
i{kburn, Illinois. Barila dsigled a state'ofthe ai1 @mmuications ard comp
-:.r network system to improve iDformatior flow throughout the leg compa"ay
:dpus. The new network connecia the two sprawling wings ofthe main fa.ility
{d also a rsea.rch kitchen located in a separaie building a mile awqy.
With Barila s emphaais on people, temwork is aD important component of
:: organizational culture, and the new facility's dsien supporb temwork with
'huddle" rcoms. as wetl as a centra.l arc, wher pople can hold discus'
-reral or plannirg sessions in a congenia,I, open atmosphere. The new computer
=rns
:::work adds yei aiother benefli, freeing employees to traver wherever they ar
:-ded withtn the comparry campus thrcugh mobile technology.
BariUa 4merica worked with Cieco Systems to implement a wirel4s comput
:: network tha,t spanned the entire campus. Devices called "acce$ points,"
Frich send and rcceive communication signa.ls thrcugh the ,ir, were distributed
=out the organization and connected to the company's seryels. Specia.l wireless
napter caxds were iDstalled in empioyees notebook and handheld computerc so
j3! wherer they rcmed on the corporate campus, they lvould be connecied
i: rhe network. Cis@ a.lso iDtalted powerful long-range wireless cornections to
j.k the headquarters and the test kitchen. Toalay's technoloey provides top'
r:rch speed iD wirless networks for a ftaction of tbe insb,llation expense of

PerhaF the mosi iDteresting ofthe new technologies implemented at Bariua

!-e its Intemet phon$. They offer standad phone selvices, as weU as additional
+nices that intemci with computer systems. Internet phones use the same
:<hnoloey s the regular Intemet the InterDet Protocot (IP)-to communicate
r:er ihe lo@l data network. IP phones enable voice, video, and data transmis-
! rrs to @nverye in one device. An additioDa.l bonus olIP phones is that lhey
t'! less expemive thm traditiona.l leaed lines a.nd provide a company vith fuU
.: ltrol ovr the tIephone network.
r'.rr e I rnrormal
onr{hnoroqycon.eprs

The combinatioD of wllle8s computing ard IP phons prcvides

employees the a.bility to a.ceE8 aJly inforD,atlon, iDcluding databaee rports
tbe cor?onte ati4tabaaesrvo!, e-mail, and the Web, a.nd corDmuricate with
leagues one at a time or in groups thlowh voice or yido flom any locatlon
the camp1r8- Such flexibilitJ' fto8 Bar ra employe$ to work ard intmct in
number of ervirroDmenta and sttinga- "Peopls ca.D sit in a hudde rcom
anywherc elae, enter alsta,or snd aild rceive -msil," ssys Yince Danca,
tructur ma.!agI. "I s people in our coryoBte 'Uvbg room with
checking als data, diecu8sing treDds, doing search. Everybo4y love
wiEles." Executiv u,sewirle$-equipped PDA,s to move ttFoughout the
ishne $aying contudd to th network. They oaIl u th PDA to check
or conduct calb. "I car take ceIE anywhere at headquartem Fithout tunning
the phone," says Da.rc' "It E .kesme and aDybody els uEing tbe system
diately more reBponsi!.sto customer ard oiber eallel8."
WirelEs Dstworking ha5 litrera.ted Barilla employees ftom their dks
oficos and allows them to work morc natua y together. Pmductivity
employe Eora.Ie is at a,d al-time high at Bar ra's U.S. ofrces. It's easJ'to
derstaad why Eo maDJr busin$aes ar moving to untether their
though wireleE DtwortsiDg.
As you read this chapter, considorthe fottowing:
. Having instanr3@sro valuble infornation is rhe pimary
soal of ar
sFrem.How do compurerrtwork! supponrhis goal?
. How arewireles nrworksaff<ting tfie wayp@pledo rhcn jot6i

In today'shigh-speedbusins'world, etre.rivc@munication h critial.o

su@es, s ir is with The B{illa Group. Ofien, *4lat spanrcs good nanagemeni ftom
megennr is the ability to identifr problms ad olve rhen with arailable
Eficienr commuicetion is one ofth mGt valubL ofths resources,becau& ir
compry ro keepin,ouch wirh irsopendogdivisioro.curomers.snppliers.
and
For dahple, \retu Farso& Compuy, rhc globarffnancialservicdfinn, is invdriry
rnajorupgndeofits onlineapplierion calledComncrcialElctronicOme (CEO) to
the seryiesearierto CEO is .@s.d over telecoinmunicadons nrworksby
'lle.WllsFargo'scorpoatc
140,000endulersvritlin clienrs.The)'ue tle s'rten rovi
infomation ard ban! statementsud to acs money-gansfer servicesud u
deadnghouse
that procersanearly$6 trilion in dcctronic pa)'mentsarnually. "W
 raL-a..mmL-i.r
oi.3id Nerwork. I cr'.pt"" u

rfornation rich conpany,but theres sonuch ;nformatn,nthr iti sherihes hardrofind

ihn),ou need,"saidsteveEllis,aecurivevicepresidenrorV/ells Faryoi wholesaiescniccs
:foup. "so we'reghbbing itand pushingnup front to the psson who needsir, so rheycan
r; theirjob f.rster.'rFomard-thinkingcornpanics
suchasvclk Fargohopc to savebllLions
I dolla^, rcducer;me !o marker,and enablecollaborarionwirh rhcir businesspartners
ryough the useoftelecommunietionssysrems.

A N OVERVIEW
OFCOM M UNI CATI OSYSTEM
NS S
'.1enos,ndti.eson bulletin bouds, and prerntarionsareall obvioussahpls ofconrinual
. rmmuni.ationswirhin e businessorganiatn,n. Other dot-so4bviousexamplesinclude
r r Licyandp.ocedurehanualsandevei sala.ies Ghel-communiere rhecompanls perception
: rhe valueofthe conriburion ofrhe penon being paid). Conmunicarion alsocxistsin
:hcr6rms-for instance, warninglightson a conputersysremlhar moniro.srnandactuing
: aceses and signalsfron a building managencntsysten rhar monirorsr.mperature,hu
: ditv, lighting, and securityofa building. CommuDicadonis any processlhar pcrnirs
:ormation to pcs lion a senderto one or more recetuer.Conmunicarion ofall rypes
1. r m ajo,par o l d y b u l n e - .r,e m ' th e re fo ' e.manrseFmun sd,nJn rppre.i dron
: communietion concepa,nedia, and device-r well asan undestandinsofhow desc
'::ron may bestbc enployed ro develop efFectiveard eficicnt busincsssystens.

Com muni c a t i o n s
aomnuietiors is rhe rrmsnission of a signalby wa1-ofa nediun from a senderto a
':-.iver GeeFisurc6.1). l he sisnal@nrainsa nessaseonposed of daraard infornarion. T h et r a n s m i s so n o l a si g n a b
t yw a y
r: signal goesthrough some communicarions meditrn, which is oythnrg that orries a o t a m e d u m l r o m a s en d e r toa

:ralbetweena scnderand receiver.In hunan speech,thescnderaansnits a sigml through

:: rnnsmnsionnediun of the air. In teLeconmuniodons.the sendff tnnsmits a sienal
r:,oush atansnirsion nediun such* a cahle.

@
overviewof Communications
T h em e s s a s el d a t aa i d i .l o r m a t o n l
s c o m m u nc a t e dv l at he si g n a tTh e
5 i g n :t t r a n s ms s o n m e d u m ca r s th e

I he componenrsof communicationscm eoily be recognizedifyou considd hunan

arnunicadon(eeligure 6.2).V4,enwetalkro oneadotherfaceb h.q we sendhessages
::ch other.A penon may be rhe senderat one noment and the reeiver a few seconris
, r Thesde enriry,apersonin rhisose, canbe a scndcr,a reeive!, orborh.'lhis proe$
r pical of two way communicatior. The sign.ts wc Nc ro convey these messages are our
: ken wordmur laguage. Ior communicarion ro be cffecrive,
boih senderand lcceiver
-r* ndernnd thcsignalsand agrccon thc way theyareto be inrerpreted.Forexample,if
.: ;edderin Figure6.2 is speakingin a languagethe recivef doesnor undertand, or ifthe
..ld.believes ihrt a parriculrrwordhasonc ncaningard rhereceiverbelieves rhar$e word
,i rcfte other neaning. elTectivecommuni.ation will nor occur.
In addnionto tht flow ofconnunications. show! h ligurc 6.2, connunic.rions can
. r nchtonousor asynchronous- With synchronouscommuniations, the receivergersrhe synchronous
communications
:..sage insrantaoeously,when ir is sent.Vrice and phonecommunications are*mples of C o m m u n l c a t o n sn w h ch th e
rece ver gets th messaqe
 Prt s I rnrormario
n re.hioLDqy
ctrcpG

@
CommunicBtions
and
letcommunicationi
In hu manspe echt he s ender
lransmits a si9natthroughlhe
,rr@
"'.,i""t
lran smisso nme d um ot lh aif ln
ielecommunicaton, the sendef
transmitsa s 9nalthrougha cabte
or other lelecomhunications

asyn.hronou!communications synchronoN communicariom. Wirh aspchronous communiariotu. the receiverees

Co mmuncatio nsnwh c h t he messagelater soherimes hous o dxys.1itr the mssag is sent. Sending a le$er rh
receNergets the messagem nutes,
rhe pos offi.e o. e,mail ovr rhe hternet are example of asynchronousonftuni@n
ho!rs, or daysafter it is sent.
A.adem;c .esearchersare actively investigating the inpacr of both synch.onou and a
chronou comnunicarions on effectiveiss, performance,and other o.ganiariotral
Both gpes ofcomnuniorions a.e ihponanr in business,regrdles ofwherher the
nicationis donemanuallyor ele.ronielly.

T e l e co m
m u n ica tio n s
Telecommunications refes to the electronic rnnsmission ofsienals for omnunicatioe
m e n ' a' ,el ephone. rudi o.and rel * i si on.I ei eommunrqti on.hr rhe por enr il
'uch
oeare prcfound changesin bl]Jinqs be.use ir lesens the bar;e6 ofdme and di
Teleonmuniotions nor only is chansing ihe wa)-businesss operarebur al$ is altering
narure of @nmerce nseli A5 oetworks are connectedwith one another md infornatio
tdshit ed moie freely, a competitive nukeplace is making excellent qulity and
deta6ommunications inperative for sueess. Data conmud@tioro' , soecializedsubstof rcle@nmuniorj
rcfers to rhe elecrronic collection, p.ocesiry, and distribution of dara-lypicatly
lelecommuncationsthat reiers lo
conputer s)rrem hardwee devices.Dara communiariotu is acconpiished rhroush thc
the eleclroniccoLtection,
processinq,and disv butionol of rel@mmuniotiors r@hnolow.
data-typicatlybetweencomp!ter Figue 6.3 sho&s a seneml model ofieleconnunicarions. The model stans wirh a
slstm hardwaredevices. iosuir (1), suchd a person,rconpurersysten,aterninal,ormorherdevice,ihat
rhe nesage. The sendins mir rransmirsa signal (2) ro a rcle@nmuniarions dsie (31.
relcomnuiations device perforns a nunber of firncdoN, which an indude
rhe sisnal inro a difrerenr forn or from one q'pe ro mother. A telecoomunications doi
a hrdwrre component that ailows elecircnic conhun
efficiendy. The teleommunicarions d*ice rheb sendsrhe sisnal dtrough a nediuh (11
tetecommunications
medlum tel@mmmiations hedium is dyrhing thar cafties an elecronic signal dd i
Anythi.grhat car es an eteclronc betweena sendins dwice and a receivins device. The sisnal is receivedbr anorher
sqnalafd interfacesbelweena
muni.etions dqice (5) rhar is connectedro the receivins @mputer (6). The pbces @r
sen din gd evice :nda r ec eiv lng
be roened, md another nesage en go back fton dre rcceivins unir (6) io the ori
sendingunit (l).In rhis ch.prc.,wc will exploredre @nponentl ofthe relftomnuniqE
modelshownin F;gure6.3. An imporiant cha.acrerisric ofreleconnuications is the
at which infornation h uansmined, which is mesurcd in bia per second(bps)
speeds a.e in rhe ranseofrhosdds dfbi$ per second(Kbps)to nillions ofbi6 per
(Mbps)od wen billionsofbis persecond(Gbps).
Advd.s in relecommunicarions technolosl. allow us to comnuiate rap;dly
clients and oworkers almost ar.vhere in rhe woid. Teleconmunicadons also reduces
anounr ofrime neededro rnnsmit inforinarionrharcandriveand .ondude buine$ acr;
 TeLecommuni.alioi5
3id Nelworks

h addnion ro external connunicarions, releconmunications whnology also helps

rJrinesses coordinate.crivilis md inregnre variousdepartmen$ro increaseoperational
:iiciency and suppon effectivedecision making. The farreach;ng dwelopments of telrcon-
:rnications are having and will conrinue to havea profound effecr on buines infornation
r,{cms .nd on socieryin seneraL.

@
Etem6nts
ot a
Tetecommunicstjons
5y5tem
Ttecommunicalons devlcesrelay
srgnatsbelweencompulersystems
and lransmiss on md a.

Tetecommunions call echnolo9y

enabtes b!sinesspeopteto
comm!nicare wilhcoworkers a.d
cl enrsf romremotetocations

COM M UNI CATI OCHANNELS

NS
: :oday'sglobal,falt'pacedbusinesen*onnent. the useoftelecommunications cm help
r-.,ncses solvep.oblemsaod capitalireon opponmiies. But 6ing ielecommuniarions
requirescareirl mallsis of telecomnun;erionsded;i and devices.
-:riveiy
S as icCom m u n i c a t i oC
n sh a n n eCh
l a r a cte r istics
-:e ransmission nediun carrie messages
fron the sourceofthe nessagero i$ receivers.A
:-.:e aansmissioqmedium may be divided into one or nore connuniotions channels,
:i capableoferrf ing a message.Connuniotion channelscan be clasified rs simplex,
-:nupl*, ortull-dupl*.
\ simpl* chuel en rrusmit data;n onlyo"e ditection.It is seldomusedfor busines
:.-.omnunicarions.Doorbellsand radio and TV broadcastingoperatesing e sinpld A c o m m ! n i c ao t n s c h a n n elth a t ca n
t f a n s m i t d a t an o n t yo n ed i r e cto n .
::rnel. A halfdupl* chmel en tmnsmit darain either direction, but not sinultaneously.
:. ':\ample, A an begh tansnitring ro B overa half-dupld line, bur B nust wait until A hatl-duptex channel
t :.iihed ro rransnit !oA. Penonalcomputeaareusuallyconne.tedto a renote conputer A c o m m u n i c aot n sc h a n n elth a t ca n
t r a n s m i t d a t ai n l h e r d r cl i o nb, u t
 IE 2 | nlofmarm T{h.oroeycmcprs

I
full-dupler.hannet over a half-duplex .hannel. A fr -duptd .hmel pe.miis dam ffdsmission
A c om m un c at io ncsh a n .eth L al in both diF:
t'ons ar rhe samedmq s atull-duptd chmnelis lke two sinplex lines.privare
P e. mt s dat at r an s m i s s oi nr b o th leasedli:
d. ec lr ons or two sruded phone linesa.e.equiredfor fullduptex namnision.
at t hes a m eti m ,l h u s
t hef ut td! pt exc h a n n ei sl t k etw o
C h a nn eBa
I n d wid th
a n dIn fo r m a tio n - Ca r r yin g
C apaci ty
In addirion to the dnections rhat retecomnunicarions can truvel, busineses nust
consider*
band$/idth .p e e drr whi .h
Therangeol lrequencesthetan ' i gral ,.u_be rran(mi ed. sperddepends on rhe, hrnnejbd dwid , . _
r!-$ e rM g rcl rrequen!re\ Lh,r:nete.trcntc,i gnalo< ,upi e.on dgnen(rrn,m i*ionned I
et ec t r onic s ign a l o c c u p i9evseonn a
transmrssion 5bdnon r fundmenral I.wot infornaLion r}eory r,re\ Ju, fie rntohJtion..rryin.
medum. +
paciq' ofa .hannelis direcily proponionalio ils bandwidrh rhe brcadq rhe
bmisr=_
Shannon'sfundamental Lawof rh . m o rc ,i nform* i onper un.r ri me,bi r. oe, .e.ond.or bp.r en be
ui i i e d. t n ge. _-
inf.rmetion theory b ro d b md ,ereFro rel eLommuni .ari on. i n w hi cha w i debandorfrequencie. i, av"iac. :s
T helawolt et ec o mmu n i c a tithoants transnit information, allodng nore informadon ro b rrmsftirted in a
statesthattheinformario.-carry n9 $kn
capacrty ota channel 15d rec{ypfo-
ponon6t loit sba n d w i d th -th e Telecornmuniotions profe$ionals consider rhe .apacity of rhe .hannel when :g
br oede.t heband w i d th ,lm h o re r(ommend nmsmi$ion mrdia for paniculd busine$needs.In generat,today.s
org*
inf or m at ion
t h6lc a nb ec 6 re d tionsneedho.ebandwid$forincresednansmissionspeed!oarrt,ourtheirdailytuqc!.ra.
lds rakealook at rhe differenttypesoftelecomnunic,tionsnedia rhai areMilabte.
broedband
T t ec om m unic a tinownhsc ha
w dbandolf . eq !e n c si easv a i l a b l e T y p e sof M e d ia
to t.ansmitinformation atlowing
moreInlormalonlo behansmtt-ad Varioustypesofconnunications nedia areavailable.Eachrypeexhibitsirsown chara:
nagNnam ou n to fti me islic,.induding corr, ap&ir/, and speed.In dselopirg a relecommunications sysrem
selecrionofrrusmission mediadependson rhepurposeoltheoveral infornarionado-
i /J ti o n J.) ..em\.rhepurpo,eofrhc reteomnunrLri on,(ub.l " ,em..andrhe . hr r u., c. .
ofrhe nedia. The ransmissionnediashouldbechosento supponrhe
soatsofde info.--
on and orsmiational slsrensarrhetest costandro.llo* r.if-,ilt.
go,ls over dme. Transmissionmedia c.n be divided inro rwo broad cateeories:
-.ain*a.".t ".,
zuided r::
n i o n m e d ;r.i n w hi cl comnuni ari on,\i gni l , rregri deddto18a.oti d;edi ; _o".
me J i arn . * h i ch rhe.onmuni ." (i or.\i gnJ i ,,en,oLerai rur,,, r .umm" nad ir Tr bi, :

Iry
Transmission
MediaTypes

ckaErdnd r6sr.rdda Mo&.xp.tutve

rhanrwLl.d,pak
w]f.

ffil,
 Trre.ommui .ar on5:nd N .rw crks

T wi5t ed- P air W i re C a b l e

ristd-pair wire cable conrains Mo or more rwisred pairs of wirc. usuall coppd Gee
. Sure6.4a).?rcpd skrnrg ofthe wire kcepsthe signatfron "bteednrg,.intorhc r*t pair
..d.readng elecrriol inErfercne. Becau* rhewisred,pairwitesareinsulated,rheycanbe
: rrd closerogethu and packagedin orc group. Hurdreds ofwirc pdi6 can be grouped
-:o one lage wire cable.

@
Typesol Cabte
l a l T w s t e d p a r w i r e ca b te

Twisted-paireblcs comein difkrent caresories (Caresoq,1, 2, j, 4, 5, 5E, and 6). The

. er crtegoriesarc usedprimarily in homes.Higher caregories are usedasa cheaperaltcr
::!e o coaxialcrble for smdller oeworks. Catcgory I is ftad;rion.t retephonecab]e.
::igory 3 is rhc hosr comnon type ofoble found in corporateseirings,dnd ir nornalt),
:.iins fourpairsofwirc. Category5 is frcquen y installedin.ewbuildings and is apable
'::r1ing datart speedsFurerthan 1 gig.bit/second.
:oaxiaI Cabte
: :rrc 6.4bshowsa
rypial.oaxial abl., sinilarro rhai usedin cabletelevisionnsdht;oru.
-lrial cable coDsisrs of an inner conducor wire su..oundcdby insutarion,.alled rh.
: J,re. The dielecrricis surrourdedby a conducriveshield(usully a layroffo;lor merat
.: JLns),which is in rurn coveredby a layerofnon@rductive
insularion.calledrhe/.fc,
. r:n usedror dar. rrDshission, co:xiat cablefallsin rhe middle ofrhe cablingsfecrrun
- :rds ofcosr and perfortuaoe.The Gble irsefn mde expcnsivetha" twisted-fairwirc
.: burlesssothanfiber op;c c.ble (discu$edncxr.However,rheosof insr.lh mand
n.cesarycommuni.ationsequipmentmakesir dimcuh rc @npare rhe roral.dsrsof
-r1{ erhnedia. codiat oble orTesdede.md
crisperd?Iarnnsnissn,n0e$ nois)rhu
.:ed prirwire cablc.It alsoofies a highe.dira rransh6sronrare.

:br-0ptic Cabte
,.::opticqble,consisringofnanyexremelyrhinsfian&ofsldsorflsdcboundroserhcr
i ,harhins (a jrcker), naDsnitssisials wirh light beam GeeFisure 6.4c).Thesehish
,.iiry lishr bems aresetr raiedhy lase6and aie @nducrcdalonsrhe rnnspftnr fibcs.
--,.. fibc$ hrve a thin coaing, catled.kdzli"s, Nh;.h cffectively works
like a mirror, pre
'-:,ns the lighr from le.ling our ofthe nber.
lhe nuch snrler diatuerroffiber-opriccablenaks ir idcal in situarioNwhererherc
- , ri,oh for bulky .opper wi(Ffor xamplc,in .rowded@nduits,which .d be pipes
. r r q ingb o rhe te rrrc J rn d .o n m , ,.i a ,i o n .$ i ,q. rn,u, h,i 8t-,.pa.e,.,he,;, er
-.
'- ,' opric relecommuni.ations cableis veryeffective.Be.ausefibcr opdccabtesareihh une
, ::r.ical ;nrerfcren.e, signalscd bera mnirrcd ove.Ionserdisran.eswirh f$er exrensjve
 Pst s I nrrmaronT{hnoLayconeprs

tsource:O GresPase/Getty

repeateF to mpli& or rebroadet the dara. IibFopric qble ud dsociared relecommu;

cariotr dsices are more dpnsive to purchse dd inaall thm their twisied-pan wiE
ounterpans, although the cosr is .oming down.
Microwave
Transmi$ion
Microwave raosmissioos are sent rhtough rhe nnosphere and spc. Although rhesetIlF
mision nedia do not entail the expenseoflaying cable, the traasnission devicesneededro
utilire this medium oe quite *pensive. Micowave is a high-Fequency odio signal t}' r
snt thrcush the an (se Fisure 6.5). Microwve nansnission is line ofsish! which meu
thar the staight line berweenthe trusmitter and reeiver must be uobsmcred. T)"iel}-y,
niaowav sarions de placed in a serierene station will reeive r sigml, amplify it, arl
rerrmsmir ir m the ner.t microwave rrmsmission rowr. Such sr.rions cu be frcn 30 ro I
niles apar. (dependins on the heighr ofthe tower) before rhe curvarure ofthe earth marg
n inposible for rhe rowes to'tee one another." Microwave sisnals en erry rhousdr
channelsat the sme time.

@
Microwav Comm!nication!
Bcausethey ar tine ot-sighl
t nsmissoi devices,midowdve
d shes mustbe ptacedin rletivety
high Locatons slch as atop
mou.tains,towers,and t.tt

A communications satelite n buically a nioowave station placed in outer space

Fisure 6.6). The satellite rcceivesdte signal fron the eanh station, mplifies the
weal<signal, and then rebroadcastsit at a different frequency. The advmtage of
comnuni@rions is the ability to receive aad broadc*t over large geographicregions.
problens u the cuwature ofth eanh, nountains, ard other structures that block the
of-sight nicrowave transrnissioomake sarellits an anractive alternative. Geostationaiy,
earth-orbit, ud small mobile gtellite stadons are rhe r"osr connon foms of

A geo'tatiorayatelktc otbic the ean! direcdy over the equator, approximately

nila abovethe emh. Ar this altirude, one complete rrip around rhe errh rakes24 hours,
the satellite remaim over the srme spot on the arrhi surfacear all rines. The satellite
stavsfixed in the skv relative ro anv ooint on the earth from which ir on be seen.Thc
 TeLe.o,nm
! n .ar .rs andNet'orr5 | chcprr 6

@
SateltiteTr3nEmission
Communcationssatetlites6rerelay
st:tions that receivesgnals from
one eadh slalronand rebroad-sl

22,00o

;:Jlitcs, spacedat equalinteNals(120 ansulardesreesaparr),cd prolide.ove.aseofrhe

i.:,re world. A geosationarvsatellitecan be cessed usirs a dish aniennaained ar rh spor
- :he sky where the satellite hovers.
), lnbed,th-o$it (LEO) rurl/lrr slstem employs a large number of sarcllires,each in a
:::ularorbitar a constanraliittrdeofa few hundredmiles.Eachorbir rakesthe sate nesover
r-. geoghphicpoles,wirh one orbir rakingroughiy90 ninutes. The sarellires arespacedso
r:::. iiom any poinr on $e earrhar any tine, ar leastone sarellilek on a line ofsighi. The
..::rcsysremoperares similarlyro the way a cellulu telephonesprem tunctions,*cept that
::. rrirelessreceivers/rransmiires are noving rather rhan flxed and are in spaceruiher th"n
,- :le earrh.LEO senicesubscr;bencm accesthe satellires usinsan anrennealilde more
. : r r i r r edr hr o l d .fo l -i o re dre l o i ri o n i a b b n cn,.'
tnallnobih satellne stztbnrallowpeopleodbusine$es ro connunicate. Theseporrable
,::ms havea dish that is a few feetin diamerermd canoperateon banerypoweranlvhcre
,: :heworld.This capabiliryisinporranr for nos orgmizationsrhat needro uansnir nss
- -:.i fiom remotelocations.Many peopieare alsoinvesringin d;ect satelliredish rech-
: ..g] ro receivery add sendand receivecompurer c
:atlular Transmisgion
:: hc ellular t r ds mi s s j o n ,a l o @ l a re a ,s u c h a a ci ry,kdi vi d.di ntoce[s.A sacaro.vehi cl e
. :r a .ellulr devi.e,suchasa mobile phone,noves fton one cell to another,rhe cellular
.::m pdsesrhe phone connecdonfrom one cell ro anorhcrGeeFiglre 6.7). The sisnah
- r de cellsare transnined ro a .eceiverand iniesraiedinto rhe resule phone sFteh.
: :rlar phone use6.d thus connectto anyonethat hc accessto regularphone sewice,
,-:r r a child arhomeora husiness dsociarein London.Thevcanalsoconractothercellular
:-.ne sers. Be.ausecellularrmnsnissionusesradio wavcs,ir is posible for peoplewirh
r*:irl receivcrs to lisrento ellular phoneconversations, so they re not secure.
nftaredTransmission
.-- rther node of trasmission, . led iafdred tdn'nntoz, sends sisndls throrgh the air
: iisht waves.Infhred transmiss;onrequiresline-of-sighr[.nsnission dd short dis,
=:s under a few hundredyards.lnFared rlaDsnissioncan be usedto conned variou
l devicesdd cohputers.Ior *ample, jnfraredtransnissionh* beenusedb allow
-i
,:. ihel.l .onputers to transmitdataandinfornation ro largcrcomputerswithin the same
,
' n Infi ed tnnsmissioncan alsobe usedto connecta displaysdeen, a printer, and a
:: rle ro acohpurer. Somespecial-purposc phonescanalsouseinfraredtmsn;ssion. This
:::rs oftransmissioncan be usedto cstabiishr wireles network with rhe a&anwe thar
m n re d , rc mo \e d ,a rrd i o .r-l l .d wi t-hourcxpen,i \ew :, ne ,.a
" i oo,t
 Psi s I irtrmdmn r{hnoLoeycorceprs

@
A TypicatCetlutar
TransmissionScenario
Usin9 phone,
a cetluLarcar thcatl
e f d aL slh eiu mbeflr l. Thes is f at s
sen tiromth e ca r ' sanlen. at olhe
tow-poweredceLtutar:nlennatoca-
te d nth atcettl2 l.Thes ig. alis s ent
to the re9 lon atcellut ar phone s wit c -
h n g o fice , a lso c alledlhe noble
Ielep hone subscribe r offi.e IM fso I
1 3l.Thsign alisswr c hedt o t he
locatlelephonecompanysw lching
5tationLocatednearestthecall ds
l narionl1l. Now nteg16tedintolhe
.e gu larp ho nsy s t emt,hec at t is au M o d m s
loma tica llyswit c hed t o t he num ber In datareleomnunietions, it is nor un@mnon ro userransnissionnedia ofdiffeling oT-
orlg n aUyd a led( 5) ,aUwit hout lhe md capaciries at vrious stagesofthe ommunierions proces.Ifa tJ'picalrelephonelini !
needloroPerator assrstance
used ro r.ansfer dara, n an o.ly a.onnodare an oalos signal (a continuous, cuF-trf
signal). Becausea conpurer generatera digital signal represenringbits, a special devi< r
anatog5ignal
Acontinuo!s c!tuing signal rcquired ro conv rhe digital signal to an malog signal, dd vice ve.sa GeeFisur 6 i.
TBnslarins dan fton digii eLro znalosis c,Jled nodubr'az, md ranslaring darafrom anr4
dlgitel signat
As qnal repfesentedby bits. to d\sital is.aned.lenbdalddo,. Thus, rhesedev;.es are modul ion/denodulation d$ i
or modems.Penril/BayNetworls, Haves,Microcom,Mororola,dd U.S. Robodc re +
A dev ce that transl6tesd.ta ffom mples of moden nanufacrures.
dig italloa na logand analoglo

@
Howr Modam
Work3
0 igita tsig .alsa re m odut 6t ed i. lo
analogsignals,whlchcan bcaried
ovef existingphonellnes.Ihe
6.a togsig na tsa r elhen
de mod ula led ba c kif r o digit . t
sg na tsby th e.e c eivn9 m odm .

Modems cm auronaticdry dial relphone nunbe6, originarc messasesending, dd a

wer incoming calls and ine$ases. Modems .d also perform tgrl dd checkson ho*.;.{
ee operating.Sohe modens areableto vary rheir $msmissionnres.commonlyneoud
in hits per second.Cellulu nodems are placed in iaprop personalonputers to allow
on the go to coinnunic e wirh other conpurer sysremsmd devies.

S p e c i a l- Pu r p o M
seo d e m s
\rirh a cclluld modem, you @r @nnecr ro orher omputers while in your ar, on a boaE
in any arq ihat hd celul$ rrmsnission seNice.Expansionslois usedfor PC nenon, ca-tr
cd also be usedfor sBndddized credir.ediized PC modem ards, which work like nz-
ddd modens. PC nodems .re b<oming increarinsl)- popul{ wirh norebook and pori

Cable conpanies arc protuor'ns rhe eble modeh, wh;ch hu a low inirial cost ad r*
missionspeedrup to l0 Mbps. A eble moden ca deliver.ework and lnierne(acces
ro 50 rines fasrerthan a stand d modem and phone line. In addirion,a cablenoder
 aid Neiwort I cu4*" e
reb.ommun.arioi5

r'*avs on, so you can be on the Inrernet 24 hours e dey, 7 days a week Feesfrom $30 to
jrO per month usuallyincludeunlinited servie, localnews,and an e-mailaaounr. Cable
<lce may ost oniy an addnional $ l0 per month ifyou haveexisdngInremet accessthrough
Inrner prcvidrand wanr ro upgradefron phoneto cablereoice @Hone and Time
-rrneis AOL are leadingcompmiesusingcableTV to bring the Internetto homesand

A c a b t em o d e mc a nd eti ve r fe tw o r k
and nternel accssup to 5! bmes
I e s t e r l h a na s l a n d a r dm o d e ma n d

: o u r t . s yo f D - L i n k
l S o u r c eC

trttiptexerg
te::se nedia and channelste *pensive, dwices thar allow severalsignalsto be sent over
.. : hr"nel havebe.n developed.A nultiplexer h one of rhcsedqices. A multiPlqer allows
A devlcethat attowsseveral
rral rel.comdunicaiions signalsto be trusmirted over a single connunications nediun
t e t e c o m m ! n l c a t i o ns sq n a l 5to b e
{ $mc time hee Figure6 9). transmitted o v e ra s i n9 l co m m u n l
-. c a t o n s m e d i ! m a t l h e e a m et m e .

@
Useof a Muttiptexerto
Dat.
Consotidate
Communicationsontoa Single
communicatons Link

d
p

RErt-End ProcesSors
* l0'@r{nd prc.essB are sPecialpurpose conputers rh.t managecomhuniations ro and lront-endprocessor
A s p e c i a t - p upfo s c om p u te th
f al
na r.omputer qatem. LiLea recePdonhthddling visitorsat u oicecomplex'om'u- m 6 n a g e sc o m m u n i caot n sl o a n d
&. uu:.rrs proesors direct the flow of;nconing and outgoingmessages Thev connecte
rrom a compurersysrem
o'.:Ege or mainfrme conputer to hundreds or thousods of onmuniadons lines Thev
wr ,=nnals and other de'ices to scewhether they haveary nessagesro Thev provide
'.nd
.ur:-rdc answerinsmd calling t well u performcircuit checkingand enor detection
ihr:ind proasos also de"eloplogs or rep"rts of all onnunications rafic edit data
 P e It2 | ir o r ;to n r e .h i.L o q v.o n .epti

beforeit enrcs the main procesor,doumine nesage prio.irv, auromarially chooseal(::

nativeand clficientconmunicationspathsover muftipLcdatacomnunicadonslincs.=;
providc generaldata securityfor the nain systcrnCPU. BecNse frcnt'end proct'-,r
pcrformall thesetarL\, thr nidrange or nainframc conpuref is ableto pro.essnore ".1
Geefigurc 6.10).

w
Fron!-EndProcessor
A iro nt en d p f oc es s ort ak st he
b urd enot co m m unr c at ons
ma na ge ment away f om t ne m ar n

->

ANDSERVI CES
CARR I ERS
'1'elecomhuni.ations
carri.rsorganizeonmudiGtions .hdnnels,ncrworks,hddwft
wrq people,and buincs procedures with .:
to provideindividu{s ard businesses
commu.icetionssericcs.The woesofcarrierscan be dividcd into threebrcad
local *change carriers,conpetitive local exchangcaniers, and long distancc carie,t

Loc a IE x c h a n g eCa r r i r g
localxchange
carrierILECI A local schmge qier (LEC) ;s a pul,li. telephorccompanyin the United Sat:
A p ub licte tephone c om panyin t he prxides seniccto homesandbusiness within irs dcfinedgeograph;cal *ea cJled r:
Ufiled Statesth:t provldssetuce accesn"d tlanqott dtu (LAL{). LEC companies m also somernnesrclined o s
to h ome sa nd b! s ins s eswit hinils
de f ne dge oqr aphc aLar ea,c alledit s
Homesand businsesfron wiihin rhc LEC'SI.ATA arconnectedto drc lool exchas
lacal access and Iranspaft a.ea wh*i calleda kcal loop rypicai\',a t sted'paircopperw;re G.c Fisure6.1I). Th:
lufA) loop k alsocalledrhe "l*t mile." once the subscriberrc@hesthe LEC, callscan b. .:
litcrallyanyplacein the world usingthe telco'sswitchingequipnenr.
EdchLEC hashanr lo.dl exchanges. Eachlocalexchange(odtsideih. Urired Sr:::
rcrn public arhaage i used)has cquipneut thar can switch crlls locally to subscribe-
necrcd ro the sa-e lo.al *chuge. conncct to other loel exchoges within thc sane i,i
or omecr to interexchangecaniers (xCs) that ctry rraflic beueen LECs, such :
disrancecarriersAT&T. MCI, aM Sprint. The currentrulesfor pernittirg a conr
provideinoa-IATA or intelhTA senice(or both) ar b*ed on rheTcleconmun::

lndividu,ls dd organiarions$ar rely on pa;rsofcopper wircs6r their conne.r

rheLEC desul,iectrosjsnificarrlinirarions.F;$t, the speedar whichdatacanberrans:
 reLe.omnurrarons:ni NeiaorG ch,!t6r 6
I

@
LocatExchange
Carrierg

.:: copperw;es is much slowerthan orherrrunsnissionnedia oprions.Second,rhe wirs

-iirute a sinslepoini of failuie rhar if cur (by a careless backhoeopenror or evenan
.-.m ohilec ollis io n w i rh a re l e p h o n p o l e )a n rcsuhi nl ossofcotumuni cari ons.Thus,hany
-::nizationsr workingwirh conpedtivelocalexchange crries, d;scusednexr.The Gle,
- ' ne svrem wasoriginallydesignedfor voiceransmissiononll, usinganalogrdsnission
Todal your conputer's nodem corvertssignalsfroh analogro dignal.\firh
--nology.
..snred senies digitalnenvork(ISDN) or dlsital subscriber line (DSL) sefrice,discused
.-:.: h rhe chaprff, the local loop can carry digital sisDalsdnecdy dd et a tuuch hishcr
'- :r'idth than they do for voie only.

:o mp e ti tiveLoc aIE x c hangeC arr ie r s

.,apetiti* local *chage 6rie6 (CLEC' ale conpllies &at @mpere wnh rhe LECS. competitive
tocaaexchang
- : Lnclude wirelesssen'iceproviders,salellireTV seniceprovideN,cible TVconpa.ies, carrierICLECI
:.: :' en power companies the sahe power hres rhai bring elearjciryro our hohes and A c o m p a n y t h aits a L t o w eto d
i.ses may beconerhe nen padway for high speedInoner a@e$.This d$elopnenr c o m p e l ew r t ht h e L E C Ssu cha sa
w r e t e s s ,s a t e t t l e ,o r . ab te se r yi ce
: rurn everypowerplug inro rbroadbdd conne.don.This rechnologyis noryercom-
-=:-:,rllyfeaible.However,utilirycompa c PPLCorpoErioninAllcniown, Pnnsylvania,
: : rmeren CorporationinSr. Loun are.onduclingnial progrms wirh consune6., Ceble
-1ani$ haveollercdsomeresidentirlphoneseoicesince1998.At rhe end of2003, rhere
,.-: narl),2.4mill;on cablerelephonesubsc.ibe6,and rhe nunber ofsubscribe^ws d-
.-:.J to quickly incre*e to morerhan 10 nillion by the end of2005.3Tine \faner Cable
r--t:r ro havedigitalrelephone sefrie availableacro$ rhe UnitedStates.a
The conpetitive
.: :xchangecaniersprovidevaluble backupcapabiliryoverthe '1or nile. " In nany eses,
-, nnr ord fdter sericc and cheapdales rhan rhe tnditional localexchargecarie6.

Carriers
-ong-Distance
- ::; past few years, $e rhree establhhed longdistoce cdrierFAT&T, sprint, and ton9-distance
carrier
. i-have losrnarkct shareundd rhe ploykionsofrhe TeleconmuniqrionsAct of1996 A l r a d i t i o n allo n q - ds t a n cep h o n e
.=.rble6.2).ThcacrallowedBellsourh,QwesrConnunicadons,SBCConmmications, provider,such asAT&T,Spr nt, or
MCI
,rr \.rien Conmuni.atiotu ro offerlong-disrance seNi.ewirh in rhe regionsrheyseNeon
. ::t'by*rate basisafter reeiving approvalfron eachstare'sresularosdd the lederal
:-nrun;cadonsCommission(FCC).'Ihcse formerll,localcompaniesnow bundle th;f
, :: distanceserice dth traditionallocal senice in a conpreheroivepackagethr they
 Por: | :r. fn; r Tr r mL.qyc'iGriL!
'r

@
Long-Distance Market 5h.re
lsou .ce Dataf iom lodd
Rosen btu th,The Pr c eW af s
AldI
KwW 27vd.
Businesslleek Online Fe6tuaty13

||w. bus]nessweek.. on. )

I.d: . .. 14yo

It4Cl 12%

7v,
BetLSouth 4v,
'0w!;t
30d

S w i t c h e da n d De d ic a t e dL in e s
Conhunicadons caries ffpicall). prolide rhe usc of rtandard telephorc ljns. ::l
switchedlines.Thesehcs usesirching equipmcrt to , ow onc ubs;ission de,.. .
acommu nrcatons Lne t hat us es
swilchin geq u p m entt o aLlowone
tran smssio ndev ic et obec onnec t ed
to oth eftran sms s r ondev ic es

dedicated line
a co mmuncatr of sLf e t harpf ov / des .onnecrionbe$,enrwopoints.No s$'it hingordirlinsis necdcd:the .wo dcvicesare: .
a cofstant c0nnecnonbetweef two
p o n ts no swlchinqor ddlinqis
connected.Man)' fims {irh a highvoluhe ofdar. taficbMccn nvo ponrrs sar,r :
needed and the two devicesafe quartersin Chiogo and asalesotTiccjn SanDjego utilizededicatedthes. The high -
.o .r.ftr..cJu.l rs" ri e' i rrg,u,hrri n< r.on..b,eJi rri n.,,1stongd.rne.h Jr ge, . -
with a swnchcdline. Mond y feesf;r a dcdicred linc cu hnse frorn $50 to $500 or 1.
but thde is no additioial ch.rgefor use. -

Tete co mmun iconsal net wofk s

fequ re slat of-the-ar(computer
softwa r-"te ch not ogy
t o c ont inuous t y
mo nrorth e fLo wolv o c e dala,af d
ma9 elra nsmrs son ov ef b t Llonsot
c rcu rtmiteswor t dwide.
{Sou rceO Rog er T! t t y / O et t y
io i ce a n d D:ta C onv ergenc e
-:: Inrernerprorocol(IP) is the .ontuunicadonsprorocolbv which dan is sentfrcm one
:-;,uier ro anorheron rhe Iorerner.Eachconputer on rhe Inrerncrhasd IP addle$ rhar
:ue1yidentifiesit fron all orher compures on rhe Inrerner.\flhen data;s senroverthe
'::.ner, ir is dividedinro smallpackets,eachcontainingborh rhesendeisI.rener addre$
--: :hereceiver's address. VoiceoverInternetprctool ffolP) ; rhe b$ic r,,t,/r ofvoice vorceoverInlernetprotocol
:rc fornr of a data packet uins rhe lnrerner proto.ol. /P telephoryis rhe technology for
| .mirringvoiceconhunierions overa networLusi.g an openstandardlhoed tnrcnct Thebasi ct.ansport
ol voicen t he
.::rcol. lP telcphonyusesVotp 6$ \s a tuftud/edptliatio, suneoffcrins fedurc-richap- fofmol a datapackeus
t nqI he
' :::nns. Thescolien-nodular applicarionslend rhemselves to cdsr,efecriveinreqratidn
. . . r - i, r r r r . J , ,o n . rh J , .h re ,h .l t a f$ o * f \i $;u h, Ji ,Lu..edi n no.e d;.r I In

\bice ud dara.onvergedce istheinregrationofvoice anddaraapplications in acomnon voiceand data convergence

- ::onmcnr.lnsteadofusins fixed cncuirs,as ha beenrhe cascsincethe phonenework Thei nl egrat
onol vol c a.
e d dala
.;:nrcntcd overe centuryago,voicccoNesaiionsand wen videocanbe digi&ed, brokcn appLcatronsIna common
- r(o darapackcrs,andtdsmined rheway d.ia n routdove.rhe lnrernet.Th move!o
.:.:acr telephory providest.etuendousco$ savingsfdr borh serviccprovides and cus
-rs. Ns lcleconmunicarionsequipmentcm suppor rhe roudng of voic, dar., and
: : . r : ndy eiis i0p e rc e n ro frh e c o s ro fo l d e re q pmenr.Inaddi ri on,rhe.ew equi pncnr
,:l\ h3lf dex pens i v e ro o p e n re .H o w e v e r,ro c a pi rl l j reonrhebenefi rsofrhi srcchnotogy,
;-rs hu eplacerheir old equipnent and reensinecrrhcir rrunk linq rhar carq,rrafic
.: r,ngdistancs. This ransition ro digitizedvoice,dan, and videois the dominanrrech
. r.:ic,l issuefacing the {orld's phone conpanies over the nexr decade-Every carrier hm
.: ane go.li the onl), differenceis the; timeoble for achievingir. TelecomItalia is the

-- r tunhe$ alodg in rhis rransnion: it hdr complrely rebuik rhe cor of ns narionwide
'.:..ork arcund Inrernerequiphenl5
r rclephonyisjst beginninsro be usedin someorgdiarions. Rescarch firh Mccee-
- Analyricsesiinatesrhat I percenrofrhe80,000.all cenrere in thc United Statesroday
--: :jnB applicationsbuilt to run over convergedlP-b*ed voice/datanetworks.By 2008
::::rn expens*pect rhat 20 percenrof organizations usingcall cnres will be running
:*edcall enter systens,*ith feau.essuchasauromatedcall disuiburion,conra.than,
ddconpurer/relephoryinreghrion.6Oie keyadvanrage, ofcourse,iscosr.Itcosts
-:aent.
,.. n run one converyedIP networkihm it doesto run separaie linesfor voie and data.
.-:::her adwntageis rhat lP call centersallow remoreconnectivity<ll cenreragentscan
: : : ro any location wirh a network to receivecalls,wheder ar home or abroad. Since.all
. ,:.rs can rakeplaceover ihe.orporare nerwork,phone chargesaie rcduced,which.m

th o n e a n d 0 i al i ng S erv i c es
-:r,n cdiets are beginningio providemore and more phone dd dialins serics to
::-i and busine$uses.Aronatic nunbe. idenrificarion(ANI), or.aller ID, equipmenr
. . n, k lledon d p h o n e .rr.m (o ,d e n L i 6rn
, d d i.pl ,),he nrrbr. of rn i n,omi ;s,J.
: : businessserrins,ANI cen be usedro ;denri4,rhe aller dd link rhar cdler wilh infor-
:i:.rn sroredin a conpurer. For exahple, when a cusiomercellslede.d Flpres, rhe
serice rep usesrhe ANI to idenri6' rhe nane dd addres ofrhe cusroner,ths
--rmer
J :s rine when h.ndling a requesrfor a piclup. Thc ANI cd be veiy usefulin helping
-. :Lcscreenqlls beforethey ae anwered. Unwmred phonecallsfrom other peoplemd
..- :cses cm be idenrifiedbeforerhephoneis evermvered. ANI, however,doesn'r.lways
.. :r seu wirh difTerent.turiers.Common orriers offer evenhore senics ro exrendLhe
-::ilities of rhe typical phone sysrem.Evcn wirh al1 the advancesin computeB dd
i--.lnmunicaions, .ommon carrirsriccs r.man mpoftanr.
 Pari 2 J r{hioLogyco^Gprs
rnrormalion

Someoftlese servicesare listed nere:

. The abiiiry to inregrate persoral computers so that the tetephonenonber ofthe oller
utonaticalr captued and usedto took up infornat;on in a dalab3reabout ' cstolE -
. use of acce$ coder to screenout junk calls,wrong numbere,and orher unwuted phor

. CaI screeninCpriorities (e.g., only ceaain ells are tmsmirted during cenain times
rhe day,suchasftom 10:00P M ro 7:00 A.M )
. The abiliry ro useone nunber for a busines phone.home phone,personalconpurcr

. Intellicent di,linC (when a buq' sisnal is recived, the phone redials the number wha
yoLr [ne and the iine of the Parry)-ou ere iryins to reach are both free)

WATS
vide'area telephone sewice (\7ATS) is a 6red+te long-distance tele@mnuniaiions '
vice for hearyuer ofvoice sewicessuchs.sromer sppolt o'gan;atiotr' telemdketiB
tum, lage busineses, and govtmment agencies.The IN-WATS sewice is used srricdv frr
inconi; cJk md hakes useof cenainreserved areacodessuchas800' 877, o' 888 lndt
;fing an IN-\rATS number re not chrged for the call. Insad, the recipient of
"i,luak
rhe call paysa fixed nonthJy mre,provided that the muiddm hours ofusageis not dceede{
The Oai-wATS trsice is ured by the subsciber to place outgoing callsat a fixed mondn'
rate.Sornecalling restrictionsapply. For oample, the caller mv not be abieto nake a \fATs
call wirhin the sane sate

ISDN
digitat
integratedserYices InrEtd seFices digital network (ISDN) is a set of srandardr for inrcsrating both voie
network{lSDNl and Lra connuniorions onto a sinslel;ne via disi$l iNnission overo'dinary telePhoc
A set of slandardstor intgranng copper wire orher nedia en be usedu well ISDN tequna specialadaptersat both endsof
voicea nd da tacom m unic al ons o. r o the trunsnission line, so rhe acces provider must also have m ISDN adaPrer {sd
a s.9 le tne !ia d 9ilat r f ans m r s s r on Fisure 6.1 2). The ISDN Bdic Rite Interfac b fiequendv chosenfor home and smll bui.
over copperwire or other medra.
It provides two communications channels,so therc can be sinultaneous transmissioc
"eises.
ofvoice, Jata. or fax. The ISDN Prinary Rate lncrfac provides 30 chunels that en ead
rmspon dataat 64 Kbps, or an aggresrerate of 1,920Kbps. ISDN is 'Eileble in md
urban areasofthe Unied Statesihowevr, it is being rePlacedbv DSL service

T-Carrier System
The T-orrier sysen wu introdued in the 1960s ro suppon digirized voice rransni$or
The systm ures four wires and prorides dupler opabilirv (two wires receiving and rs!
sending at dre sane tine) The four wnes en be twisted-pan @PPerwires, codial cablc-
optical fiber, digiral nic.owave, o. other trmshission media The T't arier is capableor
c;rrying 1.544Mbps overcoPpe!wire and is a conmonlv usedin the United Setes'JaplE
ud Cmda. Interner accessplov'ders (e g., Anrica Onl;ne) are frequentlv connectedto a*
lnternet by a T-1 line owned by ore of the najor communications curiers The T'3 line ir
capableoftrarornitring daraat a rarc of44 736 MbPs dd is also comnonry usedbv Intern(
 T,plommlr r riidN.r, I cr.p.""

@
l5DN Ntwork Switchin9

D i9it atSub s c r i b eLr i n e[ 0 5 L |

, rsnil subsciberline (DSL) is a rlecommunicarionsrechnolosyrhlr delivenhish,band, diqitatsubscriberline lDsLl
. :,h nformarion to hones md smallbusine$esoverordilary coppertelephonewires-If A telecommun c a t i o n ste ch n o l o g y
thal detiversh gh bandwidth
-: horncor snall busines is do* enoughto a rclephoDecompmy's cennal office rhr i n l o r m a to n t o h o h s an dsm a tt
'l:* DSL senicc,you nay be ablero iec;vedaraar rrresup ro 6.1 Mbps, enrbling .on- D u sn e s s e s o v e . f i dn ar yco p p r
: :rous rrdNmissionofvideo,audio,addden I,D ellecrs.More rypically,a DSL.onnecdon
.. i id.s a rrdsnission rateof 512 Kbps ro 1.544Mbps from $c ccnral om.e fu the sub,
.-:rer and about 128 Kbps Fom rhe subscriberro rll. cenrralolfice.A DSL line can erri
' i daraand voi.e sigtuls,aid rhe daraparr ofdc linc is continuouly connected.DSL
- . :rllationshegd in 1998and areproceding rapidlyin a numberofu. S..ohmun;riesand
-:{ h$e. DSL is expctedto replae ISDN in nary arcd and ro.ompete wnh rhe cable
' icd ;n bringinghigh{peed datacommunicationsro hones dd smallbusine$es.The
- ,aber ofDSLlines worldwidedoubledin 2003 ro 36 million and is soonexpe.tedto reich
r million Lines or abour13perenr ofrhc wodd'sphonelines.outside the Unned Stxres,
:: outpaccscablemoden installationsby nearlv2 to 1.7

rYire l e ssM o bi l e
' :hc major ellular carie$ offer sone son ofwirelesshob;le daraserices.A few of rle
:::onsaresumnarizedin Table 6.3. with wiftles tuobilesewice,you canaccss the wel>
-- :lacc a ccil phone network*ists. Veri&n Wirelessrunsseveralmobile lesorks using
'\L{ (Cod.-DivisionMultiple Access)kRTT, a commuriarions rechnologyrhat sup,
':; nobile& t ac on mu n i o ti o n s a ts p e e d s ra n g i ngfroml 44K bpsto2Mbps.Iti saform
 Pst 2 I nrtrmrionr{hnotoqycdmsprs

lio:2oo
Speed
'{bi;

w of mulriplding rhar allowsnume.ouscommudi@tionsdevicesto sharea singlecommuni-

cations channel. NationalAccess,rhe conpany's pr;mary offering, is availablein rhousan&
SomeWirelssData ofcniesaroundthe countrywirh a monthly ch4e fron $35 rc $80.AT&T, T'Mobile, md
Communications
0!tions Cinsular enploy cSM (Global System for Mobile onnunierion) rrchnologz, which is
rhe de facto wirelessteiephonestandardin Europe,wi$ nore than 120 million usea
worldwidein 120 countries.Ir is a digital nobile telephonesyvem rhat digitizesand com-
presesdataand then sendsit down a.omunicarions channelwnb two other slieds of
data,eachin its own time slot. Sincenany GSM nerwork operator ha"e .ooing
"greene"c
with forcign operaro.s,user cm ofien continue to ue their mobile phoneswhen they uavd
ro othercountries.In 2003.manynetworkopentorssafted roilingout thei. nextgeneratiod
ofwneks renies, which boast ar averagespeedaround 120 Kbps and a top speedof 200
Kbps.The seniceis availablein more rhan6,500 cjtiesand rownswnh d mlimired-acc*
plan for $80 a nonth.
Genex Servicesis one ofthe nadont ldgest healthcre nuagement sewice providec
with nobile worken deployedaoossrhe country.The compmysupporahundredsof <x-
nanagemenr workers who visit honebound paiienis io coordinare rhen ere and rela'
information to enployers, docrots, and i"surance agencie. The crryorLcn nusr be ableto
update medical files e*iiy md have uninterrupred acces to the host ac.urate, ry-to da!.
information on the patient. Before rhe essorken had ao advancedteleconnmicatios
qsrem, rhey wodd take handwritren notes during a patient visi! or .onversation wirh d
insurane conpan/ or .ere provider. Then when rhey got hone, perhapssoeral hour later
they had to write the infornation up fornally, make a conventional noden c,ll, and upload
their infornation ro updatethe padenrinformarion.Genexdecidedto ry wirelessIntern<
rechnolos thar enplop PC ords that use rhe sane communicadon protocol asce phons
and ope.are sinildly to cellular modems. Cssorkers can now get online dlvhe.e $6
can rcceivea cellulr signal and acces parienr infornation lneraily an)ryhere dd dytim.
The result is rhn data is nore accurateand up to date,md rhe proces is streamlined.Witels
Internet hr worked well for Genq.3
Adoption of cellulr daraserviesisstill in nserlystags; mny business usenareaking
a trial approach. Vireles data omnuoierions will be broadly adopted one provider m
ofler usen enoughbmdwidth and connectivity to enabiebusines usen to usecellular asthe;

\fith all ofthese telecommunicationsoprions, the problen for individuals and businesc
is how ro choosethe bestone. Each option hu its own osq speed,and reliabiliiy to consider
Table 6.4 shows sone of the coss, advutaffs, and d;sadvarnges of different lines ud
seoices offered bv conmuniadotr carriers.
 .r r\ 'd. I chaprsr
s

@
Costs,Advantages,
and
0iEadvantages
of Sever.lL;ne

NETWORKS
. .omputr netlsorkconsis$ofcomnuniaiions nedia, devices,and sofmareneededto
::1.cr rwo or more computerslstemsor devices.The conputen and dcviceson the net- Thecommun cati ons
m eda
:s rre alsocalledzatpa* zoles.Once onnected. the nodescansharedata.infornation. devces,andsofiwa.eneededto
connecr
N o of morec om pur ef
- lrocesinsjobs.More and morebusinesesarelinking conpurersin neworks to sream'
: systemsa.d/ofdevices
'. proce$esard allow enplo,veesto collaborareon projects.The eflectiveuseof
"ork
. .orks can turn a conpary into an agile,powertul,and creariveorganizarion,giving ir a
-: reim onpciirivc advdtage.Nerworkscan be usedto shtuehardw.re,progrms, and
- :i.ases acioss lhe organizaiion. They can rdsmir and receive informaiion to inprove
::rizationaleffectiveness
md efficiency.They enablegeographicallysepratedworkgroups
,r:re documentsdd opinions. which fosten reanwork, innovativeideas,and n$

{ { etworkTypes
=::nding on rhe physicaldktmce berweennodeson a nerworkand the conmunioions
:: ;enicesprovidedby the network,networkscanbe clasifiedx penonalrea, locn rea,
:.:,opolitan ael wide area,or internationalnetwork.
+rsonatAreaNetworkg
' pereonalaa n*work (PAN) is a wireles nerwork that supports the interconnecrion of personatareantworklPA l
::rmation rechnologydeviceswithin a ranseof33 feeror so. One deviceis selectedto a network
rhatsupportsthe
i n t e r c o n n e corno f i n f ofm a ro n te ch -
::rmc ih.o1ofrhecontollerduringwneles PAN initialization,md thiscontrollerdoie
. o t o g y w i t h i na f a n g eol 3 3 fe e to r 5 o
:::iares @nnunicadon wnhin rhe PAN. The onrroller broadcutsa beaconthat synchro
:::. all dryicesmd allocatesrine slotsfor the dryiccs.
\\;id aPAN, a personwi$ alaptop,digital cmera, and portableprinter could connect
::r without havingto hrdwire mlthing. Digit.l imagedatacould be downloadedfron
--: :amera ro rhe laptop dd then printed on a high-qualiry printer aI wnehsly.
 P.!i s I ntumr onT{hfrLrry con.epi.

LoaalAreaNetworks
A network rhar conne.rs compurc sy$ems and deviceswirhir rhe slne geographicarean
locatareanetworkILANI a lo.al.rea netwdk (I-AN). Typically, loal areanesorls de w;ed into ome buildinF
A ne tworktha l connec t sc om puler and fectories(seeFisure6.13).\Gilc unshieldedwisred pair wire cableis a commonlvuseJ
systemsand deviceswithin the
me d i L n ( i ,n LA N .. o,he,mrdi a_ i nctud,r8fi ber.oori*cbte _arc rt.o D ,, pu. {.T hn r
be buiL io @nned pesonalcomputers,laptopcomputer, or powerfulmainfraneconput,
ers.When a personalcompurer is conneaed to a lo.al dea nerwork, e networh inrerAce cad
(NlC) is usuallyrequircd.A nerwdrk inrerftcecard is a cdd or board rhar is placdin :
compurer'sexpdsion slor,u$Rlly providedby the PC manufacrurer when you obtainyou
PC, ro allow it to .ohmunicare with rhe networL. A w;e or connecto. from rhe network E
pluggeddirecrlyinto the nerworkinterhcecard.loreehple, asaiespeson whosenorebool
.onpurcrhas d interhcecardcanestablish alinLro ihe coryorarcLAN.He or shecanac.s
the nerwork while at the o{ice and download data neededfor the next salescall.

@
A TypicatLAN
AU netwofk usersw th n an off ce
bu itdin gcan co n.ec tt o e. c h ot her s
deviceslor rapidcommun cat on.
Fo r nstan ce ,aus er n r es ear c hand
de ve top menco!ll d s enda
doc!ment irom her compulerto be
pn nte dal a p r n le. loc aledln lh
deskroFpublishn9 ce.ter.

Anorhrbdic l-AN is a simplepeerto,peefnerworkthar mighr be usedfor a very smj

husinss ro allowihe shaiinsoffilcs rd hardwaredelicessuchu printers.In a peer,to-pec
netvork, eachcomprter is serup asrn independcrrcompure!,exceprrhet othercompurer
canaccess spccificfileson irs harddriveo.shde irs printer.Theserypesofnetworls havi.
krver. insread,eachcohpurer usesa netwofkinrcrfacecrd and cabtingro connecrir ro $.
n*t machine.ExamplesofpeeFro peerdetwod$nrctude\rindowsfor \rorksrcups, Win
d ,' s , \' 1 . \\ i ndos,2n00.od { ppl r\l -rre.P ertormrn., he.ompu,er,on ; pee; . r o pe.
"f
n e m o rki . u.u" JJ1 ' l .qerbeuu' eonr.ompJr,ri .rcrurh.hrri nsrhe.e-,,* ,"r , - ir , "
compurei.Thesenetworks,however,area good beginningnerworkfronwh;ch smallbus!
nesses cangrow.The softwarecos is minimal,rndnemorkca.ds canbe ued ifrhecompd.
decidesro enlergethe s)srem.In addirion,pcer to peer networksue bconinq cheape:
,"
'orer, and ea'ier u.e rbr home baed hu!inc$e\.
Schlumbergerseha, now part ofFmnce,bd.d Atos Or;sin, wd rhe IS ud securiryin
re g ra ro r.ho,en ro, rl -e200. \unner Otl mpcrtm.. n1,h.n..r-,tr...Th e r cm ; e,
spentthreeyean and milliors ofdollar ro implementa LAN ro suppon 10,500pcs dc
900 seners, evenrhoush rhe LAN would only be in place for rhree weel$. One of rhe t-rL\
applicarionsus a securirysysten thar usesbaro,de bdse rerdeB to keep rack of th.
200,000 atl etes,oaches, spora nedia, and volunteersgivcn adnittance to authorir
verucs dd buses.Reporres colering rhe Olynpi.s used l,(]s and kioshs on rhe LqN ro s.
evcnrresultsand backgroundinform.rion on rhe cohpetnorsrhet werestoredon UNN
Solaris,ond Vindows NT servers.,
 T!, nnu r .J rN oL. I c h a p r r6

\\'ith norepeopleworking.rhohe, conncdnghone .onpuiing devices andequipnenr

::r a unified neorork is on the rise.ShalLbusinesses
de rlso conncctingthcir systcmsand
F .:r:pmenr.\rirh ahomc o.smallbusinesnetwork,cornputcrs, printcrs,senners,andother
:r.rrescanbeconnected. A personwotkingon one computer,for exmple, canusedaraand
r::-ms storedon anorherconputeis harddisk.In addition,a singleprnrerca be shared
r <real computenon thc ncrwork.I o nake hone and smallbusiness netwotkinga t*lity,
.rmber of companiesareofTeringsrandards, d$ices, and p.ocedu.es.
taetroDotitan
AreaNetvrork5
' ner.opolitan da network (MAN) is a telecommunicaiions nerworkrhat coDrecrsusers metropolilan6reanetwork
j: rhe @hpuies in a geographical tea l*ger thar tLat coveredby a t.AN bur smaller {MANI
::r rhe areacovetedby a \rAN. Mos MANS havea nngc of roughly 30 miles. An example A t e t e c o m m u n l c a t ionnestw o r kth a t
;: \ldN wouid be redeffningrhe hany networkrwiilin aciryinro a singlelargc.ncrwo.k c o n n e c l su s e r sa n dt h e r fco m p u te r s
w i t h i na g e o g r a p hG t a r e al a 1 9 e r
' :Dnnecringseveral.emprs LrNs inro a shglc univesity-wideMAN. than that coveredbya LAN bll
alark Counry,Nsada (whichencompsses LasVesas),is the naiont sixth largestschool s m a t t e r t h a nt h e a r e aco ve r e db ya
::,rt, rvirh 289 schools.The counryspent$15 million o build an IP brsednetopolnan WA N , s u c ha s a c l y o f co tt g
r.: nenvork.Ar addirional$16 n;llion sill b spentto outfit the districrom.es and every
r..{,onwirh rbout 27,000phoneser thatcm operatein both digitaland IP rnodcs.Thc
. r\ and rhcdual-modephonesysremaredesignedto supponthe schoolsysrcm's cplosivc
: irh. The districr,which seres 268,000srudenbdd hd 30,000workers,is rddinq nN
at rhe rateofone per month."'
--'ns
llde Afea Networks
. dea network (V.AN) is a rcleconnunicatiom nerwork that ties together ldge geo wideareanetworkIWANI
-ide regions.A \rAN nal be pri\rrely owned or .ened od includesthe useofprbtic A n e l w o r kt h a t l i e s t o 9 e l h e ta
r rge
:::hi.
.trrd uses) nemorls. when you makea lo.g-dnn"ce phonecalLor acccs the Intcrnct,
':, rre usinga wide areanetwork.WANs usuallyconsistofconputer equipnent ownedby
::: ud, ogeiher with dataconmunicationsequipmentandtelecommunicetn,ns linls pro-
bv rariouscafiers and servi.eproviders(sccligure 6.14).
'::J

@
AW:deAreaNetwork
Wl d a r e dn e t w o r k s $ e th e b a sc
tong d slanc nelworksused by
o r g a n i z a t i o nasn di n d i vi d u a ts
a.ou.d lh wo.td The actuat
c o n n e co t n sb e l w e e nsi te s,o r n o d e s
l s h o w nb y d a s h dl i n e sl ,m a yb ea n y
combinationof satettres,
m i c r o w a v eo,r c a b tn 9 .Wh e nyo u
m a k ea L o n 9 'd i s t a n ce te te p h o n e ca tt
o r a c c e s s l h el . l e r n e t,yo ua fe u si n g

Dternationat
Networks
'::r'orks that link svstemsberwren counnies re called international net'rcrlc. internationat
network
r:Jnariolal releconnuniqrions @meswith speci,l problems.ln addnion to A nelwork that t nks systms
 Paft s I frrmar o. r{bnoLoqyconeprs

sphisriared quipmenr dd software,

slobal areanerworks musr neer specifi. nadonal ,nd
internationallamregularinstheelecrronic flow ofdau ac.o$inte.narionl boundaries, otio
called na,'batdr ,ldtdfou. Sohe counrris have srlict tawsliniring rhe use of
telecommu
nicationsald drtabses,naking nornal businesoansactioos suchx pavrollcosrlv,slow.c
s e n i m p o$i bl e.Other,uun,ri e\\a\ e rtu trw ,. on.erni nereh,o_muni :,.ion, Jnl
d{, be
use.These counnies, sornerifts a|ed ditu hd,en,, oth* go*."-",r, ,.d __p-*
^\o*
ro rv o i d ,he,rounrn , l r$. hy pro.e* i ng di tJ si rhi a rhei jbounda, i r,. In r enr r ionJ nf t .
w o ,k l i n deel opi ngrounrri e,.rn hrve i n" dequJre equi pmenr dnd i nrra,r u. , ur er h, r @
./b e p robl en,and l i mi r rher,erutne,,oi rhe neuol k.
Boehringe. Inselheim cnbH is a huse phajmaceutical nmufacturer, with
$7.6 bitiia
D revenueand 32,000employee in 60 narions.The Ingelhein, cermany-bsed
conp@
is using an internarional netaork to coroolidare data frcm ic wid*pmd
opuations oi
,ppl nl i on. rnd p,e.enr ko fi nr, i J i nrorm"i ." , ,1,i t;. * * U) . . ,
lnanciJ
b a i ,. I ro be ,ol d qhereI .,rnd rd shere$e rre headi - ns..\Jy, B o ehnnser - , ., ",chld-
,$
"dnr
fiqancial officer, Holser Huels. "t l;ke ro th able tol s* *s"ri,; ,"d rh_
as Esl { po$ible." In add;tion,Boehringeris now able io ctose"end" irs booksfo. -;r".
Do$ ofiB
divisionsjust rro hou6 alier rhe closeofbusinessar rhe end of eachmon6.,,

NetworkTopotogy
N e N o rk rh,r l j nl conpureFrnd arputerds i ce.proLi defor | )qi bl ep,oc esir q.
Build- aq
/ neNork invo.'* ruo rv?e.otde,isr: tosicJ rnd phy".rl. ,r tod."j modet,hoi,
ho* d.
neNork wi bf oMircd and rrused. { phy( (al modetde\, ribf , ho$ Lh. h"rdh{e
$ri
.o h w e rrin rhenc$o* r,l l be phy.i Jty dndej e!(roni crtl
l i nked.
The nunbd ofpdsible wa1,sto logically arange oe nooes, or computer q,stms
, ,Dd
networktopoLogy dsices on a network. mal,reem linirtss. Acrualll, rhereare ody fire major typa ofnetwo*
Logiceimodetthatdes-ibeshow topolosis-losic.l hodels that describehow networla *".r.uc."*d
nelwor kar
s es lf u c ru reodr Th...
r}?esee ring, bus,hierarchical, srar,and hybrid (seeFigure6.15). - -;figu..d.

rrry
TheAa.i<NetworkTopotogies
Th efou f ma n top ologies er e
lal frn s,{b}b !s, lc l h er ar c hic al,
and
ldlst6f n ad diti on, a hy bf d
co nrig !.aiio nle )c anbe r of m ed
from elmentsol anyofthese four
 | | cnsebr 6

lh dng ne$ork conrainscompurersand computerdwices placedin a ing or cirde.

.. har ingne|wo rk ,rh c rc i s !o c e n rra l @ o rd i n a dngcomFud.Mes,gesareroutederoundA typeol topologythat contains
c o m p u t e r sa n d c o m pu l e rd e vce s
:. nne from one deviceor compure!to anorherin ohe dire.tion. A bus ntwork.onsists
iomputers md conputer deviccson asinglelnre.Eachdwice;s connecteddirecdyto the p t a c dn a r i n go r c r cl e r th e r es n o
c e n t r a t . o o r dn a l r n gco m p !l e r ;
-. rnd can communicatedirecdywith atl othcr doices on the nerwork.The bus netwotk m e s $ g e s a r e r o l l e d a r o u n dl h e
ne of rhe mosr popular qpes of pesonal conputer networls. l he hienrchical network r i f g f r o m o n ed e vc e o r co m p u l e rl o
:. r trcclike srrucrure. Messag.' *. pas.d Jong the brmchcs of the hierarchy until the,v
.::h thcif desdnarion.Like a ring nework. r hienrchicalnetworkdoesnot requirea cen-
-::u cd compurerro contolconnunicdtions. Hi.rarchicalneworks areeasierro repairthan A t y p e o f t o p o t o q yt h a tco n tan s
c o m p u r e f s a ncoo m p u r eof vr ce so n
...r topologie.b.."*,. vo" cm isolateand rcpairone branchwirhout affectingthe orher.
a s i n g t el i n e ;e a c hd e vce s co n n e cl
- r* netro.k has or computersystcn.Other computenor computerdwices e d d r c l t y l ot h e b L s a n dca nco m
".."t.rlhub
,.. :rtrred at rhe end ofomhun;.a&rns linesthar orisinarefrom rhe centralhub or con- mun cate directlywith atLother
: -::r systen.The centnl compure.ofa starn.morL connolsand dircctsnesagcs. lf the deviceson lhe netwo.ki one ol the
.i,r:l .ompurcr brcaksdown, n resuhsin a beakdown of the entire networL. Mmy most poputartypesol person6t
:nzations usca hy6rid network,which is simply a conbimtion of two or more ofthc
. r opologicsjust discused. l he *act configuntionofthe network dcpendson thc nccds, hierarchical network
: :ii. and org.nizarionalstfucrureofthe conpmy involved. A lyp ol lopoloqyth:t usesa treet -
ke slrucrurewirh messaqespassed
a t o n gl h e b r a n c h e s o i th e he fa fch y
s ti ,l eS e r v e ra, n dClie n t/Se r veSyste
T erm inal- t o - H o F r ms u n l i t t h e y r e a c h r h er de sr n a l o n
.. Jt riom the logicrl confrgnndonofropolosies,nerworkscan alsobe clasifiedaccording
:ow the computcrson the network connectand interoperate.There lrc mdv w.ys ro A type ol topotogythat has6 ceilrat
h u b o r c o m p u l e rs y sl e m a , n do r h e f
.neci compurers.in.iudng rcrminal-ro-hoslfile server,and dient/senerarchitectures.
compurersor compureroevrcesarc
:erminaFto-Host t o c a r e da t t h e e n d o f co m m !n i ca
: :h rerninal'to-host archire.rore,rhc applicarionand databare.esid. .n on. h"st con t o n s t n e s t h a t o r g n a l efi o m l h e
c n l r a lh L b o r c o m p ute r .
: -:r. and rhe userintenctswnh the appLiorionmd datausinga "dunb" terninal. (F,ven
.nu usea PC ro.c6s $e application,you tun terminJ emulationsoftwareon the l'C to
::: it rct asifitwere a dumb terminalwith no processingcapacirv.) Sincea dunb rerminal A nelwork topologythat ls a comb -
acessing and formarting,ud data nationof other netwofk ryps
: no data processins capabiliry,
all computations, data
:.:lrr are done by ar appliation that runs on the hos conputer (see Iigure 6.16).
An arch lecture in wh ch the appti-
caliona.d dalabaseresrdeon on
h o s t c o m p u l fa n d t h - .u s f n te r
a c r s w l h l h e a p p tc a ti o na n d d a l a
us nga "dumb termnal.

@
conne.tion
Terminat-to-Host

siLeServer
tl)c serer echireciurc,$c applicationand daob*e resideon one hosrcompurcr,elled
,/c rz,. The daiabse nanasementqrlem runsdn the end uer's penonalconputer A n a . c h l e c t u f n w h ch th a p p ti
-.'.orksrarion. Ifrhe dserneedsevena snall subsetofthe dah thet resides c a t i o na n d d a t a b a s e
r e si d eo n o n e
on rhenle sercr,
h o s tc o m p u l e rc, a l t edth e f L e
. rile servetrnds the userthe enrircfile rhar contaiN the d*" requested,
induding a lot
'l.ta rhe usetdoesnor wmt or nccd.The downloadeddatac.n then be malyzed,nmip-
, .-d, tormaned,anddisplayedby e progrm that runson the ueis pesonalconputer (see
: : 1r . 6. 17) .

:iient/Servr
multiplecomputerplatformsre dedicatedro speciaituncrions
. llient/seryerarctrircciur,
An arch tecture nwh ch muttiple
-:r as daubasenanagcnent, printing, communicdtions,and programexecution.These comF!rer plarfofms are dedicatd
: :::ormsre calledsrzm. Eachserverisaccesibhbv all conptten on thc network.Senen
r o s p e c i a t l u n c l i o nssu cha s
: bc compucn of:1l sizes;they srorcborh applietion progrm and datafiles and arc d a l a b a s em a n a g me npt r i n l i n 9 ,
. ::ipped with operaingsystensoftwarcto managethe activiiiesof the network.The servcr c o m m u n r c a r o i s6, i o p r o 9 r a m
: :tributesptogtamsand damhles to rhc orhcr compurer (clin$)on the networkas rh.y
 P.rn p I irofmatonT..hreroeycmGpt.

rcque$ them. An appliaiion sefre.holdsdre programsand daia file for a parriculrrapptl

cadon,suchasan invenrorydatabse.Prcce$inqcan be donear rhe dient or seftr.

w
FiteServerConnection
Th ei le se rve rse nds t heus er t he
ent fe file thal contans the data
fequested The downtoadeddara
ca nlh en be an atyz ed,m aniput at ed,
t ormalte d,an dd sp lay edby a
pro gra mtha t r!n s of lhe us er s

A clienr is dy cohpurer (ofren an end ureis pcsonal conputer) that sends mesase
requestingsewicesfron the serers on the neffio.k. A client co onverse with nany sen ec
concutendy.A userar a personalcompuer initiaresa requesrto qiracr dararhatesidesir
a dar.basesonewher on rhe nerwork.A datarequestsener ioerceprsthe requesrand de-
rermines on which dara serer rhe dara .esides.The senet then formar the usets requ<
inro a nesage rhar rhe darabase seser will unde^tdd. Upon recciprofthe me$ase,rb.
darabrsesetuerextracrsand fornats rhe rcquesrcddna and sendsrhe resullsro rhe clicnl
Only rhe det! neededro s.risry a specilic query is scnr ndt the enrire filc GeeFisu.e 6. I 8
As wirh rhe file serer approach, once the downloadcd data is on rhe users machine, ir a.
rhe! bedulird, ma.ipulared,formarted,and displayedb),a prosramrharrunson the userl I

@ i
Ctient/Server
Cornertion
Mult plecomp ute .p16t f or mcsalled,
serle.s afe dedicaledto special d
iuncton ssucha s d at abas e ,t
ma na ge menoa ( ras ior age,
pf nting,communic6tions,nerwork
security,and Programerecution.
Eachseruer s accessiblebyaLt
computB on the network.Aseruef
dislribLlespfograms!nd data f ts
t o the o the rco mpu r e. lc
s t enls lon
lfre networkasthey feqlest them
Morgan Sranley,$e global financial seryicesfirn, todk more rhan 6ur yearsro overhau I
The c1nl feq!ests sefrices f.om iis IT inhorrucrure wi$ rhe gGl ofcrearing r new inforharion s)srcm infrastructurc bse tn
lhe serve.s,pfov des a usef on a thin-clienr sewer nodel. en ompleted, end urer will have relatively low-cor
nteri6ce and presentsresuttsto cenrrallynanagcd comprters wnh hnired capabilides.All dara,appli.arions,ard oa d
the user.o nced ara s m ov edlr om a operating systenswill be hosted on nerwork sere6 and downloaded to the th in clients whc
se rye rtothe clien t, lhedat am aybe needed.\rirh rhosandr of internallydevelopedapplietions and 36.500 supporredpC:
Processedon the ctient. spreadrhroughout20 count;es, Morgan Sianleyhoved ro rhc clienr/sere.archirecrure (r
quickly deliveranyrhingenduse6 need,incldins da!r, applications, mtiwarepatches.mc
t
systemonfigurarion choges. The payotrfor Mo.san Sranleyhasbeenincreased fldibitis
;nc.eased performdce and reliabiliry, and decresed hardw*e and informrtion systere
supponco$s.'rTable6.5listsrheadlanrases ud disadvantas*ofclienr/serer d.hitectuE

I
 r,eo,,! r , i . r " N *" . f ' I c h a e i d6

E
Advantagesand Disadvantages
of Clienl/ServerArchitecture

INTERCO NNECTINETW
NG O RKS
.- *e havealrerdydhcused, nemorls aredesigncdto meetwrying busincsneeds.So,one
:::rnization may havemany d;lierentnetlvorls,and differentorgrniations moy haveyet
: rrc varieties.
Evcr with all rhedilToencesin conputer network, in rod.yi iffelconnected
nd people sill needro conmunicate witL one another-no natter whercthcy happento
'
:t To allowrhe freeflow of infornation, a diversesetof datacommuniotions technologies
.:involved,fionaonmonconnrunicatiodsprotocoltovariorumessageswitchingdo'ices

P rotoc ol s
Co m m u n ic ati ons
: .omhuni.ations protocol ;s a strndardsct of rulesthat control a rclecommun;crdons protocot
communications
i .recrion. Connuniarions arc nu posible unles sendersand recciversrecognizeadd A s l a n d a r ds e t o f r u t e sth a tco n tr o l

-.coe a commonprotocol.Connrunicatn,nsprotocolsarecrnicalrvherconnectingdoies
--m differentmanuhcturersor separate networks.
Ihcre aremyriadcommuricariorsprotocols.Prorocolste ofren descibedat thc inter
-::oml, radonal,or indmtry level.l he InetnationalSrand dsO.sanizationis a woddwide
:ication ofstandardsbodicsfrom somel00.ounries Amoog the standardsit fosten k
ren sysremsInterconnccrion(OSI), a unn e6al reference
modelfor connunication pro-
tols. Manycounries hrvc narionalsrandddsorgdizadons,suchastheAncrican Nadon.l
:::adrrdslnsr;tuIe(ANsl), tharpanicipatein dd conrriburero ISo $endardsThe lnsdrute
:uleciricalard F-lectdnicsEnginees(IEEE)alsotunhcs the developnentofnatiomland
::ernatioral standards.Many standardsare dseloped by sroups of tele.onmulcarions
,:Jrverc,software,or seNiceproviderswho turn a conso.riur' We descibeI few ofthe
,r cornrnonprouols od sadards here.

ir Open sFtens Inrerconnecdon(osl) modcl seNess a sundard nodel for nNork

.':hitccruresand is endosedby the InterntrtioralStandadsConmitrcc lhe OSI model
:. id.s dat! onnunicadons tuncrionsinto sevendistincthlers heeTablc 6.6) to Prcmot
::: dcvclopmentofmodulr neworks that sinplif,vrhe develoPnent,oper.rion,and nain'
,:ancc of complextelecommunicarions neoorls.
TCP / I P
::rnsnrissidnConrroll']rotocol/InterneiProrocol(TCI/IP) is rhc primarycohmunications
:,-tocol Interner.Iis use;s growing npidly o Internet comectionsare becomirg
"fthe
. Jcspread. The TCP protocolisresponsiblefor vetilyinscofeci dcliveryofdlla &on sender
rcceive..The IP proro@lis responsibLefor movingpackersofdara flom nodb nodein
:: nctwo*. \7e discus TCI'/IP in nore detailin Chapter7.
s A
:\A is apioprietaryIBM architecrurcardsetofproducrsfor neiworkconputing wirhin a!
.:rerprise.IBM is finding warsto conbire ils own SNA protocolwithinthe enterpriscwith
Ll'/IP for applicalionsin iie gLobalnctworkarcna.
 Pdt2 ,n lo r m a ro i r e .h m L o q yccm + G
|

rry
The Seven-Layer0SlltlodeL

Formatsrhadaia5oth ii anbeprcsentd6 $e u;i dr li; fiosl; For

eramDlF, ontheuserssc.en is forratredinrothe
d.rarobeo,sorayed
corecl rurberol IresperscressndctdE (i sspe..i r e.

trbles rha-ser o-o ,osr,o!es to (omru- carewithe.chorher.rl abo

synchrol A sl as.
dndsl owspeedoev.cesdnd.vo.osover bJ, den, ngd
devicewlthtoom!.h oltpul.

Daiatink Formatsihe d3taintoa .ecordca{teda rrlme andpsrtorms.16; drectior

IEEE802.3lEthernetl
Erhernet is the nost widely iNralled local areanerwork (t_AN) rechnolosy.An Ethdner t-d\
h p i .rl l y s * ' ori Jl ebl r or.pe,i J gnde, or $i ned pri , {i re, t he in
salled Eiherner sysrens tue called I0BASE-T. and they proide rmsnjssion -o.r.o m - ont yup to
speeds
rn V b p .. Devr.e' :rcconnR ,edro rhe(bl e Md .omptrero, * .e* ci .e
r Cr nie, S; ne
V u l i p l e A ( r$ w i rh C ol l i l on D erc(ri on{C \\4rtur D i prorocot.Fo r hi, pr or oco, .
devies on the l"AN "listen" bebre and during ffansniftins ro deie.t wherher " * ;g
dorh;r dev;G
o n , h e l -AN d$ (,6mi ,red. rhu, di .ruprrng rhei rorrgi natme* ege.tf.uch r colt i. ion r .
d e rtrF d .he dfl ke ,e,tubmi h ori gi nJ me\Jgerncr $Ji ,i ng, B ndoh r iDe inr e^r .
' hr
FasrErhe.neror tooB{e-I providesrmshission speedsup to i00 Mbps and is lypical
ued for LAN s)srens, suppoitins workrtations wirh loBASE T cads. cieabir Ericmi
trc v i d $ n $ en hi ghd l rvel of,LD poflrr I.000Mbpr cqu:Jro rgi gabi rrC -br or t biUior

FrameRetay
Fr.m relay is a packcrswnchins protocol for cost-efficient data rransnission ofinte.mine.,
oaffic betweenlocal areanerworlc (tANs) and betweenend points in a wide areanetwork
(VAN). This protcol puts darain a variable,sized ujt a|ed r liana and rhe seric
providerligure. ou he roure. ah rlme rrJveLs ro i,. de!inrrion ,;d .u .h!se br\ed on
u ,e g e \\A
. e n d e,,or i ' drrecredi n r hme, i r i s.i nptv rhrosn aw rt -d.pp. d. . Tk
sendins md receivins dryices at the inirial and final desrinarion de rcsponsible
- fo; derectine
a n d re rn n ,mi ri ngdropped| :me.. I rme rehy neuork. i n rheU nni d sru,* rupponor :
," ,t, f. | t.544Mbp., ,nd f- r r+ <Mbp.r .peed,.In E ,,op" . h-.,;t"y, p. . d.
' '
vary hon" *64,,
Kbpsro 2 Mbps- ln rhe UniredSutesframerelayis quite populr becau* ir n
relatively inexpensive.How*er, ir is being .epl,ced ;! someaeu by fcter technoloqies,such !
A AT V , I
ATM I
ATM (aq,nchronous[ansfer mode) is a switching technolos]i ihat relies on ded;@redcon
necrionsand orgai*s darainio 53,byre cell unns. Data clls fron various conhuniado6
dqices de rhen muldplqed, menins eachdataeI is $msmitred in difTerentrime slic
ove. ! phlsic.l rransnhsion nedium. ATM is desisned ro be inolemented in hardware
rmd ,e rL h -n.ofN r,., .o rrser pro(es;ngrnd .$i ,d1 .pred, p" ,,i bte.\pee , t on At M
neiwork cm .e..h 10 cbps. " re
 n.rr.,! rrr ).1d" rorLl| 3 chnetd6
reLe.onmL

: :.\ trc isAppLeCompurcr\ strndardfor coMccringpcriphcraldcvlccs(prnnen, scrnnen,

::as, etc.)to the penonalconpurcr. fircwirc providcsa singleplug-and+ocketconnec
r ur which up to 63 dcviccscan bc rnachcd,with datatransfcrsp.cdsup ro,i00 Mbps-
. nandarddescribes a prd\uv betueenoneor moreperiphenldeli.esrnd thecotupurels
:roprccessor. Many peripheraldevicesnos cohe e.luippedtomeetthe fiteWire specifi-
:: rn and the similarIEEE 1394comnunicatbns standard.

Wire l e ssC ommuni c ati ons

P roto c o t s
- :h the sprad of w;dss nes,ork technoloy to supportsuchdevices* personaldignal
- Qm, mobile<,mpucrs, and ceLlphones.the teleconnunicado$ indurff needednq
: :o<ns to connectthesedevices.Wirelds .onnlnl.ations protocolsarestill evolvingas
sprangfrom rhe lS indusw
. ndustry rnarues.'1heItliE 802 seriesofremork standards
::,ng in 1980.ln addirior,severaL
generationsofcommunicadonprotocols(1G, 2G, 2.5C,
: 3C) rcre dwelopedfbr rhe digiralvoiceconmunicarion(cellphone)indusrly.
:tuetoolh
: --anLh is a tele.onmrnlcdtionsspecificadonihat descrlbes how cellulu phones,con
:- rs, f*es, penonal digiral a$isranrs,printcrs, and o$c clccronic dryices can be
::..onnecredusins a shoii+nge {10 o 30 feet)wireles conne.tidn.Blueroorhenables
.:s ofmuhituncrion d&ces tosynchronize*ith inforhation in adesktopcompure.,snd
::ceivefxes, print, and,in general,coordinat all nobile xnd lsed.omputer devi.es.The
: -rooth rechnobgyis namedalier the tenth centuft Danish Klng Herrld Blaland,o.
.::nld Bluddtrh in Enslish.He had beeninsrunental in uiting wrring fa.rionsin pafts
i , hrt n nowNomly, sweden,and Dennark just * rhe rechnolosys desisnedio dllow
rbomtionbenveendifferingindu*rGs suchx the computing,nobile phone,and auto'

EEE802.11b
IWi-Fil
: Fi Ghor for w;ele$ ffdel;ry)is rhe popularterm for a high-frequenewireles localarea
::,ork. \ri'Fi technolog,'is rapidlygainingacccptanc in nany conpanies* an alternative
: iredI"{N.It en alsobe insnlled fd a hom beeork. \Y;fi is spe.ifiedin th 802.11b
"
:.-ltlcarion from the Instiruc ofElecrical and Elecroni.s Engineers.
:drel od Microsof! are@unring on \Yi-Fi to spur sal* oftheir producs. Intel h* in-
' :uccd the \Xri-Fi-ready Centrino chip in irs laptop conputers. Mioosoft is pushinghs
:Jows Xl operatingqrtem, s.hich has beendesisned to suppo.r \ri-fi. The consumer
,::ronics induslry is countilg on \{LFi to link home appliances,suchas sendingMP3
:i\ and videosfton a computerro a TV, to soundsysreftt or to an MP3 plaryr.
Therc are thousandsofpublic \Ui-li "hot spots"-placesto access a whele$ nerwork.
::. nd cvervhor spotis a broadbardconnectionsucho DSL, cable, T1- Unlike cellular
or
.::rolog,v, which can route vour call from one tower ro the nexl as you d.ive dowi lhe
:."rv, wi-!-i ws Doi desisnedto hand a useroff f'o- one acce$poinr ro anolher.And
,-,:nt vi-Fi a@ess poinrshavea mdimum .anseof.bour 300 fee!.
In offerinspublic wi-fi acce$ar rhen restauraDls, McDonaldt, Schlotskys Deli, and
: ::buckshope that peoplewill not onlv rvork, checke-mail,or cha! online bur alsosny
-rer and spendmore noney or selectrhen overa compeftor. Pficins modelsra!y. Mc-
: r a|l's olTen a free hour ofY/i-Fi acccsswith eachExtra Value Meal purchasedin selected
'.- :urants.After the tine is up, thc servicecosrs$3 aDhour. Starbuckscharyes$6 ada,ro!
ir : monih for unlimiied use.Putsburgh,Pennstania, Inre.nadonalAnpon recendy
: pleteddeplovmentofa freewir.lessLAN in irs food coun and exprndedthe accesto
. :rres. The feedbackfrom rravelcrshasbccn so posiriverhar qecurivesar oder anporrs
, ;onidering followlngthis approach.Thc hospitrlity iDdus!ryisalsoinsrallingWi-l-i for
I gue$s.Statuood.Holiday Inn, and Marioii Hotels are nxnling Wi-Fi, wnh prices
-.r.,ng frcn roughly$10 to $25 perdry for custonen to useboth wned andwnclcs acces
.: ices.ChoiceHotelsIntenationalinstrlledfreew;clcssInrcnct acccsin public arcasand
:-.r roomsat all of its 370 Confort Suiresrnd 140 Clarion propcnics.BcsrWcsicrnalso
: :r to roll out freewneles acces.'a
 Pdtz I ir. fmaroi T{h ioloqycmcpi5

wi.ed Equi*lenr Privaq, (!(Ep) is rhe siddard sccurityshippedwnh a wi,Fi hst

wae. Uofonumtell WEP p.ovides ont), ninihal prctection ard is colsidered nqr E
worrhles b' rhe secu.ir),conhuniry. wi-Fi access poinrs broadasr thei. qisience to &
wdld,_naking rhen eay ro locate.With a rangeof t00 ro 500 feer,access poinrsoiieo 6
beued bypople in a@mpmy'sparling lororsreetour front. cenenl Motor hasdeplorct
wi-F; iDirs mdufacruring planrsbr ;sholdingoffinplehenrins \iLFi in irsheadq;and
It is concernedthar until righrq seculirynedures are in place,gues$ar a Marrioir HdJ
acossthe srreercould los on to cM's nerworkdd srealconfidenrialnenos and dara.,.
A group ofvendos, irclding Cis.o Slrrems,Enresys.Microsoti, p.o,imlAser, d{
s v m b o l fe.hnol ogi e..
defi ncdrn rmprorrd.e.uri r)rrndrrd,,tred !(j I,i t r or . c; A, 6
(VTA). The new secu.irysrandardws designedso thar it cen be inplehenred by simDh
fi rmw ae prosammi ns i n.enedi nro progrmmrbr; ,.i d only
' !c :!' l c l hc
(PROM), rhusbeconing a pernanent pan of the dsic+io eistinq pC cardsmd -.m r
ac6
poinrs. So. the cusromer'scurenr \vi,Fi equiphenr wi not havcto be discardedto ups.e&
ro the ;mproved $uriry tevel of\fPA. 16
lE E E 8 0 2 . tql
Thisproto.olis a A$erverion ofthe Vi Fi technotogy,whichenablesdaratrdsinissiond
up to 54-Mbps.Bo$ \fi,Fiand 802.11goperatein rhe2.4 CHz range,soirpossiblero p;d
up inreilbrebcelion n;c.ovaves,co.dle$ pho.es,and babynonitors.
IEEE802.16
lwiMaxl
WoddwideInreroperability for M;.rowaveAccess(\/iMd, o. s02.16)is desisnedto suppor
wireles neropoliran *ea nelworks and be cohparible with F,uropeansrard&ds. Wil\,ta
hrropoliran a.eanerwork arc supponedby a backboneofbde srarionsconneckd ro:
publ;c nerwork.Eachbde stationn,ppor6 huDdJeds of fixedsubscriber
rdons, whjch 6
be borh public W;Fi hor sporslDd enterydscnetwods.
Vith a wireles accesroge ofup ro 3t milesand a 70 Mbps daratnnsfer rate,yriNla
can extendbroadbandwiteles accesto new loerions ad overtoneerdistances. s we *
redu,erh.,o' r oi bri ngi ngbrorJhrndro r" ro.. W .V u m r r , , . o one .
' i g ri fi .rn rl r
.o l ,r:o l r, ,w hri .,omeri mc.Jl cdrhe rr.r mi te prohtem.referri ng
ro rh . er pen. car
rimc needd!o conned ;ndividuaihones and ofticcsto trunk linesfo;@nnuiQrions.
rEEE
802.20
tMEWAI
Moh;le Broadband\?neless Acce$ (MB\iA, oi 802.20) operacs frorn existing cellular o*-
a . rrd p romi r, rhe.rme d-r r. r mobi tephore,y,rrm $;rh ,hr,pecdot , U r .
-,vemge
Ii connccrion.hs succesful develophenrwould posa threarro rhe b.oal use oforhd
advanad wirele$ rcchnolosy, soir ha.sseneared huch controvesy mong vendoB who harc
@ madesubstan.ialnrve$henrsin akmarive te.hnolog;es.No prodLctssupponing802.1t
Wiretessl{elwork5Basedon a.eqpecied before2006.
Table 6.7 summrizes current IEEE 802 seriesof wireh$ prorocots,rhen tugel anJ
 TeLe.0mmun.d:oi5 3id Ndwork.

i. firsr seneErionof wnele$ nerworl$ 6r voicc connuniiion wd basedon oalog

::rsmission ofvoice and dataand is callcd lG. Many of rhesesystensweie individuallv
: rorcd,country-specificsolutions,includingtechnologies
suchs advdcd hobile phone
:rice (AMPS)and toralrcces comnuni.atiotu s/$en (TACS).

i rh rhe spred of cellularphone @mnunicarion in rhe 1990s,the teleconhunications

. j usrT neededro dqelop fasterond more reliable protocols for wi.clcssvoice transnissn,n.
rc 2G wirelessprorocolis rhe result,and much ofrhn rechnolosris still ir usetodey.A
:::rk from irsaoalogpredece$or, rhe 2G cellphoneprorocolfeatures digiralvoiceencoding.

, r:e ns incepion, users of 2C technology wanted improved sewice and more

r-..liotr-increased bandwidth,fster tnnsmissionrares,and rppon for packetouring
: :nablethe inooductioo ornffdan services, includingnukimedia. The presentsirte of
:rbile wireles communicatiohs is olien @lled2.5C-a midwaypoinr beween2G and 3G
,:hnologies.The iddeard dara.ares.iseto a theo.etiel haximum of384 Kbps.

rr 3c prorocolofwirelesstechnologywill soonbe availabledd will ftanshirw;ele$ dara

I 11.1Kbpsro mobileusersMd2 Mbps to fired loations. In additbn topro;dingnhanced
.,lrimediairmsnission (voice.data.video.and renote contol)se ces,i!will.lso supporr
-. ularphones.e mail, paging,f*, videoconferencing, andweb browsins.The scopeof3c
. ,arernadonaliis proponenspronise that it will keeppeople.onnecred ar allrimesand in
r places.The InternationalTeleconmunicationUnion (ITU) .oordinetes3C sB.dards
.'oqh its InternaiionalMobile Telecomnunications200oproje.t.An dsenrialsoalor3G
. o pnride roaning capabiliq,thrdushourEurope,lapad,and No.rh Ameie. Like \ri,
: jG promisesro p.ovideuerswirh witelessInternetacce$.Theprorocolhs beenadoprcd
: Europeand Asiaand spreadto Nonh Ameica. As a phone slsten, 3C providesnucn
::lder coverage rhan Vi'Fi's @llecrionofhor spols.Bur \ri-lik hor sporsaresffaresically
: :rcd in horels,airpoas,and garheringplacs wherenobile Ner surfen are nosr likely ro
. Thus,rhe.eis a definireoverlapand comperirionberween\ri-Fi and 3G.
XMDS
.1.:kichannel Mrltipoint Distributions)'sten (MMDS)allows phone.onpanies!odelivel
ipeedsto rhehones ofindividual usenoverrooftopdrennas hounted anlaherewirhin
r ii-mile ndius ofa powerfll udshissnrn tower. SpikeBtuadbod Sysremsis usins rhis
.-hnologyrobuild a wnelessbudhand-acces systenfor Denn*k s rond largestmobile-
::one company,Sonofon.Spikechims ir can build rhe infrorructure ar a fmcrionofrhe
ir rcqu;ed ttr build cahle'hoden or DSL neworks.In addition,rhe splem canalsopro-
J: lool tclephonesenice.iT
rhe varietyofwirelessconmunicadonsprorocolsis aprble ofsupponinga wide rmge
: rusinssxppliaiions. One oftheapplicarionswiththegre.iestpotentialisihe ue ofradid-
::quedry identifi.ation (RFID) trgs. Read the "Ethical rnd societ.l Issues"spe&l inte.esr
,rrurc ro lerrn eboutsone of the uniqueissuesraisedby thn new technologr.

Ne tw o r kSwi tc hi nqD ev i c es
- trddiiionto communications
protocols.dilTerenthrdware doices embtethe high+peed
:.:ching ofnesrges fron one networkto another.we discus severalofthe mostconnon
 Manufaaturers
and Retaiterscrapptewith RFloand iirose suspcons.$yrnq the RFIDequlpped.ards we.e n:,-
Pdva.y lsed to store of pfocessclstomef behavlo..We neverse.r :
pr vacyp.oblem,N4et.o spokesmnAlbrechtvonlruchsess :
M:ny manufacturercand retaitercarc xpermentingwth
t\" -^,dr p.oote s P LD ,..t .a. d po. ". -
rado frequencydentficatonIRFDl tags fof trackingmerchan'
rmprovekackrngand rnventory systemsof att klnds The .:
d e h- o, o\ o- L a ..o o h .h d i a l D n p ) epe-reo o
qovemmentis tooklnqto RFIDto trcck the orign and moverr.
reptacethe lnive.salprodLctcode.wr.etessly sendtheirsiored
of lvestockin effortsto cont.otd seasessuchas mad cow :
dalato RFIDfeadefdevceswthout the needfo.vsuaLscanning.
ease and brd ftu. RFD is also bernqprcposed10. t.a.r _'! -
Bypo niinga handheldRFD .eade.at an arsLe of me.chandrse a
medcatonsand ensu.ng that hosptatsdispensethe cor":
siofe ctrkcoLrld lake invenlory of hirndredsof tems n a matter
o - e ondsNo' o l . o -d -o ro d . medicalionn the p.esc.beddosage,io patenls But RFID:f
d l o u r" e.rp-ese^cF
but theycouldalso nformthe reade.ofhowtongtheyvebeenon coltd be abLrsed aid usedto infrngeon peoptespiicy. R-;
tagsare so smaLt-snralLer thana gfainof rce-thal theyca. :
the sheLf,whe.etheywere manutacturcd, and \4hatthe URLof
ptacedon a personwitholt the pe.sofs knowledge and us-":r
theWebs te s to ordermofe;nventory
track the persansmovementsand behavors.Becauseoi :.E
It's easyto seeihe appeaL af slch fioney-svinglechootogy
potenlalfo. both goodand evL,RFIDmay be th most':il
Manymanufactu.ers haw ncorporated RFIDio track merchan,
debated $'i.etessnetworking
technoLogyoi oLrrday.
dse thfoughthe stagesof the valle charn.Wat Mari s requiring
allof ils s!pplers to useRFD tagson the palletsof merchandse
that theydetive..Suchtagqingaltomatesmerchand se lrdckng. CriticatThinking0uetions
RFIDreadercpositioned at lhe sendns and .eceiungdocksof 1. W eve di scussedhow manul .cturersand r eiait e. s: =
manlfacturem,warehousefacllt es, and tEnspo.taiioncomp us ng R FID H ow coutdb!sl nesses3nd org anizat r c..!
aniesalrtorratcallygatherand sto.e i a centml databasethe r!e," td.oi r' a spo Lari o.ro pi ,ai r_." d .. r, r o. . r - - - . {
tocatronnfofmationof merchandise as it t.aleLsthfoughthe erl e.tarnmeniand , government !ti U zeR Fl 0?
supplychain.For exampte,Wau.,la.twoLrLd be abtero tetLthat ' . W h" | " nrt' _g. arbooo F' oF. e he.c nler <o: : -
folr p:Lletsol Bounq,pape.towetsLeitthe Prccter& Gsmbte vacyadvocal es overR Fl 0?
manLrfactLring ptant l4arch 5 at 10:49a.m and are currentty
aboa.da rrLrck ln Lansng,IV1chigan.
WhatWoutdYou
Do?
ConsumefprivacyissLresarse howevef,when RFIDtags
move from the pattetLevelto ptacementon indvduaL ems. Youhavejlst takena new posinonas the inventory manag:-I
P .esco.rA utoD e..3c -h" d rr" .age .-r3
W d- v ar r ' " a . o p u l . -e 0 .-9 o F e | - * p P D t" q e.p- ^a?tr.ob eid- ! 4
ment overconcerns.a sd lrom pdvacyadvocacy groups.The Lnablltytotrackveh ctesdLrring peak holrfswhen sometimes -:q
gfoupswaftedasslfancesthat the tsgswoutdbe remded from ihaniwo dozencLrstomers attemptto enterand ex1 ihe lot;::
demsat the checkoutstaton.Theywere conce.nedthat f the samet me Youa.e askedto desgna new,moreeflcent
tags renlanedon lems,anyo.ewth an RFIDreadercoutdscan forcheckngrent6tcars ol t and n. i n yoLrrLastj ob. t y-
Q lalt
a persona persois bag,ca. o.home io take Nentory ofllhat Manofactur ng youwer nvolved wth deveLop nq an RFD sF:.
that peEon possessed. The BenettonCopo.aUonwas simitarLy o: .dcr_o oal e\ of m- hd ose .ourc.n R - D / - "-
crticizedfor ts plantosM RFIDtagsinlo ts ctothing productllnes. lmplemeftedfo. rentaLca.s?RFD tagscoutdbe :ttachedi: :
The GermanretaitgiantMet.ooroupinventedan lnterestng sdes ol the vehctesand feadercinstatted at the gatesoi if:
j]sefor RFD ch ps. Metrogaveout about10,000customertoyatty Perhapsthe RFIDchips coutd be progEmmedto stor
cardswithembedded RFD ch psasparrofn effortto bringwire- altomatcatLyse.d the mleageof the vehcle to speedoE
tesstechnology inlo ts storesand warehoLrses. Customers who chck'in/checkolrtp.ocess.
caffiedihe ca.d wth them when visitingMetros experimeniat
"fLrtu.estore werc amazedwhen vdeo presentalonsstarted W ra p.i .d o, cer1, -,q
altorir.tcatty as they app.oached.AutomatedslEtemswe.e s i he t m t ol the dai athatyoun-i i ght
da.eto st or eor l
alertedio a customerspresencethrolgh wiretesscommln- t:g rl youw ereabteto storeanyc!sl omer nl or m at r o.
catlonhom the hrpembeddedn the card in ifei. pockeior
!o' do o nd, / s,-es assa_i ared
r' r d9, "lld ^. :
wattetThecsds sparkedproteslsbypnvacy advocates whowarry
t" . r t e r - d. . oJ d d L o s s l o ' e . o ,e c re rl rra t (o -s. e- d. rentatca.scomparewth thoseol tagssew . inloyoLr . :
theyshop-andpefhapsn othe.envrcnnrents. Met.optayd down
 r.recommuniGliors
andNerworr. I cueoo ,?l

:itFaESi' Geman Cha n Kills RF O Pi:n,' fhe Asso.iated Press, Maftt\ 1, in Ret.ifT.kingTechnology,FeuteB,Janrary27,zOAt, w.rerteEtuhl
CarolSllwa,"Retait.6 S. RFIDAhead, c.nputeMatld, JaNary 26. 7004,
n ; r-No oeclslonYetTakdnon Induslrrl Use,'Be^nellonp.ess rLase,
t - 2AA3 w*benettan.can/prcssl miLy r se., WaL.MarlTakeslad

tr iv at e S r anc h Ex c h a n g e
private bmch achmge (PBx) is an on prenise sitchins systeh owned or leded by a privatebranchexchange lPBxl
, :, a,ecnrcrplisc $ar inrerconnects itstelephones md providesa.cs ro the publicrelephone A n o n - p f e m i s es w l c hi n 9syste m
.,.!s. Userssainaccess ro rhc ouaidewodd by shring accesro a linired numberofuunk ownedor teasedbya private
enterpristhat ntefconnectsils
:r bctween rhe PBX and thc local exchangecuier's ceniral offce. It reducs costsby nor
telephonesand p.ov des accessio
..:uirinsa separare hrc for eachuserto rhe localtelephonecompany\ cenrralolllce.Thus, the pubt c tetephonesysrem.
:risa trudc-offbcvccn thedpenseofrhe PBX eq pmentandthe sav;ngs in rhe reduced
. r ber of inc om ; n g rru n k l i n e s .T h e PB Xp ro v i derdanyusetul servi cessuchascal trransfer,
: i;tuarding, audioconfdencids,and voicenrail.cenr.ex is a loc.l relphoneconpdy
::r r an alernativeto the PBX. \(/irh Centrq, erch use.mut hwe a line ro rhe cenrral
':ire, od the switchingtunct;od is pe.fo.hed br eqJphenr Iocaredrhere,as shown in

w
Comparisonof Private Branch
Exchangeand Centrx

Vany PBXScan sirch communicarions ano.g digiiai devicesx well es telephones

- : digital fornat without rcqfting a nodem. Often suchPB)G arecalled IP PBk or digital
i\. A pcrsonal compurer can be wired to a digit l PBX md then comect to any printer,
nputer, or orherdcvicethat is alsowired io the PBX. Ofcoune, this represents a comid-
,-:5le savingsin eqlipment coss.
BrownBrcthersHrrriman & Company(BBH), a NN York bded bdking and invsr,
-:nt nanagementfirm with 3,000brokes dd findcial sericesworkes, recenrlyinsr.iled
' r . lP P B X v oic es w i tc h e s a ti ts o mc e s i n Bo s to n,N ew Y ork,ddj ebeyC i r/.Theychose
: : echnolos becaue it was les expensive and codld hddle voie comhu.;@rions in
, -re. the radiiional .ircuit-swit hed or the dewerIP-bded node. The .o$ of rh PBX
:qrade proje.t was $2.5 nillion, but the new equipnenr ha! dlrad)saved$200,000in
costsb/ elinidatidg voia'only cohhunications lines.BBH hesitatero opand the
-null ofIP telephonycapabilides ro ns ollies worldwidebecause ofa lack ofopeo srandards
-:
- J rhe d;liicuhy of goting produc. thl the o-p""y hs boushr frch dirercDr vendor

3ridge
. bridge;s usedb connectwo or more nerworksthar userhe sane connuoietions prc- bridge
rol. Ao exampleofa btidgeisadoi.e th.t decidq *h.ther a message fron you ro somone A devceusedto connecltwoor
, ,. is go;ng to soneone on the l-AN on your floor or to dother l-AN rhat coves rhe floo. morenetworks thatusethesame
comm!nrcatonsprorocoL.
-f )-ou^. The bidge qmines eachmesageon rhe I-AN, pdsins eacbnesase known
oc desrinedfbr someoneon rhe sane tAN and foryadins rhoseknown ro be dcrined
n g,meoneon anotherl-AN.
 r'*r s I ibr.r onT*h*hq, c"" epre

Switch
A sitch is a rcle@mmunications hardwde device .har roues inconing
ateLecommunicatoos dev ce lhat dara ion aN
ofmany input pons (a specificplaceto physically connecranorherdeviceor
roules rncohing dala f.om any one comnunicati
o tha ny p ortsto a s pec if icout plt IiDe) to a spec;fic oulpur pon rhar will rake the data toward irl intended
desrinadon.
porl thalwitllake the dalatow.fd its are ihree bsic rypesof witchs:
l. In the naditional circuir,witched telephone nerwo*, oneor norc
tctzphon swncha*.
ueo ro ser up e temporary connecrion or circqir dedicaredto suppor rhe
converwb
betweentwo or rnore panies.
). Or r LAN. a L4r'r'* rrl d.rernioA hon rhe ph) ;cajdfli,e Jddrs, in e(h ,n
mesagerrme qhLh ourpur po rhe mesrge.houjd be iorurded
ro.
l . In a wide areapacLer sirched network suchas the rnte net, a ,ettuoth luitch
detetu\
fron the IP addres in eaci packet which ourpur porr ro use for the next parr
of irs r
ro the inrendeddestinadon.
ln larse ne.works, the ftip from one swiich .o uother is called a ,,1. The
.im a swirch i,
ro fisure our where ro fomard a data unir is caled ir &rezrr aod innoduces
some dtar

Router
A.mu re r,i 'a dev;e or,oti vrc i n J Lompurc,rharderermi ne, rhe nsr nenor k por nr
A deviceor softwarein a computf khich r dak pacler .hould be forudded ,owJd i6 de{in,r;on.
thal determinesthnexl nelwork To do this, rhe rouc, :
point to whicha data packetshoutd erars d an inrellisent ramc cop. ri in.intains . rabte of th avdable
roures and r
btoMefded towardits destinalto. conditions and uss rhis ;nfornadon, alons wirh distaoe data and cosr atgorithns,
ro
rrmim rhebe,rroue-for J s;vmpr.te,. lyp;-rty., ,.t", *irt ,o".t rdo,sh ,
or reMorkrcurcr\bttorearrivinS
jr ir. dr:rinriion.fhr tun.rionJiDofr rrurer",
i.
included in a nerwork eitch.
Hub
h ub rn dJ(aomnuniu,,or. J hub L r pta.eof.onvergenceq heredrla rlrive,
a placeof convergence where dala
irom oneol
o rre \U o nrrnd rsroM.ded our i n oneo, moreotherd;,e.ri on\.H ub,.omm oqly
afr ves ffom one or more di.ections r
m u l rrp l e
p o ru ued
and sioMa fde d o ut in oneor m or e ' oonnr(t rgnrnF ofr neMork.A p* ;" " t,U ..* " ,,i .pty
to r.rh ed e u. enebl i ngi r ro 8o l rom onedfl i a ror \egnentrro anorher. An inre ^', - .
r genr
indudes additional featuresthar enablea neavck adnini,ff"r- to .."ito. rh. i.ifi:;;
ihrcush rhe hub dd .o confgue ech pon in rhe hub. A swirchiis hub ieads
rhe d;sr;
addrcs ofeach packer and then forwards the packet o ihe cdiect pon
Gateway
A gaiewy i. r nerwo poinr rharrcts u o enrranceto enorherneMork. lor
A ne tworkp oin tlha t ac t s as an ddote.
.o m p u Krs,hr .duol uJm. q i !hi n)ourcompuy s neMorkon, toJ rn r er neid
enl.anceio anolhef nelwork. )our
p ro ,i d e r4 \1, i re g,rsJr. A garsay i s ofrenasori aredw rrhborha rourer,qhi,
h kr
w h e rero d i rerI agi venprckerofdarurhrranno rr r.he
garo,1, ud r w i tci . w hicht ur nr
the "(ruat pr(h in sd om oi lhe gatNry for a given parker.t he gar*ay
ru1 trnk
n fMo ri c rh rr emptoydrnerrn.retecommuni ari oh! proro@ | ..Ih rhi s\i ruar ion,r he
reeived byagatewaymus bercsrructured into aform thatis usabjeon rhereceivinene
CorugatedSupplyis amalt indutrial suppliertharco""*r, p"p* i"to
, i$
rhat "--gir.d
cutoines rhenfinishandssembleinro boxes.To enableit to deliver fasriutna
iin6 and supqior servie, the @mpany inplenenred an enrerpriseresource
plannins (
systen integRred w;rh rhe .ompan/'s We6 sire io provide cusroner real+ine
acces ro
ordets. wlen rhe compmy qpdded ro a rw fa.itiq, n"* t.. h""dq",."..,
;;;;"
effecrive wy ro nerwork voice and dara ftfic berweeo rhe tw; bdldinss.
A wi
conncci;oFbeR*n lhe Fa.itiriesI oidedrhehigi,o.r oftryins (rble & ro\
pubti. eLeme
rn a o d rn o n.rhe@ np.nj \@ red Loen< urerh,r ,he neN ork .oul d J.(ommo d! r eno
. i l ti e ' r rhecompm" gr.w . corrugared
suppt1.ho.er (ombi nJl i onoi reduiddnr(
rouren ud Cno wircle ro prcnde dJa rcuring and <w r.hinB.wiretas
nesorkjng
IP connunications. This soludondetive|srhe p;for-"n"" ..ti"Uiti." ,t"
customers "ni
demand;it alsoprovidesflexibitit/ for tu1ureqrowrh.lr
 Tere.omm!n.ar
on. aid N.(wo,r, I co"po e

- NETWORK
BASICS
,:usinesseslinl their personnelmd equipmenrro erablepeoplero wdrk quickerand nore
:iiciendl Conputer networtr allow orsmiarions nexibility ro a.odplish work whe!
:. er and whenever ir is most beneffcial. To lake tull advanrageofneRorks od disdbured
r rccessins,you should undestdd hasicproce$ins srracsies, communiodons software,and
::mmunietions protocols.

gasicProcessirgStrategies
:]en an organization needsto use two or more compurer sysiens, on ofrhree bdic pro-
:=,ing siraregis may be followed: cenftalized, decntralized, or distibured. \rith
aralizd proessing all proe$ins o@u6 i! a single location or faciliry. This apploach pro(essin9
centratized
:i:n the highesr degreeofconuol, s;oce rll dat. prcesing is done on a sinsle cenraly Processin9aLte.nalivein which alt
lnaged compuier.7-Elevenh a $9 billion convenience storechain rharhasinplmented pfocessnq occ!rs in a singte
i .entalized processing stEregl.!o manageirs 5,800 stores.It usesa proprieraryRerailIn,
s)rrem (RIS) dlar runs on a sinsle naiilnme conputer operared by Elecrrcnic
-:narion
l:ra Systens (EDS) md a ceDiralizedprocessingnetwork ro enable ir ro keep all its sto.es
:rrating efffciently and ro shareinfornation mong all its suppliers. The RIS provides srore
::nager with daily, weelly, and monrhly salesr.llies, which they use ro ctearerheir oders.
!o'e nenagds ente. orders into workstarions or handheld conpurers bv 10 A.M. daily. By
: 1.M., orders have been rrmsmined ro a central dataSoe, consolidated, and dispatched
'-. lElden's suppl;ers.The consolidationukes placefour timesa day,oncefor eachtine
rnc in which 7-Elevenoperates.The cenralized proessing network alsoconnecrsthe stores
i \lclane Conpany, 7-Eleven'spriniry wholesaledisftiburor, dd to ihe conhissaries and
::ieries rha! provide fresh food products so rhat all eo view rhe sane satesdd shipnenr
r'ormation. "Therc's quite a bit ofinfornation sharing," saysRuel Athey, vi.e presideni of
-i:omer senice ar Mcttre Infornation Systems."\7e work closelywiih 7-Eleve. ard rhe
r:pliers to cone up wnh the mo$ efrcinrdisriburion processwe.d.",0
vnh deentlaliEd proce"ins processingd*ices ue placedai variou rehore locarions. processing
decenlralizd
:.: individuat conputer sprens ue isolared and do not conhuni@r wnh each orher. Processn9 atternativinwh ch
processifqdevicesare ptacedal
--E:.ntnlized sysiens are sunablefor conpanies lhar haveindependent operaring divisions.
drugstorechains,for oample, operateeaci lcation * a conpletelysepure entity:
-.-re nore has its own computer systen thar works independently
of rhe compurers at
-h
Nrith distiibuted prccesing, conputers re plaad atenote loqtions but omecred to distributedpro(essing
{l orhe. via a ne.work. One benefir of distributed prmessing is rhat processingacriviry en Processing6tlernatve ln which
r:llo.ared ro rheloerion(s)whereitcm mostefficiend/occur.Forqample, rheNN York comPutersare p16cedat remot
locatons bll co.necled lo e6ch
tcJqua.rer may have rhe largest conpurer systen, but the ArlanB office nighr have hm-
r--* ofemployees ro inpur rhe dara. The system'soutput nay be most neded in Chicago,
:< location ofrhe wrchouse. wirh disributed processing,eachofrhese offices can organize
a: nanipulare rhe darato neer its specilic deedr, 6 well s shareitl sork product whh the
o: of the organiarion. The distibution ofthe processingacro$ rhc orgmizatiotul qnreh
sres rhar rhe right infornation is delivercd m rhe rishr individuats, ndinizing rhe ca,
:i-ihies of the overall infometion system by balatrcing rhe effecrivenes and efffciency of
individual conputer systen.
- CooperTire and RubberCo.'s tire divisior plms ro nove more ofirs manuhcturing
nEioe, wirh a goal ofhaving its own nanufacruring faciliry jusr oursideShdghai bv 2007.
','inwhile. Coopeis tire division is implenenring a two-year businessplm rhat calls for
:cblishing a globaldistributedpro@sins nerworkro @nn<r rhe computen and decision
&r.6 at ali iis plans. Ar rhe sme rime, ir is rransnioning from a rudinentary paper and
redsheet demand-forecastinsprocessro automated on-dendd forecsins. Cooper is
ftrienenting s*eral applicarions from i2 Technolosies,lnc., rharwill addiessrhcomplex
 rhxt s J hrom*m r{hioraycocprs

drrund.inKnbD,sd
'souneptr'nningn\ue\of,
gtob,tm.nuIa(ture,.
fhe\einvr!nenE
maMsrir. expandins
rireimpors
rnd ruke demand..ouR
insde.i\io-
I'l l"p
wrnrn ::.T'
rrsdKrflbuuoncenie^_r
T h e seprembtrl l , 200t. retrornrarm(l rl\pl l i ed mnv compJni es
r u dlr ibur e t hci
sorken. opea'ronr. and \yrem. mu.h moreu idety.a re,er,J of
lhe re,enr rrend rcwJd
.enralization. The goal is to nininize the consequene ofa catasrrophic
event ar one k>
cadon while ensuring uninterrupred
rysrernsavaiiabiliry.

Communications
Software
communicalionssottw.r ComuDietions soft@e provides a nunber of inporrant tunctions in a network. MF
Soltwarelhat providesa n!mber of @mhunicrrions,ofr@rc petage, provide{rcr che.kingand me*rse form,nine.
impo rtrntlu nc t ions
in a net wor k , In ,or
sucha se .rorchec kn9 anddat a c re ,. whenrherei s a probtem.rhesor$Jre.o i ndi care w hati . $,o;8nd , usseir posib&
solurions. Communieriom software cm also nrntain a los lisrins ait jobs
a; co;nu!
mtrom that hm aften pl&e over a specilied period of L". n
a"o *.u.iry
priwcy rechniquesde built inro mo$ pa.tases. "ait,i.". ""r
In Chrprerr. you l eun.d rhrr rtt .ompurenh-e ope,rti ng
).rems r hJtLonuotm s
rb(ron,. when M Jppti.r' ion pruglm require.&u from a di.k dn,e, ;r
eoe"rhroushd.
o p e n ,i ngsynem.N oq con.i dera yruari oni n u hi h a .ompureri , rrm. r i. a
. ,
thar.onnrcrs l,rge disk drives, prinre6, md other equipmni and devies.
How "*"* does.|
atplicarion prograin requesrdara fron a disk drive on the nework? The arower is
drour
the nerwork operating slstem.
network
operating
system A netwlrk operathg srstn (NOS) is sysrens oftwee dnr conrrols the conpurer
s>
{N0sl tms ard dnices on a netvork and allows rhem to connun;cate with each
Systemssollwareth:l controts other. a No6
pertorms the samrypesoftunctioqs for the retwork * operuiing slsreh
lhe computersystemsaf d devtcs sofrwared6 i(r
on a n elwo rka ndallows t hemt o a computer, such a menory od rask rnmagemenr ad ;.-din;d." ofh*d.,ar.. vt_
comhunicaiewith eachother. nemork equipnenr Guch d printes, plofters, and dish ddvet is .equi.ed, rhe
NOS nat6
sre ihar rhse.rsources {e ued @rec y. In mosi cases,conpanies that produce
ad rd
rerwork provide rhe NOS. For *mple, NetVare is rhe NbS fiom N;vet,
a popur_
nevork environmmr for penoqJ compu,errr5rem, rnd equipmenr.v/ind"""
N i aod
windoq 2000 Jre dhe, @mmonty ujed neMork opearing sy,iem,.
network-managemenr Soliwre rools and udliris arc aldlable for managins networlc. \fith netwolkIlla
agenent oftware, a nanager on a networked pesonJ omputer cm monitor
Sottware thatenabtes a manageron rhe w d
individual ompurB and shded hddwde Gu; d prinren), se for vnbes,
a networked desktopto monitorihe ad en5r
!se oI individ!aL
compulers compliancewith sofrwde licenses.Ne6vork-manasemenrrcftwre alsosimplifi*
and the pr(,6
sharedhardw.felsuchasprintersl, of updating files md progms on conpuren on the netw-k-h",g"s b" m"d" ri,-"*
scanbrv ruses,andensurecom J c mmurauor .eds i ni erd ofbri ns mrdeon i i di vi duj computeh. "_
rn Jddir ion.n;
Ptrance wlh soltwerelicenss. work.murgement lohware prcrecr sftwre from beinBcopied.modified.
or downtad.a
illeg.I)' md performs enor contol to locate telecornmunietions erors md porential
IE
work pobtem5. \ome of ,ie manybenefir,ofneNork_._,s.."n, .ofr*,.ln.tud. f*o
hou^ spcnron rcurine raks lsuLhs in\rJting new.oftwrer. t6rer re.ponse
,o p,oblec
and greater overall network control.
NeMok n"rndgment.i\ one ofrhe mo.r imporenr ra,k of tS manage,,
In ra.,. pd
mu ,g e menrorthneMorkcareueaw hote,omprn)ro,utTerW i (h netuor k
nowbei. g
used to onmunicare wirh cusromersand busirss pdrnds, nerwork outases
d slow J
formane m even mean a loss of b"''nes. Ne,wo* m-"g.-*. t""l"d*l;;;;s:d
technologies and p.oce$es used to automate infra.strucu nonitoring and
help IS ;66
iden,iti and iddres prcbtemrberorethcy allecrcu<romen.buims parmr,, q
emolovq
faukdaadu 8d petfina1.. nakg.adt R,he N *p", oi**-k_._,g..-
plod(B Borh emptoythe bnph Nttuo,* Mauznfu rto;mt sNMp) b obr;n kG
In l o rmr(i ontrom i ndi vi dul nes o rk .omponenb. \N V t n rhe!.ndrd m basem enroD
,o c o rB e d on TC P /tp neso,L. tr al ow , ri nual ) anyrhi nson rhe
* * o, [ , i". r , a, _
rcueF,IrcsJt\. rd een opemri ng.l rem,,na .* * p,oau." , na u, it ; , ; . , .J
' w i rc h e ".
c o m m u n rcare sru manJgemenr \ohw rre.bouri h (urrenroperrri on,sd {r r e oiheJ$-
SNMP an alsob used.o conool rhesedwices dd produ.ts, ; ing them to
rediftd rratL.
chmge rrafic prioriries, or even ro shur down.
 TeLe.omm!ni.alioisaid Networks

Fault ndageinenr sofrwarealere IS staffin real-tine when a dryice is failjng. Equipnent

(code in a so6aue progran for hddi;ns unqpected or unalowable
':ndos place traps
--.iditiont on their hardwde to iden.iry rhe occurenceofproblens. In addirion,ihe rs
1Tcm pla.e asenrs-auromated pieces of sofrwae<n Derworks io noniror differenr
r:ncrions. en a device eaceedsa given perfornance rhreshold. rhe agenr sendsan alarin
: rhe conpanrs IS fault nanagement progm. For aample, if a CPU regisieB thar h is
than 80 percent bust , an alarm nay be generarcd.
-orePertormmce maagenent softwaresendsnesages to rheveios devices(i.e., polls them)
'- samplethen perfornmce and ro derermine whether rhy are operadns wirhin acceptable
oels. The dwices reply to the managmeni systemwirh perfornm.e data rhar the sysrem
<.res in a database.This real-dne dau is autonatically corelaied to hisolical rrends aod
::played gephically so thai rhe IS sraff can idendfy uy unuual variations.
Today, most IS organizarionsusea cohbinarion offauk manenenr and prformoce
aagement to ensure thar rhen network remtns up dd runnins a ihat *er). ne$ork
imponenr dd applicarion is performing aeeprabln Wil}l ihe two lechnologies,the IS sraff
r idenriE dd resolvefauft and perfomance issuesbeforerhey affecr cusromer and seFice.
lrre laiest network-mana$ment rechnologi wen incorporates auromaric fses-rhe ner-
ork-nanagenent qsrem idenrifies a problem, norifies rhe IS manaser, and automarically
:,rects the probiem before anyoneoutside rhe tS depanment nodcesir.
Con Edison Comnuicarions is testing mmagemenr software fton Hewlea-Prckard
-io. on the ffber-optic nerwork it operalesin rhe Ns York metrcpolirm dea. By insralting
Openvew Nerwork Node Manase! sofrvare. Con Edison Conmunicadons nerwork
rninistrators
-: will be able ro monitor all elemens on irs net.opoliran eea nr. ork from a
r-le nmagemnt console,enabling them ro reactmore quickl/ when problens occur. Con
:Juon hasalreadyspenr morerhan$ I nillion ro rcll out HP's OpenViwTeMIP Operations
irpon system,which offers a serof telcomunicetionsinliastrucrure,managenent capa-
rries, inctuding fault-ndagemen! ud senice-activation tools. Netwo* Nod Mmager
feednetwork alarm and lauft info.marion inro ihe TeMIP software.2
--l

TELECOMMU NI CATI APPLI

O NS CATI O NS
:a.comnunications and networks are a vital parr of rodals infomation systems.In facr, it
s hrd ro imasinc how orgaqiarions @uld tunction wirhour rhen. For eemple, when a
cine$ neds to developan @Mte nonrhly producdon foreasr, a nanaser simply down-
rdj salesfoEcdi data garhered dirady ftoin curome. daiabases.Telecommmications
Nrides rh. nework link allowing rhe nanager to rcces rhe data quictJy dd generatethe
r:ducrion rcpon, which in turn suppons the compuy's objective of berrcr ffnanciat

The coNumer goods siaDr Procrer & carnble ss LANS in ail itl plurl to link ofiice
.r pldt worke.s ro common sofrw*e ard shareddatabasesand to provide e,mail seryices.
1c result is f*ter, nore cosr-efective, higher-qualily producr nanuhcruritrg. Orher orga-
Er;ons rnnsfer rnillions ofimportant and strategicmesagesfrom one loetion to another
*n day. Telecommunicarions is a critical @mponentof infornarion sysrems.In some
niu$ries ii is almosr a requnenent for doing buincs; nost compaies could not suwive
q-rout it. This secrionlooksat son significur busine$applicarionsofne$orl6.

L ink ingP er s o n aCt o m p u t e rtso Ma in fr a m easn dNe iwo r ks

:-e ofthe mosr basic@ys rhar ieleconnunicarions conncct m individual to information
I 6rens is by connctiflg pesonal compure$ ro mainfrme computers so rhar data can be
@nloaded or uploaded. For dmplq a data 6le or docunenr lile from a dat,base can b
a-nloaded to a pesonal @npurer for an individual ro ue. Sone conmunications software
rrq.ams instruc rhe computer to codned ro dother conputer on rhe network download
r snd infomadon, and rhndikonnea from rheieleonmunica.ionsline. They are@lled
 P.rt2 | nfimr on T(hmLoqy concpt5

rbztte zd t$.n! beorrse they perform the tuncrions auromarically, without ur

V o i c eM a it
\fi6 voie mtl, uss cm leve, receive,md storeverbal ne$ages for and f.om orher peopL
Technotogythalenabtes !sers to around rhe world. In some voice mail systens, a code cm be assignedto a group of peopL
teave,receve,andsloreverbal insteadofan individual.Supposerhe code 100 stdds for all 250 salesrepresentatives in r
hes s age5f or al n
rodmo rh .p e o p l e
conpmy. If uyone callsthe voie meil system,enrersthe nuhber 100, and leavesa mssagc
all250 salesreprsnt.tiveswill recive rhe sme mesage.

E l e ctr o n ic
So ftwa r eDistr ib u tio n
tlecconic softqae distribution involvesinstalling softwm on a nle serer for uers ro shaa
distribution by signins oo to rhe nerwork and requesringthe softaare be downloaded ro rheir compuren
Processthalinvolvesnstattingsoll- Elearonic soli.rare disnibution is quicker and nore convenient than traditiond wys of
wa reo n a I le ser v er f or us er s t o
acquirins softwde and is sisnificandy le$ ostiy and nore em.ient rhan havins a nelwo*
share byslgningon lo the netwofk
and requestingthat lhe sotlwarebe adminisnatorconsmntl)' ilsrall upgrades.
downLoaded onlo their compurers The Marathon Oil Corpo.arion usesMicrosofCs S)rtems Managenent Se.ye. (SMS) fq
software disEiburion ro redu@ rhe dme ud cfTor eodred io Drovide userswirh rhe larea
s o l i w i ,errl eae.,ndpr(he.. M" rurhonue. S Mr ro.crn$o, teri on.Jnd,ener , r o idenr iir
those treeding an upgrade or security patch and ro push rhe parchesto the sewer.'zr Thc
softwue makesrhe entire proces sihpler and much nore reliable so rhat rhe IS staff is frr
ro provide other suppon senices.with rhe softwue, IS worker can renotely install and up
darerheopenting systen:nd applicationso. the PCs.Pr*iousll Mmrhon had to updaa
and repanPCs lry sendingrechnicimsinro rhe field or shippingdisk drivesbackand fonl"
One problen with elecnonic soliwa.e disriburior is rhe size of software progrdF
download;ng ldge progr@s requires hish-capaciry relecomnmications nedia and a lor o{
dme. Softwarcpiracy;sanotlef issuerhar nusr be addresed.

E l e c tr o n ic
Do cu m e nDistr
t ib u tio n
Networks also allow organi4tions !o irmsmir docunenrs wirhout 6ing peper. Ir is nd
known how moy millionsofdollarsonpanies spendoDpriniing, disfibning, dd storing
elatronicdo(ument documenis of all tJ,pes,6ut rhe mour is sraggering.Elctrcnic docunent discibutid
distribution involves tnnshnting d@uhents-such 6 salesreporis, policy manuals, and adveftis;ng
Processth6t involvestransporting brochurs<ver .onmunicatiods lines and nerworks. Electronic docment distribution
doc0ments-such as saLesreports,
software allows word procesing and sEphics dGunents to be convefted into binaly co&
policymanuats,and adle.lisin9
brochures-over communicalions and sentolef ne$orks.
Microsofr's \?indows tughis Managemenr Senices (RMS) enablesenployees to appl'
righa, privileges,and protecriotr ro Omce 2003 docunenis disdibured wirlin a busine$ net-
work. The seryiceallows rhe aurhor ofa \rord 2003 do.Lnent to specily which sroup ofus
can open, modiS, print, ud fol1rud an ofnce 2003 docrnent and under whar circusr*
csit cd be ued. For dxnple, rhe author can desigMr a sensiive document asread{nlr
or set an expir"rion dare lbr a rine{ensitive oi higl y confidential docunenr The softwc
works wirh Ourlook 2003, Vord 2003, PowerPoin!2003, and Excel2003. Miqosoft a
provide m RMS'enabled add'on for Inrerner Lxplorer for prorecied web-page viewiig.}

CallCenters
A call ento is a physical locetion whele curomer and orher relephonecallsare handled hr
an orgeizeiion, usully with some arnounr ofconpurer auromdon. Call cenres ee u$d
by cbtoner servi.e organizations,telemaketing conpuies, @npurer producr help d6k!
chditeble and political cmpaign oqanizarions, and any orgarizarion that u*s the relephoF
ro sell or support pbduc$ and servie. Ar auromaric call disrributor (ACD) is a lephox
faciiity that manag* inoming calls, handling rhem bded on ihe nmber aled and .t
associateddatabue ofinstrucrions. Call enie6 fieqrcnrly enploy m ACD to validate callerr
 r.L.r!rm!r.a::r:;i d N e:i o,r' I o-pt"" e

:-e ouqonrgcalls.fomrrd cdllsto the.ish! paq', allow callcrsto rccordmessages, garher

:je sradsrics, balancethe worlload ofsupporr penonncl,.nd prolide other s*ices.
Cornplicatingrhe role ofthe call cenreris rhe Narioml Do Not Crll Registryset up ir
, 'r br rhe U.s. IedenlTrade Comnrission.-l.clcrnarLercs who.rll nuhbeB on rhe lisr
-:: fenaltiesofup to $l l,000percall,aswell r posibleconsumdlawsuits.Some60 million
: rrmers havesigned up for the list by loggng on to the s|te. tutuu.donotcdI.go!. \:{hl, the
,: rryhas grcadvrcducedrhenuhbd ofunwanredcallsro consumcs,ir hd.reated sveral
:rpLiance-related issuesfor direct markeringcompanies.For uxrarcc, apartfron the na,
.J rcgisty,43 $aresnaintain rheirown do-nor-calllisrs,e'hich nusr bc conbinedwirh
: \ational Registry.r'
Offshorecall cnrers rhar prolide rechnicalrpport senicesan a hc oflife lbr nany
.-::nologyvendor and their cusomcrs.Bur both rendorsend usex agreerhat supporr
:.:rtions haveto balarcethen dcsirero reducehbor costs*ith customersarisfaction con
::.ntions. Ior example,in larc 2003 Dell srid rhdt it w$ rcrurningphone-bsedrcchlical
-::on fbL its corporatel'Cs to thc Unired Statesbecause of ohplainrs liom somcuses
:. r r hequalir y ofs e n i c e rh e v rc c c i rc d fto n rc a l l crndi nl ndi a.H ow ever,orhermaj or
.::o6, includinglUM, H.wlcrr-Pachrd Co.. Ora.le C(rp., and Compulef Associarcs In
. , onil h. . . o l J n ,o .o n ri ru c .r.i ' " g l " h .l .:p p,,r.,,1errron.
;n carly200.i, Hslett Pa&erd Co. set up a 600-pc.sonconracrerrer in Bang,lore.
-:: to providepostsales supportto U.S. cusrohersofall of i$ consuner products.The
. -:r Jso senesasa reserchand devdopmentfacili6'6r new supponprocesesand te.h,
' rgts. The supportcenterenplovs peoplewnh varying l*els of erperriseso that rnv
rlenr can be handledwithin the centerirclt The cenreriniriall)'offcrcdvoice bded
:ror in English,but it alsoplansto ofhr crail or chat brsedslppoft.ri

f c a t tc e n t e r sp r o vi d e
0 f f s h oe
t e c h nc a t s u p p o f t s e r u i cefo
sr many
t e c h n o l o g y v e n d oar ns dth r

i s o u f c e S o n d e eS
p h an ka t
BloombercNews/Landov.l

Te te co m muti ng
:: rrd morework is beinsdoncrway from thc tradrlonaloffi.e setting.Man)'enrerpr;ses
- riioptedpoliciesfor teleommuring rhrr embleemployees
. ro worh rwayfrom the oliice
: compuringdevicesand nerworla.Companicscen salr rnon.y becr& lessofice dd A w o.ksrangement wher eby
- emptoyeesw orka wayft he r om
.. rs spaceand olllce equipmerrarc rcquircdfor thcir workcs.
ol fceusi nqpersonat
com put er s
ircn areseveralreisonswhv tclccomnutingis popularamongworkers.Singleparena
andfetw orks tocom m un
cat eva
: :lut ir helpsbalanccfamil,r md work responsibilitirsltceuse it tliminaes rhe daily e-maiwl rthotherw or kerand
s to
:: tc. lt alsocnal:lcsqulified workes sho day be unebleto participatein rhe normal pi .kupanddetvefres! t t s
.rorcc (e.g.,rhoscwho arc physicrllvchrllengrdor who live in tural reas roo i;rr from
- -rr ollice to onmutc rcgulrlv) ro becone prodnctive*orkers. Extensiveuse oi
.. nnuting canleadto dccrcascd nccdforollicc sprcc,potentiallysrvingelaLge company
 Per e I rn re hnooq,ron-pp5
" -tu

m i ri o n . oi dol l Jr,..orpo,l i on. arerl .o bei ng(ncougedb) pubti .

poti cy, o r 4 r e, e( om
T u fl n g srman_)or rcdrj ngl rar rongeri onj ndri r po u(i on.
\o me .}" e, or j ob, rrc bri i e, .ui redfor rete@ mnuuns ,hrn orher..,n.r ud, nsjub, het d
b y w l e .prcpl e. r.rerari e..real _erare egenr.compure.prog,rmme,.. dndi e gatJ. , ind, . . b
g rt.o requ:re,e,peLiJ prr.onJ,ry.1pe ro beeffecrive.Tete.on.
mu rc ' , r eed ,o_brrrongtv.el t_mo,i qred. oani rd. abtero.ruy on rr,k qir h m inim J
'upervF,on.dd hrle r toq needfor .ocial inrem.ron. Job, noi good fo, reteormurine
includ thse that reqfte frequent face+o,faceinteracrt.", *"a
*p"-ri.", *t r,", i-
lors ofshoft,term deadlines.Employeeswho choce to *-k -,i.r,
h.n. b" t **t
independnily, muage rhen tine well, md balancework and "r -;sr Read "ble .tnfoF
horfle life. the
m * i o n sy.rF. @ $,/o* .peci J fearurero gai n tu+ er i n,i ghr i rro . r ar e- of r he. d
re re .o mmufl nq tacrtrre5.
U .S.l eded rgen,i e.rrc i moi enenri ngtetecommuri qfor governmerenpio, r , ee.
ar r
rrre i k e l ,beh,nd rhepri vde .e.tor.onty r percen, or rhego,ernnfnr' .-.s m iliio; . i, it , _
v o rK e ^ nrd i re opi runro rete.omnurei n 2002.ompred w i rh ,,0
per.r nrof wor keF u
D n q rf i n du,rry.$ne ofrhr kn b,ri eF ro adopri onareroncern.rl o,.
d r a . f . uit . t !
re o n r!J rrsue\.sd mrnagemenr re.nrs(e. forsopte. rhe r,renr O.rl . e de( idednorr o
o ffe ra rel ecommui ng prog,rmro i b 800reni o,prrenretdmi ne,5 becrure of r ( onLer lde
p q mri i l i o' . o.rhe onl denri :j parenrrnl ormati on. l r addi ri on. .i ncr par enrer am ir en
'he
must.onb rhrough niitions ofparenfuecords, aj well as scientific and
rcchnical darabe
$ o ,i d w i de.$ry $oxl d requi reepensi vebrorobJndJ,cr- Jr rhen
Jw i )_f r on_$e. oli<
w o rk p l .e tu a rerLl r.p,renrom. i al ,h$e rci e.redretecommuri l s
for nor. I nr er e{ine, , . :
tederJ ofti.iJ 4 rhc CenerJ servia, Adminivruuon. whiLh hs r role i,
.rufri"s Bo;ffr
nenr-wide tele@ninudng policy, said thar he believe. .n","g"-""r ,e,;,r""." i,;;ly &.
kel' bdrier. Speakins o. condirion of donymiry, rhe om"i.l ."id .\flh."
y.u a_ r,l.j;s .
make ingrained behavior chmges, you have to have some very srrons forc..,,7

V i d e o co
n fe r e ncin g
Vido.onferencins enablespeople to hold a conferenceby cornbining voice, vido,
dd audio
Nd onl)_re rEvete\pense.rd rime reduced.bu, m;rseriJ etTecri,fle,.
'tu,n:.rion. d
dr,.o,n.rerfd rhrougt-raterrespon.ero probrem".acce. ro morepeople,ud le*drot:rauo:
or fHon by geosruphkallydi,pened .ire\. almov ajl vidoconieocing .rr.^
A lelecommunic6liofsystemlhat lo.u;*
video and phone call .apabitities wirh daraor document onferencing (seJFigure
co mbin esvid eo andphof e c eLl 6.20). yo.
c6 pa bltie swllh d6t aor doc unent canseerhodlerpe6on'sface, s the sme documen",
via
.omeoithe sytlem...althcr mJ<e(hdseqro livedoc,-_r, ""a,*"p "J,.,"a"a*d"e,.
i; *, ,.". M_y b;i..*
rrnd tnar rhe doLumenFrd applicatron. ,t-*ing tearureoi the videoconterenceenhuo
group productiviry and efiiciency. Meeting over phone lines atsofosres temwo.k
md tu
savecorpohre favel dme dd expense.
-r.: Work, .nd Play in Luxury at the Hetiopotis o^ o. " o, .dd" d
;Fp L ex ptannnq to sgnificanttyerpandits netwo& by add;nqwreless
tsetarqestconsttuctonpfojectsof lhe cent!ry st6knq accessponts to attowts re5dentsandvstors to connectto the
Hetiopolsnetwo.kwlrclessly i.onranytocation.
- aano EgyptTen lholsandworkerstuve beentaborng
ntegmtedcommuntes w hch tnk home an d wor k
: ie cLockLobuitdthe ext.avagant HetiopotisComplexTh
envronments,take tetecommutin!to the uttmale levet Whte
tion muttuse devetopmentbrcifchld of the Ci\Gtars
ielecammutrnglses tetecommLr. cations netvvorksto aLrow
: Ltbea stlsllflcent clty-wiihn a cty.lt ndudes
employeesto wo.k f.om home, nlegratedcomrnlntes aLtow
. g 0 P"_ . " ' e1' "i emptoyees to comptetety mergew o tfeandhomel l e qnor ing
: n au de va r.ly of s iz es and lay out s lhe t.adtonat boundaresof the \,lorkpLace. Wo.k can occur
:'ipr1,1,70 000 sq!are melers oi presl9 ous ol|. sp3.e whe.eve.andshenevefyoL, wlsh t to.Resdentsof Hetiopot 5 and
iyn :mc e nvronm entt hat m eet 5lhe des gn 3nd o p e r a the. glests can connectla p.vate corpofaienetdo.ks trcm
: re qu rreme nts t or m alof c oDor at r onsand m ull na t o n a t Enluheren the clty A blsin,asspeEon canmeeiwiih oLrtof town
ctefltsin a hotetsuite,.found the poot.o. ii a tocat.f6and have
. I an./ 5 ster hatel. l5e ile. ContlnentatFet opol r futtaccessto coeafatedata and.!stome.records as J h eor she
: Le Met d e n 5 ia. and Hotd. y I nn,t oget h. rof f ornq m . f e
' Jlrtl.oo m5,s! t es apar t m ent s.,nd . haLet sf of q u e c t s
ntegratedcommlnrtressu.h as Hetiopotsa.e q.owlng
: ::ur ou 5ew h m in! poot s heat t h. t ! b. r es t au. an r sb a n l ncfeasl ogtyn" rorecommon othe.s.tessgrandi oseth anHelopot s
blt eqLratty convenenl,p.ovideresdentswith lvig. lrofking,
: r,.mera A tw . lev etenle. t anm ent c ent . r . . 1! d n q a shoppng and playingsp:ce n . compactgeogEphythal teaves
w tt l6 s . r eef s a l. m ily t hm cp. r k b.w L n q ,
r 'n ultip lex t ttle needlor a car.Compltef.rd comm! nicatons neiwo.ksn
-
: : ard5 At5o,two tevelsolwortd .t.is orh b t on !o.ce slch commLrnrles .re .n essentatsetLiiqpont ihey prcvde
_ !,r!:
A th relev ets hoppnq m at t wt h m or c t ha n 4 5 0 residenlswth inst.nt accessto nfo.maion servicesand oth.r
:: l.tu dn qg iga nt . gr o. of y 1! r nt ! f e, t oy , anddepa r t r n e n t residenlswith n the commlnty Wh te h gh speedwretessnet,
:: rs wett:s a t r : d t onat Eqy p|an- i. dq lm af k elis e t t r n g q,ork connectivity is onty avaitbteI pocketsn lmdtonat cty
_ :nrq ue s,3 noc . ans
stfuctLrrcs,Integ.aiedcommunrtres caf prcvde Lrnive.sal
cove.-
r.. A m dcatf. . Lt y t os ! ppof tihe f es deit 5 aid v s r r o r s age to ctzens. Slch commlntes mght caLrse you Lowoide. I
:-r.os io r rou tne n- oeds andem eBence5 dt k e we mght aLtsomeday [ve ]n employefcenle.edclos whe.ethe
: i stlated n tafge bLrtdinqs, ndldnq th.ee huqe trnebetween tfe andwo.kare btured.
o. o u poaJ Lo: nr d' d"i s" q
"b
,. : : : lnv enent s h l ttte s e rv c e s . DiscussionQuestions
- :'s Hetiopolsis desigfedio p.ovideresdentsand vs - I Whatafeiheadvanlaqes of tivinqaodworkingin an integraied
, : lop of the tie lfestyle fcorpotutnqstate-or'the-arr
comm!fi l ys!ch.s H eti opots?
:. Oneol oLrrvisionsfoi Citystarswas to c.eatean
2 What fole dos the LAN ptay in p.ovidingseNces to the
'.: , :: resdeniial,ofice and shoppfq complexwhercbyatl
. . : : .! stomers, .esidenlsolHetiopots?
andtenantswoltd beabteto comm!n cate
: rlest stateof'the-ad T nehlorks saysAbdulEhman
, :riarman and iolnder of C tyst.rs Ciiysta.ssetecled Criti.at Thinkinqoueslions
: : r ns equpm e nto t .w h s t E b e i n qto l te da s th e ta fgest 3. WolLda wo l ie comnrunty suchas Hetopots be beneic at
r ::atlrtonin Elrope theM ddteEasiandAfrica toyo! personalty
n yolf chosencafee.a.e.?Whyorwhy not?
- : ::. of the ad LANwttbe basedon thpopLrLa.lnternet ,i Whaiarethedangerc, ifany,of btu..ngthed stinctron
between
' : t os lppor t v o i c e .v l daenodd. a ta .o mmL rn i c atons.The wofkt me andhome/f!nI me?
. oo.da ' ".o m p a . o b r h o .dr6
_ andcommlnicatonstechnoLogy ^L
' i eervicesiictldlng P SOURCS, 'ciysiar. Fe( opoLs C. rc' W.b s \e M.dtrstaE .on.es:/ndex
: r telephonesystemthat is nteqr.ted nlo lhe data /,?r, accessedMarch l0 2004i CiiystaB lnstalLsCisco Based Nelwork
lnfraslruclureacross$600mHetiopats canptex News@C6ca, http.//news
roan trscD.on, a..e..ed Mar.h 10, 2004; Eqyprs Cqnars Steamtines
,, r Dll] Ethemetpo.tsdistribltedaroundthe cty, res BuslncsswnhoracreEbusinessSure, rnanciat fines,D...nher29 2AB,
: ' : . ! t oE wt t a tw a y sb e w i l h n fe a c ho { a h i q hs peed wwlexis-he')s coa 'canos wealihy wonr Need to Leavecly to shop
ShapptngC.nters foday M i.s.,.4, a..essed March 10 2004.
' ..e.tion App.oxmately7.000 P phoneshale been
: . . lr c om m u n .a te o v e ri h e dnaet.i w o fk rn cdo n ne.l to
 psit: rrormar
m r{h noroey
con..prs
I

rrry
V d.oconferenci.g atLows
part crpantsto conducttong,
drst6ncemeet.gs -lace lo face
whiteeliminatingrhe needforcos{y

{source:sleve Chen./cORBts.l

Group videoconferencingis useddaily in a vtiety of businesses

s an esv r"v ro connd
reJn. Memb$ ofr rerm go to r .pe. ialJvpreparedvideo.onrerenermm equipptC
"o*
\ rh Juronarially to(u5on ,he person\peaj<ing. trr8e ry.1!
nonnm fu vioing the partidpanis ar rhe renore lo-do.,;"d hisa_q".ti ,i"L""
hcophon$, vide@nfqencing cosrshave cone down $@dilr ;h;l; vide qualiry ""
d
syochrcnialion of audio ro darr<nce weak poinrs foi the rechnolosy hry impbrd.
yllT1ifeleync sFremsdesisned to supponldge ."" .i.s*
S20,000 each.Rooms
to hudle heerings -".,t"g.
for 10orGwerpeopte on be"" -"."g. $t.crr
equppejfor
or le$. rhe.e are addnional expensesassociaredwnh 6e ofrhe ieh@mnu;;dons nes.qi
to retayvoie, video, data, and inages.
Rao Vellanki, operadons managerat Bet Brn noved from rndia ro ihe Unned sdts
in1977.In 2003,he rerumedro tndia ro nmage BesrBq s otrshored*elopinenr in
Ch@
nai, where rhe firm hs severalhundred sofrware developes workins on hore rhd
,i'l
applicarions. \0hiie Vellanki relies on a E.iety of merhods to comnu;icare wirh rhe hor
office, he seeslhe useofvideoconferencins as.ridcat. "Therc is no quesrion, in mv vie"r. $r
,ecins Jrr h.e. add, ,o +. efftr,i,enes of,"mmuniouotu. ft;pei.on,t
rou;h ,, (he_
rheinresiry; thele+en rhoughi.i onb-an iniangible,we find ir;navoidabte,"he s!\1>
D o s Cheri L.t rc.mrtv Lomptered r r h reel ear.muJri mi ui on_dotLrrpoje.
Lh r in, ot , d
upgradins aI of irs 560 videoconferencing sysrens ;n 43 countrig rcrldwide. Dubb<i
iRoom, rhe projefs soal is ro ihprove inforin.rion sh.rins and speeddecjsionmaLins ac'r
all levelsof rhe @npany. Dow also hopesto cut bact o" r*;".* *a .*
"-a -"a.i
I
E l e c t ro n ic
0 a taIn te r ch a n g e I
tectroniC
datainterrhang
@
Elstmniciata interchdge (EDI) is an intei.onpany. applicaiion_o_applicarion como+
IEDD nicationofdatr in slandrd formar,permiftingthe recipienrro performa standardbuine
I
An ntercompanyapptication-ro- I
transacnon, such s proqsing purchlje ordes. Comecring corporate onpurcrs m@s
aFPtcalrof communcationof data
n standardformat,permi ing lhe orsaiations is the ide. behind EDr. which lses oeMork sisrem md follo*s;atrdedja; a
reclp entlo performlhe lunclionsol prcedues rhar allow ourput from one system to be prccesseddirecdy a5 input to l
oriF
a stand6rdbusinesstransaction. sysiens,wirhotrthund intenention.VithEDI, the coinputersofcusioher, mdufacu f,
e h . Md c,n be l i nkedLee Fi gurro.2t' . t hi , te.hnoJoey I
' u ppl :er. eti m,nJre,
+e nt r d, n
pJped . o c u menr,Jnd,ubnrnri al Jlrur dou n on co.rtye,rcF.cbi omei dds, r no ir cuB n
a re rrm,mi ned l i om rhe !6romeh compurerro rhe mduhourei s n
-.p", *i
 reLecommuncarois an.t NelworkE

:unufacturels conpurer cd then dere.nine when new supplies de neededdd can auro-
r*ically place orden by onnecting wirh the supplier's conputer.

@
TwoApproache6to ELecttunic
DataInterchange
Manyo19aniz:tlon f so w n sr stth a t
t h e r s u P p le r s o p e r ateu si n gED I
s y s t e m s . o f t n l hEe D co n n e cl i o ns
madedirecttybetweenvendorand
c u s t o m e rL a J i s t r e r n a tve rl y,
h et n k

fryK't
m a yb e p r o vd e db y a th i r d - p a r ty
ctear nghouse,which pfovidesdata
conversionand olhr seruicesfor

ryKr ryk
\/al-Mart n rhe only U.S. retailer rhar sellsMary-kateanduhley One, a new fragroe
:roded by twin teenageentertainnent moguls Mary,Kale and Ashley Olsen. Fhgrane and
:imeri6 ndufecrser Cog, usesEDI to proces orders elecr.onically and keepwal-MdCs
r:lvcs adequarelystocked with rhe frastue. Corli Sanford, Nofih Carolina, moufrc-
::ng and distributionfacil;tyannuallyprocesesnore than I .5 millioD orders,98.3pe!@n!
iirhich are;n EDI fo.n,t.ro
ls oore indusrriesdendd that businesses haveEDI capabiliti, to stayonperitive, work
!:tr irieswillconrinue ro evolve.Proce$esd sinple asbillingandorde.inswill chagq dd
ro indurries wiI emergero help build rhe softw and neworl(s neededro supporr EDL

Pu b L icN e tw orkS erv i c es

5blic network serices give pesonal conpurer usersacces ro vdr daobaxes,rhe lnrernet, poblicnelworkservices
ij other seni@s, usu,lly for an inidal ree plus usagefees.P$lic nerwork sedices .tlow Systemsthal g ve personatcomp0t
..rorner ro book anline resenations, check weather forecdrs, ger info.marion on TV pro, e r ! s e r s : c c e s s t o v a std a l a b a se s
and other sery ces,!suaLLyloran
ras, anal1re stocl price dd invesrmenr infornarion, comnunicare wirh orhe6 on the
in I al fee ptus usagefees.
r,vork, play sms, ,nd re.eive dricles and sovernmenr publi.adons. Fees,bded on the
<: icesued, en rangefrom under $ I 5 m ovr $500 pe. nonrh GeeFisure 6.22). Provides
:i:ublic networksenicesindude Mioosoft, AmericaOnlne. andProdigy.Ths@mpanies
:tvide a vtt armyofsenices,;ncludingnss, elecronicmail, and invesmenrinformation.
.!lL is rhe nunber one providerofpublic nerworksericesin termsof sir.

F u n d sT r a n s f e r
E t ec t r onic
:ltctronic tunds transfer (EFT) is a srsren of rdsfering money fron one banlc acout eteclronic fundslransfer{EFT}
:ecdy to morher without my paper ooney changins hmdr. k is ued for borh credir A syst-.m
oftranslering
money
such c payroll paynena, and for debir rransfen, such r nongage payments.The fromonebankaccountdifectlyto
-asfen,
rnefitl of EFT indude reduced adninisrrative costs,indeded efffciency, sinplified book- anotl rer anypaperm oney
w rthout
!=ping, and greatersecu.ity. On oflhe ncr widely Uled EFT p.ograms is Direci Depos;.,
r an enployee'spayrollchek is deposiieddirecd/ into his or her banl a.@unt.The
"hich
zo primary.omponentsofEFT arewne tnmfer md auromaredclearinqhouse.
 ret e I nr-',r r"+""rayco."pr,
""

w
Pubticneh{ork service5pf ovlde 4j ;:tu6 .irdb
!serswilh thetalest intormation.e-
' ?) .rl a
quired to remaincompelitve. MSN,
for eb mple , e nabls segis t er ed
userslo personati2elher home

':'7-*':;;,

,t ,f

illh 9t arld

wire transfer is m erxrenely fa.st,reliable meas to nove tun& Fon one account :r
An exlremetylasl,reliablemeansto dother TtE. {e rhree mjor wire,rransfr nMorks. Fedwire is p.dided by ihe U.S. Fei-
ho ve tun dsiiom one ac c ount t o
eral ResrreBank. h supporis bank-tcbank and ihird-pany rnnsfers thar involve banksan;
theirorpoffe md rerail csiomers. Cledirs Hous IfteFBank PaymenisSysten (CHIPa
is a bank-o*ned, privarely opehted, real-rine, final serilenenr paymcna sysren for busines-
to-busines, transacriotr. Ir proesses l*ge-value paymnr tqnsfere for both donestic an;
intenational finarcial communiries.The Society for Worldwidc InterbaiL Fina.ci!
Telecohmuniarion (S\VIFT) is a s)srem rhai combines messsins and fudr transfer.
automaledclearinghoure The automatcd cloing hose (ACH) nework is e secure,printe network that connecrr
lacfrl all U.S. finmcial iGdiutions to one anorherby way ofthe FederalReserve Boad or orh-
Asec!re, privatenetworkthal con- ACH operaros. k enableselectonic paymenrsto be hmdled md pocs*d rhroughour rtr
ne ctsallU.S.f n an. iat ins lit ut ions t o
one.nothef by way ol lhe Federal
50 *ates and U.S. reritoris dd Cmada. For paynefts, funds are rratrfered eleclronicall-
ReseNeBoardor orherACH fo m o n ebanka.cour ro drebi l l i nscomprny,brL u.ual l yl es rhanr dayaier r her hec.
uled payrnenr dare. The Nadonal Auronared Clearing Houe A$diaiion (NACttA) ir
Herndon,Virginia. *ts the nrlesand srddddr for ACH tansacrions.A nunber ofbank
md oryatriados haveesrabllshedprynenr systemsbcd on ACH . PayPal,Inc., d*lop.]
a s)s.m lhar leis individuals sendmoney ro one mother via e-mail. several banl6 also otre
consume.-o.iented paymdr servie: BdkOne Coryorationin Chicago(prior to its merge
wnh JP Morsan in 20M) offercdeMoneyMail,Citigroup, Inc., hasc2ir, and Wells Fa.
BankNAinSan FnnciM toursBillPoinr.Table6.8 comoaresrhesenicesotreredbv AClt

@
Comparison
of ACHPayments
 TeLe.ommun.ar
oisandNernork. I curpt"" e

0is t anc e
Le ar n i n g
r{ilmi Universiry,Florida, is exploringa parneship wirh Spdish Eleconmunicationx
:-.r panyTeletoricade EspaneSA ro provideryberclssesand physjcia!cotrulting series
i: docrorsand clinics in hrin America.r' Often olled dietanceleaming or cyberctoses,such distancetearning
--e:ronic clmsesare likely to be rhe wave ofthe futu.e. \fith distancelearnins sof$are and T h eu s eo f t e l e c o m m u n i ca l i oto
ns
:.:(m.. a n e a i l v . re a tec o u n el -o mep a se.on rhetn,erner.
srudenr:canr.es
' n{ r u. r on
a .ouse syllabusdd insrruclor noreson the web pase.Sludenr e-ntl nailing lis$ allow
..ilenft ud rhe instruaor to e-nail one morher for homsork dsignmenrs, qusrions.or
:rmenrl abour marerial presenredin the course.I! is also posible to form chat groups so
':trr (udenrs can work togerher as a "vinual tearn," which meerselectronically to complete

Speciatized
SystemsandServices
r :ddirion ro rhe appiicadons jusr discu$ed, a nuhber of orher special;d rele@nnuni-
r:ons systens and series dist. Ior eemple, wirh mjlions of personal conputers in
acros the counrry, inreresrin speciahed md regioml infornation servicesls in,
-*inessesSpecializedservices,which can be
apensive,include profesional lesal, pateni, and
-,ring. inforhadon. lor enmple, invesnenr onprnies cn uses)rremssuchas
Ehnicd Quoron
i:J Shark to grt Lrp-ro-ih-ninure information on stocls, bonds. and other investmens.
Regionalsenices,also called netftpalitan tetuice', ind\de local elecronic bullerin boards
rJ elecrronic mail faciliries rhat oller infornation regrding local club, school, and govern-
d:! acrivilies. An elecironic bullerin board is a me$age cenrcr rhar displals nessasesitr
fo!m, nuch a a bdletin bodd displala paper nesses in schoolsand omces.A'
-.ronic bulletin boardcan be ac@$edby subsoibe.swirh penonalconputers,
nework
--lronic mdsoftware.ln addirionro regionalbullerinboalds,narionaland internadoml
-rpmenr,
:r letin boardsare availablefor people and grorys wirh speci.l inreresisor needi. Thesr)"es
:a ruilerin bo,rds dhr for many uses,suchasusen of cenainsofrwarepackassud uss
rr certrinhobbies.Manypublic nerworksedces,includinsProdigji,Ameri@Online,and
rrpuserye, provide a@essro hudreds of dilierenr bulierin boards on a Eriry of iopi6

Global posidoning sysrems(GPS' are uled to provid specializedrelecomrnunications

r.trs. They havelons beenued by rhe niliarT to find locariomoftroops, equipment,
ri fie eneny wirhin yardsin sone cses.Toda), cPSs e being usedb, conpmies to
L-er lad and buildings and by individuals ro locare rhen posnions whil cmpins or
=::oring. SomeaurocompanieshaveplacdGPSSin rheir cm to *sist travelersin need.
- : 'ora provides i$ C-Book in-vehide network itrbrmation seNice to Mazdr omers in
r:n. G'Book provides vehicle owne$ a wid ruse of serices, includins vehicle locarion
*J navigation information, nainrcnance nodfiadom, msic and ganes, emergencyroad,
r- rsisnnce, and e-onneie opponuniries.The onbodd implenentarionofrhe c-Book
rrce fearuresa data communications rnodule, a rouchsaeen navigadon trminal, md a
,lS antenna.Toyoraand Mazdabelioe it is imporrur for auromalersandrhe informarion
ft$rry to work rosrhr ro promore an indusry srddard so rhey can offer cusromes loweF
s: and highe4ualiq- senice.r,
\-ith all rheseieleconnunicarions sysremsmd sen ices,it is no wonder thar rnanagen
a:.vorken ae able to onduct busines fron renore locadons. Oken c2lled uift"dl
rrian, these employeesen conduct businessat any iime dd ar any place. Tod,y, new
*ommunierions systemsand servicesare being infoduced *ry month. In the future,
s: s expecr *en more inno!"rions ro dmarietly aher how buinsses and individLrals
,E .onnecredmd in to!.h.
 nrornat on r,rh13.trgy con.epr!

SUMMARY

Principle In w hl ch the communi catons srgnali s snt o le. ait ua! : :

Effeclivecommunications
are esaentialto organiza- Gud,d " .o mA oa Lo. rr " o p- v, "
coaxat cabte,afd l beropt . cabte W i reLe ss m ed a t y: : :
tionatsuccess.
nct!demi c.ow avecetl ul .f,andl nf.:red.
Com m ! nc ar io n si s a n y p .o c e s sth a t p e rm i tsi n fofmaton to f.4odems convedsi gnal sfrom dl gtrL to an at oqf or r
pas st . onr a s ef d e r l o o n e .. m o .e fe c ev e .s cammLrn ca,tfansml sson.thenbacki o d gi t.t. FoLrrtypeEo l m odem s: :
t ois of all t y pe sfo rm a ma l o f p a rt o Ja n y b l s n esssystem. nternatmodems exte.nalmodems,cettuta .m odem 5.; _:
T et ec am m Lrc n a l ,o n sre fe .sto th e e te .tfo n i ctfa nsnri ssi on of
s gnat slor c om x r!n.a tl o n s n c t!d i n gi e l e p h o ne, rado and Tr ,.. o " 1" - rp4 or re 6 o" -
t elev s of T elec o mmu n i c a to n s l s .re a ti n g p rofoLrnd.hangesLoc.Lexchanqec.f.e.s a pLrbtcl etephonecom pany. '.
U n tedS tatesthatprovdesservce to homesand b! s ne: , : . .
w i th n i ts def ned qeog..phi .atarea cattedts locala. . : : .
T heeLenen tso f a te te c o mmL crna ro n ss y s temsta.tw th ard t.arspartarea H omesand b!si nesses afe canie. ie:
o4do.- ,a o "p .< 6mo6. the tocatexchange v a w hst s catted a l ocat l rop r yp'c. l !
d ".- h "o g c! r oq..- d pa r ot .opper w res, atso cal tedthe ta5t m it e T'r e L: : :
s endn9 un t t r a n s mts a s g n a l to a te te c o mmun .al i ons ex.hange ofn.eha5sw tchl ng eq! pmenti hatcanswr lch. :
dev . e T lr et et e c o mm!n rc a l ro d nes vc e p e r{ o rmsa n!mbef tocatl yof to tong d sl a.ce car e. phoneoffce s
01llnc t or s wh c l r c a n n c L l d ec o n v e .tn g th e s gnat nto a C ompettve tocatetchangecff.e.s com pet ewit i
d f le. entf o. m or i ro m .n e i v p el o a n o l h e . A te tecomm!n tocatetchl ]ngecan e.s.Tl resecompettore nct Lr de w. . : :
. at onsdev . e is a h a fd w a fec o mp o n e nth t a ta tL owetect.oni
s c seruce p.ovdrs, sal etLte TV serl l ce provder s, c. bl- -
c om m ln. at on to o c .u r o f tc o .c u r m o .e e ffi ci entl yThe companres, andel en pow erc0mpanes.
t t e. om m ! nic aot n s d e vc e th e o s e n d sth e s g n a tth.o!gh a The three esl abl shedl .nq-d stan.e pfo vider sr ir - : ;
'a d u .c. q o.. A T& T S pfi nt,and MC l .Locatexchanqe ca.fier chaver i'
^6 a
r es an et ec t . o n. i g n a t a n d n te ffa .o sb e tw e ena sendng abteto .ompetew th them to provde tofg-d st Enceser :
d" dd.r gd6.aT g.ot . 66dobr d!e toi he p.ovsi oi Eol theTetecommLrn cal i onsA. r ol : :
"d"
anolhart et ec om m u n i coani s d e vc e th a r s c o n necl ed to the S w tched trn.s use sw i i chng eq! pment t o at t o! 1:
r ec ev lf q c onpl te . T h e p fo c e s sc a n th e nb e .e vefsed.and t.ansmi sson devce to be coni ectedto othe . t r ansm : : :
aiot her m s s a g ec a n g o b a c l f.o m l h e re c ev n g un t to the devces A dedi .atedtne,atsocattedal ersedr r e p. c! . . :
or ig nat s endiiq!n t W th s y n c h ro fo u s .o mmui j Ldu!,,s. r,re .onstantconnecton betw eentw o poi nts N o swil, : h. . :
r ec ev ef get st he m e s s .q ei n s ta n ta n e o L rswty , i t
h e n i s se.t di atnq i s needed, the tw o devcesare atw aysconnect ea
V oic eand phon ec o n rm !nc .tro n sa .e e x a m p te sW th asyn- V oce ovef ntefnatP rotocotl vo P l s i he basc r ali- . -i
L6 6.: d q...
L. ..
.qa of vo.e I the l orm of. data packetu5i n g t he nt . :
r r o! r sor day eai te rth e me s s a g e5 s e i t P .otocot P tetephofys thetechnol ogyfo.t.ansm t t lng. : .
A c om m ! nr c a l i o ncsh a n n e ts th e tfa n s ms si onmed !m .omm!nrcatons ol er a netw .rk l srng an op enslanc: : :
based ni ernetP .otocot. P tetephony!ses Vo P bL, i : ,
C om m ! nc : t r on c h a n n e tsc .n b e .ta s s l i e d as si n' rpter soi tw a.eappl cati onsr te oi l erng .i ch feat!.e appt . .
h aLi' duplexof l L rl ld L rp L eS x .h a n i o ns L a !./s ta testhat the Theseotten modLrl :r:ppti catons l end themset vcs Lo : : :
i nf of m . ton c arryn g c a p a cty o f a c h a n n a ts d ;.ecttypropo. opp. oro .
t onat t o t s band wd th -th e b fo a d e .rh eb d n d wd rh rhe more
niof m atoi c ai b e c a ri e d V or.ernd dataconvefgei ces the ftegr:tl onor vo. : : :
data.pptrcai onsrn a.ommcn envronment t of f e. s: : :
oppo.tLri tyl o.cosLredl cton to bothservi cepr c! dcf : : :
Prinoiple customers.ndead,the transt on to d !l t zedvo c.d. t ; : :
An unmistakab(e trendof communicalions technot- vi deoi s the dom nanttechnol ogi cat ss!e Iacng t he o: - :
ogyis that morepeop(eare abteto sendend receive phonecompanes overl he nextde.ade
atl tormr of informationover greaterdistancesat a Tetecomm!ncatoi scarfe15offeraw i dea ( ayof F_: -
fasterrate, and d ati ngservi cesi ncl Lrdng aLrl omaLin!mb c e. den: : -
t on W A TSIS , D N T-C ari er system,d gi l ats! bsc. ber :
lhe t ele. om m ! nc a t o n s me da th a t p h y s .a l tyc onnectdata a.d w retessmob te
d " . " " b " d .d e d n o Theeffectl ve l se of netw ofks.i r.t!.rr a com pany- : : _
" o-
gor e5 g! dedt . a n s m i s s i om i e d i . n w h i c h c o mm!nc.tons dd " -. aqo.zo g..q .
5, gf alsar eg! de da l o i g a s o td m e d !m. a n dw retes5medta term .ompetti veadvantageN etw ofkscar be !sed t . : - : '
 rete.on,nri.aroi'aid Ner\.{,t! I ch,lro 6

: . pr ogr anr san , dd a ta b a s easc fo 5 5th eo rq a nz a toi W henpeopLe on one netw orkw sh to communrcatwih e
. . - ' a. d" di. a : o dono Io .4 o g. peopteor devl ce5l na d fferentorganzaton on anoi hernei
' 1" . " " i" I 5 a y " .a b e gao w o.k, they need a comnroncomm!rni catLon5 pfoto coland
"ndar
: t j' s epar : Led w o .k g ro u p sto s l ra fed o c L rm e nafd
ts vafi ousnetw ofkdevrces to do so A communi cal onspr ot ocol
. ih . h los t er sl a a mw o rk n n o v nvt e i d e a s .n , d new s a stand.rdset of rLrl esthat coni .otatel ecomm!fcat ons
connecton The.e a.e myr ad commrncat ons prot ocols
' " ! s c . t d s lan c eb e tw e e nn o d e so n l h e n e l w o . knnd ncLudng ni ernrLon.L nat on.l .nd i ndusl fysl nnd..ds.
. ! n c . t ionsan d s e rvc e s p .o vd d b y th e n a t w ork IC P / P s l he pfrmarycommLrn cdt ons protoco tol t he
:s whethe. t s catted a pe.sonal ared netwark nte.ner E rherner l s LhemosLw i dety.sratl edLA N re chnol
:elaree network tLANl. n-.trapalitan ara n-.twotk ogy S pecr ed i n a sl andad E E E8023, .n E the.ieLLAN
.' . wlde area netwotk IWAN/ A PAN slppofls the typcattyus.s coax.t .abteor sp.ci 6tqradesof l w i sledpa r
. . t ion of nio rm a ti o nte c h n o to qdy e vc e s w th n a w res Thc most commofty nst.tLedE Lheri elsystom sar e
cal tdl 0B ase-T.w hch p.ovdetfansmss on speedsu p t o l0
l . dw .y Mbps.D evi ces.reconnecl ed to the cabl eand compet elor
b 'L 'd d |d 6 .o p UA' ' o9609' dor o| accessusi nqa C a..i e.S enseM!Ltpl e A ccessw th Cot t ision
. : : f t han a LA N b L rts m a l L eth r a n a WA N W A NSt e DelectionlCS14A"/CDl p.oto.ot
r r geqeogf ap h rc re g i o n sn c tu d i n g.o m m !n c a i rons ATl.4 lasynclr.onou: t.aflste. model rs a switchnq
: . , nt . es , t nk fg s y s l e msffo m .ro u n d th e wo.l d technol ogy that reti eson dedcatedconnectons and or ga-
' ! n c f t ow of d .ta .c fo s s i fte rn .ti o i a t a n d g tobal n ze5d g tat data nto 53 byte.etL!n,ts TheseceLtsa. e t hen
:: s al\e, calledtransborderdata flaw transmi ttedovef a physcat medum !sl n! di gi ta fsgnaL
: _k lopot ogy r e fe fsto th e m a n n e f n w h c h d e v c-as
: : B or k a. e ph y s i c a l !a rra n g e d C o mmL rn c .t ons B tuetooi h i s a comm!ni catonsst.ndardw hose!o al s t o
' : an be c on fg u fe d n n L rme .o L w rsa y s , b u i nve s mpti l ycommuncati onsamongcetLphones. handheld com -
: m os tpr ev a te n b t:!s , h e fa rc h i c a t,
s ta r.I n g,and pLrtefs, and otherw fete!s devi cesby skeami ng nfo.m aiion
-
: - d net wor k sc o m bn e th e b a s c d e sg n s o fth efo!. backandfodh !s ng short ranqerad o w aves
i! es t o s ! ! t th e s p e ci c c o mmu n i .aot n n e e dsof TheIE E E802,yxi sa fam ty of techncatspecl cat f o nsior
w fel essLocatarea net,rofksdevel oped byaw orkLnq gf oupof
' q o" thel nstLtLrteof E l ectfi catand E tectroni cs
E ngi neefs LIEEEI Alt
-
: . ilet e. lr n. l' to -h o s t,Ii tes e .v e .,a n dc t e n t/s e rvar Lrsethe E i hefnetprotocolandC S MA /C tca.f A ef S enseM ! t
^. 1 t o hos t c o n n e cot n s th e a p p lc a i i o i and tpteA ccessw thC otl sl onA vodanceipai fof hsharng 1G . 2G ,
: . . de on ihe s a m e h o s t c o mp l te r.a n d th e l ser 2.5G,and 3G .efe. to the var oLrseval l t ons of w fetessnet
i. t he appt l .a to i a n d d a ta !s i n g a d !mb ter w orksusodto supportl sers .nd the r varroLrs dev,cesand
I aP a c0mm!n catr0nsneed.
o, J.d .uai a M!Ll channetM!l tpoi ni D l stri buton S ystem l Ml. 4DSl
lo eb or o ' 1. on L6L o aLtowphonecompai
s i es
todeLverTlspedsto the hom esof
" - ppr '
nd v du:t Lrsefsover rool topsntennasn-ro!nl edanywher e
l. s e^/ efap p fo a c hth
. e a p p l c a tl o na n d d a ta base w thi n a 35 mi teradi !s of r pow e.futtransml ssi on l o$, er
_: s am ehos tc o m p L rl ecf,.l l e d th e fi l es e rv e .The l . addi ti onto communi cal ons protocots, var o!s devlces
0- ,.edL56 p6 a.e used i n tel ecommun' cat ons. A P B X i s af on p. eli s
: r : er or wor k s ta l o n l l l h e u s e rn e e d s e v e n asmatt sw l t.hi ngE ystemow nedo. l easedby. p. l ai e enterp rse t hr l
th ef l e s e rv e f,th Jel e s etuer
: d6t at hir Lr e s l d e s o n connectsts teLephones and provi desaccessto the pubt r c
; er lheenf u e fte th a tc o n t.i n s th ed a tare q u ested.
: t ot of dat at h e u s e . d o e sn o t w a n t o f n e e d The A b.dqe s!sedtoconnecttw oo.mo.ei eLw ork st halLr se
'"" , t " )1 . n .rr| " d .^ o p L tr" n the samecomml n.atons p.otocot.A sw tch sE tet ecom
"l
i; pt ay ed by a p .o q .a m th a t .!n s o n th e L rse.s r.un cai onshafdw aredevce thatfol tes l ncomi nqdat af . om
anyoneoi m.ny npLrtport5l oa speofc o!tpl t porttlr atw t t
i. er uef s y s te m s a n e tw o .k th a tc o n fe c tsur se. s l ake the datatow ..d l s rntefdeddesti nati onA fou ler s a
r . t leit l t o o n eo . m o reh o s tc o mp !te .sl s a r vefsl devLce or softw a.en a comp!ter that detefmi nesth e ner t
" do \d
"q u " nei w ofkpoi i t to w hrcha data p.ketshol l d be foi wa. dd
: : - a: sng ias k s w l th th e s e a e r. a n d d rs p l i r ys
l l re i ow ardi ts destn.t on A hubi sapta.eof.onverqencewher e
"d. od r u. . o
-o;
dataarves from .ne o. mo.e d .e.t ons and i s l orwa. ded
oLrti n oneaf more otherd f-actons H !bs commonl ycont ain
pb r i o^ pu, d mul t pte pofts Lrsedto connecteegmenteof a fetwof k A
.o r'olo.a lh a e .r lo p , l rad ar" b . ." o gal ew ays a nctw orkpo nt thata.l s as anenl ranceto a not hef
: r e r es ponsl vto e b o s i i e s s .h a n g e sT h e s i a .t-!p
: : c s y 5r emcsa nb eh g h ,a n dth e s y s te m sa .e m ore W henan o.g:ni :al i onneedsto usetw oor morecom p! t er
: i ir c ent f a trz ema
d i n f.a m ec o mp !te . sysl eri . one ol (hfeebasc datapfo.-" ssi ng
stratege s m ay
 Pdt2 | r^'ormationr{hnotoqycorcepc

be t oLt o\,!ecde n tra l i re dd, e c e n tra L i z eodr ,di sr.i butedW th and speci ati zed systemsand servl ces.Pe. sonatcom ;
c enlr at r z e pd ro c e s s i n ga, tl p ro c e s s i n go ccurctn a si ngte to' ma ni fame l nks enabl epeopteto l pt oad and d
loc at iono.ra c i ti tyT. h ;sa p p fo a c h o ffe rsrh ehi ghes!degree ot d.ta.V oi cemai t!se.scanteavemessages f or . nd. ece
c ont . ot .W i th d e c e n tra ti z epdfo c e s s n g ,p r ocesstng devi ces sto.e messages from other peoptea.ou ndlhe wor t d
ar e pt ac e da i v a n o u sre m o teto c a t;o n sT.h e i ndvi d!at com, tronic softwared st.ibLrton invotvesrnstaLtinqsoftwar
put er s y s te masrei s o t.te da n dd o n o tc o rn m uncatew i rheach c0mpl terbysendng p.og.amsove.a net wor kso t hey
or ha . W , h d i n r:b .' e d o o .e s srq -o mp . ers a-e p...Fd a. dow nLoaded i nto i ndi vi duat
conrputercElect r onc doc
r em ot et oc a to n s b u t c o n n e c te d to e a c ho thervi a i el ecom- d stributlon
alLows
orgnizarionsro
transmt documenr3
m un c at io n sd e v i c e sT. h e Se p te mb e r1 1 terfori stattacks ou " e LE eo' oroe . l r us c r-q,osrsd 0qa 9 r f
. pd r ed r a n /.o D d -re sto o k t. b L re -e f i ori F' c,ope-d centersatl owfor the efl i ci enthandtngof a t ar gen!
I ons ,ands y s te m sm u c hm o re w i d e tya, re versatol the trend i bou o a-o o . oo-' a re .pho F !d.l s l e lar o- " , r - l
t owar dc e n tra l i z a ti o n T h e q o a t s to mi n mi ze the conse i nformton technotogy to enabteemptoyees t o wof t
q! enc esor ac a ta s t.o p h c e v e n ta ot n el o c a il on
w hi Leensurtng hom the off ce.V i deoconl erencibri ngnq sgr oLr ps
unrnterrlrpiedsystmsava tab lity. voce, vrdeo and audo c.tts. E l ectron icdaia f Ler
Com n ru nc .ti o n ss o l tw .fep e ri o r.rsi m po.ranr JLrncti ons, anol her.api dlgrow
l E D l 1, y i ngarea,enabLes cust om el!
s uc has erro r c h e c k i n ga n d m e s s a g efo rmatri ng. A netw ork pt ers, .nd manufact!rersto exchangedat a eLecr
oper atng s y s te mc o n tro tsth ec o m p u tesr y s temsanddevi ces E D IredLrces theneedformanLrat papersyst em s, whlr e
on a net w o rk ,a i to w i n gth e m to c o rn m uni cat w i th one rnq Lrpthe rate at w h ch bLrsi ness can be t . ansacie.
anot herN e tw o rkm n a g e m e nsto ftw a ree nabtes a manager tronrcfundstransferi s a systemof trans f er ng m o. e!
t o m onlt o .th eu s o f n d v i d u a tc o mp u te rs andsharedhard- onebankacco!ntdi recttyto anotherwtho ! i anypape.
war e s c an J o .v i fu s e sa n d n s u rec o m p | a ncew i th softw are L" a_ong hdnds.o,bl r ' " tro' , se^:cesS'.e use. s.
! a r _ d a l d b d s e s a . d s e r v ( e ) . . s - a l y l o o ^ n L .a .j e +
M any a p p L i c aotn s o J te te c o mmu cn.t ons extst today, usage
fees D stancetea.nng s a wayto suppori
ed
nc t udnq t h e fo tto w i n gL: i n kn g p e rs o n act o mpl terto m.tn- of sl udentsw ho are unabteto meet he qLr ent Ly w: -
f r am es ,v o c e ma t, e te c tfo n i cs o ftw a .ed strbl ron erec- nstrLrctor.S peci ati red servl ces,
w h ch ar e m or e exD
t r onic docu me n d t l s tri b u ti o nc,a tt c e n te rs ,tetecommur ng, | .cLudeega. pa,a . a d rec-n(ol ntor m . r , o- .
v ideoc or fe re n c i negl ,e c tro n l cd a t: l n te rc hange, pubti cnet- qetui (es -cl ude o' el ecr-on o .r e. n oo. r oEr t jl
work serv ces, etectronlcfunds tr.nsfer, d stance tearni.9, -l
e-mai lfaci l i ti es
and nfo.mati onregardnq t ocat act r ':

CHAPTER 6: SELF-ASSESSMENT TEST

Effcdve communi@dons de e$ential to orgariational Anlnnist.ftabletrndof.omnunicarionstehnolosr

more people c able to sod and receiv all forms of i
1- Which of rhse itehs carries an electonic signar between mation over greater distoces at a faster rate.
sendrand receiver? 5. ich taw sratesrhat rhe informatbn,qrryint
, rhrnneln di re,r 1 p.opoai on,i,o i ' . br ndsidr h
b. connunicariotrproro.ol a. Moore s llw
c. rransnissionnedia b. Mutphy's Law
d. tele@mmunicarions c. shannont law ofinformation theory
2. A(n) providesserice to homesand bs; d. Law ofDiminishing Returns
nese within its deined gographicalarea. 6. _ is rhe basicrransporrofvoice ;n rhe foi
3. A sinplc channelcan rransmirdatain only one direction. datapackerusingthe InrernerProtocol.
- A J r o n , 'e . h n o l o g / r h J Jr i \r .. h
'e l e . n m m U n i
4. Two broadcarcgorieofrnnsnission nedia a.e: width ;nfomarion io hohes md businese\ove!
a. guidedmd wireless copperlelephonewirs.
b. shielddand unshielded a. WATS
c. iwisred and unrwisted b, ISDN
d. inha.edud microwave
d. digitalsubscriber
line
 TeLe.ommui.atonsaid
Neiwofr, I o,.pt"' u

.-lchinsequipmenr rhar routesphonecallsand nesages c. It is illegal for charitable organizations to employ

. ::in a building and onnecrs internalphone linesto a
o phoneonpany linesis calleda PBX. True or Falsef d. Do Not Calt tegislarion hs had a miniml impacr
,. :n) is a netrvork rhat supponi the intercon' on rhei. opention.
-
r:eon of ifornarion technolosy d*ices wnhin a ntrse
12. Teleommutins enablesenployees to savemoney becaure
Ie* om.e ,pdt', parlins .pr.e. md orlice equipmenLn
l..rcnic softmre dkniburion involves insralling soft-
rcquired. True or False?
on a file serverfor user to shareby signing on ro rhe
-:e 13. is a systemoftrosfering moneyfrom one bank
mork md requesting the sollrare be downloaded onto
aaount direcdy ro another wnhout any papr money
Gj conputes. True or Falk?
chmging hdds
nrF r he f ollo w i n gw a re me n hrb o u , c a l l c e n renn
"f
CIIAPTER 6: SELFASSESSMENTTEST ANSWERS
:. 'fhey are usedto hmdle inconing olls only, not
(1) c (2) local exchangecar.ier (3) r.ue (4) a (5) c (6) voIP
(7) d (8) True (9) penonal areaoetwork (r0) True (11) b
r They liequendy enploy ar ACD to fovud olls (12) True (13) Electronictundstransfcr
o the dghr puq, and balancethe workload ofsup-
portpercnnI.

TERMS

3ignat250 etectfonic document distfibution276 personat areanetworkIPANI259

'onouscommunications
244 etectronic lundstransfer{EFTI281 privatebranchexchange (PBX)271
.:tedctearing
houselACHl282 etectronic softwafe distribution276 publicnetworkservices 281
' 1\ h 246 fite server263 ringnetworktopoLogy 263
; 11 hont-endprocessor 251 (oter 272
..d 246 f utt-duptexchanne( 246 Shannon s fundameniattawof
topology 263 galeway272 iniormationtheory246
'evork
zedprocessing273 hatFduptex channeL 245 simptex channet 245
,- . . t ' t er 263 hie.archica( networktopotogy 263 siar networktopotogy263
'-.ications 243 hub 272 swirci 272
,-licatonsproiocol265 hybridnetwofktopology 263 switched tine254
,i|cationssoftware 274 integrated servicesdigitatnetwork synchronous communications243
: :rveLocal exchange carriel. SDNJ256 tetecommunications medium244
r i i C l 2s3 internatronat network261 teLecommuting 277
:.r nptwork259 tocaLareanetworkILANI260 terminat-to-host263
::.munications244 tocatexchange carrierILEC)252 videoconferenc ng 278
.tizedprocessing 273 tong-distance carfier 253 voiceanddataconvergence 255
:d tine254 metropoLitan a.ea networkl[4AN]261 voicemait276
. gn a t25 0 modem250 voiceoverInternet protocot
lvolP)255
tineIDSL)257 muLtiptexer 251 wideareanetworkIWAN)261
-bscribef
: tearning 283 network-management software274 wiretransfel.282
redprocessing 273 networkoperating systemlN0Sl274
r c datainterchange {EDl)280 networktopotogy262

@rying capa.ity?
4. Idenrirythreerypre!of guidcdelaomrnunicationsrnedia.
5. DeQae&e zerman2rta rcautk.
 Prlr e I nrrmdion TechnoLqy
concpt5

6. Whar a&anages ard &srdvanragesare Nociered wnh rhe 1L \Jfint role do the bridge, rcuter, $rway, ad
use of clienr/setrer conpuring?
7. ar is a DSL line? \ri4ur capdiliries doesit p'ovide? 12. Describe a local aler trerpork and its vdoI]l
8. Idenrily four differenr comptit;ve local *chang erriers. 13. Wha. is a nropoliran dea neworli
9. wha! h rhe digernce berweenr wirched a ddicated 14. \{4rat is EDI? V4ry are onpanies using n?
"nd
ls. \yllratr videoronferening?Why i\ ir bcing ued
10. \J(7hatis VoI??

DISCUSSION QUESTIONS

t. How mighryou usea penonalare nerworkin yourhonei Ifir wek avail.bledd you colid afford ir. whici:
Wlatdevicesmighr eventuallyconnectto sucha neoorxr you ratherhavcir your hom+Tl, ISDN, or DSl,
2. \ X 4 rvr.rn o rg ,n rz aor n rh ,rrm p l o v . .enrr3t/edpro.s.,rg 7. You needro set csh ro a friend acro$ co
likely to have a diffcrent managemenrdecisionnaking Whar areyour optionsiVlich onewould you ch
philosophythan an organizationdrar emplop disfibured why? Dac.ibe rhe fundannral nerwork rhat sup

Vhy do vou think rherere so many energing wireless 8. Do you rhink rhat this coursen a good cddid>
distarcelearningcourse? \XAy or why nor?
4. Brieflydiscuss
theprosandconsofe,mailversusvoicemar. What is heur by voice and dala convergenct
Under whar cncln$anes would you wotrld use one and inpa.t is rhis having?
t0. Idenri4,ar leasrsevenconmuni@rionsprorocols.
5 . \n}at issueswould yor exped ro encounrerin esrablishing yourhinkrhar$erearesomny proro.ots?Vilt tn
an inrerrarional ncoork for a large, multinarjonal berofproroolsinceue orshrinkovert;ne?

PNOBLEM-SOLVING EXER,CISES

You havebeenhired as a relecommuieriors consultrnr

@r . ro help an orsanizationassesrhe benetrsand porential
a three-ycrrpenod.Vrire a reommerdarion to
ment basedon your ffndingsand an), orher
. o. r .rv i n B \" \.o !i /r\J $ i rh i n n rU i ngv' deoconreren.
i n8 mlghr suppon rhe irsallarion a videod,iferen.in:
capabiliries at eachof the fiin's six wort tocations.you You ar rhe leaderofa group tr),ing ro inre.esr
havedetefminedrhar rheco$ ro esrablish eachvideocon- in providingtelecomnuringopporrihnies ro i6
fernceAciliq' is 960,000aod rhdt eachflciiiry wil have ees.Use PowerPoinr or similar sofrware ro najs
an annuaioperarjngand srppoft.os! of920,000. In rhe v'nc'ng presentarron to han.gehenr for adop,i,{
first year, you esinarc rha! video.onferencing wj save prognn. Your presentadonnu$ addre$ sucho.
, op, o ri m rr,\ $ ru 0 .0 0 0 .n .rrv e t* o en.e. the s whar rhe benefimdd disadvaorasesa.e for d1e.:
r , qD e .re d i r.re a ,ea r r ru reo f r pe,.enrpr-,i ng de ehployees, and the local connuniry.
'o )(/,.
Deyelopa spreadsheer ro a."i1z,h. a,d *";,8,
-.; ""..

TEAM ACTWITIES

Iri.h a goup of l,oui dassmates,d*etop a proposal to

@1. insrall vidoonferenchg equiprnent in ."'. of y.u.
cquiprnor is required, what vendor caa
eqdpm.ni. and wh,r doesir @r ro;qsall and
schoofs claqrcorns ro enable lectr:resro be vieweo oy sru
dents ar distat videoconferencing faciliries. Wtar son of
: : .m a tam ro idendly the public loerions (airport, public write a brief pmgnph discussing)our experiencear each
,L-.rry. S.&bucks, etc.) in your areawhere wheles IAN loation trying to connecr ro rhe Interner.
:oneaions ere avrilable.Visir ar leasttwo loetions ard

B EXERCISES

:search on rhe \veb on ilG uirelessnevorks. \flat 2. Go online ro invcsrigrrchorvrhc banhingindusry k cur
.,- rs arcconsidered to be paft oflc? \|}rat is its.u.rent rendv using wiic transfcrand ACH senies. Find two
. : . r ndwhat ar e rh e c u n e n tm a j o ri s s u e s i \rri teashoi i dlfferentfirms ard comparcthcir systen,s.
r :r on what you lbund.

EN EXERCISES

:.;JcLan indusr..vwnh which you m fmilirr rhrough ). 'fheLe are a nu-be. of oil;be job sear.L .omplnics,
" , .rperience,.ourservork,or a study ofindustry per includingMonstet.con. Invrstigateonc or morc of thcsc
:ucc. How could elecrronicdm inerchrngebc uscd companiesard researchthe positions availablein the
::, r,dustrv?Y4at limiradonswouldEDI htrveli Jis rclecomnunicarions nrduslrT,includingthe Internet.You
naybe oked ro summarizevoutfindings for your drss nr
x writrcn or vcrbal.cporr.

EO SUESTIONS

: -: lideo clip FreeWi-Fi Bladrets and answerthese l*t nile, to eachrcsidcncc.Hondoes lim Cozarssy*em
solrethe l*t mile problcn for Srn tsruno,Calitbmia?
/. H u' mi !,, fi m I o,J, . \ i l -i B LnLe .r' r
. rsr rnile'pr"bl.- ofthe high coa ofpro- P
-,n'ists hs,n.,* . rJ .,g" n, .:gri fi .rr money
: : high-speed internet coDnecdonrto *ery hone. lr ' r:on.
overinstallingtradnionalwired networks?
, : rnrrnciallyfrasibleto provideubr optic .abre,de

E STUDIES

Ooe S hoppe.s w how i shto pa| tL.patel n theexperme ntm ! sl

srgnup for a S top& S hoptoyatty card.The ca.dw i tt be used
I ShopCuBtomeGMakea NewBuddy
to brl t the customerfo. tems pu.chasedi n the Shopping
' Ldc bagu_ p r n9 o- e d d B uddysystem.U ponente.i nsthe S top & S hop,Shopping
r a _r Ro ra aL oLd
.:.. :e.h no Lo gy n t s St op & Shop s upe. nr a. k et s n a B uddycustome.s afe handeda po.tabte computef, w h r chlhey
r: - : : : r t hec om p a n y i lse s ti n ga n e ws e tf-s e rv L cseystem nsertrntoa ca| t mo!n1edhotde..The1.st stepforshoppef s
y h e tp c u s i o m e fst ocate s to sw pe l hei r toyatl ycardto si gnon i o l he system
- : . s w r et es ste c h n o to q to
:::. p! . c has e di te m s a n d mrc h m o fe .T h e s ystem. TheS hoppng B uddy!ser i nterface consstsofafta t - panet
: . DpingB ud d y , w :s d e s i g n e db y s o fi w a fev en' l .r d sptay,abo!t the s zeofa magazi ne paqe,w i hcoto.im aqes
of specfi c produci sU s ng a keypad,shopperscan typet he
nameofan i em andthesystemtei tsthemw he.ert s t ocat ed
 .l o T o lq r r u i p,

andhowto l l e tth e re .T hSeh o p pn qBu d d yi ncLudesa scanni ng Fl rsl l nre S hoppi nqB l ddy use.s ea. n $5 of r '_:
wandt ha tc u s ta m e rs !s e to s c a o te msa s theyptacethem n ce.i esl ori rynqol tthesystemMostE h oppe. sconr _ :
t he. af t A s l h e .L rs to mepr.o g .e s s eth s ro ! qhl hestor toca the5ystemaftertheyvet.edrt Theeaseof oseand; : :
t on s en5 i vl e i rd v e i s e me n tsn fo rn rth e customerofspecat l eal u.essal e cl stomers ti me and frl s t . at on N_:
dealson rte msl o c a te dfe a fb y d e a l sa v at abl eor' rty to those anothe.recentshoppe.i nthe0!i n.yst or e, t ikedlr: r :
! s ing S ho p pn ! B!d d y 6 6.6^ adi Ld.
oud hpdpto ..
^h.
' ' ' epu" ' " d< ' she hadnt to.gottenanythnq The onLypr obt em; f : :
dat a s aL rto m a ti c a tty a n d w i re L e s s ty
tra n sferfedi rom the encedw a: n fo.gettng the bi and of br eaklast. : : "
S hoppng B!d d y d e v i c e to i h e c h e c k o !tsystem,andi !fdsare husbandhad .eq!ested. The .ompLrt efc. n t het . - -
aut om atc a tL tfay n s fe fre dfro m th e c !s i o mers banka.co!nt that.tl rough l t co!td be th:t by nextyear ,g. ocer :
oS r op& 5 L o p D " ,i d 0 \" 1 ." .6 o :7 d FqLo 'd p o.l 4-.
t he ^ro..
ai S io p & Sh o pe L rp e rma rk ent 0 ! n cy,f.4ass.chusetl s,
ha5ni ne e d e dto ta l k to a c a 5 he f n m o n lhs.H e parLcutarty Discussion
0uestions
appr ecat e s th e c o n v e n i e ncl h e c k o u pt ro cess.The b ggest
1 nw hatw aysdoesS hoppngB uddyp. ovdebe_:
pai. n t h e n e c k 5 th e l n e s a Lth e re g s t ers, 0 N tLsays.
convenef.es { or stop& shopcusto m ef s,
S hoppnq Bu d d yh a sd o n ea w a yw i th l o n gLnesand detayE
-t 7 !o^ doF L qhoP ln9 B .dd ., ". "
A hotdC orpo.:ton l n !nderstB ndi ngt s ct enr E
T he S h o p p i n gEu d d ys y s te me mp l o y sseveratw i retess
S top& S hopsl ofeow nafsl n runnng a sm oolh
t ec hnolo g e s to s !p p o rtth e w d e fa n g eo f se.vi cest offe.s.A
W r - F net w o .krs e mp l o y e dto a s ss t c u s tomersrn f ndi ng
pr odlc t : o n th e s h e tv e sW r F a l s o a tto w scLrstomefs to
pt ac edetro fd e fsa n y w h e fei n th e s i o .e a n d p cl them up as Criticrt ThitrkiogOuesfions
t hey pas s th e d e l r c o L rn te ..n l ra re dto c hnol ogy i s used to 3 W hati ss!e5of s-" cLrntyand
pf v;cya.er nt f odLr c. :
s c anpu. ch a s ei te ms B l !e to o thtra n s m j ssi ons p.ovl detoca- thro!ghthew rel esssystemsof S hoppr ng 8udd.
t on s pecrfi ca d v e rt5 e me n tsa fd w rre l e ssdai a t.ansferat ,1 l n w hat typesar busi nesses w outdyou er peci : :
c hec k oLrt5 n c e th e s y s te mm .rn ta rn si n f ormati orabauta oP | qB d, ob-q L
PP'9 P
s hoppefs p re l ro !sp L rrc h a e eth e ,e S h o p png B !ddy system devcessLrchasS hoppngB uddya ssislc! st om . r :
c . r t ar ge t a d v e fti s e m e n t5
a i d p ro mo t,onsto cLrstorners l rqp.' .1" ,onobpo." -
ac c ar dng to rn dv d L r.lc l s to n " reta r s l e s ,for exampl e Y oLr
hav ent pL r.c h a s ecdo l i e e n tw ow e e k s A . .e yoLrrLrnni ng Low ? S oU R C E SFrod
, C C oni or 'ftq. Wand M3kesC he.k ol l L,r.:
T her es a sp e c i aot n F o L q e rsl o .a l e do n y o ur ri ghtr" tnta||orld, Fe'trarl 3, 241J4,M.tnf.world cah; tau e N hben1 :
cads wrh Bra n5,' Cas 6rdl Show Algs.t 12,2043 w||.bd- -
Cresat l'|eb s re, M .Lesot .on

Case Two to be m ss on c.t.al toou.operat onsa:we m over : :

Appti.aliorPertormanceMonitoringat JCPenney " " dw " b.b. " d" pp " o
To ass:t l n trackng dow . ti ol bl e spot sr n lt 5 ': .
Hav ey oue v e .h a d l o w atfo ry o !rc o m p !te r to.espondafte. hasturnedto softw ref.om A Lr stn bas. . . .
.l C P enney
dr T6 .^
c Lc k lnqan rc o n L n k o r c o m m a n d ?W h o hasnt? C ompl te. 'd,..6 " ,r r

D -o " -g seve.al ava l abtebeca!set p.ovi de5.etwornr k aia: : :

s peed m e mo ryc a p a c i tyo. . o th e r h a .d w a.e nadeql aci eg ..t onabternformatron. meanng thal f per f or m ar : :
T heym igh ta ts ob eth e fe s u tto l fta w so r b !9s i n the ope.ati ng appti catoi stow sdow n an T managerc an dentf ! : .
s y s t er ns o ftw a .eo r th e rn te .a cot n b e tw eenthe tw o W hen c se porton a sw tch o. seruefthai s cau sng t he pr : :
wo. k ng on c o mp l e x b !s n e s s n e tw o fl s del ays can be A t a startng pr ce of $34,500, the soft waf es . r '
num e. ousto , n g ta s ln g ,3 n d e n 1 3 gn g Ih e comptexty of the Thepri cefefl ectsthe tevetofsophi sti cat on of Lhe:
nt e. ac t io nb e tw e e n w o fk s ta o tn s 5 e rv e fsrouters.ai d other S !perA qentempLoys art Ii c al nl etlgencet o t r ave, .
net wo. k in lqra fd w a re a n ds o ftw a rema k el i n eartympossbte w ofr and test netw o.kcomponents.1 ,s a guaf d:
t a t . ac kdo w nl h e s o !.c e o i d e ta y sw i th o rts peci atty
desgned netw orl iand a5 sLr.hmeasLr.es and analyzesaa:
.afrda.e calle.l applicatioi porforna nce monitaring saltwa.e '. - p
J 0P en n e ym a ri l a n s a WA N L h a t p ro vi desservi cesto respon:et me aganst baseti nes. thena!t om atcalL,
m of e ihan 1 ,0 0 0d e p a d me n ts l o re s .F o r t afge companes qatestheca!seofpfobtemsastheyoccur t l|acksr : :
s lc h as t h s g e ttn g th e i e tv /o .kto .!n a t t s peakeff c ency to E pecfl c netw o.kcomponenl sservel s,of b! qs r : :
is c f ! c at Wh e ntc o me s to t.o u b te s h o o ti ngstugg sh netw ofk w afeordatabase. Toa conrpanythatdependson t he' : :
eoo. e .' ,Br' .! L 6doo oi nformal on for sutuLv.tsoftw :re tke S! pe. A. :
m entat lCPe n n e ye rp tan s , We c a no n tya p p.oxi mate. H a!
ng a v er if i a b te
L rs e r.e s p o n st em e s s o m e thnq w e consi de.
 r : r E t t oii m a n a g e r c i n e tw o rk te .h n o tD g esat
. or o ., J , .. .t 1 JC P enney
s WAN?
' " P" d "
" pobel " 1d"" e^1" CriticatThinking Questions
: iet wor kor ap p tc a to n g L tc h e 5W th s !c h n forma
3 H ow m ght nel w ofkdet.ys:nd probtemscontfb! t e t o 3
: ' . t alt er is bette fa b L eto p ta f 1 0 fg fo w th .e s p e catty 6\ot
orP " d" o ooL o " op o' .4
: l. m ands af e p ta c e do n i ts W e bs te s
si onatss!.i r.s S p. nl ?
: : - . t s t o m ea 5 u ren e tw o fr(p e fi o fm...e b o t h r0.
4 S omeS andtetecomm!ncat onsnetw .rks.fe becomn!
: ! s ns s Lr .t s a n d n e tw o rks e tu i c el fo v L d e fsafe
I : s s entaL Us e rsd re b e gn n i n qto l o o ka 1c o mpLrte. gencesoftw a.eto mai ntal nthem W hat.re the n hef ent
" r do ,-
_:"n be n! c o n te n t
th a l th e i e l w
" tl
o .k s L rp.they " " n" hne
l! s t
.e - " r a ,."d .0 " o 4 o - L d 6 o ..
".
S oU R C E SMatl
, .rambLen,l c P enneyS eeksB ei tef6.ponS Li s t ,p!t
eNarld, Fehtua.t 16,2lA4 wwv..mp,.cfMld.ror Ne16SSoLutons Wab
s\e, wwr.tqas con/sotttians, ac.essadMarch 10, 2004rJCPenieyWeb
ste. ||wrpennel con acce..ed Ma(h 10.2004.
. , r es oj f nan ca t L o s s ecsa no c c !f i o f c o m p a fes as
: : : lCP enne yfro m n e tw o rkd e l a y so r o u ta g e s'

],,r,-i: Three coutdsay V o.era,cc.nect and Iottow a conver sat

on
' ./i th
i(lrs:.:!ts Tuan Burden into Benefit
ndanapots' b:sedC omnrunl y H eatthN et$,ork, r lr ch
: r llng by t h e U S F o a da n d D rL rgAd m n s tratl on cpertstes fl ve mal or hosptats 3nd numerousol her med. at
,o p ." . .:--. facttes hasdeptoyedabo!t10C P phones, seysC h. s Ce. ny
" o b" o d " . o . d .q !l
: : . f os s t he . o L rn tryto s c ra mb l eto n s i a tln e tw ork the heaLthcare.ompany' manaqef
s ol ente.pfse nel wof kng
" o< pp o " -. a vo o p o .o . C omm!ni tyH eal ths Indana H ea.t H osptati s l ndng t he
: r . eLes sLA N sIW L A N sto l l n te .a c t,th rfe rd fo phonespart.!l arty u5eI!t.Tl rehosptal w as desi gned 1obe
: r . e . eader sth a l a re u s e d1 0f.L c l r d a ta0 .l p aterl al t d g 1.t.w thoLrtpi per f tes and w :thol t nl rs ng s t atons.
/ L" b" d " o p " to q " d d o o o rd.J Futl ydl l ltat and w retess the hospi l atE taffrece!e at t |r e
''opor :' o 6 nfafmalon theyneedthro!ghhandhetd computers P wi. e-
. . ! ig Lnex p e c te!dd e e ffe d s tessphonesatl owpal e.ts to catlthe I nLr.se ei mptyb yp! sh-
: : is dm ins t . a to rs ,b !rd e n e d w th th e e x p e nseorthe ng the caLl bl ttonon the i readboa.d ofthe bed A con nect lon
6.d Ldpo6
" pL .
" bL" d^
La l bb.l
; nat wD. ks t o rn .re a s etrre. re tu .no n n v e stment pea \'L L.e
"d " " ..d ldoLd

q .D dd ' po "b" d"

- ' r
: i . t Ner m edc .t p e rs o n n e twtt h a v en e w .c mmu' U s nq bfand nel r technotogy somelme5 ha5 l ts dr aw
: : ! t s t ool5t h a t s h a feth e 5 a m ew fe L e 5 n
s etw o.k backs.C omm!nl y H eatthn ndi anahadsomel echn r cat dI
l cutti esB ren i .st t.y ng o!t ts P phones.Techn. . . .
: i: : pf o. e5 .r ma k n g a l .e me n d o !si m p acl n nstatted w .ei essacce:spoi ntsrfo!nd theIacl l y de nset Lo
y
: r . . m a. k et l o h n H L rm m ecl 0 a t s L rtteH . e aLthin ensu.ethat thefew ere no deadspots Theyl al ef dl s cover ed
: r r eq! pp i g .l t 2 6 o J SL rtte f.h o s pta ts w th po Io :" ^
. r c Les sLAN s H !mme t s a y s th a t S u tte r has m!n .ati ons.V /henl he S p..l fnL nk phonesroamedfromo. - "
. r qw r eles sPp h o n e s fo rl s e. a l l o f t.f.c l t es ac.es: po nl t. an.thef.theyo l tentooktoo tongto aLr t lr ent j
: : at t h s at s ote :t n Sa n e w P b rs .d , | i ri d s f.ee
: a . om m ! n rc a to .t..m v o c e faL l o m m !n rc atrons comptel edR ed!ci n!the r!mber of ac.esspol ntsso t ledt hc
h
W 6 dl r .6r
: iqs on a t a n y a .da .o !n d . p e .s o ns n c .k l t !ses '" o h n.^

r ! r i on t o a tL o w fo r h a n d sI' e e ..mn r!n .;l ons. gol e.nmentfeg!tatoi t mayse.ve.s tl re mpet!s t o olcr
: - . s k . V o. rra w h ..c s D r. R i .h a rd s ? rrd the ha!t cutdated nfofmaton sy:tems.A s hospn;tsm ovelo
' . m . wo. k n ! th .o l q l r th e WL A Nw th tfreass 5 d gi l atsystem5fof i .a.ki ngdfu!: and patents they. r e d 5
r : r s af t wa .ew o !td to .a te0 r R c h :.d s s V oceru coverng l he manyotl rerbenefi t!D fw l .el essn.tw o . ks. nd
: . : ; t e t he t o .a l i o n ' D r R c l ra .d s: i .o o m 237 d gl l aL i Jonnat' on5vstem. The new fede..l taw may have
: ' ! t ht f olt o w w th th e .e q !e s t" Vo .e ra ..o n ne.rme pfovl dedo vaLuab ," i !d!e r movi u the l l S he at |r car e
i ' ; f ds Dr R l c h a rd s b a d _ eweo !L dD e e pa nd he .d!sl fy rl oserto an .l L d q t.1 recordkeepl nqsystem
 nlormationTe.hnoLogy
Concsp15

DiscussionOuestions 4. W hai securi i y.safety

andprl vacylssLr esdohosc
:i
L How d o e s th e u s e o f l P p h o n e sa nd communi cati on ro o , d" r 4ten se. n9 !p,r.o o1 np
^01(
dev rc essu c ha sth e V o c e rab a d g ea tr e.thew ayn!rsesdo
t heifj o b ? S o U R C EASo. oB '" w o . p i r " r \ c / e w d r . U"Oi 4 r .t. :
CohputeMdd, March ', A1, 2AU.,
2. B esi d e sd ru qd i s trb u ti o nc o n tro ta n dvorcecommunrca, M conpotetuatld.can,s
VoceraSecur.s Fundnq lrom lnrEl, Ci*o, tnternet.a-
t ions ,h o w e ts e c o l l d th e me d c a l staff beneti ifrom a fiplenct.conlae||s/atri.le.phpnjn2Tl; Voce.aComnruni.ario.:
w.wcer...on/pmdu.t./ptud'.r5 5hD, ac.essedMarchI o,zrr,
Phones Web sile ,W.Etu
ihdex.htnl, accas.dd March 1A,2004.
Cr it ic alT h i n k i n gQu e s ti o n s
3. W ha i a d d i to n a ts e ry i c e sm j g h t b e p r ovi dedfor pai rents
ov ef aw i .e l e s sh o s p l i rtn e tw o rk ?

NOTES

sourcesforlheopeningvignetterSta.yWtLiams,'Lead n9 pastaMaker rl A bout The B l ul ooth N ame," The Ofti .aL B tuel ootf !:
IncreasesProdu.tvty, ReducesCosrswirh Ci5coWLAN C/scrrerr- Sle ar wbluetaoth.org,a<essed on August tB 20--
roon, Febtra.y 27, 2B0t!, http.//ne''srDon.cisco.coh/dUs/2001/ K onl zer,Tonyand E w al t M. D avd,"FreefofA LtA c c e5: :
E A22704.htnLBartLa Group Web sre, wwtu,rlasraup.con/ LAN' lnfornaianl|eek, February 9,2004 :::r
ndet htm,accessedMarch9 2001:"tPTelephony^Otp CiscoWeb5ite
w cis.a can/an/u5/tech/tkt52/tk701/tech pratocat bnul none. 15 oi .d. qeo'r
dnd F o P1D .5
-
hht, ac.essedMatch9 2004 Holme5Stanley, W-Fi MeansBrs)ness, Ausiressk::,
Apnl23,2003,accessedat ,1,r4businessweek.con
I Mearan,Lucas, WetlsFaEo UpgradesOnlineApps, Conputer L e v t t J a s o n ,T e c hG u d e ! ! F S e c u r i l yfo r th eM a s!::
wottd Fehtuary16,20A4, nanonweek Jtn. 30, 2003 a.cessod :
a..ee.edat w.conputeMartd .ah
2. Ho, David, NighSpeedIntefnetA..es5 ovef power Line5Looks
'Broadbands NexlWaveiWireless? rhe Netufark a-:
Pfomsing, oovernmentaay., fhe San Diega Uhionf.ibure,
January15,2003 h/e, May17 2001,accessed al ww.nynnes.bm
accessedar,.a4signonsandEgo ptihtthis.cttck-
t3 H a m b l e nM , a t t , B a n kT a k e st t y b r d R ou teo n N e ? ,_ ,
3 Back ov erAndf
, Sr,len, aanpDtetuotld, seprembe. 8 2003 .: ;
ewand M c oanhyM
, . hael , 'C a b l eF n m s Wt r e d
AboutOllerinqNerPhoneCatls USAroday,Dec.mbet10,2AA3, ww conputeM.rld con.
C s . o N e t p sC o r u g a r e S
d u p p L i eCso r p . In cr e aVs
se r
4. Aoyer.M ke, "T me WarnerCaLln9 Ahead, CincinnattEnqLner, Cosc, and De|ver superor Seruiceto cu5tomers. ::
December18 2003,p D L c sco weh sre ar htp.//bLsiness.cEca.con/onFe6tu.
2 A Martn,Stoven,The24 HoufSupply'hain tnt'.rnat.-.
5 AndyEwing. la. k ; Kln M hene ,'T h e Wn e l e 5Csh a t
Re inhar dl,
\enqe RusinessweekAnline Acrolet 20, 2003 accessedat uafy26 200,1, a.cessedat,./W tnt'orhatianweek ..r
w.bushessweek...n 2 1 SutLivan, Laune 'T re Maker Look5lof Low-Corl:
6 Na mblen,M alt , ' P TeLephony l.fbtnatianweek,February23 2004,accessedat r,-
ls Br inqi n qN e w F t e r i b L i l yt o
(he C all Cent er , ' Com pur eM o. t d
J ut y 7 , 2 0 0 3 , a . . e 5 s e da t
w.canpLftMorrd.can. 22 Hamblen, Matt Con Edi50n Unrfies Netwo.k-t/:
7 Rein hat utAndy
, ;EwingJ a. k ,and Kunii,M i r e n e ,'T h eWr e l e s s Conputetuarld,Nawmhet 3,2003,a..essedat Bi
Chal\enge,RLsinesstleek 0h1te octob.f 20 2003 dcLesseo ar
w blsinessweek @n. 23 S l w a C a r o l , " L l s e r s T u r i l D M i . f oso fr 6 5 M a
3 EwattM., David CellutarDala SefricesProms Managenenr,C.nputerwarld,January5,2004 a.r:::
Week,Jantrary12,2AA4a.cessedat ww infornatjotweekcon.
9 Messmef, EtLen, "0lympic Nerwork Oets Ootd Security R o o n e yP a ua . M . r o s o r r S h i pD
s 'gt a t F g h r s M d i r :_
Prcre.rihn, NetwDrk World, De.en6et 3 2003 a.ce5sed al warc, hlarnation ryeer, November4 2003 ::::
w.canputeMorld.con
10 Hamhten Mat(, Las Vd9a5 Schodts Mix p 0 gilal 25 Rosen.n.e, L nda, 'Do Nol CatLReqislralionW::
Conmr^ cardns, CanputerwotldDecembdf bafdedwirhS9n Ups, rr-puterw.rtd, )he30 2AAa:
S,2003,ac.essedat
www.computeMorld.com. ww.conpuretua4d con.
ll. Son gn L. M af c , ' Ca5e St udy : Boeh . i n g e fC u r e s S t o w R i b er o , J o h n 'H P S e l s U p n d i a C a [ C e n te r , a .- ..
Repa ng, ConputeM.rld,-)rly23,2AA3, February1],200!, a.cessedat ,'M .onputeM.rto .:-
acces.edat wwcan
27 T h b o d e a u ,P a t r . k . 'F e d s L a q n A d o p tn q T.i :
12 CowteyStacy,'NewtTModeL Ptagtahs, Conputetuo.ld, Febfuary 25, 2003 ::
0tvesMo.9anSlanLey Ftexbitty /t6
NewsSeNi.e January22 2AA3 accessedat w.nwlus joh con. w.conpueMand.on
 r.re.ommun(a, on5andNe,wod' I cupto e

_- 3 1 . Hofiman,Thomas,"Besl PlacesProrile,$3: Unversityol Miami,

bodeau,Palrick,"TooLsror ManagingOIIsho.eT, toDpure.-
Sepremberl,2003,accesseda\ w.canputeNortd,con. conputewo 4 )une9,2003, accesseda\ M..ohputeNo.td,con.
-/4
:r'ry MaEan, Carotyn, "AV, lT Syslem Marriaqe Proves 32. Rosencrance, Linda,"Toyotato ProvdeMazdaownersin JapanIn-
.x.iul, Netw.k world, Januaty 5, 2004, accessed al veh cle lnla Se1l.e, conpLteM d, February10,2004,accessed
al w.campLteMand.com.
6ednarz Ann, InterneiEDI: Blendingotd and New, NeIwotk
s.t1d, Februatr 23 2444,accessedat w.nvusio,.con
 1
{t
i
\

t
:!,''*
t
{t lt&
T h e In te rn e li s L l k em a n yo ther technoto- E -.f! 1.5:r ie h.[ lhe
g i e s -i t p ro v i d e sa w i d e r.n g e of servi ces, . l - a n 0 : j L i . r n : l ! '. . f ! . r . o : n e . : i r.l i L : l
s o m e o l w h i c h a re e ffe c ti vand pracri cai r... .: ,,1!rre: ;er!.e p.o! dErs
fo r u s eto d a y ,o th e rsa re s ti t tevotvtng, and
s l i L to th e rsw i tt fa d ea w a yf rom tackoi !se.

0 ri g i n a l tyd e v e to p e ad s a d o cument-rnan- rrer.r !e l'-. !";.dd ii! iEr"/t.tr JIa

a g e me n st y s l m,th e Wo rtdW i deW eb i s a
me ru -b a s e ds y s te mth a t i s e asytousefor
Et.: .). !:: !. !\.b br.tl i dfa :..r.r
p e rs o n aal n d b u s i n e s sa p p l i cati ons.
! n e r i r f n o : :!r i!:r loots
n 4 . l l ! a n C ! , . l ? i . 5 . - L r e i h . r p p t.i
: 5 : . . r L : r N rt r r h r I l e . n e t : r a Lfr . l t.L r

Be c a u s el h e In te rn e t6 n d th e W ortdW i de . r : f r y l v r . . r s n ! t h e W- " b 'r i !.d !.1 -

We b a re b e c o m i n gm o re u n i versatLy used . e r . r f d i ! . r q . , r ! m . . t t h - ar 1 , : J- . r .- :
a n d a c c e p te dfo r b u s i n e s suse, mnage-
m e n t, s e rv i c e a n d s p e e d , p.i vacy,and
0!tt re : ii..55 l. . r - a . t | ! l r r e b ..n :r r .
s e c u n l y rs s u e s m u s t c o nti nual l y be
De..r |c
a d d re s s e d
a n d re s o l v d . - r ! : i i i 'l . c 5 5 t s p . t e ..!t f;:
T t l r . r ! ! i L i r r : r . '1 . 1
l . t n ! i . e r n r ! r r r i r ; r . l n i r . r l . J / i .t:n r l
. ! 5 : - r . r / r r ! r n : ; 1 D n . :'. r ! ! - r th e n l
dc.L r! 3rler;L tr!.i.:;D..1,.d 4 L hti r - ;
 rhe ntemer nra dec.andEnra*G I chsetd ?

INFOR,MATION SYSTEMS IN THE GLOBAL ECONOMY

COLLIERS INTERNATIONAL, USA
:onnecting56 Companiesin 5'l Countries

Colliers lntemational is an $aao-miUion consortium of 56 indePendently owrcd

:eal estate compa.nies in 51 count.ies. Dr. Joshua Fost was hired bv Couiers in
2oOOa chief technotogy ofrtcer (CTO) and took on the tremendous chaleng of
auilaling a globally coordinated Web site for the corEortium The ambitioue gPs,I
rl the Web site vra,sto combine the iDforrnation for aI pmperties being sold bv
Couiers a,filliates into one central databa.se, acce$ed through a Web site and
?anslated into 14 langrages.
When I'ost joined Couiels. property data wa etored in sepa.rate detabases
Fned by ea,ch alY\liate a,nd accesed ihiough prcpietaxy inlormation slEtems
i'iih the Internet boom of the 199Os, many CoUiers afiiliates developed Web sites
cf thet own. CoUieH prides itsef or a business approach that encompaases both
&pth of knowledg in loca.l ms.rkets ard global breadth through its interna-
-.oDa.l reach. To reflect the companls grobr breadth in its Web presence' Fost
:lcognized that the hundreils of independent Wb sites needed to be centm.lized
rnd stanalardized. If sucessful, the Colliers International Web site would pr:o-
ide a.u a.friliates a.nd their customers with a.ccess to iDJornatior on properties
round the world and would more firmly establiEh the Cotliem brand
To accomplish this feat, Fost turned to two outside companies: Intorwoven'
:!c , a provider of entryrise cnteni mana.gment softwai. ard a leading In-
rrnet services firm. Moleculax. The content management slBtem developed bv
IreNoven provided a, centBl database for aI CoUiers prcperties Under the
of Fost, Interwoven alld Molecule developed web-based intedaces
_.:ar sefled both lor input into the databa.se sJld for searching the site bv em_
-rdance
;ioyees and the Public.
Kevin Hayden, vice president of corporate marketing for Interwoven sar's
st organizations such as Couiers view thet Web sites as the dooEtep to thei!
?:sinesses. "With the dght content mnagement system in place, companies like
:oUie$ can improve their abiuty to deliver approprkte. unifolrnlv bl3rded con-
to thousanals of constituents and thereby provide better oustomer sewice
-nt
!d bottom-lin Esults."
Colliers's Web-based system took more than two years to develop prior to its
.arnch at the etrd of 2003. Joshua Fost's efforts as CTO of Colliels so impressed
ie Infowortd Mdia Group that they named him one of the Top 25 Chief Tech-
:ology Ofricels for 2004. The award honom infome,tion technologv executives
have shown leadeBhip both inside dd outside their companies. Magaxet
-ho
iigglesworth, prcsidnt a.nd CEO of Coltiels. was equally impr$sed bv Fost's
dorts, saying. "As la member o! a psilnership of independentlv omed firms,
,'chua fared the challenge of integrating the tools ard technologv solutions of
:ore tha.n 1oo offices nationwid. He focused his attention on creating solutions
rlrt would help Couiers oftrces communicate more eficiently and allow re-
:ources and best pmctices to be shared more freelv " colliers anticipates a 125
:ercent rtum on investmnt for the Web ploject within three vears. The Coliers
:sject is just one exanple of how compades aro using the Internet arld Web to
nnnect their organizations both intemelty and extemauv with tbeir customers-
 I'* ts I nlom do"T* h- "q' lon s p , s

As youreadthi5 chapter,considerthetoltowingr
. at I'rFmer reclnoloCiei prcvide netwo&insbnefis to compmia for priwte i
connuniedom and public qrernal onrnuniqrions?
. Vhat sp@ial challenge, do inrernarional organiations face when cre3ting a W*

Internet The Internet is dre world's largest conputer network. Acrully, the Internt is a collftrio.
A coLtection ofinterconnectedneF of interconnected nerworks, all freely exchanging informrion Gee Fisure 7.1). Resead
works, rtt f reeLyexchangifg
firml colleges,and univesities havelong beenpan ofrhe tnterner, and now busine'ses,h;st
schools,elemenraryschools,and orhei organi?adonsde joining up d well. Nobody kno$
ekcdy how big rhe Inrernet is beque it is a collecdon of *pdatel). run, smaler conputd
neivorks. There is no single placewhere all the connecdonsde regisreied.Fisure 7.2 sho*i
the saggering growth of the Internet, r m*ured by rhe number of Inrerner hos sit6 6
domin names.Domain nmes ate discused later in rhe chaorer.

K
RoutingM.3lagarovorthi
Intarnd
 clDptd .7
Ihe riernet lntan.t. andEnmrds I

w
lntrnetGrcrdh:Numberol
InternetDomainName5
I : a t af r o m " T h eIn l r n e t
l S o u r c eD
DonainSrNeY wwwisc orsl

_l

I
, tll
OFTHEINTERNET
USEAND FUNCTIONING
conrinent-including
1c lnternet is rruly internaiionalin s@Pe,wirh ues on oery
.' r " ' i. . . n" **" ,f,. U n i re ds rrre ' l * rh emor uage bv far' More rho 100 ntl l i on
' ' r le in r heUnir e dv a te ' r' o u g h l vo n e -rl ' i rdth e p oP l l ' ri orr hN e bed thr.rnkmer'" u-
- r eh r het nit edSrrre ri ' l l J d i m ' m o rew e b rc rivi n thanodrer@ unrn* he rrre l er. '
: r " iJ ; ns , ' ound L h eg l o b eb u ra t d i l l e ri n gru re 'to rdi fl erenr LoJnri e' l n R anr' u' rngthe
.i.'""'J.--.ir *p"Uiri.i"s provides a tinelv mail senicq it nav rake wels for a Russian
high-
.-"iL 1""* *och.rr. Uniied States.Most lnrernerusagein SouthKmois rhrcugn
- connections.lnrernationaluseofthe Internelis exPecied to cont'nue
,;ed broadbmd 'ts
r bi l l i onu' er' r fru )e' h
. \ r h I nr er nr {i o n a l l n re n e ru ,g e c o u rd ' u rg e' oove
t rh eAR PA NF t a proj ect" red b1rheU s D epttnent ARPAI{ET
f ne dnc e{ o,otrh el n re rn err P r o j e c st t a r t e db y i h e U .5 D e Pa d
. I r et en, e( DoDr i n l tn l h r Al l t\A \l l rrb o th r* peri mcnri nrel i ' bl ercN orki ng^ m e n t o l D e l e n s l D o D l n 1 9 6 9a s
lrn k D o D a n d m i l i u q e e r" h o n ' ru' ron ;ncl udng J L ge nurber ol net
-: J i m er n\ r o Resetch Ptojects
both an expeflmentin f1l6bLe
,r^'cnities doing niliary-funded research.(,4x?'4 standsfor the Advanced w o r k n g a n da m e a n sto l i n k D o D
. - . n. , , bon.L o f Oe fe n ' eD e p o ' rme nrn r chargeoi :aw :rdi nggurr monev l he and mititaryresearchconracrors
' h. 'h. ARI-ANIT $J' highl' n c l u dn q a l a 1 9 en u m b e ro r u n N e r
!. rq i' no* kno" n s DAR tA-.1'e addeJD I for DPl" / ' The sit es doingmiiltarYJ!nded
rr*ful, an,lqe'y mivssiry in the countrvwanredto signup This wildfirc growth-made
t." 9
J r qi.ult r o m oa g e rh eA R T A N t r' p a n r u h rl ' rhel argeend mpi dJlgro" ::nb:l :l
,r. 5 0 L l ' eA R P AN I T w ,' b rc L eni nro ruo nrsork5: \' 4l L\L r' w nrLn
, : . . ^; r y . r r e.on
the nonniliBrl
rludcdall milnary sites,and a nq' smrllerARPANET, which indded all
renained connccted, howwer, thrcugh ue of rhe Internet prorocol lnternetProto.6tIPl
;:s. The rwo neworks C o m m ! n i c aot n s t a n d a fdl h .t
ipj, *r'i.t to be routed fron one nerwo'k to another o needed All the e n a b l e s t a l l i c t o b er ou r e dr o m o n e
"""Ut.a '"m. nesage
:envorksconnectedto the Internetspeak1l', so rhevall en exchange n e t w o r k l oa n o t h e ra s n e d e d
 rbri 2 | | rofmr m Trr, ncLlqycu,.dp's

Thereare more than 600million

ln lefn el useE a f oundt he wor t d,
a ndthe n umb erot us ef sc out d
sufg to mofet han 1 b ll on n a f ew
y ars Gtob atfr m s s uc has lKEAus e
th e ln lme tto r eac hc ons um er s wfi,,.".*

unicef,

Today, scveralpeople,univennies,md companiesarearlemptingIo maketh Inter..

frtcrardcasier touse.RobeftKahn,who manasedtheearlydevelopmenroftheARPANE -
is one individuairvho wans to rakerhe Inrernerto rhe Dexrlwel. He is prcs;denrof f,:
nonprofit orsanizarionNarionalRcscarchldri.dves, which providesguidanc and tund;:
for the developmentofa narionalinformrrion infrdrructure. Ihe organiation is lookir:
ino sing "digitelobjects,"which allowprogrms anddataro be usedud sharedon all a pe
of conputer svstems. To spccdInrernetacccss, a group ofcorporationsand universiries, r:
UniversityCorporarionfor Advanccdlnrcrncr Dnelopmenr (UCAID), is wotking on :
tuter. new Intcmci. Calledlnrerner2 (I2), Nqr Generation lnremet (NCI), and Abilen:
dependingon rhc univcnirieso!corporarions inrolved,the nolnrcrnetotrers rhepoenti:
of tutd Internetspeeds, up ro 2 Gbi$ persccondor norc. Aroiher efforr,rhe "l00 by I o-'
inniative,received$7.5 m;llion in tundlngfron the NarionalScien( l-oundation(NSFI ::
c{evelop a sysrento dcLiver100-MBspeedro 100 million homesin the United States.? Abor:
200 collegesand unilersiriesrow have12 scnicc.rSome12 conrectionscan transmirda:
ar 100 Mbns per secord,which is abour 10 dmesfasrerrhanmatrycablemodemsand 2l'
tines fdter rhd dial-up conrections.The spedallowsstude.r. to t'ansfo d'. ."nten* r
a DVD disk in lcssrhar a ninuie.
The Inrernetisircresingly goingwirclcss.ln additionrolard-boed svstems, rhelntern-
is olsobeconing availableat seaand in the air. coins online whilc aboarda cruiseship -.
becomingarcaliry.Sohe.rtriselineserein$alling Internetrpplianccsthat allowcrewmec-
ber ro accesthe Inunet to get newsandserd and receivee nails. Somc.irlinc conpani.
afe offe.ing Intrnet seNiceon rheir fiights.Terry leldmu, a mck driver, ues w;ele!
Inrernr acess&on rhe qb ofhis trucl to checkwcarhcrand shipnentsand to sendan:
rcccivee-mailro and from fam;lvand friends.aPhysicians at the ParkerAdventisrHospn!
use wirclesshternet accessto speedode ng presoiplions dd recordingpatient rear
ments.sWith this nore accuraterecordkeeping, the approrchrlso hr thc potentialto reduc:
cnon rnd har-tu1 ;ore.a.tn,nsofdiffe.ent drup;sprescribedro patients.ID anorherinre.
esrinswnelessappliarion, Zipc* allowspeopleto sharecm in urbm areaswherepark-
ingon bc borhscarceand *pe"sive.6Theo-pa"y ha' morethan 10.000nenbers.nd 20i
 rhe dernd nranersani Enfana" I cu1*" z

:rs in Boston,Nw York, andWohington, DC. WirelessInternethotsporconneciionsin

r United Srateshaveincreased froh about 1.000Lo.adonsin 2001 to more thd 50,000
. . . i ' n. ii lou- . i n c re r' i n g
h e u e o fw i e l e ..l n rernera.ce*

Howt hs I nt r n W
t orks
. ie Inrernettrunsmitsdarafrom one onpurer (calleda /ad to another{seeFigure7.1).If
::e receivingcomputeris oo a networkto which the fint computeris directlyconnected,it
::n sendthe mesaged;ecdy. Ifthe receivingconputer is not on a nerworkto which the
=edng onpurer is connecred,the sendingcomputerrelaysthe mesageto anothercon-
::rer thar qn fomard ir. The mesagemay be senrthrougha touter (ee Chapter6) to reach
,:; fomrding conputer. The fon'arding host,wh;chpresumablyisattachedto at le*t one
::ier network,in run deliversthe message directlyif;r can or pasesit to ret anotherfor
.:.ding hosr.Ii is quite conmon for a mesageto pus througha doan or more fovardec
r uay r r om orre p a n o l th e In re rn e t.o a .o th e' .
The variousnctworksrhat arelnrked ro 6rm rhe Inrernetwork Dretwmuch the same
:'-they passdaa aroundin chunls calledp,rrlc*, eachofwhich car;esthe addresesof
:. sender md its receiver. Thr ser of conventjons used to pas packetsfron one host ro
rirher is known as the InternetProrocol(lf), which ope.nesat the networklarer ofrhe
; rnlaverOSl nodel discussed in Chapter6.Many orhefprotocolsareusedin.onnecdon
.::h IP. The bes known is ihe Trdsmision Con.rcl Protool (TCP), which operaiesar Transmission
ControtProlocol
ri: oansponlayer.TCP is sowidely usedasthe rnnspon Layerprotocolthrt nany people ITCPJ
':ir ro TCP/IP, the conbination of TCl' and IP usedby host Internetappliotions.Ad Wdtyused
transportLayerprotocot
t h a t s u s e di n c o m b in a ti ow n th l P
::ing rc the sane technial standardsallowsrhe nore than 100,000individull .onpfter
b y m o s tl n t e r n e ra p P li caot n s.
-... orksownedby go"ernmenquniveisities, nonprofitgroups,and companies ro consritute
-: Interner.Once a newotk following theseaandardslinls ro a backbon<ne of the
-:sneis high*peed,long-dhtanccommunications links-it becomespan of the world' 0 n e o f l h e n t e . n e ts h g h sp e e d
. le Internercomnunitl-. l o n q - d i s t a n cceo m m u n i caot n s

Each conpurer on the lnrernet has an dsigned addres called irs uniform resourc lo-
:ror, or URr, to idend& it !o o!h$ hosrs.The URL givesihosewho provideinfornation UniformResource
Locator
:.:r the Internera standardrvayto designare whereInrernetelenentssuchu senen, doc- {URLI
and nssgroups can be found. Lris look at the URL for Thomson Coune d d d r e s so . l h e In l e fn e t
Anassignea
-enrsi
: chnology, bt1l :// au u. t ouR. t o n.
The "h$p" specilieslhe ac.es neihod md telis your soflware to accessthis palticular
i : usingrhe HyperrextTrarsporiProtocol.This is the pimary nlhodfor inreractingwith

The "s'w" pan of the addres signifies that the addrssis associatedwith the Yrodd
:;Je webservicediscussedlarer. The "course.com"panofthe addres k the domainnane
:::r identifiesthe Inrernethostsite.Domain namesnusr adherto strictrules.They atways
::,e at leasttwo parrssepratedby doa (periods).ForsomeInternetaddreses, rhe rightmost
::r ofthedonain nme is rhecounrrycode(auforAutralia, caforCanada,dkforDeoma*,
: rr France,jp for Japan,etc.).Man/ Inrernetaddresses havea ode denoringaffiliation
.:=eoties (Table7.1 ontaios a fo popuLarcategories). The leftnosr pan ofthe donain
::re idenrifiesthe hosrnerworkot host provider,which night be the nameofa universiqr

@
U.5. Too-LevetDomain
Alfititions

90v
 Psri, h .a , o p p,s
| "h ,.d m T e

Herndon, Virsiria basedNer.rork Solurions,Inc. (NsI) wss rhe sole@mpanyh dr.

world with rhe direcr powerto .esisreraddre$esusing.con, .ner,or .org donain nams
Bur ftis governnentconoecreidedin Ocrober1998,asparrofrheU.S.sovernmenCs mo.:
ro rurn mmagementof&e \{reb'saddres systen overrc rhe p.ivaresecror.Today. oth::
companies,c.Ied /z!';rzr, an resisrerdomrin nehes, od additional cornpaniesareseelon3
a..reditetionto regisrerdomain mnes fron the InternerCorporarionfor Asigned Nam=
ddNunbe6 (ICANN). Sone registrdsareconcenrraringon largecorporations, wheretL:
profir ndsins maybe hishcr, comparedwidl snall businescsor individuals.
Therea.ehund.edsof rhousands of resisrercd
donah names.sone people,@lled9,r-.
rqdtrr, havereg;sre.ed donain nanes in the hopeofsellingrhe nams ro corponrionsn:
poplea! a larerdare.The domainnameBusiness.com, 6! eumple. sold for $7.5 millioa
In onecde, a fed.aljudse orderedthe forhd owne. ofore web sireto pa/ Lhepersons h :
originallyregisreredtbe domain name$40 nill;oi in conpensarorydanagesand an adC-
donal $25 hillion in punirivedanages.Brt sohe @mpaniesde fightingback,suingpeotl:
who registerdomainnamesin hopesoftiying ro sell!hen to compuies.Today,the Inren:
Co.pomrion6r AssisncdNamesand Number hd rhe.urhority to resolvedontn nam.
disputes.Under no rules,ifan addres is found ro be "confusingl),sim;lar"ro a resisrcr
tradenark,the ownerof the ddha;n nme hasno lesitinate interesrio the name.Thc ru:
wu designcdin part to preventq,ber-squatters.
Accessing
the Internet
There lre nlmerdu wa)r ro conncd ro rhe Internet GeeFigure 7.3), bur Irternet acces :
not dist.ibutd evenly rhroughour the world. Seethe "Erh ical and Societallssres' featurer'o:
a discusion ofthe challenscsof slobal Inr.ner ac@ss.\fhich acessmeihod is chosenr
dere.m;iedby the sizeand capabilityofthe orgmizarionor individual.

@
SeveraLWays
to Accessthe
lnlern6t
The fea resever alway s t oac c es s t he
ntefnel, rnctld ng lsing a LAN
serue.,dial ng inro (he Inlernet
u s ng SLlPo f PPP,or us ingan
ontineseruicewith nternel access.

P P P s o t t w a r e . u no n

3 . C o n n e c t v l a n o n l i n es e w i c e
 work to Legsenthe 0tobalDivide
reneu15
Etc-ep UniiedStatesand Pue.(oRicoAspiraptansto Lrsea $1.7mitLion
grantio developa nationaL modellortrainlngHlspanlcparenLs
and
rli_r the gLobatspreadof nfomallor communrcaton
_ -nd stLrdenisin nformaton technoLogy at more than 40 commlnity
! : :l es, targe pa.ts ol ihe wortd .emain technotoqcally
technology cenlersacrossthecolntry.
n. ?cted. The U nited SLales has more computrs ttun therest
.. SeveratLatn Amerlcan gove.nmentsare .Lizng that
I : nid .omb ned, and !4hen assessed by .egion Internetlse
technoloqymaybea titetineforthefpeopteinh.rdeconomicimes
-..ted by North Ame.cans.To deletopa lruly gLobaf 6qo/d I enr d. 4 Lp.r1"i
.-v6roruq. oL6 es 0r' 6, 0
, - r thosewhoenjoythe beneltsoftechnotogy needto hetp
treeaccesstotheWoddW;deWeb in lbries, museums, c tyhatls,
r'r:: ::s fo.tLrnate getconnected-3nd theyarel
and the officsof nongove.nnrentat organzationsln the countrys
' :_, successfutentrcp.eneursand busrnessteadersare
23 states,and it hopeEto open100more In 2002,the Mexican
r" r heavityto bnnq tchnoLogy to remoteand .omeimes
governmentlaun.hedthe E l4exicop.ogram wilh thF :ifr of
r'r: :0ed o. lnderdevetoped cornersof the wo.td Ma.tin
lnstallng3200digtal commLr nitycenteE in schoots, comm!nrty
i-; :ly an arlentrneantetecommunlcatLons enlrepfenelf
centeE. ciiyhatts, tibra.ies and health ctincs in ruratvlLtaqesand
r!.:: _ :pa n.bellevesthat entrepreneursand phitanthroplsls have
"The molivauonoJ an entfepren!.and lal
ALtholghinformaton andcommlrncationstechiologymaybe
r,,: '__cpst are essentiattythe sme They boih pnpofi
L ' T assstlngmanycultlfes and peoptesln reachnglhe. potentaL.
o o . . o+lo' o < o t,e n a t' i
'1000 Fo!ndaton, an
manystitt needa5s6lance.SomecuttLrres Preferto do wthdt
*" Varsavsky eslabtished lhe Vars:vsky
modem technotoglcaL convenlences which contmditrcligous
r:i :::on comrnitted to bfingingtooLsol tearninq,t.om basc global
belefsand cultlmt vatuesTo devetopa gtobaleconomy,
,
r: : r.d'moria. ctassrcoms to onllnecyber[brcries, to ch Ldren
buslness elfortsand 1Sdeslqnsholld accommodate the feedsor
I : t:s throughout the Mrld. TheJo!ndaton lurthera ms to
attandactasa b.idgebetwee.d fferingcuLlu.es.
ii. :lratetchnotogyandthe ntefnetintotearnnq
::-aps the mostfamousentfepine!rtlrned ph tanih.opisL
. : : r it s E llLG aieTsh e Bi tta n d M e l l n d a G a te s F o !ndatronhas C.iticat Thinking Questions
tr r.: : r ilr ds lobr inqt e c h n o to g i e re
s i m
o o te a re a s o i t hw orl d, 1 H ow do bl s nessessl ch as l .4i c.osoft befef t f.om t heif
,,.:_: : Ne snowswept terraln ol Cafada 5 Norihwest Terrto. e5 phl l anthfopi cl nvestments?
r! . .y havesel Lipa systemof qbertibrariesn sx femote 2 W hat advantages do l nternetconnecl edctl l tuf eshave
:- _ iiesto conneclflr|aL.es dents to thewr.td ove. those w rthoLrt ni ofmatronand commLr ncat ons
__: s an tidepefdeni intematonat
,forld EconomcForum
.-;. :::.f .ommiitedto lmprovngihe stateof the wortd The
i' : rws the wortd'sLeade.s to cottaborate to addfBs gtobat WhatWoutdYouDo?
r:.,. :lC promole qlobat ctzenshlp amlng lts corporate
Yo!.globalb!snesshasllnatLy reached whatmanyM!tdconsdef
r:!_::_;. i 2000,the Wodd EconomicFo.!m taunchedthe
acomfoftabtetevetotsuccess.A nthecom panyand
l te.ren!strg
ii:::; I9 taLDvldeInt at ve l6DDllto dvetop plblLcand pfLEte
futfilting aLlatherfinaiciatobtgaiions, yo!r ch ef flnanciat olflcerrs
ldr-:':1ps to brdge the gap beLweenthose who have hovvto nvest$200000SomoJyour
lookng fo. srggesuons on
i,i,-: rn and communicatontechnoloqy [CT] accss skrLls,
compeiftoEhav m.de bigsplashesin the mediawih whatyouve
,rr :::-r.es andthose\{hodo not donatonsto.h.rtiFc Yot
pfev ousty considered to be extravagant
i lfdanEdlcaton niLlatlve, a 2003GDD progEm brolght
wonde. whethe. ihls mqht be ar opiionfor someo. atl of yolr
rr._:_ leadercf.om the informaton technology aad telecom
1r: :! suchasDeLi, HP,lBL4, Intet Microsoft Semens,Skiltson
/,: :-' v c.osystms. TheyworkedwithJodanlanauthoritLesto
3 out of al t the nedsi n Lhew oftd w hat phi tanth . op c ven
- : . i !d ucaton in the kingdomNrnety'sixD scdery SchooLs w oul dmost rnte.estyou?
do o pi.o.rh6oroo ddn -1. . " q d-i ture
-, ::r ;rr how ICTcan benefit "r| Jo " 'etui 4. W outdthetypeol l ndLrstryand Locai i onsrnw hi chyo! wo. k
iE: schots and ther pupL5 ThoLrgh
have an mpact on how youi i vesi ,
'r: ::r :JNthe advancement of tearnnqln Jordan,the pLanaLso
r' :-:5the grcMh oithe tocatnfomalronLechnotogv ndlstry
SOURCESIThe Digitat Divide Network. ||w digitaldMdenetwark ary
r' :_ .f.astruct!.e mpiovementsand e-content devetopmnl MuqoMacharia-ASPIRA3.ln9s Di9[aLopportuorv
accessedMarch12,200.1r
: ligilat divideocclrs on many tevetsWhitethc Wodd ro the Laiino com munily," ,/g/ra t Divide NetM*, M diqitaldivilenetM.k
'Tele.entres io Naifow
::.: -. Forum |s workiig at the gtob:t tevel,the Aspr. arg, accessedtt1afth12, ZA04 NumbertoM6fquez,
tpsne$ net/
Oignat Divlde." rc.r, Vva On|he, A..em6er 12, 2A03, w
r| :: rnwo.lisonthenatro.stte\elI thel.lnitedStatesAspira fa.ts/r!,sbrieryfuiewstory.sp?idh-z:
"Jordan Educaton lnriaiive to Rotl

' ol ln d e p e n d eonrg
: _' . der at ion t a n i z aoin sth .o u g hout the Out e-Leaminqacros5rhe ( ngdon znd BeY6^d. Warld Econohic Foruo
 Connectvia LANServer
Thisapproach requna rhe userro ;nsral on his or her pC
a network adaptererd od Ooet
Datali.kInrerfac(oDr) orNeNorkDriverrnieAcesp."rn.",;."
T h e r d r nei . Jl ow nul ri pterrJn.ponproro.ohro runon
W6ril p,J., i#^
oneneu ork .rd : im ut uneoul,
6\ !e^ei !re rvp,ri l l vconne,rrdrorhr l nrerner roK bp(orfrrrr.
at I n addir on, B
h i g h tr' 6' of rhi ,.en i . e un he.hrredsong,fl e.al d--
1,q,"* * .." ,f m
c o ! p e rurr qddrfi onrl co.r< aso, i aredq i ,h r LA N .onre.ri onto rhe Inr er ner
" "^. ", ii
inct udec\ r
costofthe softwarenenrioned at the beginningofthis secrion.
connectvia
sLlP/PPP
SriatLinelntemetprotocol This approachrequiresa nodem md rhe TCp/Ip protocol software
tsLtPl ptu Serial Line Intema
Prcto@l (SLIP) d poinrro,point proto@l (ppp) s"n*-..
A c om m unicoanr sp ro to c orhl a l sut Ppp _. r*o ..*
transhitspackets mu n i u r i on' proro(ol uh, i rrn,mi r prckenovtr,etephone t,ne..a ow -a i ned iJ_uo
overtetphone
$ e ,rn K m e,. youre,unni ng V i ndou.. you r i rJ.oneed\\
i n," .k. U ,;r , m u, i ,-j.. er :r
, h$.
a n In (e rner \eM,e prov,derrhJrte,.rheh di dj i nroJ \t tt/ppt
Point-to-PointProto(ot lpppl \ener. sLt t / t pp r . @u, ]
a n b e p u' , haed for $J0 J honrh or l es froh regj onJtprovi de.,.W i ,h aI r h^ in Dt J. er
A c om m unic a l i op nrosto c othl a l
m o d e mb 6ed ro Lal li nro rhe\t nrtpt.crus. On.e rhe.onne(ri on
ransmrtspackets overtetephone n mr de.you r e o
th eIn ,e r hflrd on r(6\ M' of i b re.ouhe,.I he@ n, i n(tude
rhe.o,ror r hr m odemr a:
{om\.re. pru! rhe .e^,ce provider'..fir,ge. tor acce*
ro rhr \t Ip/ttt .erue,..t he roeedi
rn 6 In re rnelconne.ri onL Ji mnedro i he .tokernr
)or .ompu,c.. mode mud , h; . p. =l
ofthe nodem of rhe SLIp/ppp serer to which you connecL
Connectvia an OntineService
This apprcacl requirc.norh;agmore rh,n wh,t is requrred
ro connec.ro ,n), ol rhe ont!
Inrcrm .on .er,t'\. 5uLh& a modem.sand:rd , ommun,criotu
,ofrarre, Jnd r onlr
i n fo rm a ti on
etu(e& @ unr. tncrearngty. ont;he.e^i e.,reofte,i ngD 5t..a, e ir e.andelx
r:,e rnr:rmr. whicn prcvide tura.peeds. fhe,e rechnorosies qere da.us!c.
iol:cr|on:
I he,eK normauya fued monrhl yco,r for bai c rni c" ,.
' :,:" :p ' .j : ;n duaine. _. _
rcdruonr ree\usuJtyrppty tor D\L s,,eIire.orcrbte r.es.
alt]ougfi cheecossrie fat[l.'
Ir-":,"]lr,,l3,r:." :.Nics p,ovide awide
ruse.f ,..r...;"iil;;.;i
w o rrd w r de w eb. A meri c,Onl i nr and ";J;
Mi c,o,ofrN eMo,k arerempte,;,uch . en icd
other Waysto Conneat
l n ,:d d i ri onto compure$.mrny or_her
dni cesqn oe .onneLred ,o rneInrer herjn(
. t ud_! .
cd pnones.I UAr. rnd homeappliance,.The.e device,Jro
requre .pecincprcro(oh a,r
Jppro,cnA (o onnr., fot e,,npte. tuit.t s appti.atia,p,,*)
rviry ; u,ia *nn*
er p[ones and other dqi6 ro rhe Inrern(
-

InternetSrviceproviders
Internetserviceproviderltspl An Inrehn ervice provider rtSpr n uy Lompdy tnl proqde(
Any cohp!ny thal providesindivid- indi\idu,ls ud orpda
n o n s\ rm r.(e$ ro rhern(erne,.rsp, do norofterrheesrendfd
u6Lsor o.ganrz.lrofs with 6ccesslo i nformrri onJs edi( er ; f f er d
by,@ninqcial online s'ices such ar Amrica Onlme o. MSN.
There are lirerally thouso{i
or Ineinn \erviLeDrcvjder\.runsjngrrcm unive^irie,
..t""* _,..a."..."il.,J
e p a c rry l vrhbte ro !udmr and facul ryro mrl or communi .rri onr
gj Jnb,u( h J. A] l1:
_ :,," I.1j ,,y," :ronneoon.l o morhreu,..ou qi ,h rhe.er yi. epr o,
:-: o<
Md sorrMre rh,r eltowsa direcrIink via TCt/lp.
.lTllc ,1"1., f^it' prcvider.
,.he
imponJn( .ri,e,u.,f @n.rerirb,riD.
jI arrrrbrlrry
..url. - ol cnhJn.ed +
fe4uier..ndthe,rnicr pbidc< qmeraj r.pur.o:
Reliabiliry
i, .riricaibe,rr,e i. vou,conneL,ion
ro .heI,r r"U ,, i",.,i,r,. _",'-_.,
*. .6'ome,,"nd.\upptie^Anons rheLiiuerdded,enne. !l
1'.11:" rsp. pro\ide.:
ne*ork to.,,nne,remployea. neuork ,o.onne.rwirhbu,ire d
prrne^. no.rcontu,e6,o e.ubli,l_ yourown Wrb .i,r. web ro,r.rion pro.e-n3 ,i
 TheniernetInrandG. i,"
a.dErrfa I co4to
"

reoork securiryand edministration,and inregmtionsenices.Many corporareIS nanagers

,elcomethe chanc to tun to ISPsfor this wide tangeofsewicesbecause theydo not have
::e in-house expertiseand cmnot aJlord the time to devlop slch serices fron sctch. ln
iJdirion, when organizationsgo wirh an lSl-hosred oetwork,they cm also tap the ISP's
:rional infruuucure at minimun cost. Ihat is imporffit when a conpany has offices
,r.eadacrosstne country.

Touseanl S P such
asM SN. yo!
musthaveanaccou ntw lh lh
o-. 'i A aj ,* 4r* e* 4\ ';-:t j.) X
serviceproviderand
soirwarethal

't=:-:-::.

In mostcdes,ISPScharsea monthly feethat cm rmge from $15 ro $30 for unfimned

:rdrer conndion throush a standardmodem.The fee nornally includesemail. Some
ils. however,areexperimenringwithlo*fee or no-feeInterneraces. But therearesnings
r::ched to the no fee offersin most cases. Sone free ISPsrequirethat cutones prcvide
:::aileddemographicand pesonal;nfornaion. In othercases, cuslohersntst Pui uPwith
rar advenising.For dmple, ! ?op-'? ddis window that is displayedwhen soneone visits
^
: I eb sire. ft pops rp dd adverriscsa product or seNic. Some c-onnerce retailen have
r:red adsthar qemble conputer-wa.ninsmess.ses and havebeensuedfor deceptivead-
:asing.3 A bdh"er dd u a bannet or advenising window thar you can ignore or
^ppear
- :k to go ro the advertiser's\reb site. Table 7.2 identiffes severalcorporate lnrernet seoice

@
A ReDresentativListof
lnterntServicaProvidr6
BellSo'rth www.bellsoulh.cm

E.rthLink

Sprlnt

\lanyISPs aodonlinesenicesofferbroadbandInterneta(e$ throushdishalsubscriber

-s (DSls), cable,or satellitermsmissior. Mostbroadbanduscnpay$50orlespetnonth
: unlinited rede. Broadbandusehasspreadglobaly:nore rhan70 percentofhouseholds
: :outh Koreahavebroadbrndaccess, wh ile abott 35 perccntofCmrd;n households
have
 eote I r"r".-r'"r-n"aayc"*ar.

broadbandconnections.'A srudyby rhe Pew & Amer;.an Life Projed reportsthai hot
than 30 perceniofU.S. web households havebroadband.Thh percentage junped to nor
rhm 40 percentin 2004.r0Most other ountris ofler broadband,includirg kaly (Telecon
ftalia), Brnain (BT Group), Switdrldd (swissconAG), France(FronceTelecon), aorj
nany othen.'1Somebusi"e$esand univdsnisusethe vervf*t T I linesro connectto thr
lnrernct.Table7.3compares thespeedofftoden, DSL. ceble,andT I lnrernerconnecriol.
to perforn basictals. Thesetechnologieswete discussed
in Chapter6.

@
Approximat Timslo Perlorm
BasicTastswitn! ilodem.DSL
or Cabte,orT-l lntent

fite

THEWORLDWIDEWEB
The \{rodd wide web wo developedby Tim Berner-Lee at CERN, the Eutopean Oryz
lizarion for Nucled Researchin Ceneva.He originally onceived of ir o an inremr
WortdWideWeb
|WWWorW3l docunent-mmagenent sysrem.Iron this nodest besinnins, the World Wide Web (dr
A cottectionoltns ol thousandsol Yteb, YrVw or $(3) hu erown ro a ollerion oftens of rhoumds ofindependendy oMel
independenllyow.ed comp!ters conputer rhat work together* one in ar Inrernerserv;c. ThesecompureK,calledu r
lha tworktog elh ef asonein an
raar, are scare.ed all over the wodd and contain everyimaginable rype ofdara. Thak *
&e high{peed Intemet circuns onnecting them and some clever cross indaing softw*-
lses are able to jump fron one Veb compurer to another efforrlcsly-ffearing the illusiot
of usingone big conputer. Because ofirs abilitl' ro handlenukinedia objeca, includi4
linking muldmediaobjectsdnributed on Web server around rhe wodd. the \reb h* br
cone rhe mo$ populd nms ofinturnation acceson rhe Inrernetioday.
The Web isa nenu-bued systemthar usesrhe dient/sesermodel.It oanizesInrern.
.esoutces throughoutth world into a seriesof nenu pages,or screens, that appearoo rou
conputer. Ea.h Web seryernaiotains pointers,or linls, to data on the Inre.nera.d e
rerieve ihat deia. However, )-ou deed rhe righr hardwee and teleconnuniations conne:
dons, or rhe web can be p,infinly slow. Tradnionally, sraphicsand phoros havetaken a 1o:5
rime ro naterializeor rhe scften,dd an ordi.ary phone line connectionmay not ahrac
providesuficien! speedro usethe web effectively.Seriou \feb use6 needto connect.?
the ltrtN serer, S[,IP/PPP,DSL, cable,or orher rpp.oachesdisc!$ed earlier.\rb p/"{-
l,J can helpprovideaddirionalfeaturesto standddweb siies.Ma.rchediak Flashand Ra
Playe!areenmples ofY/eb plug-ins.
Daraen exisron rheweb TASCII characres,word pro.e$ins files,audiofiles,graphr
and videoimases,o! any orhersoft ofd.B rhar car be sioredin a compure!file. A web !':
is like a nagatnq wirh a coverprse.dled a hone p.se thar hascolor graphic, titles,u
Acoverpagefor a Websitetharhas rc!i. All ihehighlishrcdrypeGonerinesunderlired)is hypenext,which links rheon<cra
graphics,
tiltes,andtxt. page to other documenG or Web sires.HFerndia .onneas the dara o' pages,allo$iD.
hyprmedia uers to accessropics in whareverorder rhey wish. Ar opposedro . regular docunen! whij
T ools t hat c oine c tldhaetao nW e b yotr readlinea.b"hypermediadocuhenrsaremore flexible,Iettinsyou dplore relareddN-
pa9esallowin9
, ! s e .s toa c c e s s to p - umenisat )our own paceard navigte in anydirection.Ior rumple, ifadocunent menio>
ics n whatver orderlheywish.
rhe Egyptid pharaohs, you car choose to see a picture of the p),ranids, jrnp ;ro r
 rrJ Ert,ri.L! | chept@ ?

:..rriprion ofrhe building oflhe pvranids,and then jump brck to the orignul docuncnt.
. p.(exr li,1ksaremainoinedusingURk. l ablc7.4 lisrssome;htere$ing\Vebsnes.Many
nd businessmagzinesalsopublishintercstingand usetul\reb snes,md Web sitesarc
:.n cvaluaredand rcftwed in print mediaand online.

Ajob-huntings te whereyoucansearch
io. a lob by typeo. company,lrstyour
resume,andperforo basrccompany
rsearch.0ne leat!re,TatentMarket,
allowspeoplelopul theirskiltsup tof bid

aDcl
:! A chariaol tylhat ofierstreechalsetuices

ri ;N AM ic r os oils ilet hat oller sa t ar g e6 n g e o r M doneyceitrat.msn com

nnancialand investmentnformation

Aservne tMt olle6 sfeet addresses

and dfivingd rctions.

. iatq!d,;i'ii :lli l
,r{!9!,'ti!i!!!i:iGrq!llri!:4,ii!i:::':til,:ll:.1:li:tl:r, '
A popularsiterhat seltsbooks,vldeos,
andm!ch morc.
music,furniru.e.

,id,!d..:ip$la,l"{ ;"",r*ll * I
rli;ai'49rrl'.,.:r ,
:::r:I ,
A s(e lhat provdesmed cal iiiormarion

\ W.b patatis an entry point or doon'ay to the Inrernet.\feb portah nrcludeAOL,

M
:\. Yrhool, dnd others.For cxample,somepeopleusYahoo.cor as !hei. \veb Potul. Int.rcatinglV.b Sitas
SeveraL
- :r meansthey havesrtYahoolasrhcir staftinspoint. \rhen thcy enrerthe Intemer,rhe
.- ulVcb sireappear.You can useYahoolto searchrhe Internet,serd ctail, get direc'
fird rhe addressmd phonc rumbcr offrierds or
-. iir a rrip, buy produds and serviccs,

l{rperta. Markup Ldguage (HTML) is rh standardpas. descriptionlanguge for HypertertMarkupLanquage

. . r pr gc s . O new a y o th i n k rb o u rH T MI.i s a s a setofhi ghl i ghrcrP ensj ndi l + !.enrc{ nors IHTMLI
T h es t a n d a r dp a g ed e scfp ti o n
: : ,ou useto mark up plain text to rnakeit a \feb page ted for the headings,yell<xvfot
L a n g u 6 gfeo r We bp a g e s.
: :nd sooD. fhe HTML tagsltt the browseL loow how to lbrnar thc text,asahead;ng,
- i<, ores body tert. HTML also tellswhcthcr images,r,und, rndothcclcncnts should HTML t!9s
, r:trtrd. Uscrsmark up a pasby plecinsHTML tassbeAre and rfter a word or words. C o d e st h a t t e t t h Webb r o w se r
k n o wh o w t o l o r m a t te xl - a sah e a d -
:ranple, ro nrrn a sentenceinto a herding,vou plae the <Hl' trg at the sart of the n g ,a s a t s t o r a s b od yr e xt- a n d
. ::nc. At the end of the sentence,vou placerhe closingtag ./Hl>. Whcn you view w h e l h e r m a g e s s o un d a, n do th e r
r:se il,vour browser,the sentenccwill be displavedrs a headins So, a web Pageis e t e m e n t es h o u l db e nse r te d .
 I'si s I ntumaronTe.hdoLoey
coneprs

ll nade up of rwo rhings; txr atrd rags. The ror is your mesage, and the rags are co&
esthat mark rhe way words will be displayed.All HTML rassde encised in r set oftes rl,.
(<) and grerer rho (>) anows, such as<H2'. The closing tag has a forwrd slah in ir, sui
d </B> for closing bold. Consider the following text dd raSs:

<hl align-'centel >Principles of Information Sptens</hl>

This HTML @de centes Principles oflnformadon Systemss a major, or lql t, h..&
ins. The "hl" in :he HTML code indicater a fist-lael headins. On some bromes,
hedins might be l4-poinr ryp$i/e wid, a t,mes Romr fonr. O; orherbrosse^, ir m
be a largd l8-poinr size in a differni fonr. Fisure 7.4 shom a sinple documnr ed i
corresponding HTML rags.

Ssmpl Hypertext i'larkut

Language
Shownat rheteftonthescreenis a
doc um enl,
anda tth eri g h ia re l h e
cotrespo.dn9 HTMLtags.

A numbq of nser \reb smdards are gaining in popularirr, induding Exrensihk

Markup knsuage EML), ExrensibleHypendt Markuptnglrase (XHTML), Casedit
Srylesheetl(CSS),Dlaarnic HTML (DHTML), andWirele$ Majkup Ldguase (V't,rLI
which candisplaylreb paffs on snali sdens, suchd srnaftphonesandpDAr. XHTML i
I combinationof XMI andHTM r rh,r hs beenappro,eday lhewo,td wide web cc
sorriun (W3C).
EItensibteMErkupLanguage Er.rdsible M{kup lasuge (XML) is a r'larkup tdguas for \reb documents cc
IXMLI raining strqcrued infonnadon, including words and picrures. with XML, therc is r
Mafkuplanguag
lorWebdocu- prdefined tag ser.Virh HTML, for enple, rh <H1> tag alwqs neus a firsrtevel he&
mnrscontainrng
slructufedinfor-
maton, nctudngwords,pictures, ing. The conienr and formattins de @ntaircd in rhe sartreHTML documenr. XML \qA
deunenrl conrain .he conrent ofa web pase. The formaaing of the content is containd
in a st)'le sheer.A fN typicrl instrucdons in XML fo ow:

<CHAPTEbHATdWAT
<TOPIC>lnpur Dwices
<ToPlc>Processing md SrorageDevies
<TOPIC>Ourpui D*ies
 Thedernd nraner.:n.rFraarer; I chepror?

How the precedingcontenris fornared and diplayed on a Y/eb pageis conrainedin a

. le sheer.slch asa cs@ding srylesheet(CSS)rharfollows.

Chapter:(fon.s;zer18p! color:bluq fon.weight: boldidisplay:block;fonr-fanilv:Ariali nargin{op: I 0pr! nargin-l.fr: 5pr)

Topic (font-size:12pr;color:redI font-style:italic;dnphy: blockjfonr,fanily:Arial;nargin Left:t2pr)

Nde &at rhe cbapre!ride Hardwareis displayedon th \reb pasein a largefont (18
i:.rrs). Hardwarewillappearin lhe colorblueandbold.Thelnpu!Devicesiirle will appear
: : smaLler6nt (12 points).Input deviceswill appearin rh @lor red and italic.
)iML includesrhe capabilities
to defineddshare documenrintormadonoverthe \reb.
. :ompuy c.n use XML to exchangeorde;ng and invoicinginformarionwith its.us-
rers.Ir CSSimproves\(reb pagep.esenralion,aDdDHTML providesdynmic presenra-
r of web content.Thee standar& move more of the procesing for an;halion and
:.ani.contenttotheWebbrcwser,dhcusedncxr,andprovidequickeraccessanddisplays.

eb Browsers
, \'eb bromer oearcsa unique,hypermcdia-based nenu on vour compurerscreenthar
:.\ id$ a graphi.alinre.6cero lhe Veb. The nenu consisrs ofsaphi.s. titles,and rexrwirh Softwarethat c.eaiesa un que,
' linkr. The hr-rJemedianenu linla you to Inrernerresou.es.includiig rexrdoc- n y p e r m e 0a o a s e om en !o n a co m
-c.re!t p u l E rs c r e e n p
, f o v i d ifg a q r a p h i ca l
-- :n6, gnphia, sound{:lles, and nervsgroup scwcrs.As vou choosean iten or resource, or
-,e lion one docunenr ro anorher,you nay be jumping betweencohpures on rhc ln-
.:rer withour knorvingit, while the \reb hmdles all the cdnnecdons.The beauryof Yreb
: {se6 and lhe \(eb is that theymakesudng the Inrdne! run.Jusrclickinswith e mouse
. r hishlishred word or sraphic whisks you effortleslr ro conpures halAvay around the
' ::ld. Mosr brower offer basicfeaturessu.h s suppod for brcksroundsard rabies,rhe
: ia ro vio a Veb page'sHTML source.ode,and e war !o crearchor lis$ ofyour favorire
::. Veb browser enablener surfersto view nore onplex sFphics and 3-D nodels, d
' : r as audio and video marerit, md m run small programsembedddin web pages
:.:,1 applets.Yre disc$s appler in more drailin a larersecrion.InrerneiExplorerfron
I ::osoli ?nd Ne$capeareexamplesof \|eb brcwses. S m a l l p f o g r a me m b e d d e d
i n We b

5 e a r chEn g i nes
.rring for infornation on rhe Web is a lilde lik browsinsin a libraq. without rhe card
i:rog, ii is qrremely ditrLcuh to find infornation. \reb searchrool-called seach en,
:1- t,Ie ihe place of rhe card catalos. Most search engines, such as Yahoo.coh and
:rgle.com,arefree.They makenoney by chaging advertisers to put ad bannerson rheir
.::.h eigines.Companiesofren pay a searchenginefot a qahloled linh, wtich is vvlly
:.: aredar the rop of the list oflinks for an Idternersearch.
lhe Web is a huge place,md ir ges bigger;th eachpasing day, so wer the lrgest
.:::h enginesdo nor indexall Inrernetpages.Evenifyou do lind asearchsnerharsuirsyou,
: qucrvmighr sdll missthe nak. Sowhen seuchingthe Veb, you mayrvishro try nore
::: one searchengineto expandthe toral nunber of potendal\feb siresof inrerest.In
;:::on. serchescan usewords,suchu AND and OR to refinethe search.Searches can
- : useffltes, such as dhplayingV/eb sires in Englishonly. Filterslimit searches
ro a lan-
:,:::. cenainlile fornars,a rangeofdates, andmore.Somesearchenginesalsohavea subjecr
:-.ror that allowspeoplem get informarionon variousildusrriesand organizadons.
L-lnceyou find a docunenr rhar comescloseto,vour goal,you car usuallyfind related
:::rnl by following the highlighredendes $ar raLepu to o$c. \reb pageswhen vou
: :i on then. And if Fu come acrosssomethnrgyou think you'li want ro retrn to, you
:dd it to dre "hot lhi or "favorirei' Iin oDvour web browserto savetine in rhe tuture.
-
 Pei e I rnrormdri re.hrdoqlcorc+G

Atlavistaisa pop!tar searchngine

Scarchensioes rharusekervord ind*esprcduce dindexof all rhedton rhesirc

exanine.Tl'pically,rheengine.eads ar lestthe finr ftw hundredwordson a page,inclui
rl -eri ,le.LheH fMI al rrdi ,odedi n,oW eb-prgri mJge,.rnJnvkel so r , t . , , , a. . . , . 1, ,
rhar rhe author h6 builr inio the pase $ructure. lte engine rhrows our words su*i
''and," 'the," "by, and "for." The enghe asumeswhatevd words are leli arc valid
:i
conreniiii then alphaberizes ths wordr (wirh rhen dso.iaredsnes)and Dlaces rhcm j
index wh* rhey can be searcheddd reriqed. Sone compmies usea zra ragthar is p:
in rhe HTML heade.for scarchenginerobotsfrom siressrch asyahootard Googlerc i
and ue. Meta tagsar nor seenon rhe Web pagewhen ii is displayedj rhey ju\. hetp a E
shebe discovered and displayedby a searchengine.-l-hercarea numbe!ofVeb search:-!
to choosefrom, d suhmariredin Table7.5.

@
PopularSear(h Engine!

liolSot

d.set

u/W.mrthernlrght.com

mela.search
engine Another oprion is to usea nrta{earch eng;ne.A neta-search engine submiB kel
Arool thal submils keywo.dsto sev- ro severalindividual searchenginesand retums rhe resufts from ali searchereines qr
era l indvid!a ts ar c hengines and
Ixqd.k lwtu.iryuichlon), ProFusion luuulnf'tunpnt, and Doqpite L:
ret!rns the resLlls lrom aUseafch
d " p ;/c .ont # nanpl e, o. mera^err, h ensi nc,.D " gp,te.tor e," -f e. .c "J; . A, L .
Google,Fasr,.nd orhe.searchengines. tr Meh,sench enginesdo nor queryaUscarch
 The nhme i ranP ,id E.hm" 5 | chspte z
-

W ebP rogr a m m i nLgan g u a g e s

lavi is an objecr-orienred prosmmnins laDsuasefrom Sun Microsystensbasedon the
* + progrmming language, which allowssm.ll programs-the appletsmentionedearlier An oblect-orientedpro9ramming
-
:-' bc embeddedwirhin an H'l ML. docunenr. \0hen rhe userclicla on rhe appropriateput languagelrom 5!n l',licrosysrems
basedon C++thatattowssmatl pro
:r rheHTMLpage to rerieven Fom a Web sNer,rhappleris downloadedonro rhe clienr g . a m sl a p p t e t s l l ob e e m b d d e d
"orkjrarion,wheren besnrssecurins. lbday, Javak beingusedon conpurers,cellphones, w i t h i na n H T M L d o c u h e n l .
a vucry oforhu devic*.'a Cell phoneswith Java,for esnplq d giveyou a w@rher
-rd
,.ccast,allow you to play gmes, ger maps,6nd rhe nearcstbathroomin someciris, ard
:rd which subwayto takein London,England.
lava lers software writen cre e compacr "jusr-in-rime" appler programs thar en be dis-
:rched acros a nework suchasthe Intemer.On arival, rheappletauromarically loadsitself
,. r peronalcomputera'd runs-reducing the needfor conputer ownen ro insnll huge
r+rans anitime they neda new tunction.And unlike other programs,Javasoftwareer
-: on my gpe ofcomputer.Javais usedby programmento makeWeb pasesconc alive.
.:Jing splashygraphics.mimation. and real iime updates. java-enabled wcb pagesarenore
:,eresing thm plain \reb pages. A findcial seni.es.omprnn for *ample, canuseJavaro
:reloo a \Yeb b*ed financial svstem.
The relarionship mons Javaapples, a lava enlbled browser, and the \{reb is shown in
'i!rc7.5.AldMdppktis^smallprogramdevelopedusnBrheJavaprosrmminglanguase.
: develop a lava applet, the author writes the code for the dient side dd in$alls that on
:: veb sener.The uer acce$es rhe lreb paseand puft n down to his pdsonalcompurer,
,rich servesc aclienr.The Web pagecont.insm additionalHTMI, tas calledAPP,which
::io to the Javaapplet. A recrangleon the page is occupied by rhe Javaapplicarion. If the
-=: cllcks on the recrugle ro execurethe Javaapplicarion, the clienr ompurer checksro see
.::ther a copy ofthe appletis alreadystoredlocallyon the conputer'shdd driv.Ifit is
-: . r hec om put era c e s e s rh e \fe b s e w e ra n d re quesrsrhattheappl erbedow nl oaded.The
:::ct can be locatcdani*here on the \(eb. If the uerk \reb browser;sJavaerabled(e.g.,
: -. s Horlavxbrowseror Netscape's Navigatorproduct),thenthe appletis pulleddown ilto
. : er ' , < onpur e rrd n e re .u re d $ i rh i nrh e b ,o w ' erenvi ronmen,.

@
Downtoading from a
an AppLet

The user accessesthe Web page

from a Webseruer.il the usercl cks
on the APP rectanglelo excutthe
J a v : a p p L i c aotn , l h c t n t s
c o m p u t cr h e c k sf o r a co p yo n i ts
L o c aht a r dd . i v e . f t h e r p p l e t r s n o t
pfesent,the ct enl requeststhat the

Ihe \feb seryer thar deliven rhe Java applet to the \fleb dient is not opable of deter
: -,ng whar kind of hardwareor sofrwareenvironnent the dient is running on, and the
: :L'ptr who createsthe Jaw appletdoesoot wot to wory about whetherit will work
tros-platform '
-:xly on \x/indows,UNIX, and MacOS.Jan is thus ofteodesoibedo a
: :rrmm ng ,anguag.
ihc dwelopment oflava ha' h.d, najor inpact on the sofrwde industry. Sun Mi
: rns's straresyis to openup Javato d)-and all. Any e,ftwarevendos and individual
"
:' :lopcr*from developmenttool l,ng"ageconpiler developes,darabxenan-
"endo*,
r-.rem rystcn verdors, andclient/sererapplicarion vendos ro stu1l bsinese<d then
ru to createInternet capable, run-anlwhcrc applications md senices Gee Fieure 7.6).
-.
, : result,the Javacomnunity n becomingbroadereery day,encomp*singsone ofthe
vendos,d wll asuen rangingfiom orporate CIOs,
' - J: biggcsrindcpendcnrsofrwa.e
r .rtrmme6, muliinedia designcrs, and marketingprotosionalsro educators,managers,
; rnd videoproduces, and hobbyiss. GE lower Systehsusedlava. XML, and vdious
-
 Pdt e I n o r m r r i - ..h r o L r lr cNr .cpl !

V/eb lools!o inresrarea nrmbd of dire.enr sysrehsro allowits nanagersand enplore--,:

sharedaraand inforn*ion. Accordingto the CIo of CE Pow{, "The objctive$r
providea reanlessmethodfor rhesled n ofpartsand serices,with infornadon beins:: -!
to cone rhrougLnultiple sources,suchasV'eb browsers.EDI, XML exchanges. or an E:i

@
Web Page wiiha Java Apptet
O*,' A :) 9 ,.? - #- d;*;b.le6;b*i;*+;u "; O.

d own toa delrom

d t h s s it eior us eon

ln additionto Java,compmiesusea varieryofother progranning luguagesand :rr

ro developveb snes.Javascripr,VBscripr, ud Acrivex (usedwirh InternetExplorer r
Inrernetlanguages usedto dweLop\Xrebpagesand performinportant tunctions,su;- a
accepdng user irylt. Ht?ctkxt Pt?/oeso\ ot ?HP, is an open-soulce programrjg
language.Codeor instuctions fron PHP can be embeddeddirecilyinio HTML.ode -
'-
like someother Internetlanguages, PHP can rm on a Web sewer.with the resds i::4
ransfered to a clientconputer.PHP canbeusedon avarieryofoperatingsysrens,inclu:-:g
Microsoft\fiodows. MacinmshOS X. HP'LX. a.d orhen. It ca. ako beusedwirh a...,-
ofdambasenamgenent s)rtens,suchc IBM sDB2, Orrcle,lnfornix, MySQL, and r:r
orhc.s.PHP'Sabiliry ro run on differentoperatingq'stens and databmenanagemenri:
tens, along with being an open-sourc Language, has made n popular wi$ narr
".t'

Use so f th e We b
B u s in e ss
ln 1991, the CommercialInternet lxcharge (ClX) Associationwas esrablkhedto:
businescsto connecrto the htcrnct. Sinccthcn, firns havcbccr usinethc lntcrncr ; .
ru rrb cr o..rppl i .,rron.l l fc,roni . mri l ,,mr' j o.,ppl i ur:onl ormo.r.o m pr nr e. I j-
compadcsalsodisplayand sellproducc over the lntemcr. Cusromencar placeofd-
k.,r-nrgin pavmenrintormarionand shippingaddresses.
Bushesses eveqvhere are making largeirestments ro presentrhemseh-es and:l
productson the Veb, to sere exisrirecusromer,and ro fird new oDes.l he Veb car
.ut costs.Aviall, x! avirrionpam conpany, investednore rhx! $3 rillion in a n*\ 'r
site, Aviall.com.The new hrernet site .ut ordernu.o$s from $9 per oder ro $.-1' :
order.'6 Inceasingly. snall businessesare using the Intont o boos rcvenuesand
cors.LTAs more and more peoplcgain acccs to thc Vorld wide wcb, its function,
changingdrastically.we dncus ! coupLeof theseapplicarions,corporareintraner,
qmrers,laref nr rhe chaprer.Chapter8 corerse-commercenr more detail.
 Th. derner nranEr5andLri:rpr; i ch.pte ?

b a r n e s a n d n o bct eo me n a b t su s fs
lo bly books,mus c, and vldos
O.d ' ,i) .d " ,--4ry-r*:+:tr.l. . . r.:A6
0nItE&t0trro :

t]{it ,t}t.l.

6Ar{ES
&6tnS

P6h tclnolos' is usedio sendidformarionuromat;callyoverrhe Inremernrher rhan

-rke lsers sear.hfor n wirh their browsers.Frequenrly,rhe informarioo,or "contenr,"is A u l o m a t i ct f a n s ms s on o i i n l o r m a -
. -,romizedto match an indiv;dual\ oeedsor prolile. Th ue ofpush rechnologyis also t i o no v r t h n t e f n e lfa th e .th a n
m a k n g u s e r ss e a r c hf of tw th th |
':grerny reteaeda x Webustitg. Most psh systens rely on HTTP (Hyperlexr Transpofi
-{ocol) or Javarechnolosyro collecrontent fron Veb siresand deliverir ro enployees
'scr'desktops. A business, for enmple, could usepush rechnologyto deliverinportmt
-:rketing informationto its srlesftrce.
Beforeihey canbe "pushed,"employees or uers nustdownloadand installsoftwarerhar
.i:, like a ry mienn!. capturingtansmitted ontent ds wnh br re.hdolosr,the peopl
::.:ng lbr pushhaveyet toventurebeyondrudinentary applications. Most re focusinson
-l.oving conmunicarionswilh cmployees. cusromers, and business puiners.
t number ofconpani.s are using push teclnologr to deliver critical information over
:; Internet. SA?, for mple, ues puh rechnology to deliver critical enierprise re$urce
'-.ning softwee overthe Internet.Enterpriseresou.cepLanningsof*re is ued by many
::. corpohions to s(eahline operatioos.A raining and pe.fb.hanceconpany c.n use
'-.h rechnologyo delivercftical busire$ informarion.Orher companiesatsouse push
:.::nologi to makeprioriry deliveriesofinformarion overthe Interoet.
I hoe *e drawbaclco the useofpu'h rech"ology.O"e issue,of@use, h inform$ion
.: o:d. Anotheris thar the volune ofdarabeingbroadcor;ssogrearthat pushrechnolosr
:: ;log up the Internercomnuniqrions linkswith tralllc.

f e ve to p in gW eb C ontent
:: an ofVeb designinvolvesserrinsaloundthe techniaLlinirations ofthe web and using
. oftooh to makeappealingdesigns.For eenple, an HTML convenertanslaresa rexr
-:
: rrment into an HTML document,and u H'IML editor insensHTML codesfor you c
rcate an HTML document. 'l he folowins are tips ro crete a Veb page.
')i,ur compfter musr be linked to a \{reb server.which cm deliver Web pagesto other

\ ou will need a Web brower progran o look at HTML pages),ou deete.

The acrudldesisncan.akeone ofrhe followingapproaches: (a)\rrire you. copywirh a
.,ord proc$sr, theb usean HTML convenerto conventhe pageino HTMI- format
rnplete with egs so the bxrw*r knows how h should fotnar the page.(b) Usc an
ITML editor to wr;te rext and add H'|ML tagsar the sane time. (c) Edit .i exisddg
 Ps'i 2 | niofmd on Teh mroqy coirepts

HTML tenplete (wirh atl the tass read),ro use)ro meei your neds. (d) Use m ordins
re x redi ,orrnd rypei n ,he,u rd rnd ug, fo, mch i ,em.
4. Open the pagewith rhebrowserand seerheresult.you cancorrecrmisiake by cofectin5

5. Add liil<s ro your hohe pageto allow you readersro ctick on a word ind be iaten to r
relatedhone page-The nN pagemay be eirhera pttof yourVeb siteor a home pagt

6. To add pictures,you mustfinr srorethen m a ffle on your harddrive.This.an be doft

one ol sd_:ralwar: dle them yourselfusins a
in s.aphic softwarep&kage, .opy piciuE
lrcm other Veb pago, buy a disk of . p arr, s.an pho6, or se a d;si; c;;ru.
7. You can add sud b), uing a hic.ophone connectedro your computd ro recoid a sotc
flq addinC linl6 m the pace will enable thosewho rccessyo"r \/eb pase ro he h.
8. Upload ihe HTML file to your \Xrebsite uing e-nail or FTp.
9. Rqiew ihe \reb pageto nahe sule rha! all tinl6 are conectly esublished to other vd,

10. Advenise your \7eb page io orhes and encounge rheh m srop, rake a look, and sell
feedbackby -nail.
Al i e r \urb.on' en, dfl el opmenr.rhen* r vep i . ro ptr,e Lheconrenro n , Veb . ne a
h o re p :ge.P opuh opti on.rrr l udr IS t< .ti ee.i re,.ud w eb hovi nq.W eb ho. r r ne. eniG
p ro ' i d e ,pac on rhei rV eb \i re for hdi v,du,j , rnd bu\i " .* . ,h,, J." i h, *, t "- f i"_- J
resoui.es ro have rheir own \reb sire o! doni have rhe rime or skills ro develoDrhe; oq
N rrb .;re .\ore Inrerner,e^ i .e prov' dni ndudeIi mi rrd u eb \pa,e.
rypiq y I io o I t ! .
aspan_oftheir mmthlyfee. Ifhore disk spaceis oeeded,rhoe are adaitonal clurg*. rc
sitesotTrlimi.ed spa.e for an Interner sne. In returo, free sitesoften re,rfie the usei ro riT
rd L e n h ingo, agreero o,hrre,n\ rnd .ondi ti on..A w eb hos L rnorhe ropr ion A s. i
h o { c o chrge $ ts d moreper mon$. dependi l 8on ,en i ce,.\ome l ve b ho{inq j6
In .l x d rd _omJi nn,meregFrtur;on.V ebrurhori ng,oftw ,re.JndJcrniq, "po", ng, nd. *

A numberofpioducts maked4elopins dd mainirDins web conrente6ier. rn

. shr-
rheseprcducrscu greadysihpli6, rhe crarionofa web pase.Microsofr,for eknple,
b.
inooducd a Veb d*elopmenr plarform aled .NET. m" ,,lm pUro- Ato_. air._
piogranming langugs ro be usedand execured.It also indudes a rich libftJy ofproge
ning @de io help build XML web applierions.once a web siie hd ben;om;u;.c
I
oht?tt ndkdgemmt !!!En (C,419 can keep the Web siie iuntring shoorhly. CMS con5is
ofboih softw{e and uppon. Conpuies thar provideCMS c; charsefrom
$15,000.
m o r,' h m . $r00.000enhual l y.depnd;ngon rhe@ mptoi rv of rhevab .i, e be, nenJr
J n d Lhr.erui ce.bei ng performed.Leadi nsC M),rndor, i n.tud e Br or dl i. , e
' rn e d
Docuhenrm, EBT, FileNer,open Maker, ad Vignerre.MaDyofrhse produc$& pos
uld. wirh a neer approrch to developing and nuinitning Web ontent elled IIrr
jnr.arj drscussedndi.

WebServices
Siandardsand tootsthat streamtine
a ndsimplifyco m hunc at ionam ong
Webs les lor busrfessand personal

usesweb seryicesro lint about 700 autonorive dealerson rhe rnternr. The \re s Fa!
brnl< u'e' Web,enic6 ro pro.e* ele.'rcnic palmenF tor ir. r00 1",e",,
o*
ro me n .' 7A,cordi ngro srfl e Fl ti ,. aecuri ve\i r pre.i denror V el t. t" g.. -,o-,r.
"U. ; . g u-
snrcs redks t.aounr setupl times by 30 ro 50 percent fd .h new ;rond *; adi-
\ eb (fBic$ (o J,o be 6ed ,o devejopn$ ,ynm. ,o ,fnd Md rcLeive.eLure
ne$rs,
b e B e e n h eal t}tqrefdri l i ue" .ddro^.rndprri enr.$hi l enJi nui n.ngp,r;enr pr iv, . ) .
 rhe .rernd.nLraneLs
aid Enf.na. I o*pter z

The key ro Veb serics is ni4],'lua asHTML wasdevelopedt a srandardfor fot-

rating \Veb contentinto Web pages.XrVL is usedwnhin a \feb pageto describeand
:ansferdarabemeenWeb serice appliadons.XML is e*y to readand haswide industry
irppot. Besides XML threeother componentsareusedin \feb seniceapplierionsr

: SOAP (SimpleObject Acces Protocol)is a specifiedon thar definesthe XML format

for mesages.SOAI']allom busioesses, their suppliers,rnd rbe; cu$omes to connu-
nicatewirheachother.lt providesasetofrulesthar makesiteuierto moveinfornation
anddataoverthe Internet.lonathan Peau, a nauger ofNASA s MarshallSpaceFlight
Cenrer,envisionsdsins SOAP ard online job sitesto hclp set resumeshoh Potential
iob candidares oler rhe Inrernetinlo NASA'Sconputer systemfor waluation,aithoqh
a full inplementat;onofweb senicesnay not occurin the netufururerJ
I vrsD]- (web Senices Deuiption Lmguage) provides a way for a wcb senice applica-
tion to descibe its inrerfacesin enough detril to allow a userto build a client application
to ralk to it. In otherwords,n allowsone softwre omponen! ro .onnect io and work
wirh anothersoftwdecomponenton rhe Internet.
I UDDI (Universl DhcoveryDescriprionand Integntion) is usedro register\reb sewice
appli@donswirh an lntcrnet dnectoryso that potenrialusen can exily find then and
car[' out transacrionsover the \treb.
Thereis srtongind;cationthar )(ML Web services technologyis morethar just ap*sing
::;hnical fad. Three major for.esin rechnolosy,Micosoli,IBM, and Sun areall inveting
i.avilyin\reb sericsdnelopnent. MicrosoftandIBM havejoinedto doelop \(/ebser;c
r:ndards to allow compuies to conduct busines over rhe l"ternet.r{ According to one
-.Justry expert, "It's a nilestone. The* two onpanies rePeent half ihe software
.Just.r." The vcb SenicesI nteroperebility ors.nizarion (lVsl) hs alsobeenestablished
r promote Web sewiccsinreroperability acros platforms, oPeiating sysiems,and progmn-
: h ;oclude dozensofbig rechnoloszonprnies includingHP and Oracle
languages.'zj
^g
The acccptanceand inplenentation of web seniceshingeon developmensin Intetnet
<:uriry md privary.As securiwand privacyisucs areresolved, we will no doubt be relying
: : \\reb senices to hudle noy of our online errunds. In facr, web sewicescould d*elop
.'o an electronic extension ofourselves. anticipating our neerlsand delivering information
=J renicesaswe needrhen, freeingup our tine for otherendeavors.

ANDW EBAPPLI CATI O NS

INTERNET
ie wpesof lnrernetmd Web applicaiionsavailableaie vdt and ser dPandins Sohe of
::*e senie aredncused nextmd sunmariredin Table7.6.

E -M ai!andI n s t a n tM e s s a g i n g
: mail is no longerlimitedto simplerext nessages. Dependingon your hard*areand sofr-
and the hardware ud soii-mre ofthe recipienr, you can embed sound and images in
-re
. .ur md artach61esthal contain texr documenr, sPreadsheetr,sraphs,or qecutable
:.grad. -esageThe authon ofthis book. for aanple, anachedchapterfilesto e-m.il inessages
:rr *ere senr ro ediron and r*iewere for feedba&. E naii travels rhrough the sy*ems dd
::ovorks that male up rhe Internet. Gatsays co receivee mail nessags lrom the Iniernet
rd deliler ihem to uses on other neworks Thus, you on sende-nail messages ro literally
{
;.one in the world ifyou know that penont e-nail and
address ifyou haverccess to the
lrirner or doiher sysrcn rhat can send e-mail
E-mailh* chmgedthe way peoplecomnuniote. ft improvesthe ef6ciencyofonnu'
: ::rions by reducing intenuprions fron the telephone and umcheduled personalcontacts
- :o. messages on be disrribued to nultiple recipienaeasilyand quickly without the in-
: : rrenience and delayof scheduliry neetings. Becausepast mesagescan b saved,they can
:t roioed, if necessary.Aod becausemesages are receivedat a iime convenient to ihe
 r..i p i e nr,drcrc.i pi enrh.s t;n ro ol !,n (l n,orc.l errtyi nd k, rheph,.Ij rr vpcople t , . ,
two or rur e'miilrddie$cs, imlLrdingli.e e nriil a.r!i.es.:6lDrn exp.rinrnr,: Colu! :
Unive6nr k,.blosisr snr.-nr.il n, r rardon gf.uf or peopcj rtxrg ro.onuct a st.(
tenon, n, re$ rhc so.i:l lirLs Lharc-nuil prx s.r tn mosrc.rrs. tr onty u,k fivc r, *.
reps rea.h rh( dsiredp.r\on. tlk rera'.hus *.erc giv.n t8 pcople ro loclt
'o

@
S um m ar yot I n l e rn e ta n dWe b
Enablesyou to send text, binarytiles,solnd and haosro
olh.rs

Car eer n f o r h a t i o n a i dj o b Enabtesyoutogel up to date iniormattonon careefsand

E f a b t e s y o !t o l o go f l . a n o t h e r c o m p u t e f anadccsssr r s
pubLlcIltes.Userscan lo9 on to a work complterfrom an

Efabtesyou to copya f le 1bm dnolher complter to you.

Allows peoptetoc.eaternd use a websiteto writeabour

thei. obseryations,expeiences,andreetngs ona widr ar : :

Usefel and newsgro!ps Allowsonlinediscussron

Iroups ihat focuson a Particutar

Efabteslwo ormore peoptetohaveontinetexl

conversationsin reatnme.

E n a b L eyso ut o c o m n u n c a t e w i t ho r h e r sa r o u n d l h e w o r r :
bytinking Internetand trarlitonal phonesefrtce.

hler neiv i d e oc o o f e r e n c i n q 5!pporls simuLtaneous

voiceand vis!at commLnicaiions.

Enablesyo! to t.ansfermutt mediatites overthe lnternel

s o l h a l t h d a t as l r e a mo f v d c e . n d F c r u r e 3p ta ysm o .o .

allowsrwoor more peopteto communicnleifstanrtyo.

Allows peopleto purchaseprodlcrsand srviceson the

Lels peoprebd on Ffodlclsand services.

M ! s ic ,r ad i o ,a n d v d e oo n Lets lsers playordownLoadmlsic, radio,and v deo.

Allowspeopleto haveaccesstoimportanltilesand
imormalronlhrouqh a Web site

Allows peopleiov ew prcdu.ts and tmagesat ditferent

angrsrnwnal.poears to be rhreed mensions

Freesoftw3reand services Allows peopteto obtaina weatthof free software,advtce,

and inform6tionon the Inrernerrunwaniedadveritsinaafo
false informationar porentialdruwbacks.
Additionatln!ernetse.vic6s Frovidesa varltyof other setuicesto rndjviduaisa.d
 I
Ior large organizarions whos operations span a country or the world, e-mail allows
:eople ro work mund the tine zone changes.Sohe $es of e-mil esdmare rhn they
:liminare wo hours ofverbal communications for weq, hour of e-nail use.But the peson
r the other end alll must checkthe nailbox to re.eivenesages.Table 7.7 lisa sone ab-
rreviationscomnonly ued in peronal e-mail nesages.Theseabbroiationsue normally
ror appropriate for buiness conespondence.

@
SomeColnmonAbbrevietions
usedin Person.tE-Meit

'llA'Thants ii advanc

Someconpaniesusebulk -mil to sendlegitimateand inponant infornation to sales

arlesentarives, cutomers and suppliers mmd the world. \fith its PoPJtuity dd easeof
e'nail
-<. however,sone people feel rhey arc drowning in too nuch e-maii. Over a nillion
:e$ages ,re sent from busineses in Norrh Amerie each year. This staggering number is up
:rn 40 billion e'nail nssases in 1995. Many 'nails te copies*nt to a large Iisr of
::rpone uers.':3Compuies and individuals te takins a number of stepsio ope wiih,nd
---Juce the nountains ofe-mail. Sone conpanieshrve bmned the useofcopying other on
: rails unles it is crnical. Sone e-mil servies scan for possiblejmk or bulk nail, called
;:2, anddelereit or placeit in a separate fiIe.z'gAsnuch * halfofall e-mailcar beconsidered
rm.ro Somebusinasexecutives reeive 300 ormorespm e-mailsin thei. corPoratenail-
rr\es everymorn;dg.The Sobig.Fvirus of2003 w!.\ sentin e-nail nesage ro rhousands
::;omputer.3l One onpurer teceivedmoa than700 e-ma;lmesagesin aboutflve hour'
Softwareproducrs can help conpanies. individuals, and evensone U.S. senarorssort and
r:rrer large amounts of e-nail. This soliwre has the ability to reognit key words and
:,:oses dd respond ro them. The federal government md some stam ae now proposing
;:slarion ro blo& uwmted e-nail.r'?Cal;fornia,for *rmple , hasproposedlegislationrhat
.,.uld prevent conpmies from sending uosolicned comercial e-mail to California rei
nts.3r The U.S. Congres pused a federallaw, calledControlling the Assaultof Non
i:,i.ired Po.nogriph/ ddMdkerinsAct (C"A.NSPAM),ro reducsPahsentby.onpdies
c rheUnited Snres.r{Uoforrunately.legitinate e-mailen get lct. Ar informal suoey of
10,000 individuals by z a]funnisr lot l{omationvz* revealedthat up to 40 percent
:: legirinaree'hdils arenot gening to their properdestimrionsr5
-rur
Insrst n.ssaging is online. real-dme communication beween rwo o. moie Peoplewho instantmessaging
I ;: connecredo rhe Internet. 'irnh itrtant messag;ng,two or morc scrcns open up. Each
r:<n displayswhar one person is typing. Beeuse the typing is displayed on rhe screenin
A melhodthat auowstwo o. more
n d i v i d u a ltso c o m m u .i ca r eo n t n e

--:line, ir is like alking ro soneone usng rhe keyboard.

A nunber ofompaoies offerinsant mcssaging, includingAmericaOnline, Yahool,and
AmericaOnl;ne is one ofthelcades in insiadtnssaging, wirh abour40 million
'r..ftxoft.
:-r ofirs Insrmt Messengomd about 50 nillion peopleusingirs clientprognm ICQ In
 rl-iir

r""t | * -.u ,o n r* r* rq y c ' ." 0 ,,

"

addirion to beingrble to type me$ageson a kcltodd and havethe informatn,ninsranLi

displayedon rhe orherpenon s screc.,someinsranthessagnrgprogransarcallowingvo,:
.ohmunicarion orconncctionto eil phone. A wirelessserviccprovidefannouncedrharr
hasd*eloped a technologydrar en detec when a person,scclt Dhoneis rurnedoo. \\ !r
this technologl',someoneon rhe Internetcm ue idsranrnssaghg ro comnuniare $:r
someoneon a ell phone anyvhcrein rhe world. Apple Compureris dper;denrins \r=
adding rudio and video io ns instarr messaging scflice,elled iChat.r6lhc isisht cam-
Gn be uscdto trans6r visualihagesdrough ;nsrantnessaging.
Imtant mesaging sewicesofle\ $e r btullt t^t rhet atefts people when rheir friendj s
alm online.This fqrure mrLesinsranihessagiDg cvennore useful.Insrantrnessaging r s
popularrhar it helpsItrrcmetsrvie providersand onlineservices draw ns cusomer oi
keepdld ones.Buddy lis6, howevef,can leadto ;nadvcrientand unwanredsalespitch6-
In one case,an instaDrmeseg advcniseda humorousOsam bin Laden e,me. \}d
d ,,w n l orded.
h. r,o8E m ,e1,.,mi t/r
" d\cnherncnFr,,everyone on rhepen on. ,h: dd, ls

Inter n e tCe ll P h o n e sa n d Ha n d h e t dCo m p u t e r s

lnceasingly,elt phono, handheldcompures,and orhcrdevie arebeinsconnecred ro &
l n ' e rn e ,.some.cl lphone.l or eLmpl e.cr be,.1l ec' cd ,o l nrernerro a ow peop. E
.e d .h l o r Ini orm,ri ,,n. ' hr
buy proJu.u.rnd ch" , w i rtrbu.i n* . s.oLi J. \ rnd r r i. nd. . \
nedager for a cohpurer company an ue her cell phone ro checJ<her company's Inreu
rre to strerherrhercre enoughde.l ,rop.ompurer,rn rnrcnroryro fi Ur Lr eeor der: y
"cc
rn ,m 1 ' ori rnr . u.romer.U ,i ng shon V esrS eS eruie. p." pte.an .en.tbri eir cr rm e. . a- ^I
up to 160 che.ters bemeed two or more cell phone ues. The seryice is often celd
t rtt,& Somecll phonesalso come equipped with digitat camerd, FM radios, video salrE
J n d .m ,ll @ l or{reen, rc w rr,h ry. U ,i ng mul ri nedr/me-rB i ng,eN i e rVV\ , . peoF
cm sendpicrures.lideo, and audio overcel phons ro other cell phonesor InrerneisiB
An i.surance inve$igaro! can use MMS ro .end phoros ofa car accident to a cenrat oIi=
td processe insuranceclain. ofcouse, .ell phonescm atsobe usedto sende-mail ness_
ro ,rh e n Legnhrron p* ed i n Ll l 200J Jtos (ttphon( 6eN o keep,heir p honenum r s
when sitching to morher cell phoneconpmy.
In addnionto cell phoDes,handheldconpuer and otherdnices can,lso be conne.td
to the Irternct usingphonetineso. wireles .onnecrions,srch o WiFi, discussed in Chao-
6. once connected, rhese devi.er have full acess ro ihe Inrerner and all ia aoolicaro
d i * u * e d i n rhn rnd ,h' oughourrhebook.Mbae^ u,c hrdi etd .o m pur , . , .. . - r
' hrprer
as rhe Bla.kBerr/ or Treo handheld cohpurer, dd rhe Irrernet to check busine$ e,Di
when they re out ofthe offfce; salesnpresenratives use rhcm !o dehonsraie producr! rr
cusromers, .heck produci availabiliryand pricins, Dd uploadcustone.orde6.

C a r e e rIn fo r m a tio an n dJo bSe a r ch in g

The Internetis an qellcni sourceofjob khted infornation. t ople lookins for rhr; i,
job or keking infornarion abourns job oppoiruities cm find a weafthof inforhaa..!
Sedch dghs, Nch { ,au.google.tun ! tutu.tdhaa.roz, an be a good stuing por
for serching for speciticcompaniesoriDdutries. you can use. direcrorvon yahoo,i hor
p rg ..l o rcumpl c.roerpl ore rrdu' rri c,anJ V on mcdi umo,r, se@m ods
' rri ou'
h .v e l n ,cmersi ,e.,hJ' l i noperpo,i ' i ,,n' ..JLrri-reer,
e,brnefr..ddp(,ptero.onr , . , i", r un;
i n fo rm rl i on.l B M . w + .i te.utu .tha.aa. h8 t ti nt ro " ,ob, r' tB M.- vhr n I o, r . t - a
on this link, you can ser inforhadon on iobswnh IBM round ihe world. Somernrld
sitesspecializ id cenain carees or indusrie\. The site Mu.di/ectndlhetia{cdrce$loh t*
d irecrmrr kfr in8 iob. rnd arcc^ Md rhe \ire / /, rr,s ,a4,.iob,
"o4 tit, in,!t,nce ir
s o me' i re \ d hel pteotl e dc\el " pJ B oodre.umernd fi nd r Foodi ob. fhl \ ( ar J, o hco
you develop a effrtive cover letter or a resune, prepm for a iob inreriq, neqo(iar: r
g " " J e m p l oymenr e.r. anJ more.l n adJi ri on.,evcrJ Inrmfr .i ,c.\pd , J, / e i; h, r - r
-,nr
people ser job inforhadon and evenapply for jobs ontinc, tncttd;ns tutu.tuan,Er.tun
"A
u a u ,a ..c,b,i u.,.,oa.you mu,r beorerut w henrppt)i n8 rorj obaontrre.ho$Ne . \ - E
bogus cohpanies or Web sireswilt sted your identity bl. asking fir peBonal info.mar;,!
 IntanetsandElranets I
Thenternet c}lDt4 ?

Pople eagerto get a job ofren sive rheir SoialSecuritynunber, binh &te, ard other pesonal
oformadon. The eulr cm be no job, large bills on your credit card, and ruined oedit.

Severallnlerneis le5 specati2ein

help n9 peoplegeljob lntormation
a n d e v e na p p l yl o r j o b so n l i n e .

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r"qaa"; 1{$

tetnet and FTP

Ent is a terminal emulation protocol that enablesyou to log on to other compuren on Tet||et
lr Inernel to grin ar:<x to tl'eir publidy available file. Telnet is panicultly uetul for A lerm inal emuletionp.otocotlhat
enabtesusersto l o go n l o o th e r
yauing library ord files and large databas. lr is also calld nm* logot.
c o m p u t e r so n t h e I n t e r n eto
l garn
File TransGr Prctocol (FT?) is a protool rhat d*ribe a ffle trmsfer proces berween
5 ! to$ and a remore @mpurcr. Using FTP, @npatries ad individuals co opy files fron
.c computer to modrr. Compuies, fot eanple ue it o tnnsfer anounts ofbuines FiteTransterProtocolIFIPI
sscrional data ro the compuers of its customes ad suppliers.-ert
FTP on alo be ued to A protocolthat desffibesa fite
tran5terprocessbelweena hosland
b pu accessto a wealth of fre softqre on the Internet The auhors ard editors ofthis book a remote computerandattows
! e:l an FTP sire provided by the publisher, Course Technolosi, to shareand tranfer im- lseG to copyfitesfrom one com-
ptoot files around the world during the publication proes

Ueb Logl8lo9l
t l[eb log, also called a blog, is a \reb site that people can create dd se ro write abour Webtoglbtogl
33A &iqga'is a peson A Web silethat peoplecaf
a t i ob*mtions, er?riences,and feelingson a wide rarge of topia
a.d use to write aboul their-eale
obser-
;o createsa blog, while Dbg'zg refer to the proce* ofplacing enrries on a blog site.3'A valions,experiences, 6nd feetings
I tr:g is like a journal. when popte post infornation to a bl%, it is Pl&ed ar th rop of the on a wide rungeoftopics.
trs. Previou enuid on rhe blog rc puhed dom. Blogs can be ,:sed by alone or any
,rruiarion to publish md share infornation. Jacob Crossrnar, a soliwte engineer, ue
{0 "One of
r$og: ro shareinformtion ,bour the status of engineering projec$ wnh orhs
t b( disadvantaseofa paper-basedengineeringnotebook is ihat ir's hard to ffnd things unles
* to go throush it mmually. So I decided to userhe blog feature of the Social-texCs
"or
- a;r*are to keep nack ofmy ide*," saysCrcsman Seethe "Information Systems@ work'
- &rue to leam about addirional uter ofblogs
t
lt
I
lnscene EmbassyChangesMarketing Focu3with andntterw'tiats postedto keepthe btoqscte-
the conversation
Btogs
Meg Ho!dh.n, coauthor ol the baak We BIog: tubbsh,9
lhe Webtog o. btoq,h.s becomea poplLa.methodof Internet
Onlne with WebLogssees a powe.fut commercial futurc rf,
comm!nication-sopoputaf.n fact.that manybetreve t has the
btogging."Commerclat Web stes arent nherentLy beilef iht
potent:t to changethe nat!fe ol theWeb.Btogsempowef.eg!La.
peEonatones, but lheyhaveblsinessmodetsand budgeisTha
W ebiz ens lci ti z e n f bJp
thseoWe tou b ts h th e .th o ughtsw thoutany
ha! targetalrdencesthai can benelt from the typeof focusj
formatknowtedge ol HTML.Someformsol btogsare simrlarto
contentpfoducedby btogge.s.Whena bloggeris beinqPaidr'
use.etnwsg.oups desiqned forihe Web MostbtogWebetesafe
ma ntainaWebtog, he sabtetodosoflrtl t me,withalth s attentio'
centered afo!nd a pa.tcLrta.topicand mdybee theronepersons
focusedon thetoplcof choice.
ongongwrt ngo.assortedpostnqsffoma gfoupoi w. tersorthe
Btogsare tEnsfarmlnqthe Web from a mediumlor oc
thosewth HTMLknowtedge andWebseNe.accessto a fom J
Btogsbegan:sLrndergraund commenta.esp!blslredbyand
communic.ton and expressionfaf soyonewith an Inter.E
for 'nternei nsiders thosewho spefd a substantaL po.ton of
connecton.Btogshavea uniquepowerandsppeatfof thoses-n
theirtves oni ne Theseoriginatbtogs toakthe form of Websites
becomelnvotved with thenr.Enthls:sm is contagous,and l.
.entered on the ofien rcdicalvewpointsol and
deas:nd enefgyqenerated by dsclssionon blogs,f hamessn
malcontents Withn a fewyears,though,bLogs 'ntettectuaG
werc dlscovered
by
coutdbevery!sefutiocommerclat enterprlses.
the generatplblic throughpostingson Wbsiiesthat cateredto
specalinterestgroups.Bloqs e!ntuattymade therr way inio
mainstream whentheywe.ementonedon nelworkW, n
cLrtture Diecussion0uestiong
magaznes,andon theradio 1. Howhasihe useol blogschangedthe waymarketerscotL::
The powerof lhe btogcaughtthe attenlionof the business markelingdataat jnsceneEmbassy?
communty, especiattymarkete6. Eusinessesare $.ousty 2. Besldesbeinga cottecton pointfor customeroplnon,hos D
extsnrning the potentatof btogsto g:ther and harnesspubtLc Inscene
thebtogsasslst Embassy in seLtngctothes?
op non regardingthef productsOneof the botdestexperimenis
n p.odlct-basedbtogshas beentaunchedby InsceneEmbassy CriticatThinkingQuestions
Lnscene is a Ge.manl:shionlabelthatappeatstothe teenmarket,
3. lf yoLrwere headof marketingat Inscene, what rnstruct,t
with fashonsihat are caslat,rcdlcalandcross-cutturcL nscene
woltd you qve your paidbioggersto assisi n butding)6-.
has d.aftedyolng peoptein sevefatcitiesaroundthe wortd-
prodlcts .eputationand rnaximizlng the amountof vatla*
nctuding]okyo,NewYofk,LondonandBerln to maintan btogs
info.nration
)rLrcancottectfromthe btogs?
ascLrttulambassadors forthebrand
4 What dangersdoes InsceneEmbassyexposeitset{lo n
The btogs crcate a sense of commlnty among nscene
supporting a plbticfofumcenteredarcundtsproducts?
customers, !4house the btogto sharethei. thoughtson fashion
and the tatestlnscenemerchandlseThe btoqp.ovdes nscene "LearnngircmBtoqs,
SoURCES:
Jame5Lewln //'Vo.ld,Decehber
lT z!Cl,
wih nvallabteinfornration on the way its largel marketthinks. w.itwrtd coo Lns.dne Embassy Web sire, M.itucene-ehb#t
Thepaidyoungpeopte, whoactas moderators lorthe btogsguide accessedM3.ch 20 2004;lonathan V Last, World Wide Dean, rrP
Stahdard Janrary I,20At
 Tha nternetIntra.etsaid Eiim*r. I cb.pt6r ?

Blogs exist in a wide wiety of topics and areas.For eumple, rhe Vestern StatesInfor-
:adon Ncrwork (\0SIN) dseloped a blog to ello* local fire departments, water depan-
:en$, and simild osdiations to shrc information online.a' E-nails bet*een departnents
;e postedon the blog. Thc blos provides a cntal loerion where all e'nails can be po*ed
id !ead. Bloes ee used by jounalisrs, people in disa$er arear, soldiers in ihe field, dd
sple who just warr ro express thernselves.a':Venture capitalists an use uel.
.atuteblog.con to iwestigtte Internet or dot.com companies.l3Ton Duchle, the U.S. Sen-
re minority leader, ha a blog dut he ues ro wtite an online diary of his trips and
=ceriences.{{Aeordins to Da.schle,"This ne* blog conceptappealedro ne. " Howud Dean
!J his staffused BlogforAnerica.con o posr enrriesrelated to his presidenrialcmpaign in
:r04 beforehe droppedour ofthe rae.
Rlos snes,s'J.h a$ tuutu.bkgg.r.nn ad uuu.ghbeojbbs'.caz an include infomation
;d tools to help people createand me web logs. Blogs are edy to set uP. You crn go to a
aos senice provide., such /tuu.lirejortul.on tate a user name aDd Palswod, selecta
=ene, choosea URL, follow my other instructions, and sran maldng your 6rt enny.

Usenetand Newsgroups
f*ner is a sysremclosly alied with rhe Interno that usese-mail ro provide a central;ed
:ovs serice. It is acrually a protocol rhar descibes how groups ofnesages can be stored on Asystm cLoselyatliedwlth the
I n t m e tt h a l ! s e s e m ai L top r o vi d e
rJ senr bea*een conputers. Following the usenet protocol, e-mail nessagesare sent to a
a centfatizednewsservrceia proto-
:,rn computer that acts d a uenet sener. This serer garhes information about a single cot thal dsc.ibeshow 9ro!ps oi
-:cic into a cntral place for mesages.A user sendse-mail to the sener, which stores rhe m e s s a g ecsa nb e s t o r e do n n dse n l
r:sages The usercrl then log on to the serer ro read rhesemesagesor have sofrwareon
:. computer log on and automatiolly download rhe latest messagesto be read at leisur.
:. us, useaetforns a virtuai forun for rhe elrcrrcnic comuniry, and this forum is divided

Nemgroups nake up reenet, a woddwide discusion systemclasined bysubject Ardcles

,r are posred to newsgroupsusing nmreader softaare md are rhen broadqsr to grou ps
0ntnedi scussi on t hat iocus
-essrges
;cer interconnected compucr s/stemsvia a wide variery of nes ork. A nssgroup is es-
crrially u oniine discusion gbup thai focues on a paaicular toPic. Nssgroups are
r:anized into wrious hierarchiesby genenl topic, md within eachtopic there can be many
uropic. On the Inrernet, there ne tens of rhousandsof nemgroups, covering topics frcn
rology ro rcolog. GeeTable 7.8). Discusions rake Placevia e-mil, which is sent to the
ro:groupi address.A newsgroup may be noderated or unmodented lf a nwsgroup is
rcJerared, e-rnail is autonatically rourd ro lhe moderaror, a Pe6on who scrensall in-
:=ing e-nail ro nake sute that it is appropriate before posri it to the nwsg.oup. Some
who are frequenr n*sgroup usersinvst in a nmgroup reader that make reading
-rple
cJ posing mssases edier. Peoplepo$ing ne$ages on rwsgroups should be creful. Sone
r*net sitesput millions of nemgrotp mesages rhat go back to 1980s online for anyone

@
SetectedU6netNews9roups

ell.t+r "i .

\ewsgroup sene$ aroutrd the wo.ld hos newsgroupsthat shareinformtion md com-

r:tary on predcfined topics. Each grcup takes rhe form ofa large bulletin botd where
 Part 2 | irdtrar oi Trh ir Loqrcomepts

nenbeB po$ and reply to hessases,crearinswhar is called a nesdgethfta!|. The open nrt=
of n$sgroups encouruges parricipaiion.but the discusionsoften becom. ranbling &
unfocNd. As a resuhofso much activepanicipatidn,newssroupsqn qolve into iisi
comnunnieswherc@r!a;nmenbes rcnd io doninlte the dncssions.
Here aresotuetips ro considerwhenacce$ingnewsgroups:
1 Vhen you joh a newsgroup,first checkns li$of lrequcnEAsLed Questions,or Frqr
(pronounced"facks"),befor submiriinsany que$ionsro rhe newsgroup.The FAQr
will haveanswesto connon quesrionsrhe group receives. It is consideredihpolir. r
wasrethe gronps tine by dking commonquesrionswhen FAQSareaveilabl.
2. Readncssagcswithout respondingar lirsr ro get an understandingofrhe nsvsgro5
Many nossroups includcnember fron aroundrhe wond, and in the interestof cc=
resy,you shouldpick up somesenseofrhe audienceand irs culrurebcforejunpin: 6
with quesrionsdd opinios.
I. L n i ,npol i reto j ump i n.,,fi , mi ddl eofr onver,Jri ol .
4. Avoid rtsing pointsand issueslons sincediscu$edand abendoned.
5. Be concernedahout what you say and rhe fcelingsof orhes. Renehbe., a pe6ol r
receivinsyour mesases.Do nor useextrcmewordsor rcpearruno6 (youcouldrnk.iJ
or defanatior lamuits).
6. Do nor post copyrighred naterial, and be erctul how ,vou usc copyrightednd-l
downloadedto you computer.
7. Proieci yourselfby not offering peronal informarion suci d vour home add:s.
enployer, or phonenuhbe..
8. Rememberthat cln globalonlinecommuniryhasfragmentedinro thousands ofdif.:-
grcupsfor a rcmon o naintain rhefocusofeachconference. Respect rhespeciff.sub
ma(er or ne group.

C hatR o o m s
A chat rcom is a facilirythat enableslwo or nore peopleio engagein inieractive"con.-
A lac tlylh at en ablest wo or m or e sations"over the lnterner.\flen you panicipareiI a charroom, rherenar be dozer d
p eo ple toe ng ag elnlnr eGvce't c on-
panicipanrsfron arourd rhewodd. MuldpeEon cha$ areusuallyorganird aroud spe.jc
vers6tions overlh nlernel
topics,and panicipanrsofrcr adopt nicknanesto nainrain anonymiw.One forn oia
roon,Interner RelayChar(lRC),reqdresprticipmts to qe rhenconvesaiiorrarhers
spetk.Voicecharisalsoanoption,butyounuthave amicrophone,soundcardandspeel=r
a fuUnodem or broadband,ddvoice.hat sofNare@npaliblewnh rharusedbyihec:'

Intern e tP h o n ea n d V id e o c o n f r e n c inSge r v ic e s
Internet Dho.e servi@enablesvou to communicatewith orhes around rhe world. ,
serice isreladvelyinexpnsive andcanmakesemefor internationalcalls.Virh sornesen,:sr,
it is possibleto hake a cdl fron soneoneusingrhe Internerto someoneusinga san
phone.You on alsokeepyour phone nunber when you move to anotherlocation."
cordingto one Internetphoneue!who noved fron Madison,Wnconsin,to Caliblni:
wasso happyabout thar.Nodins changedfor my custoner. For all rheyknew I *r.
tr Madiso,. " Cost is o6en a bis A.ro. in use oflnre.,er phones a .aI can bf as los . t
cenra minutetb..elk wirhin lhe Unired Srates. Low raresarcalsoavailable
for.allins oucj!.
the Unired Srares. In addition,vo;cemail and fd opabil;desareavailable.Sone cebl.l-c
.o m p a n i e..toreQmpl e.r,.ol l eri rg.abl en.phone,ery,.e.dnd.rl l crl Dt or J1oe, . : D

Usir,s lane ouetIP A,IP) rechnolo$', asdescribedin Chapter 6, nerwork mmageF

roure phone calls and far rhnshissioN over the san nework rhey use for data .r
meansno nore separate phonebills.a,catsays insralledarborhendsofthe connuni
link convert voice to IP packersand ba.k. \0irh rhe advenr ofwidespread, low-cosr lN.:!
tetephonyseNices,r.adirionalLongdistanceprovides arebeingpushedro eilherrespoc:E
kind or trin their own long'disencerares.The s.hool sysremin Appleron.Wiscosn. j
exmple. installeda phonesysrcn b*ed on the Inrernei.nd sxvedabout30 percenra
 Th derner nranaE aii Er!rr.L-

r releconnmidiions co$s.{8A *an'up organization calledSL}pe.foundedbi someofrhc

.:n. peoplewho developed m$ic'shafing sireKazaa,hasdcv.lopedsoftsareb allowpeople
. nake fiee, clearphone alls over PCs ulshere in the wodd.aeAccordingro Michael
Nell, chai.manofrhe U.S.ledenl Connuniclions Contuisnm (FCC), lnrerncrrech
rlos,vhs rnolurionized conxnunicarions: "I knew itwas overwhen I downloadedskype.
I hcn rhenrveniorsof Kea aredntributibg fo. freea litrle programrharyou cd usero talk
uvbody clsc,rnd fte qolity is fanastic,and ir is free ir s ovcr." VoIP (pn'nouned
:jr) is growingfrom 30 ro 50 percentannually.ioThe nunberofVolP linesis erpecredto
...(d l2 nillion bt2006. CompaniesfiarofferVrIP iDcludeI'rcker8,Callscne,Dirlpad.
' r2l'}honc,and WcbPhone.5r
l-igure7.7 showsho\rVoIPworks.Voice&vels ovdrhe Interner,rarherrhanthecircuit-
:Lchedpublic ncrwork. Most corpohte IP relephonyapplicationsuse gatewaysthet sit
.r,ecn rhe prbiic bnnch excha.se(PBX) and a rourerro convcrrcals nrro IP packe$and
,nt then onto the nerwork.Usingpackeisallosr nulripie partiesio sharedisinl lines,so
:.:r rransmissn,n is much moreefticienrthanftaditionalphoneconvdnatuns,eachofwhicl
.:uires a line. \fhen the packeahit thc dcstnrariongare$,av, the nesslgeis depackerized,
.rfted beck inro vo;ce,and our via localphonc lincs.\Xrith newernultiVolP, rhe
'e,n
r\. seenin Figue 7.7, is not neded. Phonesarednecdyconnccrcdro a ndtivolP box.
r:, aiimgenent.an bechapsthansranda.dVolP, mdkingrhc technolog norc *ractive

@
HowVo;ceOYrlP Works

b;

1..odcc(.,lrprcsion l"enpresion) dedcepieparesthe voicerammission bysqueez-

::hc recordedsounddaraand slcnrgir nro packcrsfor trarsferoverthe Internet.On rhe
- . . ing end,a codecreassenbles and dccornprcses the daiaRrrplaybdck.Differenr@des
.., : r im iz edlbr diffe re n tu s c s a n d c o n d i ri o n s ,rndthechmcteri sti csofaspeci ffccodeccan

\ h.r is especially
inreresdngabourVoIP k rhe waysvoiceis beingnerged whh video
..: lrra communiqrions overrhc \Vcb or a conpany: dat! nerwork.In the lons run, n s
::r'cosrsavingstharwill boosrrhc rurlet, ir's rhenultimedia capebilhies
ir givesu and
 Pst e I Drrmaronr{hnoLoqyconeprs

the smdt calt-mdagenor capabilides. Travel agenrs

courd use voice and video over $.
lnrerner ro discus ftavel ptanst \/eb ner.hm$ could
ue it ro show merc.h.ndjseand bll.
d d 6 :.J,rcme,. outd.hou .rppl i er,prohtem.ri rh ,h.i r
prorl u.n.
rh remd rdm(onl eren,i ng.w hi J .uppon. borh,oi .e.nd
rnurt,omm unnat r on.u.
mponr{ In' ernc,i pD ti (" ri oh.Mi .,o.orr. N erV eeri ns.
i,\r
------- ---------:he $i ) J uri l i rywi,hr nw, [ do*!
In dpo!vrdd.eN to, peopl eroheerrndconmunr" r.onrhe!V. b. I he
(rn rr.o oe urd ro broJd(an.Je\.emi nrF t nr e, n<
u< i ngpre.cnri ri on.ot,w e, nd videoconJe
e n (i n gcqui pmnr.The.e In,ernerprr.enuri ^n.rL ofi en.,j hd \/eb.st .
o, ! vebi. : ;
c o d ( ro ! oren t I urtj mrge.i n,oJ !,e.h otdi 8i ul h,,.
_a,* ,t.,"
t 1, "; o. - t_,. 1, s"in.
t ideoprcdu.r,q
i .upro,,mutri|.in,
.onre,en.lns.
in *r.,.r,,",iifr" ,..J"0*,,',r,"1
taneouly on fie multiolescreen\

C o n te nStr
t e a m in g
C o n te nr\rredi ng i a merhooi or rrrn,ferri ng mutrj mediflr c, dverrheIn r t r ne,, o r ha.+r
A meth odlo f ta ns f er ng m ut r im e
,.:.,." u pn,ure,ptrF norc o. te-. onri nuou.t).w i rhour
dia Iltsove.the lnternetso thal the :1 d br cr k,o, qr j
d atast.ea mo fv oic eandp c r ur s v e,,r rs
)" .T IneD
or
: . I' i t.o rnrbh, u.e^ ro brnq\. tcrg.fi l e.i n
reJ ri m.. l o. n, m r t e, r a r , <
playsmore or tesscont nlously rh.n mir th half-hour ir mighr take for an enrire
5_MB video clip ro downtoad b.ef:.; ull-
w lh ou ta bre ak or v er y lewot r hehi cd play i! userscm besinvi*inga srremed video
enabres!sfslo bfowse targeiites
o ir is bei; received.

S hop p in go n t h e W e b
shopping on the web for books, clothes, cas, nedications.
md qen mediol advice cu :,c
.o n re n i en,Jndea) \mctnrerner,hopp,nrretol rJrorfsfaFi ti r,tn,e,r cr
\ , r e, .nj
F g e d n s\ro, w c 6ubtnhed rnd popu,4 Inrryner.i rc,
Io ro rh ciror he, . on. : .
rrc n .e .,mrny w eb,r' e\ ofl cr trer.hi pti ngrnd t, " dd
pi t up r" r re,urnedi rem. r h: r dor r i
ordon rmeer acusromerfned'tTable 7.9 showsthe
numberof unjque;siroK ro sen.j
Inrernershoppingsires.'3

rElq
UniqueVisirorsto Shopping
Sites
lSource,0ata from Mylene
rvlan9atinsan,YahooHopesNew
Seryce TurnsSearcheB nto
Shappets, rhe WaI Street
rod r,al Se pte m bf 23, 2003,
p.B1. l
.,,::gt
ti:,,ittt:.
11,

MS\ SnoDping Lq

In re si ngl y.peophrre bi ng bob ,o hetprhemse/nh

bot ,In re rn e r. tor i nforhari oho r , hoDon e
n bor h r .oh$rrerootrhr \rr(he\ rt_eW eb fo, Inrormdi on.
A sollwarc tootthatseafchesthe p,od u.r . . or p, , 6
b:r short fot rcbot en tind rhe bqr pries or fearures
We blo r if fo .maton, pr oduc t s 1- frcm nutdple Web ,rs
Hoibo..con is an ehple of an roreher bor.
 the ni .met i rai ?t .r.l E n.,rx

Au cti ons
'Ve b
\\'eb auctionisas'av ro narchpcoplcrnd conpanicsrhrt s'ant ro scllproducnrndsenices
. :h prople and compuies who rvantto buy productsrnd senices.\(rb euctn,nsiresarea A n n t r n e sl t e l h a t m a tch sp o p te
:e wbet businesses aregrow;ngrhei. marketsdr reacbingcustomersin a very low cosr- w h ow a n tl o s e t tp r o d !ctsa n d se .
v c s w l h p e o p t w h o w a n ttop !r
.-.ansactbn bsn. Web audnJnsaretansforning rhe .ustond-supplir .elalionship. chaselhese productsand servics
h addition ro opical productsandservices, lfferner aucrionsiresexcelar offern unique
j inrd-ro-findirems.!-indnrgrheseirenswirhourrn lnrerneraucrionsireisofter diticuLt,
::consuming. md expensiv. Th busineseto'businss applicarionof crion siresis ex-
,.:rrl ro contilue. Almosr anFhing l-ou nraywant to buy of s}1 cu be ibuld on auclior
.i ODe of th mor popula. auctionsilesis eBay,which olien hs mill;onsofaucrions
:rfting ar rhr sametihe. Cdhpabies,suchasAuctbnDbp, will sellvour iremson e8av
'tr tee.!!Thc cBavsireis edsyto use,ud a largerumber ofproducn and senicrs can be
:d. eBayis alsoJlowingshoppersto nserne oftLeir loyaltypoinn fom Hilron Horels
r sprinr ro bu,rone of irs l6 rnillior ncmslisrcdon irs htcnet sitc.55 Onc point s worth
. p.!ny. h addirion ro eBr,v,thcrc arc a numbcr of orher auctionsitcson the \feb.
r 'r e . r e n e r u n rg rl ,er o " r ,u.r or . re..
' l, olpn
\Jrhoughaucrion\[eb sitesareercellentibr marchingbuve( ud sellers,rherccar bc
:icms *'ith dreiruse.Auctionsiteson the \Veb arenor alwaysablero dererminovkthcr @
.lu.rsald sen'iceslisrcdby peopleand companiesarelegitinare.h orc casc.a person
.:.1 irens he didn r owh on an aucrnDsneand srcle$120,0001iomauctior users.56 l he
. *n sho stolerhe money,r'ho k now in jril. said, I neverknew how easyir was ro
-:: +ularepeofle.lt waslike uking candvfiom:habr. I n additi{,n,someWeb siteshave
: llegrl or .luesn,nableiremsoffered-Many \(eb siteshavean agg.essive fnud invesri-
j r;sten to preventand help prosecutefiaudulenruseofthrir sites-Even wirh lhese
. -rrial probleN, rhe useof\Yeb aucrionsiresis qpecred to conrinuero grorvrapidly.

{ usic, Ra d i o,and V i deoon th l n t e r n e t

. r, radio,andvideoarehot gfowrhareason the lnrerner.Audio aDdrideoprogramscan
. r .rrcdon rhe Inrernet,or l'llescanbe downloadedfor lareruse.Using muic playersand
. . fonnatssuchas MP3, dncusserlin Chapter3, it n possibleb d(,wnlGd mus;cfion
, .nrernerand li*rn o it aolvhere usingshall, portablenusic playds.

T h e n t e r n e lm a k e s t p o ssr b l e l o
t s l e nt o . a d i ob r o a d c asts.
U se r sca n
o- - ,i] ") ..4,{t d* olr!i{?!'!ff!.a! seteca t m u s i ca e n r e a n dh e a r

a
P . "i, | d n ,h i e .r o n .epf3
"

The Recordingrndunl, AssodarionofAmerie (R]AA)won a lcgJ brie asainstt.-,.

srer,prevenringrhe .ohpany froh .ltowing free copiesof music ro be sharedor.: -:
lnternet.MoLerecentiy.theR]AAhasbeenfilinglawsuirsagtnstindividuatswhodo$::d
nusic illegally.'7Bur a nunber ofconparies now offer nusic downloadsfo! ninihr =.
usully undera dollarper song.The hternet is alsobeingusedro forn musiccoll$o.:: a
that would be diliicult or inpo$ible othcryise,allowingnusicids ro rccoid husi. - ,

Redio broadcdrsre now availableon the Inre.ner.Entire audio boots can r,. ft
downloadedfor larerlistnins,sing devicessu.h asrheAudible Mobitc plays. fhi: .-:.
nologyis similarro rhe popularbookson,tapcmedia,exceprvou do!,r n.ed acas,e(.:,

Some cdrporarionsh!!e alsosmrted to use tNeinetvideo to broadcor corporae m:. e,

or to adveniseon the Veb. Docro$ canilso useInther videoto monirormd even;:-:
surgicaloperarionsthet take pla.e rhousandsof mitesawayfrom rhcm. As menrio:,:
Chaprr6, lnrernet v;deo is also benrs usedsuccesfullyfor leleconferencins,*t,-
connea employees. manages,hd corporareexecurivcs arou'd rhewodd ii privar..
sadons.Using Interner vidco, it is also possihlero rcceiveTV prograhs, such .. :
broedcors,fron m Internersire.

0f f i c e o n t h e W e b
Aide fiom rhe useofyideo and audio onfeienc$ to .onnecr enproyeeswho .r.
-
sprad,enployersare alsoofferingemployeesthe opdon of teleconmudngro dri :
Froh home offi.es,coworkcs cdn connecro theworkpla.r viaa vir al officeon rl:, ;
For exmple, you canreceiyea phoneell fiom you boss,who wanrsyou Losenda ri:....r
docdhenrro a coworkd imnediately.You nay alsowaor ro setup confcr.n.ecrll! r. .:
up.oh'ng apPolxmen$.
To help solvetheseproblcms,rcu car set up an hrernd ofiice.An rnremerolr-. ,
\reb sirerhaicondns lilcs,phonenunb6. enail addresses, rn appointmenrcalcu
tuore. Using r randard web browscr,you can acccssinpomnr fitesa.d ;nfornu,
Inrernerom.e allowsyour deskropcomputer,pLone books,appointned! schcdu,.:
o th e rimponanti nfornari ontobew i rhyouw herqcryouare.t-ordr osewhosilt t r : :
the;rwork, spe.iJ Internersiresallow rhcn to hvel lisht and neverlcaw inporri::: :
naion behind.An Inrencr site can allorvyou ro connec o an oflice or homc tL- .,
ravling usingtheInterner.lt is alsopossibleto p.iN docunenrswhile traveling.f
vidualsand enploveeswhoiravel,rhcseInteher sircsre invatuablc.
You en alsohire an omccassistanr on rhewrb.53'r'hcvlitual ofticcasistmr can ],
to do ac@unringtasks,help nlrker prc.tncts.or buy gif$ nrr firmily and friends.!
olfice asisnnrs can be locaredadossrhe countiv. 'I hey sray.dnnecredusingthe In::
fd. or Phonec.lls.

I n t e r n e Site
t sin T h r e eDim e n siq n s
Sone Web siresoffer thfeedimensional ofplacesand products.For example.:
Internerauroshow.oon ailowspeoplero'icwsget diferenr viewsofa car,sinularine rhc .:
enceofwalking ai.,und in a reatauroshowrooh.\(hcn looktngar r 3 D realesrarc:_
the\reb, people.an tou. rheproperry,go inro differentroons, ltnk arthekitchenappi_r
rJ d rn rakrJ vi ,ruJ w Jk i n rhes: den.\ i Lh,,r,, dorrbr,r D Inrerne r , i, **r : t
conhon in $e future.

Free S o f t wa r ea n d S e r v ic e s
'Ihe InternethasalwaysbeenkDowna! a sourccfor free
sofrware,rdv;ce,andserice. ,1
,o .s rre L,mJnro h,.r^,.e.j u.,J,.,u.ed,Jnh.dow nto" dedrromrt r clnr , , r - ".
charge.ICQ,the i!$ant nessaghgsystehdiscussed ertief, forerahple, an bedd,:
at no charge.Somee-mai1servies,suchasthoscofferedbv yrhodt and Hornait. :-:
6ee- In addnion, tlefejsa weaJtl ofinformation dndadvice or rte Inte.ner. Usi.g:,i
cngine, irisposiblerc obrain free irformatbn on almonanl,ropic, rdngingfron inrj:-
 TheIntefnei.
ikanels3id En,a*'. I c*rto t

r darins.Tihie 7.i0 conttns sone popularand usetulf.eesoftwm md services.Nore rhat

::e seruiceson chmge or oen stop their offerings wnh little or no wtning.

@
FrclnternetServices
wwlr,rrauweatnef..om

civs iofonnaliono; ha;dheld

;,,

Thc disadvanrages offree senicescm bc nany, howwet. some sitesbonb*d the user
.::h rn noying advertisingto coverthcn costsor ro makea profit. In addition, the information
:: rdvice may not alwaysbe tuthful or helplirl. For exanple, somepeopiehaveposted false
| ;rnadon on;nvestdenrchatooms, hoping ro nanipulatethe priceofastockmdnakc
, :n,fit. ln somecues,groupsor siteson the Inrcrnethavea b;u. They on appe* to be
tiptul but are actually try;ng to advancetheir om agendaby posdng falseor nisleading
r:rmation. Thus,grearcre mut heexer&edwhenobtahing freesotsxueor sericesfron

t e r v i c e as n dA p ptica tio n s
0t herI nt er n e S
:.r Inrernetsenicesareconstandyenerging.60 A ut mount of infornarion is available
the Intcrnetlrom libmries.6rMmy micles rhat servedo the bois of the bo*es,cases.
-:r
:: *anples usedrhroughourthis book were obtainedfron univeniry librarie online.
' :. ics sn be ordered dd even dclivered over the Internet."'z The Internet can provide
-:i.al info.madonduring rin.s ofdisasteror teforism. Duringamedicalemergency, crit'
; medicalinformationcm be tnnsmiaedoverthe Interner.Poplewantingto consolidde
:.r c,edn od debr or ro obtain lower paymenrson their exisringhone mortgags have
ri. :r.d ro sites,suchr Qdcken Loan, El,oan, and LendingTreefot help.
Thc lnternet alsohcilitates distancelcarnins, which hasrJrmatically inceased in rhe last
r .,,1 ycar. Ma"y collego ard univenitiesnow allowstudenrsto takecouneswithout oer
..:ing campus.In facl you nay be tal<ingthis ourse ooline. Businesses are also taking
;, rmageofdistancelearningthrorgh the lnternet.Video enee on be attachedro com-
r,=r md connectedto the Internet.6rInierner came6 en be !&d b.onducl iob
r ::r'iews, hold group meetiogswnh people mund the world, monhor young children at
r. ;are cnten, check renral propenies and secondhones fron a disrance,and more. Pople
:: usethe lnternetto conne.rwith friendsor othe6 wirh sinilar interesis.dInrernetsires,
L.h a' ZeroDesrees.com, Tribe.net,mdSpoke.com,are*amples ofsocialneworking In-
:-:r sites.
Ex-lnvesrco employees useInternetsites,sucho Xiovesco.con.to connectto
,-.r ex-enployees.65 Today, nmufacturer of soundsystms te puring Internetaod net'
.::h crpabiliriesinto their devices.66 For cnnple, high-endMaranizvideo prcjectos and
'::lntosh srcreoahpliliers 3reableto downloadmusicfiom the Internet.Other dsices fbr
::re useallow peopleto view photos and scenovies throughouta houseusingwneles
-..'orks and the Internet.67Garewayand Apex Digital, for elmple, produce dnices that
.i networld and ihe Inrerner ro mnsfer audio ad video files fton a PC to a TV
'lirelss
 Pds | ,,{rm'., rr.hr..Loqrcorc+G

INTRANETS
ANDEXTRANETS
intranet An intreet is an internal corporaienemork buih usine tnrerner.nd y/orld vride : ,
An nternarcorporatnetworkbu tt ,,rd rr d. rd prodl ,b. Lmpt,,vecof" 1 .,s," ,,,,,." ;..i ,,usa,n" ..e*
u s n q nte rne tandW or t dW deW eb o. , , - j!
sta.dardsafd productsrused by
i n r,{ mJri on.{i ergrn,ns rhei ri crr,rw i rtrprhti \eb.i re.,h" .;rcnd..onr DJr . . . . . .
mp loyee slog ah a. c es sr o c or po- r,,. J n d ,rryr.c,.!u' porJ' or\ re.erzi ng rt-e\eb d r.w r, sJr." ,,- , - i. . . .
. .
rr:n .' o rn- rhei Il -e.epri \" renctuu,k.u.eLh.,n,n.r, (. ur e"nJnar : - r
" rgu,rron..
o frh e lnrrmr,,rd,hc\t{ t.,l dw i JeW cb.A bi grd\rnrrgeor r,i ng" r,nrir er i, r t u, . .
p c o p rrrre dl reJ,l vtrm tL ri rh Inrernere.hnotogr..ort-.v i e(d t.,tr r r . ,n, r g r o. r
effcctiveuseof dreircorponreimmel
An int.lner is an incxpensivcy* powertulalernative ro other forns ofinrehat r -
nunicaion, including convenrionalcomputerserups.Orc ofan i,(anels no$ ob, .u
vnruesis its abilit1,ro slashrhe needfor paper.Because web browsersruD on anr n:. -
conpure., rhesameclecronic info.narion canbeviewedby a,yemployee.Thd meu. .--
all $r$ ofdo.umenrs GNh asinremalphonebooks,procedurenanuals,rruininsmi. j.
and.equisitionform, .3n bein*pemively convenedroelect.onlcfth, on th\i,eb:.: a
c o n s tandyupdared.A ni rl ranctprovi desempl oyeesw ;rhane{ w .Ddinr uir iveaDDir r : .
a * e * rng i ntormrti on,hr, $$ p,si ouJ) d,m.ut, ,o ob,-r. rtr s._Dt . , i, _
.o l L ri ol roprov,drngi nfo,m,ri onrormobi ' e,Je.tu.,erhrrn.ed.r..e , . t or up; ', , Jr . . : , . . - ^
infornarion.rnraDetscanatsodo soneth;nsfar morc inpurant. The BankoiNo z.a
allowsits 16 businesunitsto developand nanageconrenrft,r ils inrrder6s A.cord:.: : !
conpany spokespereon. "They'ven*er had rhe abiliq,ro havetharsenseof orvnersh L: : . a
L o n re rrrhJrqe.o no$ grrero bu,i i ,,. uni ^. rhe j .uni .h W " ,e r U, : in
' he
u n e rp p,G\rr.w i rh.i ,.Inrrrne' .qhi ch,rpta.eorhrertegrqsren\..-uL, , , . r , _r . . i'
e F h rp w rrh\rdb\ rheInrernJurTmuni uti on\ rerm.Jno se w ,nr< J oe er i , r r - e
b u s i n e$ropfovi dearool forpeopterosharecohnuni cadoi srcro$t heo; ed. ar F: . ,
, i h d J I /y. rhedi gi rJ medi rreah l erde,ror \oi r \h W are,.

an rnrra fe t is an nt efnatc or por at e

n elwo rku se dby em pt oy ees rgao n
acce ssro comp anylnlo. m aton.
 The niernet nrraiec andErtaieG I cb,ltd ?

I rapidly growins number of companiesolTer limired nework acqs ro selectedcus-

rmere ad supplier. Such networks are referred to rs *tuarar. *hich onnet PeoPlewho
.r ctenal ro the compuy. An xtdet is a network that links selectedresoures of the
A ntwork basedon Weblechnolo-
ofa conpeny wiih ia customers,suppliers,or orherbuines pmnes fuain, an
qiesthat I nks setectedresourcesot
rf,.net is built arcund web technologies.lmes Stoenson, an executivefor a hndon-bued
-clnet
a companys intranetw lh fts cus-
T:b Agenry, belioes *tnnets arebeing u.sedto a greter orent today "Are tiey being ued t o m e r s , s u p p l i e rosr o t he r b u si n e ss
n:. ? Absolurely. Custoders are leenins fron ihe exrmnetsof the pmt and engging with
t-:reating the technolog in a nore buinesJike way," sals St*enson.7o VHSmith News
?'
s rn extranerto help identi$ salestrends The magzine dis$ibutor usesirs extmnet to
; rnunicate daily salesdata to rciailoudets According ro Richard \rebb' busines svstens
a'ager for rhe company, "When rhe Ch/i'tna' Rndio Tine' TV Time' wert on the
^na
r:l'es, we could get feedbackon how they areselling ot ifthere arehorspotsfor salesThere s
r: much data reladng to ihis otgory-it's about distilling it down to nemingful

tecurity dd performan e oncerns ate ditrerenr for a" extranet rhan for a web site or
-.evork-based intranet. User authenticaion and privacy de criric.l on an dinnei so that
riormadon is protecied. Obviously, performance musr be good to provide quick raponse
:: .usome6 and strpplies.Table7.11 sumnarizesthe differenesbetweenusen of rhe In'
:aer! rnfianets,and dtIaners.

@
5ummaryot Internet,Intranet,
andExlranett sers

SecureintEnet and cxrranet acces applicarioro usuallv require the useofa virtual private
r<.rork (WN). Avirtual priratc network (V?N) is a securconneciion berwentwo points viriuatprivatanetworkIVPNI
Asecure coinect on belweentwo
r-oss rhe lnternet. VPNs transfer infornation by ncaPsulatingthmc in IP Packersand pointsacrosslhe lntefnet,
rdine thc packts over the Inrernet, a practie called tunneling Most VPNs are built and
.-. bv Inte-a servic. providea. Companies rh* use a \?N from m Internet servic tunnaling
TheprocessbywhchVPNslransier
rD. ider hav. e$ntially oursourced rhen nerworks to savemonv on wide arca nerwork inlormalion traftic
byencapsulaling
::!pment and personnel.tn using a WN, a user sendr data fron his or her personalcon- i n l P p a c k e l s o v e r l h en te r n e t
:.a to rhe ompany's firoatl, disused larer in the chaptcr' which also converts the deta
r:o a coded form that cannot be ecily read by an inrercePtor' The @ded data is rh'n snt
m accessline to the ompanys lnterner senie provid.r' From thcr'' rhe data is ffins-
":
r:ed rhroueh runnets rcross the lnternet to ihe reciPienCsInternd serviceprovider and
a- a" ,-*s line m the receiving companyt firewall' where it is decodedand sent to
"*'
:< receivertpereonalcompuer (seeFigure7.8).

@
virluat PrivateNetwork
 Per 2 I nior nr : ir E: hnoL. er . r r e p r !

NETIsSUE5
Thc r"pi* r:i*d In .hJD.er
IAN,. p,.\re vAN,.'hi. "trpt)nor,,rti ro rhr jnrcrn(-rndi,,rr1fl. nu(.1 ,
Jnd..*,r1.. onrrot.,..*,.\,,d*".,; .". .._
issuesaffe.t all nerwotks, so jr is in;dd.r ",,""*..
bmoro! some or lhese nanagencnt iss::

Managemen t es
lssu
A J th o rgh,,\e
1r,rc,
ne,i ,, hrgr.gtobJ r.,\ork i r i . mrnrgedd rhc.,,.rJt,
v
g .,rh .u gb,d),.drot.rh, InF l cr. pre\rnri ngr
" .k.,rtw ar,ri rp.rrf m "ne. :
tiii,iii i.'Jill
i_i';i. ":;ffi1.; Iil. :,ii; :
H:T;Iiti,T;Jltf
Figure7.9 showslhe q'pial sourcesoflnrerner an
, 00percenr
because,hose
b.i,s.,-.y",1 "
s"""
-,iif;;iii:f"-*"'.."'.",.

Typical Sou.ces of Internet

ISou.ce:Dataffoh RivaRichmond,
Howto Ftndyouf WeakSpols, rre
Wal St.e t JournaL Seprenher 29,
-"
20 03 ,p R3 .l

Although$eU.s. GdenlsovernheDt p.ovjdedrnuchoftheearlydirecrion

" rheInremer,ihesorem-.", a.*
tor andfr::-:11
"*.*" i,. T|. ti"-* S."i.,r....7
hre.netAcdviriesBoad (tAB)arelhe -,"_"g"
ctosesr
tie rn";" r,* . ***li
bodv.rhesesocieties
wG rornedro rosrerrhecondnu.a " "A*.._* _T
.r,r,. i"...,"iir_
derse^sa nuhbeJofreskforcesandcomhnrees rhard*t "..,1
u* r,"*" i,**. O.. ,,;
main.fu-rcrions
ofde IABisronanagerhenerworkpro._r. *"a Ur,r,"
r.*-*, i..t--.
rcl Jt soneuniw,,i.ir,""f
c1,1,.--, a"^". _e Inve.,,s.nnshow,het,,,_: : J
r.ivernro.raron
"qd oo n.g,*r;.-.,,.;;r i,". *;., , ..
I
t
S e r v i cea n dSp e e dlssu e s
Serviceard sped isses on thelnternerareafuncrionofihe
in.feasingvotumeof traF]: dc
I

*titffiT::$jf*l$:,",+.'IiH"":i;:3 n
I

rm*,:,:m*tn:il*::::;:.1.mll*
offi,;;;1;""'u',.a ;..i,*, * u
I

:Hll:iliiil,Y;:;:;lii ",'.,';..
.""x:ff::.* ;il:':T"1:
tu
;il'j::I.:;rHt
;.fi:;"11r;f
:$:t,:,:,;:: d

:Tj'i"::
ffi,i:ffj*:fi*f:I,:ff:,1=
ii::";"'#:$:i,'Jj.?i:ki:x.,." F

fi:fJ:ti:'."iJf
:Ti"'J:t":*i*
;:T#i.r;"TtJ:'iil*?
:*Ti*::;
 rhe dernd nranersaid Ertfa*" I o'"pt""
"

ra.kers, tunher raing rhe alreadyovevorked toutes. This leadsto long responsetimes or
.ossof the connection to the nerwork
Severalactions are opening up the bordeneck. Vtious backbone ptoviden have been
:pgrading their backbone links, installing bigger. faster "pipes" and converdng to nver
rmsnission technology, such as uynchronous trunsfer mode (ATM), which can send a
rssage down the right path more quickly than aandad packer-witching technologr. Each
\TM rmnsnission k preaddissed wi$ irs own route, so routing addreses do not have to
s looled up, and rhe packet cd zip rishr thfoush an ATM witch Also, rourer manufac-
::rers are d*eloping improved models with increasedhardmre capaciryand more eliicient
o6w& to provide quick acce$to addreses.Yet a third soiution is to prioritize mfhc. Today.
rl network rnffic ravels through the samebig backbonepipes There is no wy to ma]e sure
=at your ursent nssageis not stalled behind soneone downloadins a hagazine Page \Yirh
:roritized service,customen could pay more for guaranteeddelivery speed,nuch like an
:<rnighr paclagecostsmoreihd scond-day delivery.If implenented,this solutioncould
r:o affect the cost of network senices thar generatea lot of tnmc such d Inrcrnet Phone
rd videoconference sepices. Iinally, the incremed availabilityoffaster DSL, sate ne, and
:bleconn<iions, discu$ed in Chapter 6, areaisospeeding Interneraccess.
The cosrofthere
rrer senices is also falling.

d te r n e g
, e c u r i t ya, n dU na u th o r izeIn
P riv ac yF, r a u d S t ite s
issuesbecone even more in-
'i rhe use ofrh In ernt grows, privacy, fnud, and security
:rnant. Peopleand conpaniesarereluctmr ro enbnce rhe Inrernetunles theseissuesare
,.:cestully addresed.
Priva.y
: :om a consuner perspecrive,the protection of individual privacy is esentid Yer, moy
=rple usethe Internet wirhout realizing thar their privacy nay be in ieopatdy. A numbet of
:npanies, includinglupiter Media MeEir and Nielsen/NetRatings, help otherconpanies
E rn iror visits ro thir Internet sites.Thesecompaniesoften call a rmdom sampleoflnrernet
l<r ro gain insighc into the habits and dsire oflnternet mers Sone companieshire people
q r: .rit chat roons on the Iniernet ro get importani mtkering infornation
Splvare on hijack your browser, generatePoP'uP ads, and rePort )our activiiies to
r fteone elseovr the Inlernet. spazz consisa ofhidden files md informadon trackcr that
r you visit someInternetsiresMany lnrerneisitesusecookis
1l --<allrhemelvessecrerly*hen
T sarherinformtion about peoplewho vkit theh shes.A ooki is a rqt file that an Interner
A lext iite thal an Inte.netcomPany
II :npany can placeon rhe hard disk ofa computer spten. These text files keepnack ofvisirs
can ptaceon the hard dlsk oi a
r *e siteand rhe aaions peoplerake.To help pr*ent this Potenii,l problem,somecom' comp!rersystmto lrack !ser
rsrs re develogingsofrwareto prmnt thee files from being Placedon conpurer s)scms
Fkiecop, for ekmpi, allowsInternetmer to acept or rejectcookiesby Internetsne.
li,rosoftt Internet Explorer 6 browser also has rhe abiliry to screen\(/b sitesaccording io
iex privrcy policy. Usins lhe Platforn for Privacy Preferences(P3P), lnternet Explorer 6
r: sunnarize the privacy policy for Web siies dd prevent infornation from being tras-
r:ed from yor.u computcr to a Veb site that doesn't rneer cerrain criteria ln addition,
rri.ences in Internet browes cm be set to rstricr rhe useofcookies. Many browen atso
Jow usersto euilv delete cookies.
|r a-aud
'-t:rner fraud is another imponant issue.Sone peoPlehavereceivedfalsemesagesthat sem
r ]. from their Internet serviceprcvides asking rhen ro update their penonal infornarion,
tcuding SocialSecuritynumbersand creditcardjnformation But insreadofgoing to the
rr:net serviceprovider, the information is captured ard med by online rhieves.This type
t':nternet activiiy,ofrencalled2l6#tg, is becomingnore prevalentand dangerous. The
trsJibiliry oflnrerner fud hc prevented nany people from using the Internet Local, state,
r: t?demi agenciesae acrively punuing Interner fnud. As law enforcenent agenciesctack
l-r on fraud,public confidencein usingthe Internetshouldincrease.
 r,.t z | *..r ro.r"oLoqr
con-pt,
".

Se.uritywithEncryptionandFirewaus
\X/henncomesro securiryonrheInremer,n is essenrial to remembertwo thinss.First,rho:
i .n o .u h , hi ns^rb,o,u,e\cL,,ry \trond.prenN oi .t." " , p.." t..." ,,J.:; s; "; ; , ; ";
* .,,," rnerure._ rh. berrer our .e.u,i n. ,t e
l l " l ,. " ." " . " " l srere he. hr r ense.

per.feLrne..ecu,i .) of drru i . e.,enri Jt.

\uch, ppr oa. he.
Th ep rocessofconv er tng a m s -
sa geintoa sefe r c odeandc hang_
c ry D ,o g tuph)!rn hej p.( n?' ogr.phy i , (hep,o(s ot converi i ng J _* .,s . 1; , . " . . .
n g th e e ncod edm es s aqebac k t o ,o d ern d .J' rngrng,hc er. odeJmc..rgrba,k ro,egutrl sr. fhe o,rgi n., on; er , ion
i, . "t . j
e n c r)? rfon l he Lnn.odedme\l gr f,a| ed pt4;4k,t
fhr cn.odedme . . r eei\ *. . : :
./r,rra r I k\ rypron! onveu.i pl -ererr backrnroptri nr{
.\eeI rg!,e- t0 , . I or nu. h
,rD h) sa rhep.,rrn.eof mi ti tJryrnd i nrrti i een eJsen. ie, :
Thecon ve rso noi a m es s ageinr oa u_
,,J J rrh l e\oJe. w ererc\e^edl " r peopl er i rh .e,uri ry, teJrrr(e
onl ,_

Cryplog.aphys the processof

eo!--..-
cofve n9 a me s s ager nt oa s ec f et
co0 ean d cha ngng t he enc oded
me ssag eb ack nto r egut afr ex t

T h e ^ Dautn. j pri or S undard,D I-S ,.ddopred a fedeal i n I o - r o o or *

rn d a l rre d omrMr,' i on,,1d d" u. w d de.i gmdby" IB M " rrdJrd
rnd modl tedby r hr \ '" r o: -
.:.u.'ry AgT-cy I' u\e. (6 bi( key<.merning
I u,er mur enptol preciselyrhe riehr ..:
o rr,u o n o r trtry.i \ 1. rnd 0, ro de(odei otornrri on.onec.t1.
Orher rechnaoei!on. , r
o i k . tens,hF i n ,he.ae or R Lt. up ,o 2.0,8 bi ,,. fh. R 5A p-,..;t; : ; ; -
' rn s e r , =_;
., it c2n.roufan\ri,.ion.\in,eir u.e.seprJre
rn. ro_fn.rypri.r
ll-lil
o e c N pliry.,r;
u o n.\adn\ produ\bmi r re" hnotogi e.:
r
I hw ue a rsr ai gori rhm,r.h a DiS r . - _
en(ryP'ronbu ,end rt-eDf5 [e) rt-rcug]rI mor.ecurmerhod(u.h
^trr as R5q.
u.\. balkr rrd brokengehou.esu.e rhe federalgovernmenr.DLS
, Jeorirhm ro orc:_
rh e ,n ' e g nnrndonrdenri Ji n oftund,,an.te,,rorJrneri rl i on.ofdo
,rr,r d, "*o, d" t
orsmiadons encry?trhe wordsand videosoflh releconferencing ses;oru.rndidd*
dcode iheir ele.oonifunail.And researcherme encryprion
ro hide i;fomaiion abour
dis.ove.ies fron prying eyes. "_3

digitaL
5ignature ,F n c ry ?ri on,nnor:rntmkeepi ngsec,es.tr.oeJ.obeuredro,eri ty$ho, enr r nr . . . ''
Jge\r. r,mpered $ i , h en ,oure.A di gi ,d.i gnaruenr r ect _1r
Encryption queused
techn roverty Ej ]l
u ro rc mrerrh$e L..rK J need.ror pro(e,.i ngonti nennMLrJ
th e d en tityof a me s s age
s enderior i ,i nsr.ri on..Dieir r t. r _1 rli
pr ocessh 9on l ne f n anc ial u r\ ,n h rr r .omp ,ored ,e.hni querh comb,ne.rheprbti ..ke)
encrr" Li on m; , hod r
p,oenr.r<onrruaingrr_e "
:n rn
.J:i:lg,jl!: "i. oris,nr me$rse. rhe r_6r.ins *_.
""
n p ro l d\ tLnhe,encodi ng
by uri ngrul e,,oLonvcflonr.er of.hr.crer,,o oor "her <
re .g ..rh e reuer. i ! con\eredto r a 2 i , onvened ,o
: r(.r. thu.. encrrelion, t , o =
p ,$ m , rl tr, . oni chrud b) rJ, hen,i .rn qs rndrr.. i den,i ,i .,* i ,h
d,ei ,,l { ll;
,u rc - 6 rmpk. LM be.pLr.hr.edby ar i ndi Li duJ.\ hen " i s" :i ,;. : .
rhei ndni oualrequ e. n. en.:
' n rd rJ l ' o n l l om J w -eb\ re.rhedi g ral l D r, .enr ro rhe.[e
ro.onj :rm rh4 ind^id_
ro e n fl n .A \ener ce,ri ti cJedu,\enri . e\ i ,( ,Le ro u.er. .o
t\ei .an be.orfi denrLhe\ i =
 The nrerner.irnners andEtfa*a I oopr* z

lire is safe.Man/ Web sitsdisplaya padlockicon at the botron ofan lnrernet screento
indiare rharrhe siie is encry?ted.
The most populu merhod of Prdentins unauihorized ac.es to corPonre ompurer data
s ro consrrucr what is Lnown asa firewall betweenconpany conputers and the Internet. An
l.lemei ft*all is a dsie that sits berween your internal nerwork ud the Interner. lts
A d e v l c el h a t s i t sb e t w e e n a ni n l e r
rurpose is to linir accessinto and out of your nerwork basedon your orgdizadon's acces
nal networkaid the Inlernt,I mrt
..Li.y. A fr**"ll *. b. f.om a ser offiltedng rules ret up on the rcutr ro m n g a c c e s sn t o a n do u l o l a n e tw o r k
.t,bo,"t -ythins
g"te*ay consistingof one or mo.. speciallyconliguredconputen that basedon accesspolics.
"ppli""tion
Firewallspermit desnedscniceson the ouside, suchase-mdl, to pass.h.ddilion' nosr
ircwalls allow aees to the Veb fron inside protected networlc But firewalls denv other'
,nqanted acces. For e*anple, you may be able to use the Telner utilitv to log in to svstens
r rhe Inrernet,bur user on remorelsrens cmnot log in to your l@al svstembeeue the

The U.S. Conputer EmergencyReadinesTeam lututu tur,t g@) respondsro viru

rucks, neoork inrrusions, and othei threars lt alsoProvidessecurirytraining md codsnlting
ryicesto individual agencies.Vulnenbility and rhreat hformation is sharedwirh the public
-:Ae tuutu.cet.olgveb sileby Cmegie Mellon alsoontains infornaiion abori Inlernet

The U.S ComputerEme.ge.cy

Readines5 Teamessistscivitian
g o v e r n m e n t a g e .ecsw i tfr
computersecurityincidents.

rF
JrauthorizedSiteg
arealsoProblemssome.ompaniesface A com-
-::urhorized and unwantedlntemet shes
r::nr or an unhappy employee can cteate an Internet site with an addresssimilar to a
F- .*oanns. When someonesearches fo.;dformarionsbout the onpanv' he or shenav find
u.authoriad site insreal. In some caes, the sire may apped to be ihe legitinate, omcial
-
:-onre sne.In oih.s, it is obviousthat the site is nor sponsoiedor authorikd bv the

S"me unauthorized or unwanied sne contrin dmaging infornation about a conpanv

A tued emplovee'
\ierimes the infornatioo is nue. and som*imesit is faiseor misleading.
rd rr :ranple, could postsroriesabouthis bos or forner enployer that nav not be endrelv
Ptri 2 | nrormaron
lechnoloqy
Conceprs

rtue.A @mperirororanmvircnmef't.j e"rLh grcupcoujd alsopon infornarion

ibour
r cbtomer rhoutdnor do busineswi!}l r(ompany. 45 popte rFvd rhInre.nft,
theysh
be rqrc t}ar nor all ril$ rhey*e aretrdor,ed bycomprie, or o.ganiatjons,\o
a wlse
\urrer urs cauoonand $m.skepdcism in.c(eprhg posr.d info.marion
s de whoteu
Unauthorized and un*utcd Intemet sire can [e very trcublesme, and it is
nor uouru.l I
onpanrcs to sue those who post rhe* siter. Network management issua
wilt take a i
fieain8 .mounr of lime ror IS prsnnej, buuny Nr needsro be eware
of rhe baics
runLuonetlecnvelyin busjnes.Communiqrions. \epi(e. and daityworI
de e]t at s6te
 rrr. rrrrrcr L tf.rs JrdErrrrrcG I ch.pter ?

51'MMARY

i:rciple Ma.kupLan!!aqel documenlnadC s. Li onLoH TML i rn! nr bef

.'l Internet is tike many other technotogies-it of new e.W ebstandardsare ga n fl g n popl ta.ty i nct ld ng
E xtensi bte
| \4a.k!pLanquageIX MLI E xtensi bl cHype. lcxt
rlrrridesa v,iderangeofServices,Someofwhichare Ma.kupLanguageIX H TMLI. C ascadrns S tyteS hee lsI CSSI
r.e:tive and practiaalfor uselodey,othe.sare stitt and D ynami cH TNL4l D H Tfrl Ll .
and gtilt others $ritt fade awaytrom lack A W cbbrow E crrcdd! H T!11andc.e.tesa ui i qLr e, hyper
'lciving,
meda-basedmen! on yo!. comp!terscrecnthi rtprovides a
g nad.do dA6b - h4D .o^ 6 6 doo d b o
: . nLs t ar t edw th A R P AN ETa, p ro j e c st ta .te dby the " pr "r
ti nksi oaccompLi shthithedatal
s sstoredontheW bser ver
. . a. t m entol De fe n s cl D 0 D l .T o d a yth e n te rn e ts the
Thehypemedi amenuti nksyouto othe.Internetfes o! r ces.
a. ges tc om pu l e .fe tw o rk .Ac l L ra l Lty r a c o l t ecnon
rot l !st tert doc!ments,graphcs, and so!nd f tes lnt er nel
: . nnec t edneL w o rk sa,l t e rc h a .q l n g i fo fma
E rptoferand N etscapea.e examptesol W eb b.owser s A
: lnt e. nc t r ar s mi l sd a ta' ife foemL yo n e .o mp !te r l catLed
seafchengl nehetp5fnd ni ormai i onon the i nte.netPop! t a.
: ano$er . T hes e l o fc o n v e not n s!s e d to p a s s p ackets
' - . hos tt o anol h e r s k n o w na s l h e n te me tP ro to.ot seafchengl nesncl udeY ahooland GooqteA meta sea. ch
engi nesubmi tskeyw o.ds to seve.ati nd vi d!.l scrrch ef qiies
. I r ot
' he.pf ot oc o ts a ra u s e di n c o n n e cot nw th l P The
and rel Lrfnsthe resLrttsP Lr5htechnotoqys l sed t o send
: r n s t he T . an s m :s o s n C o n tro Pro t to c oltT C PlTC. P
j. t y ! s ed t hat m .n y p e o p te.e l e . to T C P /l Pth ' l o " " o .Lr * " al ,0." "
, e .om
ng !sef5seafchfor tw l h the r b.ow se.s
: . f T CP and P u s e db y m o s t l n l e .n e ta p p l c atons
In4r.6.dw 6l dppt..:o. Ld6 d ot ..d6
nput eroo Lh el n l e rn e th a s a n a s sg n e da d d fessto
i nformatonandj obsearchng:Tetnet: FTP W ebtoq slbt ogsl
,, r f.om other hosLs calledirs uniforn resau.cetaca
: . T her ear e s e v e ..tw a y sto c o n n e cto Lrsenetandnew sg.oups.chatrooms; nte.netphoneint a. nel
t th e rn t ernet:
sl reamng;i fstanimessagngi sl roppngon t he
vi dao;contenL
! whos es er v e . s a n n te .n e th o s t,v l a SL P o r P P P ,
W b;W eba!cl ons;mLrsi c,.ado.andvdeo off ceontheWebi
: r ' , onl ne s er v i c eth a tp ro vd e s n te .n e t.c c e s s.
_Lc r r r et 3 D nte.nelsi l es f.ee softw aferand othe. appt.at ons E-
s er vc e p fo vd e r i s a n yc o mp a n yth a l p rovi des
m".t L pd o ..d.-n oqa. -l .l ar er . 6 d..
: - r t ! or or ganiz a ti o n s w th a c c e s s to th en te .n e tTouse
. amountofca.ecrandj obsearchnfo.mai i onTetnelenabt es
: : ot c onne. ton y o ! m L s t h a v ea n a c c o u ftw t h the
yauto l og an to .emol e.omputers FTP s !sed to t.. nslef a
: : r ir ovder and s o ftw a reth a t a tto w sa d re c t t nk v a
: A m ongt he v a tu ea d d e ds e rv c e s S Ps p ro v i deafe fi tc l rom aooLhercomp!tef to yoLrrcomp!ter Web logs
l btoqsJ are nl ernelsi l esLhatpeopte.nd ofganD ato nEcan
i n tra n e ts a n d e x t.a n e ts W.b, sl e
createand!setow rl eaboLrtthel .observatons expe r ences.
: W ebt r an5ac ti o p n ro c e s s i n gn. e tw o .ks e c !r Lyand
andfeetngsonaw deranqeof topcs U senetsuppo r t snews
: : r at ion,and nt e g fa ti o rs e rv i c e 5
groups w hi ch a.e onti ned scl ssi on groupsfocLrsed on a
p..ti cuta.topc C haLfoomstel you tatkto dozensof peopt e
P--:ciple ai one t me. w ho can be toc:tedal toverthe w or{d Lnt e. net
you l o comnr!ncate w rth ot i, e. 5
inatty devetoped as a document-management phone servi ceenabtes
aro!nd the w oftd. i l efnet v deo e..bl es peopteto cond! ct
, th WortdWideWebis a menu-ba9ed system
v ftuatmeetngs C ontenist.e.m ng s n l nel hodoi i r anst ef
is easy to use for personat and business r n!:tmul ti m-adl fi tesoverthe
a nte.netso thalthadaL ast r cam
ic at ionS , of vor.eand p ct!.es ptaysconti n!oustynstantmee5; gng
.: : 5 a c ot t e. to n o f l n d e p e n d e n i o tyw n e dc o mp!tefs aLl ow peopl
s etocomm!n.ate n.eatt me usi ngthelnt cr nat .
S happl nq oi the W ebi s poputa.for a hostol l emsandse.
: { r oget her as o n e H g h -s p e e dIn te rn c ct .c !rts con
vces. W eb auctLons a.e a w ay 1onrrl ch peoptel oo kiq f o.
"o u .. d " n q o " "
prod!ctsandservcesw i th peopl esel tnq theseprod! ct sand
. : I 1aenabt euse .sto l u mp f.o m o n eW e bc o mp Lrter lo
servces The W eb cai aLsobe l sed to dow ntoada nd pt ay
. _. t lor lLes s t B y e c a !s e o i i i s a b i tty to h a n d te m !l tme
mLrsi c,tstei i oradi oandvew vdeop.og.arns.W l hof f lceo.
: : : 1. and hy pe. i e | tt n k s b e tw e e nd s t. b L rre od b l ects
theW ebi tl spossi btetostorermportanti i tesand Lnr or m aLion
. : s c m ef gin!al s th e m o s tp o p !l a .me a n so t n i orma 16..r
''L4 r'" el a o u go r'o\6l nq
, : : 5s on t he nt e rn e ito d a y "'.WL"
andthl 5 i i format on can be dow ntoadedo.senl l o ol h efpeo
: b s it e is t k e a ma q a z n e w l th a c o v e rp a g ec al Led
pLeS .ri el ni e.netsi tesarethree d mens onaL.atto ngpeo
w
|q, na a -1 ttl| ,. | ,d .o n o I
, . v a o p a q e . a ,".o .6 1 ...d o g o . pl e to putate the s te to see d fterent vi ew sof p . od! cls
o . o 0 16 : ' nan
. - ly per t exttiiks a re m a n ta n e d !s n 9 U R L Sa, stan and maqe5on the l nternet A w eatth ol kee sol twar eand
servi c.snrc av-;tabte thro!gh l he nternet S ome of t he t . ee
: J ' of c odng L h e L o c aal n s o f th e H T ML l H y p e.l ext
 nromar on Te.hndLoqy
Con.epG

I nt or m at l o nh,o w e v e ..
ma yb e m i s te a d i nogr evenral se S ome
or t heot h e rl n re .n e rs ecrve si n c tl d ei n fo rm atol dD our "d D ooJ"mh nn -. , -
space u_ v' ro ,.16- . b","o o- ( r
.p ..o b ra rnqdraro,od.. t'" a t.^
- olor d o n l a < pfograms-applets to be enbedded w
ano0r s r d n .ere a rn rn g th n a n H TM :
ment. W henthe use. cl cks on the app iopr t at e p. : I
H TMLpagero retrtevei r from a W eb s er ve. .
t f c _: : : -
Principle dow nl oaded
ontorhecIent w ofkstEon.
t whe. eit ! e! :
( nq T1e o-v",oDm" t o
Becausethe Intehet and the Wortd Wide Webare
I n e s o l t w a r e i n d o s r r y l n a d d t o n t o J a v a .th e .e
beaomingmore uhiveEaltyusedand ac.eptedfor a r !; . n
of otherprog.emmi ngtrngLrages dnd root susedLLl
businssuse,management, seryiceaad speed,prF W ebs tes, fcl !di nq H ypertext p.ep.ocessor lpHpl
vaay, and security issues musl continuatty be A n nl .aneti s an i fi e.nat co.poi al en et wof k! :
addressed andresotved. i ntefnetand W oftdW de W ebstandafd sand pf oaL:
,
usedby the empLoyees of an organzdti of t o qa | ; : : i
A r apr dt yg ro w i n gn u m b e ro i c o m p a n i e as r e doi ngbusrness
c0.porateInro.mati on. compul ers!sj ngweb seaer : :
on t he W e b a n d e n a b trn gs h o p p e rsto s e archfor
and buy storeand managedocumentsbl i tt on l h e Webs r ,
pr c duc t son tn e .F tr ma n yp e o p tei.t s e a s i e.
i o s,rupon rne mat W th a W ebbrow se.onyoufpC youcai cat t uL -
W eb t haf s e a fc hth ro l g h c a ta to g so r rfe k to l , c .
snopprng 00 u^., -ord.t6-w to .ndo, o^pur e. . o.
W ebbrow sersfun on anytypeof compu r e.t he s; , :
'o eo . o .,% .n g a w p o o a 9 6 ^ .d F9e{ -9.pd eon
tronrc i nformatroncan be vew ed by any em pr o, : :
i .o d Wp bb ro ^ .e p ,o q r a- \ar.rg
. 0p, l' o r0 d o ro ip s s o u (,.g ro .r meansthat al l so.tsof dacuments can be convet ueJ:
^ , a n H tV e oi to.,.ort4q d, l.orrciormon theWeb
ex r s t lnqHTMLd o c u me n r, andconsranrLy
beupdareo
o . L rs i n a
g i o rd tnarytexred i or to
Anexrraner rsa netwofk
thatLinks
5etected
.e.-
n e p o g e . .n oo b,osr.... a^ n9 l he nt.anetof a companyw th ts cl stom e. s s! L: : 1
|' e r p. , lt .o , d ro re c t -q a . , ra o . e o dn a
- Lc r .r!u, , c_c 0l he.busnesspadners.ti i s atsob!i tts.o! r ndWe! _: _!
paget o t akev i e l l e .sro a n o th e rh o m ep a g ei addi ng
p ctrrres g es S ecufi tyandperi ormance
d 0< of d. u o o d d n o re H ' tv l ' rte -o ,o .r W" o rte:." ..ra concernsa r e dlt f e, =
e, ar6,rhdnIo-dw .os o o...rho.L oa \ Aor .
r ' 0 lhe W e b a d g ero ^ .r6 . .,p rt_ r a I In4.
ara B orr .9 aul i ent catronend prvacya.e c. trcaton an er l. : , .
c or r ec t t y ia nadd v e rti s i nygo u rW e bp a q e A f umue.
or prod ousLyperi o.mance mLrsrbe goodto p.ovidequ c, ( : : i
u. \ m . / . 6 d F l F to p.g a . o _ _ r. .o ..r-o w e o
! - ( r ac i. 4 i (" o !o .r ro cusrome.s andsuppl i ers.
( \tT ..a .
" a o .. o n .e a vl eo 5 re h" s lrd en ,s .es
beenc ons t ru c re d a c o n i e n tma n a g e me nstysteml C MS l can "q" o p F"c -.
n e i w o . k s . N o c e n t f a t z e d g o v e r n i n g b o d y co n tr o ts
be us edt 0 ke e prh eWe bs i reru n nn g s m o o r hty. : _r
W ebservi ces nei .A tso,becausethe amo!nt ol nte.nett r af f ic :
af e. t s o us e dto d e v e to p W e bc o n te n t.W e bs eN i cesconsi st ::
,a1co bolt 6-e.. ci", o., p.,.a.I . rd - 0 ,
or a c ot t ec h o no f s ta n d a rd sa n d to o l s th a t streamnn
and - .
" esot ved,
rssuesmustcontrnuaLtybeaddresse dandr
s r m pliy c om m u n i c a ti oanmo n gW e bs te s ,w h i ch
courorevo raphy techni quesand frew atts are req! if ed r .
l! t r oniz et hew a yp e o p te d e v e l oap n du s eth eW ebtorbusrness ::
rnrofmatonl hi evesandprovi de as m!ch se curt yas: : :
andpe. s on apl !rp o s e s .n a d dti o nro X t\4 1Web , se,arces use S omeunauthortzed and!nw ai i ed Interneisit es
I e S , - ot e 0 b ;!r Arre c . o ro ro L o 5 OA p ..w Fb ; o, : :
S ar, ." .
ues c , pr , o) L a n g u a a 6T W S D d .d J !e < " ,
D sco," t
Des c r ipt ion a n d tn te g ra | o nl U D D tl .

CHAPTER z: SELF-ASSESSMENTTEST

The Inrmcr is like-nmy orher n$ recfinotogieFir

prG 2. on rheIn.erner,
wharenabtes
rrafncto flowfo::
uoe( a qde tugeor\eryictr. $me otwhjcfi areeFec,i\edd
work io arother?
pattical for re roda1.orhenare sril eotving. md rtiU
orhers
Mu ladeaqy hom lek of r. a. hre.oer prcro.ot
b. ARPANET
1. The q rs rh ern .s ro r,,f rhetnterner.
c. Uniforn Resource Locator
Tr$a\ dcv(lopeJ by rhe U.\. Dcfriimenr di De&n\e.
d. LAN SCNEI
 Thent.rnetInrranets,and
ExrE*r' I chlptr ?

tuch computeron rhe Internet ha! an addresscaled rhc 9. Vlat is the srandatd pagp description languagc for \fcb
TransnissktContnl ?rcncol True or Frlse? Pages?
vhich ofthe followingis NOT awy to gainaccess to the a. Horne Pagellnguage
b. H)"etnedia Language
e. l-AN Server
d. H12ncxt Mdkup Ldguagc (HTML)
c. Point-tcPoint Protocol,or PPP Because&e Intemet .qd thc vodrl !{iidc \fcb :rc boniry
morc universally ured ad .@pt d for buincs u!., tran-
is r protocol that describa a fflc tnmfcr agement, sewice and sped, princy, and ccurity buee mun
proces bcrwccn r hosr and rcmote computer. continually be ddrc*d ud Iohcd.

derrloped asa docunent-management s'6tem, the 10. A(an) - is a nctwork bucd on Web tech-
!/ide Web is a menu-basedswtem that is cerv to ue nology that linLs customers,supplicrs, ad othcrs to thc
F.son.l andburincasapplistions.
11. A okie is a text file that an Internd company can pla..
1 web lo9 also called a blog is an online web sitc that
on the hrrd ddve ofa computer systern.Truc or Falsc?
o<oplecm createand u.sero write about tleir obs.naros, 12. Vhat sits berwren an internal nctwork or computcr ad
<pericnes, ard felings on a wide rarge oftopic. Tnre or
rhe Internet to prcvent unauthorized acs to a onputcr
F.lre?
vtar aINs rwo or nore people to engagein onlinc,
dreractive "convcrsariotr" over the Internet? a. digital signarurc
b. ffre*all

b.

IJ. - ii uscd to *nd hfornation ruromaLi-

en be used to route phonc ells over

*orla md ric Internet.
CHAPTER 7, SELI-ASSESSMENTTIST ,{NSVCRS
(l) ARPANET (2) a (3) False(4) b (5) Filc Trnsftr Protocol
(FTP) (6) True {7) b (8) voic. ovcr IP (voIP) (9) d
(10)xrr"net(ll) True(12)b (13)Puh t.chnolo$.

Y TERMS

307 HTML tags305 LinInternetProtocol

SeriaL lSLlPl
EI297 hypermedie 304 302
299 HyprtextMarkup La.guage IHTMLI ftnet317
n2 305 lransmissionControlProtocoLITCPI
room320 instant
messaging 315 299
322
streeming lnternt
296 tunneting327
329 InternetsorviceproviderIlSP)302 LJniform
Resource LocatorIURLI299
raphy330 Internet
Prctocol llPJ297 usenet319
330
signature intranel326 $rtuatprivatenetworkIVPNl327
tion330 Java309 Webauction323
ible l'larkupLanguagIXMLI meta-search engine 308 Webbrowser30T
newsgrouPs 319 webtoglblogl317
327 PoinFto-PointProtocot IPPPI302 Webservices3'12
Transfer
ProtocoL 317
IFTPJ pushtechnoiogy 311 wortdWidWebIWWW or W31304
rr331 searchengine 307
page304
 Ps t s I nor m i' m Te hnode, c o t u a p r s

REVIEW QUESTIONS

1. Vhat is thc Intrn? \(/ho Nes it end why? 12. .t is contnr sft?ming?
2. \rhar is ARPANET? 13. at is instahr m.ssaging?
3. Wlar is TCP/lPi How dos ir wDrk? 14. Briefly desoibe a \izeb auction.
4. Explain thc nanins convenrions usedto identiry Irternet tt. \?lar is rhe \reb? h ir anothr n.n ork tike rhe
or a sryie rhat .uns on the Inrern t?
5. VIat ir a donain narne? 16. What i6a URL andhow is it used?
6. Bricfly describ. three diffe.eft mp ro conncct to the I 7. Vlar b HTML andhow is n uied?
Irrcrner. What arc .h adl"ntages and disadvantagesof 18. \vlar is a Web bmms? How is ir differcnt from .

7. \X,fhatis an Internet spice providd? V7har sries does 19. vhat i, pushrechnology?
20. I(Aar is an inrranct? Prcvide three tuples of th.
8. Vhat .rc drc admrags dd disadlantascsof -mail?
9. \rhar is a blog? 2 t . V4Er is d exttu.ri How is it dillerentfrorn a
10. Whar m Telnet and FTP ued for? 22. ar k cryptography?
II. at is e Internr chat .oom? 23.Wher {c fire*dls? How arrheyuFd?

DISCUSSION QUESTIONS

l. Insanr me$aginsisbeingwidelyusedtoday.Desffibehow Oudine a proe$ ro crearc a web page. wtat co

this rechnolos/ @uld be used in a businesssetring. Are hardwae and sofrwae do you need ifyou wish rc r:
rhere any drawbacls or linimrions lo usilg ;nstanr mes \reb home pasecontaininsboth sounddd picrur.-
sagingin a busine$sefting? 9. Des.ribeho" pu,h re.hnoto$/rn be u.ed in , h
You compmy is abour to developa ns Web sire.Desc.ibe
how you ould use\7eb sefri@s for your sne. 10.on of rhe key issuesssociaredwiih rhe developn
3. How csn you protecr lourself frcm unwdrcd e-Dii? a \i/eb sne is ge$ingpeopl!o visit it. Ifyou we.e
4. Briefly dscribe how rhe Interner phone senice operare. oping a Veb site,how uould you inform ochea
Discus the porential impact thar rhis serice @uld haveon dd inake it interesringenoush rhat rhey would .err
tnditioml relephonesefli.es and cdriers. ,lso tell orhers abour ir?
Th U. S. fede.algove.nnent is asainsrthe expon ofsoons IL C e(i ng mu\i . rrdi o./nd vi deopro gr m . t r cm L e
crr"tognphy sofrware.Discus wh/ rhis may be so. vhar ner is e6ier $d in rhe past,bur sone companlg r:
are someof rhe pros and com of rhis policy? wor;ed rhar people wil illegally obtrn copies .r
Idenriry rh.ee conpanies wirh which you are hmiliar rhat progrmming withour pa/ng rhe &tisrs md
arusingthe Veb ro conducrbusinss.Desdjbe rhn use royalries.Ifyou werean ariist or producer, whar

7. ar is voiceoverIP (VolP), and how could ir b usedh I2. H ow .oul d i ou u,e rhe Inremeti r you $r r e,

IJ. B rrefl y.unmari a rhe di l l erenc, rn hoq r - het n

( o m p m y h r r J n e r .M d J n e x r b n e , d e* .e * e d ,n c
 The nrernetnkaretsandErar". I o'"pt""
"

OBLEM.SOLVING EXER,CISES

1.. researchon rhe \reb ro find severalpopul& web auc- naintaining the Web s;teeair md le$ expensive?Develop
: r sites.After researching
thesesites,usea word processor a sinple sp.eadsheer ro analyzethe income you need to
, rite a reporron rheadvatagesad potentialprootens coveryour V/eb sneand orherbusiDe$qpenses.
"
:i ringaVeb auctionsiletopurchaseaproducrorsemce. You area mmager ofa snall cohpany wirh a nq \reb sire.
. .o dncussthe advantagsud potentiatproblemsofsell' How would you avoid privacy, fraud, and security prob-
.: a p'oduct o. seoiceon a \reb aucrionsire.How ould lems?Doelop a briefrepot describinswhatyou would do.
r:: p.oent s6$ on an auction\reb sirei Usioga graphicsprcgnn, diagranhowyouwould proiect
-ilrlop a brif proposalfor deatins a business\(/eb sire. your Internet site fron outside hacken.
could you use \reb serices ro make crearingmd
-rv

ACTrVITIEg

fnh your tgf|imre' identi! a companythar is makiry 2. Have each ceammcmbcr us a ditrecnr sarch engine to
&.rive useofl cohpany xt$jrer. Find our aI can find inforrnadon about blogs. Meer * a tam and dccide
.iEur irs extmret.Try ro spcatrwirh one or :nore
''ou
of the which searchenginelm rhe bet for this tck. \Gite a brief
somers or suppliersrdro ure &e extranetand.$k sdut report to )'our in$rucror suhrnariing your findi!6r.
ld6ts it providesftom ttlci petsp..titr.

B EXERCISES

-- : chapter oven a nunber of powertul Internet tools, 2. The Inrerneton beapowertulsouceofinfornationabour

:c uding Inrernet phone, earch engines,brcmer, e-mail, vdious indusfies md orgeizatiotu. ln.are sever,l indus-
:F'sroups, Java,intraners,rnd much more. Pick one of try or orgdizaiion Web snes.Vhich one is rhe best?Wly?
1s iopics dd ger more information fron rhe lnternet.
r;e may be asked to doelop a report or send an e-mail
a6sge to your instrucror about what you found.

R, EXER,CISES

< rhe Inrernei to explore rhe aaning salaies, 2. Describe how the Internet an be usedon the job for rwo
{r iob desoiptions for ihre arees thar nreresryou.
 rNJi T

VIDEO QUESTIONS

\flatch the virleo .lip Online Srorage ud amwcr thcsc 2. Do you rhhk rhar lnrernetstoragemry becomc
our primary torn of storagein the future, over
srorin.couL ffleson localharrldrivesi\flrat will n :-
1. \flar rre thr adurt4cs ofstoring filesushg serricesuch
erms ofnrnvork pdformrnce, eoruge.apr.ny. a.l
x biqtatlahao.con?
t0 hake this x rerliry?

CASE STUDIES

Case One ' d".FtopFg r" o^ wab r .r". b a ."d .,...

team..n nl o m.ny chattenges A tthol g hWebser y, c: :
EastmanChemicalRevampswith
web services
notogyhasbeenaroundforatew yeEr s, t het echnoht ;
E as t m . nC h e mi c a tC o m p a nsyth e w o fl ds l argestprod!cer n ts nfancyands l ust begi nnn9 to affe ctbusiness. :
'd rbu * pqa-F i s4q <oai 6dWabsol .
ol pot y es tepr ta s ti c sfo r p a c l a qn q ra te a dng 5!ppLer of raw e.pF :'
m alerat s fo r p a i n ts i,n k s ,a n d g ra p hc a fis and a mafketer for specat tasks,nat manyhavebeenb r aveenou! i - l
of m or elh a n 1 2 0 8c h e mi c a tsf b e rs a n d ptastcs pi odu.ts an enti recorpofatei nfofmati onsyetemon ihe le. __:
T he c omp a n ys b y a tt m e .s L rre ss L rc ce5sful w th fecent MLrchof the w ork P te.santand hl s l ea m a. e co. c :
rD o f $ - I b .o . F " -( -" n r" . consderedpi onee.l nq w ork. t' s go ng lo lake . l: - l
" " pp,o.i
m . t et yl5 ,0 0 0 e mp l o y e ensn ro feth a n3 0coLrntf esandman- t me foreverythng to sw tch overl oW ebser vcesa. : :
v ce' o. enteda.chi l ect!re,P teasantsays "Weseel^.
uf ac l! r ln gs i te ss i ra re gc a ttyto c a te dn l 7 d i ffefentcouni ri es
E as tmd nma n l a n s a s e l o f a p p ti c aat n serue.sth.t pfo- mentgoi ngonw l thatmostal toi ourv endor We.
s e: : '
v r de inf o rm3 a t n s e rv c e s ta e mp to y e esw o.tdw i de The ' r" r-eqo qrhs' o,eB ' I eo9e r L"
" !e
s er y ef sc o n l an a v a fi e i ya f o p e ra in 9 s y s temsl 0S s],a tafse l n the meanti me,E astmanemptoyees f f om a_: - ':
B [ ' l s er ve f.!n s a p ro p .i e ta ry 0 S .n d o i hers.!n M c.osofi w ortdare enj oynq the f.5t of l he W ebs eN cesr ot t r i
W indow s2 0 0 0 3 n d Wn d o w s N T 0 5 s . R ecentLy. E astman ne\\lapptcati onsnct!der ch graphi catLr sefint e. r : : : :
' deptoyti kea W ebapp| catl on.P teasant says. The- i:
Chemc a td e cd e dl o re v a mpi t5 n i o .ma ti onsystems.l t had
beenus in gp a c k a g e a d p p ti c aot n s a n dw antedto devetopts cl l ckson a sho.tc!tand po nts to the ap pt icatoa . L__
own c ls to m a p p l i c aoi n s to m e e t a tt th e needsof l s st.ff. i he servef F.omanyE astmanLocati o n nt hewor t d i
E as t m anl S s p e c i a ts ts l !rn e d to W e bs e rv i cetechnotog es as servcecomm!n cateswth theserverand qu cklydei. i
t heideats o tL rtifo o nrc o n n e cnt g d ffe . n gc omputerpl atforms
w eb 4 r.6. d,p06 .npd o.Lo-qe c c La-d|r.- '

W eb se tu i c e sp .o v d e s ta n d a rdre d n teffacesbetw eef In." .ne ser. " . rhd -.ppo,t" . de . 3r io- Jo. . . : : .
d v e. s e co mp l te f s y s i e m ss o th a t th e y can .utomatcatty at.eadypassi ngthel rdatabackandl orth over t he r : :
m ak ean d l u tfl ttd a ta .e q !e s ts o v e rth e l nternet B etoreE ast h9h\olu-". A p p L rd r o _ d . o o 'i I r 'Fd :s<a - .:.
m an s S c .e w c o !L d b e g n th e d e v e l o p m e ntpfacss,theyf rst e' d d . o-" - " r 'i o - " o r n :4 r g e - Fd :
-ge
neededt o d s s e c tth ew a y sth e . c u (e n t systemsw erebei ng ' p"rs o c t q o r r o n . a e " - o o r i - o W Fb se ^ :i :
q, r.t" --sF-\erarp ee. r oae: . :
' dpprcal 0- " r . " . m" ) .-p "
p a-w pb," 1;
s er ue. sa s s e s sn q w h a tl h ea p p l c a ro n s d i d,st.i ppngoffthe " u " qp oti tcra.eso- epeopt ec- : -
! s er r nie .fa c e s a nedx p o sa g th ea p p ti c aot n funclonsassef i nq concerned th:t the servces demandson bandwr _
" . s " r c " -o I dncr).i : fa. overcome the 3b l ty otthe nrernettosuppor t hem
m an s em e rgn g d g i ta tre c h n o toeqs g ro u p.
0nc e th e q i o !p d e fi n e dth e s e rv c es' that the cl i ffeni DiscussionQ!est!ons
s y s t empro v d e dth, e y n te ry i e w eth d e u s e fstol earnhow l he 1 W hat advantages
do W eb
s y s t em c o u td b e i mp .o v eTd h e u s e rs w i ttbetheonesdeod- C hemcat C ompany ol er
Ln9\ ! hat th e b u sn e s sp ro c e s s ew s l t b e ,ral hef than havi ng
t he apptc a l i o n sd e te rmn e l h e b L rsn e s sprocessfor them, 2 W hatI sks are P teas.ntand hi scre wt akingby i.
fi .st to deptoythe new technotogy? Whatbenei: :
 :al T hink ingQ ue s ti o n s s0uRcEs:carorsLwa,'Enrefprsps TakeEarLy Lead
qtalian h ojec\s canprtrttudtt. Jrne t 6. 2tL3 0||v..nprtetu..ld..an
. f do W - abs e .e s m e e ti h e !. q !c .h .l te n q e . .!ch Easrmrnchem.at CdmpanyprorLe wtednnan .on/AbautEastndn/
, hD5et hal F as l i n .n1 ..e s .f .L r.r n 9 a p p ti c a.ir 5 .Ji rh. Conp.nr/crtnparrP.attearp'acce..edM3(h19,2001;W3CW.bser-
v.esAdyiryWebsre,Ms4lrrt/2AA2/wsl a..e.ted Mat.619 2aa/.

. ioes lhe s e.v .e s a p p ro a c ho f We b5 e tuc e 5mnke

. c lc f . . h ev nq h i g h q !a tty n to .m a ti o n
s y s l c m!t

.-ie Two m n d . e x p L - n: e d r o l s A V P I \ r e q u . c 5 n 5 t a t b t o . o I cr .h
. e i i o t e w o r k s t i ] l o n , ; l n d o n . e n p L 3 c e t p f o v C e ! t h a l o e r s0 r l
-:ry Insurance
Provides
Seaure
VPNAccess
w t h b f o a d n e t w o . k : . c e s s T h e 1 f . d l o n a t V P N w a l 5 n ,p ty
. : ' t y d. y s ol . on rp l ti n g .b !s i i e s s e srn d o .g i i ua1cns t c o . . s t t y . . o m o t c r a n i n 5 k y i i e r r s 0 1: e c ! r t y T h e .o m
r eJ t he I pr iv a te .o rp .r.ted a tr a n d rfo fm a ro n sys p a n y t o ! n d a n . L L . a c t v e a t t e r i a l v ! n . S e . ! . e S o c l c r s L a ye r
' r i n t hebo! nd a ri e o s l th e . p h y : ..l o i f c es p a c e.0!e. I S S L l V P N T h , s t e s s p o r l e . f ! t ! e . s c n o f e V P N e tto w g
: . r lat y owned .o rp L rte .n c l w o fk s a U o w e d ncsses b!. e m p l o y e e s L o : c . e e s e m a t i l f d . p p t i . a t . . s o v . , th e We b
: r t hc r c . . h of t h e i rc o rp o ra tsn l .fma t o n s y s t enrs to ' d" o I"oo.or
""d 1.. "."
: r . le t oc atc r s s !i h a 5b ra n c ha n dp ..tn e r. o fl ces thi.kVPNcleil wel!itp.iitthemat.!RL. e i p t . n e d .o i s
: : r - it q. owlhof n e l w o fk s a s s ;s tecdo mp a ne s i f esrJb A ; a n e x s c c ! . l y o l f c e f l o f t h . t l 5 m i t i t . r y , i o fsw a s
: : I . . s . . o! nd t h ew o fl dn n d a c c e s s i ndg.ti r ffo m any 6L o. o 1...9,6

" eB o o" ." oo og

: ! qlr t . adt ioia t p r!a te re tw o rk sp ro rd e dE Teans che.ked:t r!tt pLef rew .l tsto dei ermne w hernerlheyh: d
_ r : t a c o! t d f t o wth .o u g h o !tth ew o rL dth , e yw e fest rL teql m.teo.de!ant nte.L.S entrys D fi v.te.el ro.k .em : ns
: _ t he r s . ope F a fe x .h p te e mp to y e e s w e .e o ntyabl e v rtU . l y !.l racN !bte.el e. tho!!h t : :..e5srbteoler ihe
: : r . o. por at ed a tatfo m th e I v ro ' k p ta c e a .d i ot to. nternel duc, t. sophsti .etedhi i rdw are!sed al rhcl! nct on
: : l. c m t he. bo meo . th e fl e g h b o rh o .dc o ffe eshop w he.e the rternet.oi neci s 1o rhe.ompan!s LAN. The
r ay s .t lr et im i t.t o n so f th e s ep .v a ren e tw o rksw e.e hardw afes catl edA rOap .i d t sepa.ates rhe ni ..nat and
_: i nec es s ar ya,n d p e .h a p se v e i a b e n e l l tA ft era1L, extef.aLnetw ..ks by passnq packetsthfo!qf n !meit a"y
: . r pof aler nl o rm aot n w s a l a i L a b lf.c
e n a n ytoca
r t f em a rnp .v a te ?
. . L. r t d i cns rrasJetveredsat sl a.ti D nattratevets:.onver
ence
' l^e I nt e. nelb e c .m e!v a rta b tel o r.o mme rc iatand andse.!fi i y T.day I 500S ectryemptoyeesandrbc! t 2! 0Dl
. : t ir ebef ei t s a n dd a n g e .sw e rea ttto . c te a rto most 6 d6vD\

. . : Caf ef Lrc io n s i d e .a ti owna eg i v e n1 ow a y srnwhi .h datrbases. ccmpanynt.;net,0!ttooke mal a" d4l l (klpr o
_: x 4of k sc oLrtd b e c o n n e .te dto th e n te .n e tw tho!t gram porl at.5entry5 39enl sffe !bte to w orkf.om hom ea. d
" , a- d p . 01ri l ]f.em01e
tccatons.accessng extfemeLy p. val e! ! t ! abLe
l t e lr om e ss, o d d th ee { e c trc ic p :th w a y sto pr nr0rm.tor thr.!!l h a secN .eD assw ofd p.otectei nt e. t ace
: . ' r at enet wo .k sT h e b e n e ftsw .e o b v o !3 to both W th nr.E tN orthA me. ca. em.l nyeson boardl :on s s now
: : a. d em pt o y e e sN e tw o rkte c h nc i a n ss e t o!t to rocusf! of bf i gl Ig S ent.ys ol ersea5offcosonrne .
: r - et hodbyw h l c hp r l a l e d a tac c !td b e p a s s e dovef
: : t wor k - t he n l e .n e t a n ds t tt.e ma i ns e c L rfe. The D i scussi on
0uesti ons
r s lhe v . t ! a t p ri v a ten e tw o rkIVP N IV PNte c hnot
I W | atadl antagesendd sadl art3!es..esV P N techf ot o! y
: : - . ev enm o. e a ttfa c tv ea s th e n te fn e tw e n tw re
offerthe mptoyees of S ent| Vi ns!.ance?
: em pt oy ee.so L rl dta g n i o l h e c o .p o ra tefe t w crk
2 W haiadvantages.nd d saC vantages hasV P Ntechiot cAy
. : . at on ! s ng a w fe l e s sp o rta b ted e !.e
pro! dedS entrtrns!rancei l s a .ompany?
. : t gt obat c o m p aens ,Se ftry n s o .a n c e!\ra n ted to
; em pt oy e e sw i th o ff' s te a c .e s s to c o rpcrare
C ri ti catThi nki ng0uesti ons
- f t t . e. ent lyth e Ste v e n sPo rt W 5 c o n sn based
r nt vp. ovdeds L rc hre m o l ea ..e s s to ts S s rattard 3 W h:t addl i onatsec!ri rymeasl rfessho!td an em pioyee
o o /6 B Iakew ren a..ess nq a p.l ate .l fcor:te retw o. J<
overa
-.6.
r om m : nage rsa n d e mp to y e efo
s r v P N rc re 5 s.!! V P Na5 opposedto a..es5 ng l l .om a p.l are.orpor ar e
.ddo.o.o. : o. po rd o
: , r of t hoLr s a n dosf !s e fs . W" o" o. o
"d
: . t m pLr t stoe p ro vd e tf3 d t o ..l V PN5 rfL w.feto V P Nte.hi otoqy,\\/hatne! rl ork fg stytcsm !ht em ef qe?
: : es was q! c k l y n i x e db y EL o t r.i s i l o fm :t on
: . aqe. lr t S .n L .y T h ei n s !f...e i d !s try s hghl y s0!RcEsT.r Kistn.r.Ramp
nq llo Remote
A..asslor ArL /r'pir,.k
: . J t he. es a l e ry h (e e p n q c!r wo.td oda6et 1 2AA3 w||w net||o.k||.nd can Senty
-c ha w :fe i e s i o l ww..nttr..on,aLtestettrlat.n 19 2004;whalecommun.aionswebste,
1 oq a
i sed Marh:9 2001
 r n lo ,m r Dn le r h n o o q r L on.P t s

Caso Three -hp." o.t.o.o.e,.o,sj r. .^d!,.q B- .^l :

Be5tWestern:Firstto ProvideFreeInterner movew i ttno doubtl nftuence rhe othertar gechans i:

s!rt In the neaff!1!re, b!srnesst.avet e. sw I be ds:
-
lf t er net a c c e s sh a sb e c o m ea n e c e s s i tyfori odaysbLrsness nternetaccessw he.everthey may roam Fr eeh g.
t r av eLerT h o s ei n i h e h o s pta t i y i n d u s tryh avep ckedup on l nl erneta.cess,combned r./i thl ncrea seduse of VF.
t h s f ac ta n d a .e w o rk n g to p fo fr i fo m i t. Manyw efl know i notoges,w i tl affectthew aybusnessp eopLewof E- :k
hot etc ha n s a .e p fo v i dn g l n te rn e rh o o kl ps n roomsand aremoret keLyto sendemptoyeeson rhe . oad.ande- r ,
pr of itng f r o m th e i .h o r.rrty
L rs a gfa
e te s Bu t B esl W esre.n has w tt be Lesstetheredto thel . oft.es si n cer he af r. :
- it
t ak ena ! n rq u ea n dd rffe re fta p p .o a c h tual tyi favelw i l h ea.h emptoyee.
B es tW e s te rns l ]s i n gi h e v a tu eo f h igh-speed tnternei Thehotet,ndu5tD ,
15J!er
oneorsever . lr ndLslr F:
ac c es st o g a i na c o mp e ti trvaed v a n ta gbey oi l e. nq i t to c!s to keep peopl eoni ne The t.anspo(aron indust . . -
l0r ne. s a s a s ta n d a .d{ fe es e .vc e B e s tW estern reduzesrnar D l r '" , , F lile
"nd cu
I nt er f eta c c e s si s m o fe p o p !l a r w rth c u stome.sl han even access,and restau.ants, col feeshops aj. por t s.. 1:
r o d o h o . .d 1 i.6 par .lo r r . , pta.esw herepeoptecong.egate arepro vr dng ! ! r . e. : : :
et er sc ar r y th e rro w n c e tt p h o n e sth .t a ccommodate both speedaccess.W hi temost are charql ngf of t he s: - .
t oc atand l o n g -d i s ta n ccea tts H i q h s p e e dl nte.netacces5 nri ghtdecl de
tofottowB estW esl ern s Leadandoit E-
p. ov ides b u s i n e s tra
s v e te rsw th v a tu e da c cessro e mar rne vi cefofffee-to get a tegup on the compeir t ion.
W eb,andc o .p o fa teVP N 5 .
B es tW e s te .nb e l e v e sth a t trc v e te rsafe i red at payi ng Disussion
ooestions
ex t r at o ac c e s sth e rre m a i t n dw i tl a p p .ecatetnrsr.e no '. D o \ o , r h n 8 - We . e . n 1 . 6 6 . q .p 6 d d i ,
has s Les e N i .e R e s e a rc hs e e ms to s l p p ort rhi s bel ef. A
v i c e w t Lw i n o v e r c u s t o m e . s ? Wh y ?
r ec enl s u a e y b y Ye s :w rc h Pe , p p e fd i n eB, for,n & R l ssett
2. 'l B A s !1r^. t6.. . o d. !"i . d.o do, .o p.(.:
showedihat 65 perceniof businesst.avelefsagreethat f.ee
tomerbase,w hatw i tl B estW esternhe vet ost n - : :
ac c es st o th e In te rn e tfro n rth e i r fo o n r s exi remetyor very
H owmi ght t .ecoupi ts Losses?
des. abLeMa . n yh o i e lc h afs c h a fg e9 1 0 p er dayfor the sef
v r c e,andc !s to me fgs u fl e .n o to n ty ffo mi h eexpense b!tatso
f r om t hein c o n v e n i e n c e o J a n " a c ri v e tonproced!re
thatcon- criticatThinkinqOuestions
' ec L" l o 3. Wh.t expenses
" u o e t,ar.po" " . " .re incurred
whena b!sine5.:
c us t om ers b i L tn gre c o .di n th e d a ta b a s e . h qh-speed nte.netaccess
roriscustomers?
B es tW e s te rnp ta n sto o i fe rf.e e a c c e ssn at(of i ts 2,300 4 fo d",na o t o o . d n g ." .,
?
hot et sn t h e U n rte dSta te sC , a n a d aa. n drh e C a. bbeanB esr o '. n n g o r L o l '. I e . u . r o
W es t er ni s th e frs tm .j o f c h a n ro o ffe .th i s se.vcc,eerorts mLrchprofi ti s madei fom the seN i ceat $10 p: -
c ! r s t om e.sAc. c o rd i n qto T o m H i q q i n sC, E 0ol B estW este.n, customef?H ow mi ghtB estW esternm akeup - :
I lr ec om p a n ys fe s p o n dn g to p o p u ta rd e m snd.tsthenLrm- the$1! per dayse.vce cha.S e,
0er one ame n rtyre q !e s te db y v i .tu a l tye v eryone. especi aLty
b! s lnes s p e o p teBe . s tWe s te rn s rn i i a tg orLstow featteast S oU R C FS .dre e^'1. rr/iI -kw ".-, !dr.."S LFpec r.
15per c eo o t fl h e ro o m s n e a .h l ro i e l r a Lsoptansi o creare tanrary n zaol, w.)6n.td.Q4 -Besrweelern ptais tndu:r ,
! d' p. Do o rr ' D? rv"rrn
w r eLes ac s c e s sn e a c hh o re ls p u b ttca re a s. 9r Sodcd /4 No.Aroer o0
'

NOTES

50 urcestor t heopeningv ignet t eit t owar dBa l d w n 'l d s h u a F onssr R e m a J o n . s , A d a m , 'C o l t o g e s P u t We b O n W a r p SpRe.:e d .
undaunredby vasr Globat /nf.a6lructure tnt'.wort1, Jantaty 23, r'r'ers,February16,2001p.18.
2004,ww tnfowrtd.cara'Cotl ers nrdrnatonatcoes Livcw ur nref F l l t o n R o g e r , 'Wi r e t e sI ngl e r n eA
l . . e s 5 s Po p pi i :,
woven PRrr'Er5&.e Novehbett0 20A3,ww.teris -nexis.con nret- pe.\edPlaLe. RackyMauhtain ters Januaryt9 2::_ :
woven Web ste Mintefualen..om accessdMarlh 13,2004; B.and, Ra.heL,'Wireless10 Weltness, ,pocdylr'o-- .,
MoLecuLarWeb ste, a@Drl.r/d..dn acceE5ed
March13,2l]O4
GrimesBfad,'LeaverheDdvingtozlpcat,
PCMag.z -. .
I G.een, Heather,'Ihe LrndsEround nrene| Busi,ess Week,
Sep teh ber
15, 2003p. 80 F tl on Roger 'W feLessnternerA.cessis poppnD : I
2. Gomes,Lee Gfowthot rho Inrernel,' rhe Wa\1St.eet/aurhal pectedPlaces,RockylLlbuntain News,)anrary19,2. - :
Decem ber 22, 2003p B1 M o n s s e yB
, r a n , D o u b L e C LHi ct kWl h D e ce p ti ve
A.:
netNews.cbh J uty22,2AA3
 The Inrericl, itlarcL3 and Erfanets

::ienbush,Sleve, HowTheU S. Lags. Arsrn.setyee&,MarchI, 40 Rosencmnce, Linda "Blogs BubbleInto Busness," aomp,?e.-
wo.ld,Janrary26 20tl4,p 23.
. o ,"/, - -0 .5/, A L"5r ,T5e W "b ! r r ' 100M ol, a. . . " F . . 41 Venon,0an, BtogsPtayaRote n HomelandSecuflty,Crhprlel-
r:tl iu ne2 3,2 00 3. p 80. wottd,May12,2003p.12
: igte David, Europes Broadband BattLeSpais Borders, Ihe 42 Ernsr,Waffen BritdinqBlogs,PCMasazine-)une30,2003, p. 53.
,. : I steer Joumat, )anuary 15 2004,p. 84. 43 Dreer Troy, Brog0n, pC MasazineSep\en6et2,2aa3,p. 15t,
-:^es Tim, Managng DataCentersThrouqhXML, Comprler 44 Tafanro,rames, 'TheyCan Run But CanTheyBtaql Ihe Watt
.:.ld Ja nu aty262 044,p. 38. slrcet Joumal, Argust 6 2043,p 412
_:.
dr,Josh 'WebStars,Pe ryrrld, FebNary2004 p.91. 45. Becker,Tom, "lnlernel ProlocoLPhonSa{esRsi^g, rhe Watt
::renum Anck PhonesJulcd lor la6, R..kt Mouhtain Street Journal, Sepremhet23 201J3,
F 4218.
r:,rs, July14,2003,p. 68 l6 Prince,Marcelo,DalinqforDallars, Ihe WaltStrcet.t.urhal,May
;ran, la kumar, aesl n Cta55Apptica(ion FrameworkAltows
:::r PortarA.cess, canpotetuortd,February24 2443,p.51. 4 7 . P a . k , A n d r e w 'N e t P h o n e s S R
t anr 9
l n 9U p C u s t o m e r c,
Ar sl r d ss
: :ian de f,Sleve,Bes tI n Cl, as sW: eb5t e Add5nv eit or yC o n l r o t ,|cek,December 29,2003,p 45.
. : Fdtecasri^g,canpuletuortd,February24,2003,p.45. 48. Stall'Ctearsqnatfdrintetner P6ones,BusinessWeek,June23.
1-!hoeit Kurt etal MuttipteConceptuatDatidn ol SmaltBusi 2003 p.44.
::: Web Use and Benel t Detision SciehGs, Srnner 2AA3 49. Rorh,Danier'CatchLJs lYoucatr,"Fdrl,,e, Fehrvary9,2004, p.64.
50. 0.ant,Petef,"ReadylorPrimeIne, rhe WallStreetJaurnat,-)an
: .0, Bob "Wavesol Chanqe, ConputeMartd,May 19,2AA3, uary12,2001., p. R7.
51. McEnvoyAdife "Tmeto SwitchtoaNel Phone PCWodd,Fe6tu-
', :' Michael WebServce6Br ld Maien\rfi, PC Magazne
52. Spencer,
lane,' AtdeftdI6at? Ihe WallStreet)ournal,Sep\en
:, - I m, AmazonEverywhefe PC Magrzlrd,Seplember16,
53 Manqalinsan, Mylena,YahoollopesNewSetuiceIurns5ea..hers
:: a Preston,WebSefrlcesnActon conputerybrld,May19, lntoStroppers,rhe WatlstrcetJ",/,,1september23 2003p. 81.
54 llggin5, M chelle, outsourcingYouf eAayAlclians lhe Watl
:. e Frank, WbSeruices
5 mplyPut ConpulerybrldMay19, St.eet Jaurnal, Fe'ruary 24, 2AO4,p. D2.
5 5 . B a n kD
, o ^ , e B a y t o A t l o w C u s l o m e rPs a
l oy b y L o y a t t yPo
n ts l r e
4i, Carot,'UsersPro.eedCauliously 0n WebserycesTrack.' WallStreet Joumal, May20, 2AA3Q B7
: -Dtterwarld,Decembet p. 1D.
31, 2AA3, 5 6 Wa r n e r , M l a n , - e B a y s Wo rgsht N l m a r e F d . l r r e , M ay2 62003,
. ,etey.Wiltam, Mic.osoft,BM Set StandardsPacl, Ire l,vrl
18,2003,p. 810.
:!1 J,,r,al September 57 ComesLee,"R AATales Oll tneG\a\es, Ihe l'lall StreetJajrtat,
",a Carot, Group Releases Lel of Guidetineslor Web S e p t e m b e1r5 , 2 0 0 3p .B l .
a. , res CanputeNarld Argrsl13,2003 p. 14 53 Holfman,Llen,"Ofice HetpFromAfar, Arslrdss r/cek Seplem-
', : : ; ber q, W alt e.," C h e c k i nMa
q Ou
i tl tE
o rC h e a p s k arrtes
c,Tal l b e r 1 5 , 2 0 0 3p 1 0 0
: :.t Jaurnal, Arsrs\27,2443, p.D1 s9. Luhn Robari,"BestFreeStultonlheWeb, PC /dr1dAu9usl2003
'. rdh - -v dit L pe' nen s uppoI o D"q "c . o s " p d
"
, .^Ih.ary, Rlaonbetg News,rcpt nred ln Ihe R.tkt Mouhtain 60. Konrad,Rach|,'OnlineVotingStLt FacesHurdles lre Dervel
t..iAuq usl0,2 00 3 p. 27A. Pbrt, Jaruary 25,2444,p 4A
-:: r-, Jeffery,ThePoliticsolrneccLne fhe wall steetJaDr 61 RubenkinqJanet"YourL brcryO^llne, PCM.gazine,F.6Nary 17
_: Va y2 82 00 3,p .01.
: ::{man Andrew,'Spams EasyTargel, rhe WallSteet Jaur- 62. Batik carl AoL olters 0 scountMoviesas a Broadband
Lure,
p. Bl.
-: rJq ust1 9,2 00 3, rhe WallStteet Joumal, )anta.y 21, 2A0L p Dl
!: : Cade"CanE-MailSlnve, PCMagazihe, Fehtuaty17,2Aat!, 63. Brandt Andrew, NeNvofkCame.aslofAtl, PC t7drl4 February

:. Robeft,Sobig.FVirusClogsPCswlriE-Mal,
fhe WaUSteel 6l Kandra Anne, Can You Proft lrom Online Nelwofknq? PC
j --.11,
Auqusl20,2003,p. 85. Wbrld,Fe6tuary2404,p.45.
-. :i oanet UncteSam Vs. Span, PC Wortd,Ausrs\ 2aa3 65. Kettey,loanne, Atl n the LD6pta.edlFafr ly," RackyMauntain
News Feb ary 17,zOaL, Q 7B
Myte ie, ' Cat f or nia
G et s Ser ous About
Spam ' r r e 66. Schoenberuer, Chana"Everyone16Tryingld Selt Digtat Co^ve.
-._;a tnd an ,
.: StreetJau..at,Seprenber24,2Aa3p.43. qenceto Home.wners Frrbes,February2,2001, p 90
r:: Cade CanE-MaitSurvvePCMaga2ihe, Febrra.y17,2AA4 67. Clark Don Gadge.sercwlp, fhe WatlStrcet Jounal, Jantary a,
2 0 0 4p. 0 1 .
rl.. t*0, a lldeously Unretiabte, lnlorhatohweek 63 Wdod,Rchard,'nlranet n Stall Nand., New Zealandlnlotech
""u Weekly, Fe6tua.y I, 2001 C.3
.:r:terq Watter"AppGoulto RaiseBarlorAudio,vdeo ,Ro.try 69 Knighls,Miya, 'lntranetConsotrdalesUlilty 6 LegacySystems,
i.r/n &e G,Aus u5t18, 2003,
p. 58 Conpuntg Ja^rary29,2AA4p.11.
'j
: :' AoL Servicef it w th Agsresslve P tch T ed to GameL nk' 70 Sraff, Bringnqtheoutsdel^, NewllediaAge,Fe6ruary26,?OAL,
: -'. ,kll StrcetJ.Lrnal Febtuary12 2001,p D5 p 25.
:.: riotuuqh, Reid Btoqs, Aiivals Aususrsptember2003, 71 Fieldinq,Rachet, WNSmth News Exlfanel Hetps Spot Sates
Iftnd., Cohputins January8,2Aaa,p 14.
: : ' Wackyouesrions,RackyMountainNews,Argnsr5,2043, 72 RichmondRrva,"HowTo F nd YourWea[Spols, fhe WallSteet
Jarrrrl Seplember29,2003,p R3

al
 Austral.ian
FitmStudioBenefitsfrom Broadband
Networks...andLocation
S i g i G oode
rhe Australia n NationaI University

Its b e s a hecti c24 hoursat Fre i s a Li ql i d Fi tms.a smattA ustrati an

f it m pr odlc. : ,
s tL rd i o.Thefl rmsl S sraffmembershavej usrri ntshedrenderi nqscenest r om ih; eef ear
i tms , p tchedi deasfortw o TVconrmerctaland s, deti vered tw o mi tesi one[ pr og. ess], :
d a te sto producti on cLi ents.Thanksto the pow erof broadband nel w orking, t he em pt or : . :
h a v e accompti shedmostofthi sw orkw i thou eavi ngi hersmattstudio. O f ht scom pa- :
i g h td e adl nesandadvancedtechnotogy,Toni B rasti ng,Managi n gDif ect or , expLains
r,:
p ta yto our strengthsn terms of tocati onand technotogy.
Ourw o.k rangesfrom cteani ngup footage,o rtr,prove corou.or co nt r astup , t c. _
..
b to w n C Gl model ti ngandrenderi ng.W ew o.kw i thl V commerctats. t ght upt of ear u. , _
h o u s e s,and from one or i w o frames!p 10enti .escenes.W e can capi t at
se on o! f . : :
g ra p h rcLocati of. W ;thmost featurefi tms bei ngshot n the U S . or E !ro pe,t ct jent sl: : -
s e n du s the r di gi tall ooi agebefo.etheygo ro bed,andw e canw ork on lhe
scenedL- :
o -r d o rl B v rLF . me l h" v w ..e . F p-o.a.-eo ,ootdge .eadi
-F. -p i.
"no wd, . . .
th e m. W e .ety heavi l yon our broadbandnetw o.k nfrasl rLrcture to m ovedgt al : : i
a ro L rnd.D ependi nsonthequal tyanddu.ai tonof thefootaqetheuptoad pr ocesicar : : . r
a n y l v h ere frorna few mi nui esfor a bri efsceneto a few hoursfo.anent.ef at uf e
ai: . l
q u a l i i y .l \4ostof ou. cti entsprefefto deatw th i ndi vi duat scenes nthi swaybecau: i
a tto w st hemto sh!ffl e thei fw o.k ftowpri ori ti esa.ound.
' Mostfrtmsand
commerci aLs !sed to be shoton 35mmanatogue fi Lmwh. ch cai : : . ,
ti me to p.ocess.Thetrendi s movi ngmoreandmoretow afdsdrgi i atvi deo
beca! se i: : ,
b e e a s i tyed ted and m.ni pul ated.W i l h 35mm,rf you w antedro btd on wor k
wir h a . _
s tu do , ithetpedi fyouw erefai rl ycl ose bysol thatl youcoutd haveaccsst or hef it fm :::
fo . d l g ltsrngpurposes. W i ththe advenrof di g t:t vi deoandbro:dbandner wor king, we : : -
ord 0n prolectsanywherein the wortd, from the ,,Lr'arr, ft 2g Days Latet.Ihe acta.. ..-
g e ta b e tterfetl or eachscene,andthe d rectorcdnpE ceeacnscene
In gr e. t er cor : : ,
th e r v i si oncomesto ti fequi cker.
' ' F oredi i i ng,w e
mosttyuse Fi natC ut pro on o!r Mactntosh systems r he M acs: !
e a s y i ouse,andtheytookgood,too l w hi chi mpresses cti entsw henthey t oLr r t he st L: :
T h e yrun Mac 0S X , w hi chw as ori gi nal rybasedon B S DU n x. occasi o nat t y,
we ne: I
d e v e topa new techni quefor a proj ect,so i t s usef!t to haveaccessto
sof t war eso, , : i
c o d e .l vl ac0S X gi vesLrsgoodsupportfo. our ow n open-source Lrnuxtoo r s.
An ol hertechni quew eusei staptopi magng.C ti entsl tkethefee lngt har we. r et ; , , ;
c a r o ft hemandthattheyareou.focus.W henoneofourteamsgoe st om eer act ie. _: .
a p tc h or a m testone!pdate,rheycan p!rtta taptopoff the shetfand bu
t d a cr slon : : :
h a rd ' d r i vel rnagerghtffomthei fdesktopw th N ortonGhostoroneofou r hom e
br e. . : :
i m a 9 i n gappl catl ons. The tmagesoftw arebakes a hard,dri vei mageon t he f Ly,s- : -
rn c tu d esthe 05. edi ti ngsoftw are,and retevanlfi tm fooi age.tf necessar y,
we can : : :
In c tu d ec0rrespondence and storyboards_w can e havethar ct ent.senti. e r et aror : , :
rrs to ryr i ght there i n the meeri ng.W e.reatsoabouti o sraft phasi ng
n t abt etpcs r '.
s c fl D ep ensso thatw e canw ork on potenti at si oryboards d!.i ng the mee r ingit set i.
 w i rtd!.r..r I P si z

' ' T heot herim p o rta npt a rto f o u f p ro c e s s i npgl atforml s our rende.l afm.l t s basi caLl y
: - oomf ut l ot ide n tc a t L n u x b a s e dP C s ,w h i c hw ork on a probtem n paral tetW e use
r:T m odit yP C ha rd w a rea n d h i q h s p e e dn e i w o fki ngto atl oweachmachne to w ofk on
_ : pr obt enr . tonc e .l tm e a n sw e c a nq e ts L rp e rc o mputer perl ormance at a ffacton of the
:: t . W e us e our d e s k to pm a c h l n e sto e d t i n d ra ft resol uti ontw hi chs of i ni eror quati ty
: : m uc hf as t er t o re n d e ro rp re v i e w l .W h e n w e rehappyw i thi hecut w e' rushi t' l othe
:1de. f a. m lo pr o c e s sth e f n a l p i e c eo f fo o ta g eWe. al soofferrendeffarm teasi ngser
: : s s o ot he.f lt mc o mp a n i ecsa ns e n du s th e i rra wmodel f tes,usethe renderfarm over
': net wor kand , t h e nd o w n to a d th e i r c o mp te te footage.
d W e then i nvoi cethemforpro
::r s ng t m e- t hey n e v e rh a v eto te a v eth e i ro ff c es.

: s . us s ion0ues ti o n s
Howm ightop e n s o u rc es o fl w a reb e n e ft a s m attbusi ness? W hatprobLems mi ght a
: m at t bus ines se n c o u n tew f h e n u s i n qo p e n s ourcesoftw are?
. - he s l! dio pr o fl te di n th i sc a s ep ro c e s s eta
s s k sdudnga cLi ent
fl rm s dow nti meW hat
s t hert as k sc o u l db e a c c o mp st h e d m o fe i n e xpensi vety or more eff ci enttyby us ng
p. ovder s in ot h e rg e o g ra p h ilco c a tl o n s ?
W hatot herly p e so f I rm s c o u L da ts ob e n e ft ffom a fenderfarm?w hat fi fms do yorl
k nowof t hal acti v e l yma k eu s eo f l h i s te c h n o Loqy?

r , c alT hink ang

Queslions
A r em oder nf lrm sto o re l i a n io n e l e c tro n i cn e l w o.kn9?l f so,w hatcanbe doneabout
: . ls dr awbac k ? Wh a l p a p ebra s e d s y s i e m s c o ul dl hefi rmuse fi tsetect.oni csystems

. lowm ghtwir e te s sn e l w o rk i n gm p ro v ei h e o pe.aton of systemssuchas thi s f rm

: : : A t l nar nesha v eb e e nc h a n g e da t i h e re q l e s tot the i ntervi ew ee.

VirtuatLearningEnvironmentProvidesInstruction
FLexibitity

Coventry Untversny, Unted Kingdon

O neof the maj o.components of C ovent.yU nversi y s teachi ngandLea. ning st r at e.

b e enthei ft.od!ctonanduseotaV i .t!al Lea.nl ngE nvi ronmen t t VLElut t isingt her , r ,
l W ebC ourseTool slp.oductptatl orm.TheJoi nt nformai i oiS yste m sCom m eeI l : :
th e U K hasset o!t a def ni t on of a V l rt!:t Learnng E nvronnrentand st at st har t
-
to i he componenl sthats!ppori orti nel nte.:cti onsofvafa!s k ndst akng pt acebe
-
A cenl rata m of the un versi tyw as to enhanceface to face t eachr nqand t .
q f eaterftexl bi l tyto bothteachi ngstaffandst!dents r cfeareda cent r atsuppor t.
CH E Dl C entrefor H i ghe.E ducaton D evetopmentl -tontroduceand devet opnew
ti v esi n teachng and l ea.ni ngacfossthe !ni versl y. n addi ti ona r askf or ceoi aca. :
s t affw as esi abl shedta teadand faci l tatethesei ni ti ati ves
i n co{labo. dt
on wit h a
T hroughthesedevetopments andw th i he s!pporl of the unrvefsty s Com put inq S:
!ni t, W ebC Tw as mptemented as a corei nstrLrment i n achrevrnq the un ve. sily's. :
l i onatv s on.TheW ebC Tapplcat on atLol l scoursematerat and .e sou. cest o be . :
o n the W eband pfovi desstaffandst!deni sw l l h a set of tootsth.t can be cust om: -
c o !rse and mod!l e req!rremeni s1nbf ef, t atsocontans the foLlowi. gf uncton.
.l lS Ccons' ders to be essental featufesof a V LE :
. cantrot(ed accessto cl fri c!tum w th mappi ngto etementsthat can be ind ! :
assesse0 anorecor0e0
. l rack n9 mechansms { or st!deniacti vi tres
and perfo.mance
. supportof onLi ne teafnng th.oughcontentdevetopment
. communl catonand feedbackmechansms bel w eenvari ou s paf t cpaf t s
tearnl ngp.ocess
. i ncofporatronof tnks l o otheri nte.naL/extefnatsystems
n t new th theai msandqoat5ofl heV LE str.teqyC ove.tryB !sines5Schootha:
a c tve for a n!mber of yea.si n i he devel opment of c!ri cuta and m odut est o cr ear l
v a tve l earnn9 communrti es and to engagesi udentsn the tea.ni ngpr ocess0. .
m ost s!ccessl utp.ogrammesthe B usi nessS chootdevetoped w as t he B. A n B(
Enterprse l B .A .B ..1
deqree.TheB Lrsl nss E nterpfse co!rsew rs: Lea. ning pf o. -r :
d esi qnedi odeveLopgraduai esw how outdbeabtetoproacl i velym anageb! sines. .
tasks.sotvebusness p.obl em5.and nfl ucncethe b!s nessenvr r onm enrn wl. : -
w o rk A cenl ratetementof the programmew as that i t w o!td enabt est ! denisl. :
foundaton for t fetongtearni ng, i n w h ch st!dentstakeresponsi b Lir yf or contnLa
Inqandpersonal devetopmentthfoughavafi etyofmedi Thelanco.po. at onof Wer'
th e B A B p.ogr:mmema.keda s 9n f cant deparr!fefron es t abt r shed m et " :
te achrngteafnng,:nd assessmentn the B !s ne55S choot
 \ihdd !ews case I Pdis

: . t hought he sc h o o h t a dp re v i o u s Luys e da v ari e tyol computerbased 3ct vi l es w i i hi n

: ear ningenv ifo n me n t, th e r. u s e w a s l i m te d to i ndi vd!aLmodutes and l n manycases
: " r es t rc t ed.ln a c c o !n trn g a n d n l o rma ti o ntechnotogy courses, softw areproducts
. r ^ as E 0L t ut ori a L{sE 0 L In te rn a ti o n aL ttd i s a d evetoper of e-Learni ng
and computer
: : : j as s es s m e nst o tl ti o n s l w e re !s e d 3 s s !p ptementary teach ng m.tenat and for
_e as s es s m e iot r s e tf te s t e x e rc i s e sT h eW n E conpackageIP C -based i ntroductory
:: _. m ic ss of t wa rehl a d b e e nd e v e to p ewdi th B r stotU ni versty througha consorti um of
_i
: UKec onom ;cdse p a ftm e n ts and w a s u s e d b y t he E conomi cssubi ect g.ouP rn course
. : : hio9. n ot hers !b j e c ta fe a s th , e te a c h i n gs ta i f provi ded studentsw i i h W ebl .l R Lsre
: . il t o p. . t ic ! t ar re a dn q o r a s s e s s m e n t to p i c s w, hi ch coutd be easi tyaccessed vi . the
. r net . I n c ont ra s t,th e B u s n e s s E n te rp r
s e p rogramme w as des gned tor deLLvery va
: t r ' or LdW ideW e b ,s o m o d !te d e ti v e ry p ro g ra mme management, and staff/student
- m un c at ionwe rea tl b L ri tt a ro ! n dWe b C T .
I his pr ogr amme w a s th e rs t to b e o l l e re db y the uni versi ivi
fi y athe W orLdW i deW eb.
: t was s ignf ic a n tb e c a u s e tw a s n o td e s i g n e dsotetyfordi stancel ea.nngbutrather
- 3k eus eof t he ran g eo f to o L so ffe fe db y th eW ebC Tpl ai formi or teachrng 3ndl earnng
I : i w t hln a c t as s ro o ms e tti n qa n d o ff c a m p u sv a the N ei . W ebC Ttool s w e.e used i o
- . t u. e and t o o ro v i d eWe b -b a s e d a c c e s sto c o Lrrse and moduLe materi ats, and com
- - - c . t ionsf ac it ti e sw e re a d a p te d to d o v e ta tw i th ex sti ng cLassroom-based teachi ng
,: L?ar nng. 0f pa rti c u l a ri m p o fta n c e w a s th e consderatonbyi heteachngteamofhow
: , \ r ebs of t war e fe a tu re s c o !l d a d d v a L u e to t hetradi tonati eachi ng/tearni ngmodesand
-:r ods t halt hey w o u l d b e s u p p o rti n g o rre p ta c i ng.Thi sevaLuatinturnspurred on n
: r at t ec t ur e. sto e x a mi n eth e i r i e a c h l n gp ra c tice, sti mLrLai i
eddeas about i he appti ca"
:, of W eb- bas ed te a c h n g a n d e n c o !ra g e d s t:fftodeveLopthe.know l edgeofandsktl s
: : : ed t o t he univ e rsty ' s i n tra n e e t n dth e In l e rn e t.0ncetheseopportunrtres w ere den
: j and plac ed w i th i nth e c o n te x to f i h e m o d u te and course obj eci i ves,l ecture.s then
: . m s ed t he W e b C Tfe a tu re sa n d l n te g ra i e d them w i thi n the overatL teach ng and
ng f r am ew o rkT. h e b e n e fi to l s tu d e n ts s fL e xl bi U ty,
C ourse and modute content s
- : _.
: : e; s ibLef r om o u ts i d eth e u n i v e rsty a n d o u ts rde of teachi nq hours C ourse materi ats
. ?r c an be pia c e dw i th n W e b C Ta s H T M Ld o c umeni sl so they can be edi teddi rectty
iel o. c an be u p to a d e da s l n d l v i d u aat p p L i c a ti ons, such as P ow erP oi nt sti des,W ord
: : J m ent s and Ex c e L s o re a d s h e e ts .
: lf ec t iv ec om m !n c a ti o na n dfe e d b a cak re i mport:ntaspectsol a sLrccessfut tearnng
, _onm entO. new a yo t l .c i ti ta ti n gp e e r g ro u pc ommuni cati on andcommuni cat on be'
: : r s l! r dentan s ds ta ffw a sto u s e th ed s c u s s l o n f orum/b!tteti n
boafd faci U es
t p.ovi ded
: 1e s of iwar e.Th e B .A.B .E p rc g fa mme !s e d th i s { eature as the pr ma.y mode of de"
: _ noinf or m ato n to th e s t!d e n tc o m m u n tv A ttcourseandmodute{ etetedannounce_
: _t s , s ! c h as c ta s s .e s c h e d u ti n q , c h a n g e sto assessmentdeadti nesand meeti ng
, _: f genr ent sf or , e x a m p tew, e rema d ev a th e mai nbutl eti nboard.Theftexi bi l i ty thatthe
. . " r epr o, ioe s o r' re d l ' a g o s .-s s o n a re a q " l l o$pol ecL-re-s_o(on' r' u_ " ' e a5fo
ient s t o \ { or k n d v i d l a L Loyn s p e c i fi c p ro j e c ts yet be i nvotved as gro!p members in
i: ! s s ons c entre do . c o m m o nth e me s Be n g a synchronous, these di scussi ongroups
. : . . r eds t udent sto b e c o m e i n v o tvneadn o n q o n g exchangeof deas reftectonthei row n
: ot her s c onifb u ti o n s ,a n d th e re b y fa c i tta i e thei row ntearninng. addi ion to the di s'
: : on f or um ,W e b C Ti n c o rp o ra te a s chat fa c lLi tythat can enabLe a smaLlgroup ol
r : nls t opar t c i p a te n o n tn e re a l tm e c o n v e . ssti ons.A naddi tonaLadvantageofthi s
: r ol s y nc hr on o ucso mmu n i c a ti o n ;s i h a t b o i h studentsand tecl !fers co!td devetop
: : ! pm anagem e n ta n d e -mo d e ra ti o n s k l tsn. a ddi ton theB LrsnessS chootl i nkedthe
: : e- m aitlac lt i ti e a n W e b C Tto th e e -mai l p.ovdedto attstudents
s v a i L a b ite by C ovent.y
r e. s t y , alt o! { l n gme s s a g e lso b e tra n s mti e d wi i hi n modutes Th s neani that mes-
; : es we. e m od l te s p e c i fc a n d d d n o t g e i l o st n the l arger sysi em-especi atl rn
y
: : ! Les wt h t arg e n L rm b e rs o s tu
f d e n ts .
Ps Et s I lnr or m at onTec hr o t o s y C o n c e p t s

The sludenl ofesentatlonarea of WebCTwas used to altow st!dents to create tl.er

o w n W eb pages,w hi chcoul dbe di spl ayed and shared,th!s pfovl dl ngihem wilh an : : -
p o rtu nl tyto gai nnew ski ttsand an understandi ng of an i mportantpa.t of t he pr ocess
i n v o l vedi n managi nga busi nessenterpri se.
T he B usi ness S choolal sousesS Ti l e,a portatthatw asdevetoped to pr ovideslud- 5
w i tha rangeofresourcesi hata.e ava;tabteonthe !ni versl y s i nl ranet. The por t at cont =.
a n e a sy-to-!seti nkto W ebC T.
In the courseof the devel opment of the B .A .B .Eprog.amme,
. i t bec am eappar entl: t
fo fth e successof newi T nnovai i ons, suchasW eb-based teachl ng, the pr ojectst alfnjr
i d e n ti fyandi nvol vekeystakehoLders,parucr.rtartyw henarad icaLr esir uct ur inqof t e
a n d l e arni ngmethodss needed.Thesestakehotdersnctudeadmi ni st r alive pe. so. . - -
te a c h i ngprol essi onal s,andatsothosew hoareai theverycentreof t ea. ningact ivit y- : '
student body.The !nive.sity benefitedgreaily by activeLyinvotvng studentsand stai a
th e d esi gn,use,and evaLual i on of thei r educatl onaL envi ronment. Ihe exper ience oJ1'*
B.A -B.E -venturehi ghti ghtedthefactthatthati nordertotransl o r m t hest udent t ear . : 4
s
e x p e ri ence, aLl thestakehoLders neededto undersi and howi o constru ct alit bet weer : _r
n e e d sandexpectati ons ofthel earner,theski l tsandpedagogi cal toot ofst hepr act Lt r onE-
a n dth e tooLsavai Labte w l hi n the V LE .The rew ardshavebeengreat.Theest abt ishr 3r t
o f a V LE ,w i th W ebC Tas Ltsceni re,hasgenerated a new erci temeniin ihe appr oacr:
u n i v e rsi tyi eachi ng,sti mul ati ngrefLectl on. and transform at ion
rel nveni i on, and c. e6:: q
a j o u rneyof l earnl ng'for bothstudentsandteachl ngstaff.
A lthoughthe B .A .B .Edegree . programmehas now beenmodi ri edundert he cur r : 4i
course siructure. manv of its innovatlvefeatures havebeen irafsferred and embec.:t
i n to i eachi ngand tesrnng p.ocessesacrossthe w hoteof the under gr aduatbus. e : s.

l n addi i i on,W ebcl has enabLed the B usi nessS choolto i ni roduceand devet opi r r
b u s i n esspadnersnew ,forw ardl ooki ngproi ects, suchas the devetopm ent and det : ": - \ ,
o f l h e P osl GraduateC erti fi cate. P ost Grad!ateD i ptoma,and l ,l A i n Com m ! nca: :
Ma n agement vi athe C abl eandW i rei essV l rtuatA cademy.l i hasatsopLayed a sign( . - - t
ro tei n theestabLl shment of tea.ni ngcommuni l i es anddevel opment ofwo. k- based lea- -
i n g p roj eci sw i th pubti c-sector
organi sati ons suchas the N ati onalH ealihSer vice,t o: 1
authoriiies,and privaie-sectorenterprises.

Discussion0uestions
l . W hy do you th nk that a d scl ssi onl orum w ol td mot v:t you to u se t he nt ef . . :
a ccesstea.ni ng.esources?
2 . W hatdo yo! thi nkthe l se ol e ma t facLt es w o{rtdcona buteto yo urt ear nng?

CriticatThinking Questions
3 D i scusstheadvantages thataV LE w th ntefnetaccess in di : -
coutdofl erst Lr denls
o p ng therrl earni ngA re thereanydl sadvantagesl
4 l d e nti fyanddl scLi ssi hedi ffefeni typesofconi rb!ti orsthatvafi ousst akehoidef 5. :
 Business
trnforrnation
Systems

..5 [:llr t iar r Comrre,ce

f,; ,rl 'l Frlraori:ir i?e:'.!ire PLannr!rq
r.rrrl,,i.tr!:rPf!,rLrl,.:
J y!ii {.r',.,
,.- It tlit:. t i)i t,. ::r,:jDtr sio,',!i)por1 :/srufr,
l1 ')2r.:.i t..t 1l!!:ir.:,: .ri,-fir)iri,rf 5r.,il.Ir,. Ari ili ai
Lrp!,r !r!.,"i ! ] rlLr.tLii.:rl iy, lrn a)l1r.r
i,rr.l|:t.r:ti_{.,

'.,r), :::r r.d',!!i.rrial

E c o mme rc ei s a n e w w a y o f conducti ng denlfy :ev.r.tadva.t.gosot e co m nr . . ce
b u s i n e rs , a n d a s w l th a n y oi her new
0utti nea m!tl rtrqe m.deLrhatdescfbesh. . .
a p p ti c a l i o o
n f te c h n o L o glyt ,p reseni sboth
o p p o rl u n i ti efos r i mp ro v e m e nr and poten
dcnl i fy s.me ot the m.j of.hal l e f qes r f :
compani esm!st over.ome to su. . ecd

D eecrbe someol thc c!rrent !se! and p. t e.

t al boneft! of m,commer.e.
denify severrte .omnrerceapptl. alois.

E-c o m m e rc re e q !i re sth e c a re fut pl anni ng 0!ll nc the i(ey .ompone.l.

a n d i n l e 9 ra ti o no f a n u m b e ro f technotogy ntrarl.!ctL.e thal must be
In r.a s tru c tu re c o mp o n e n ts . e .anrnr..ce to e!i:.ecd
Ds.!5s rhe key l-"at!f.! ot
paymenr sysrenr. r,eeded

U s e rso i e -c o m m e rc e te c h n o togy
m!sl use ssLre. that , epr e5c
s a re 9 u a rdto
s p ro te c tth e ms e tves. s gnl lcrnt th.e.t5 tl ) trrecontn!ed g. owt f i

O rg a n i z a i i o nmu
s s t d e fi n e Ol l | i e the key..mpcnents of. lu. cesst r
s tra l e g yi o b e s u c c e s s fu l i n e .ommer.e strat-ogy
 Eledion.comme@ | cbrpr6rB

INFORMATION SYSTEMS IN THE GLOBAL ECONOrWY

SPRINT, IINI"ED STATES; AND SOIVY, JAPAN
Handheld
Entertainment

the birth of telecommuicatioDs has rvolutionized the m9lner itr which we

sonduct busine8. Early telecorlmurdcation networks a.Uowed buEineses to
arry out loDgdistarce transaotions for the trIst iime. Similarly. the atevelo*
reni ajld Crowth of the lnr.emet suppone.ct wjdespread etecrronic commerce
.etwen buaines8ed a.Ddconumers. Today. the explosion in the mobile commu_
rications market, along with the mergr of voice aJxd data networks, ba
*ought e-orDmerce to consumels over their cen phones. BuyiEg
Foducts ard
erices has nevr beeD easier. Whenever affl vrherever the impulle may strike,
r purchaae is oDry a button push av.ay. The prcduciB tbat ar most likeLv to
tlc.\eed iD lhis market ale ousic and eorertainment.
Sory ha joined with Sprint to provide muic proatucts over its celutar
Etwork. Currentry, the compa,Ilies sr focusing on a vaxiety of riDg hlnes or
liDgrs. Sprint is offering downloadable ringru seatd by tbe Sory Music Mo_
b] hoductE Group over its PCS Vigion notwork. Ringels rane fi:om animated
toryphonic tones, to actuar clips ftom popurax songE. to spcializeal sound and
ioice rccording. For example, you coutd download a clip ofyour favorite ftp or
#hm aIId blues artftt or have Bugs Bunny notiry you of an incoming catl Th
crod is accompanied by auimated graphics oD the phonet coror digitar display.
Sprint cirstomerls appaxently apFeciate this customizatio4 ir a rccent l,ar,
SFij]t sord morc than ?O miUion ringtsIs and screen savem to a netvork of
3.2 milion Sprint PCS Vision customels.
The companie are not stopping witb ringrs. Soon you may be alrle to use
lnir ceU phone to download arxd store tuU 6ongs arxd then lister to them with
bdphones, or you could tmJxsfer them to your c\omputer or entertainment c6n_
E. Nokia js designing an apprication it carb .Visual radio.,, Visual radio allo*-s
!.!dsets to rcceive FM Iadio Bigllals and natchs the audio content with rctated
enDres, gaphics, and other content. The appUcation prcvidee a convenient
for listenem to purcbase and download music they hear on tbe ladio over
-"n.
ei! ceU phoDe. "Mat we'r bringing to the table with visual Iadio is iDpulse
Eling," 33y3 Reidar Waenius, a.senior Foject manager {.ith Nokia,s multiEe_
6. gToup. 'You happeD to hear something in a certa,in mooal, a,Ild the mdio
t don ofTeE you the purchsse opportmity. you do it there ard theD.,, SDrint is
on a similar rcbnotogy tbar incluctes music vjdeos anC epons video
-r&rg
PartneEhipe tEtween rcord compmies ard terecorDnuications comDanies
r? Bulriplying. e lhe inctusrries recoDngurc to r a]e adyant aC of this new aDd
u.omirg Inarket. Music from BMG arrists such a Bdtney Spears, Mamons,
t!.ee Days Gmre, the Strckes, IGnny Chestrey, ard piDk are ava abre as ring
u@s tor $2.5o each.
]f music i3 the fo$runner in mobile e-commerce, ttren mobite ganes are next
lr. rine. M4or electronic garning prcviatels such as SEGA, Namco, srd T,HA ha.ve
lrtnered with Sprint to offer dozens of gnes that can b atowdoadeal eal
lared on the tiry ceU phore disptay.
 Port 3 | Busne.s.rormaionsysrems

Secuity is anothr i_ssu with wjrles communicatioDs. Technolosie

provided by com pades su cb as aREw and Qpass aJow for sa-reand secue
rra!+
actions betv,/een the customer atrd the service pmvialer. Using a secure vraDa
appUcatlon, customels caD save and encrypt their pelsonst a,rld fnallcia
informartion on their cU phon6, Daking pulchasing as easy as eDtering
.

ElctmDic commerc ha evolved to support every type of tlansa.tion, Aon

multimillion-doUa.r da,lsbetweetr corporate gia.nts to micrcpayment trane-
tiona betwDpople otr the strcei. It is adicipateat that by ?OlO onty 1? pefte4
of transartions will b made witb cah, 2? per.nt with checks. a,nat61
with electronic tunds transfers, debit carat_s,aJlat crdit cad. .With so much
ou economy relying on -coiDmerce, th6 techoology indu,stry has stepped up
etforh to provide the ncessry security srd stabiXty to support ssf;
emcient tramactiona.
As youreadthi5 chapter,considerthefottowing:
. ar opportuniries and benefftshr +comqce prcvided buinesss and consun..t
. whar dsges rh'ea,enu eonomy rtratdependson rtecommuniclliorunerworb?

AN INTRODUCTION
TOELECTRONIC
COMMERCE
bu!ino$-to-coneumer lB2Cl Drly e@mmerce neM profiied sufi.up @mpdies rhl ued In,erner reclnoloflr
ompte wirh the udirioel pl,yrru in an induity. Fd dmph. Am@b.com ch,X;
Atormote-commerce inwhichcus- wellstablished boolaelles waldetr Boolc ud Barnesdd N;bk. U[ Ana:on, the
lomersdealdirectlywiththe
organrzarion panisdiicu$ed in th opcning vignene provide an ample of buiness_to-<onsuer
avoidingany
e@Emerc., in whict'_(uome6 datdi.(rly wid u organiadon and avoidany ir
drdq. uiher r)?csor e@mere * buiness_ro_Suiness (B2B) _@'mere. in
businls-to.b!siuess lB29l the p{ricipants d organiations, md consuer-to-coBunei (C2C) gtuncr@, wti
involve consues selling direcrly ro other onsurnes. cenral Electric Aircraft Ensi,
A formof e-commercein whichlhe rhevorld! leadingproducer
parncrpanls oflarsr ard smajjjerensinesfor omrneru;atmd mitimi
areorganizarions. (mfr. lr oprra,s e B2Bweb ,i'e rharrltos u*s of irs mginei ro odo
spre pJE
mainteian@ supplies.eBayis an emple ofa C2C e-commerc site; cutonm buy orf
itens dircrly ro eachorher through the sire.
 rLPdri.connrr I chspres

Aside fron the mrjor .atesoriesof e-comncrce.conpaniesare also using Internet consumer-to-(onsumr
{c2c}
:..hnoiogicsto enh,n.e rheircurrenroperations. srch * inventoryconrroland distibutbn.
rr wh.tcv.r model is usd, succesfrrlimplementnion of e-business rcquiressisnificanr A to.m ol e-commerce i n w h i chth e
:rangesro existingbLsjness processes and subsldtirl investnenriD IS rcchnologt- p a r t i c r p a n rasf e n d i vd u a l s,w l h
o n e s e r v l r ga s l h e b u y e r a n dth e
Ovc the pat fo years,we havc lcarned a lot abour the pracricalInnatbns of
: -dnm.rce. It hdsbeohe pliDfully clc.r ddt beforeconpaniescan achicveprofirs,they
lndentdnd thei. busine$, rhcn consumeB,and the @nsrrainrsofc cohhsce. Al-
-si
:,,ugh ir oncerhed so, sellingcorsumergoo.t! online in a virrual storefrontmay nor
.avs be a grearway ro conpcrc.And inventinga ns usefor cuiring-cdgetechnologyisnt
':;essarilyenoughto guaranr.c. succesfulbus;ne$.
Still,*ommere is nordcad;itn naturingandoolviry, wiih rhefocuscufendvshifred
-.m B2C to B2B.l-commcrcc is a Neful d,ltu connecringbusincs prnnersin a virtual
rplvchain o cur resupplyrimcsand reducecoss-More rhan80 pciceN ofU.S. companies
. c xpe.ituenred wirh somcform ofonline procuremenr,al$oush most r channelins
.,: than l0 percentofrheir rot,l piocu.eme oniine, accordingto data from Foncstcr
::id.h and the Insrilulefor SupplyMuagenent.' In conrFsr,accordnBto the U.S. De,
: rment ot Commerce,B2C c commercesalesaccounredfor jusr 1.9 per.ent ofall rcrail
Yet, for 2003, B2C e-comncrcesJesroseby 26.3 percenr ro an estimrcd $54.9
-:..
:.lon.rtudthctrcrdisspreadingglobally.ForresterRcscarchpredictstharonhreshopping
. riuc in European.ounoieswill risefron $40 billion in 2004 rc $167 billion by 2009.1
Businessesand indi;duds usee-comnerceto reducemnsction cosrs,spcedtheflowof
: . 'Js and infornation, inrproverhe lcvclofcusioner srtui.e,and enableclosc.oordindion
.-.ong nmufecturers,suppliers,ud custoners.E-comhercealsoenablcsconsuneb and
Tpaniesro gain acce$ro woddwidemrkets. DallaybNd Aviall expandedto beome a
- rldwide providerof supply chain mnagenent srices 6f hundrcdsof aviationpa.rs
:ru{'a.rurersand airlines.hs clicntsuseAvirll's\{reb s;re6r ordering,invcntoq,dntrol,
.-: dmdd torecsr;ng.'l o movc irs serli.esonline,rhe ffrh spenr$40 million o dselop
. r cb sneand ;nsnll severalsuppordnginfornatbn sr5rems,nrcludingonline putchasing,
::i fore auromaiioD,ordcrenrry,finmcial managemenr, invenroryconftol rod warehoue
: lgement, productallootion. andpurchuing forecasting sysrcnx.The Web siregene'ares
. million ofdre componys$800 nillion in dnnuer.evenue-*
l-.onneG is not limired ro uscby manuhcturingfirns; mu)'servicc firms rnd gov-
, :nem agencies alsousee,@n merce$rcc.sfully. The Deparhenr of Honrelind se.urity
':ls)reachedan askenenrwirh rhe l,cnr.son ro usethe DefenseDepannrenCs clcctroric
- .ll ro srrealrlinethe purchase of irsgoodsard scnices.E$ablishedi. I 998,rhe I'cnragon's
: .hll n d online, one'sroprhoppingccnLerfor nilitary rrices and k one of rhe lrgesr
- ,negovernmencro-business exchanges. Through the EMall, DHS asencies hale acce$t{l
': i commercialcatalogsconrainingmore rhen 12 m;llion itemsfron DcfcnseSupplyCen,
.:, rnd lhe CeneralSefliccsAdninistretion. Use ofrhe PentagonEMall is eneblingDHS
.!v goodsandservices $rough erisiingDefenseDeparimenrconrncrsaswell s conuci\
.:.dished oclrrively for it.5
Susinessprocessesihat ee srons candidaresfor conversion ro e conner.e are rhos rh.r
: rapcrbccd and tlne-consuhins and rhoserharc.n inakebusine$nore.onvenieDr6r
-.rmers. Thus, sone of rhe finr busincs procesesrhat conpan;esconvened to an
:.Tder.e nodel wererhoserelatedto buying md selling. For example,after Cisco Sysrens,
J l- ulI n. e,n e ,' o u re r,u d o L h .rre l eo. m ru n .. ri oa, equi pnrnr.pur i r. procLrenel r
::?rion online in 1998, the @mp.ny reporiedthar n halvedcycletime and srvedan
.::,tional $ 170nillion in naterialandlaborcosts.Simildly, ChtulesSchwab& Co. sldhed
:i.,a.ion costs by rnote tban half by shifting broLenge famactions fiom radirional
.inels suchd retailand phonecenres to rhe lnrernet.
$me compaiiq, suchasrhoseh the atrromotiveend aerospace indurries, havebeen
.Juclins e'commrcefo! decads through the useofelecrcnic darainr.rchlnge (EDI),
.i ;h involvs applicarion-to-appliorionconnunicarions ofbusinc$ daia (invoices,pur
:rcordere, etc.)berweencompanles in a standarddaraformat.Many companies havenow
:::: beyondsinple F,Dl-based applicationstolaunche-@mherceiniriariveswith supplieis,
-,rmers, and emolovees to addres businc$need"
",,E*
dcb.
 Po ! s | t s Em ls nr or m ar ons , + e m 5

Becauseof the costsinvolvedin buvnrgnew rechnologl.rhc EDl caPab;lities of r ':

snallbusincsesare n,oexistentordtrcmelylnni!ed. A fewmjorrcr.ilerand manurr.rL:.
haveenlistcdthe help of thnd partiesro bring smallerfirds inro rhcir ED I suPPly.hain. : ,
*mple, SPSCommercespecialia in hookingup smll busnrcss.s like AmericanOutc ''
Poducs (25 employes) b big supply chains like R.readonal Equipmeni IncorporJ,i
(REI). SPSbuik an Internet-based appiiador rhal translares EDI orderinganil ship: =
requirenentsso that worken on access rhcm througha \reb browseror their PC

Mu t t is t a g eM o d e tf o r E - Co m m e r c e
A successtul c-commercesystenmustaddrcs the manysrages thdtconsunersexperien..i:
rhe sahslife cycle.At the hea't uf,ny . commercesysremis the usff's ability to searri '
and idenrift irens for salc;selectthoscitems and nesotiatepriccs.rermsof Paymtni --:
d e l i verydatetsendrnorde!torhevendortopuchascrhei renrs;payf or r hepr oduct or s
obrainproducrdeliveryiand receiveah*-sa1es supporr'l-igure8 I sho*s how c-comr::'::
can supponeachofthcsesrages. l'roductdeliverymayinvolvetangibLegoodsdelirtrer';
raditionalforn G.g.,clothngdeliveredviaa pacLage scri6) of smds end seniccsdelL,:'1
elcctroniqllr G.s.. softwarcdownloadedover the lnrci'red. A nultisnge nodcl for:l
chasingover thc lnrernet includessearchand idenriflcation,selcctionand negoti;: :.
purchasing,produc orscwice delivery,and after+aicssuPport,asshownin Figure8.:

@ @
Muttistage
Modetfor
-Commerce t82BandB2Cl

andldentification
Search
An emploveeordcringpansfir a *oreroom at r nanutircruringphnt would lbllow the.:3
shownin Figurc8.1. Sucha stotenx,n stocksa wide rangeofoffice supplics,sparepan' or
maintenanccsupplies.1 heemployeepreparcs a list of nede.litens for cxamPle,tan..5
piping, md plasticubing. Typi.ally. for eachirem Grried in thc sroreroom,a corP.a
a prefened*rpplier basedon the verdor'spricecompctnne:'s.
buyerhx alreadl-identified
 ELedrcn.DDmnsG I cheptes

, .l ofsery;ce,qualiryof products,ard spccdofdclivery.Th..mployee thenlogson to the

::trner and goesro rhe Vcb siteof drc prcfencd*pplier.
Irom rhe upplier's hone pagc,drc cnploycc car rcce$ x producrcatelogand hrrws
.ril tiDdins rhe irens rhar neer rhc srocoom's spccifications.The employeefills out a
.quest'for-quotationform by enternrgthc itcn codesand quantiticsnccded.\{/llen the
,-lloyee conpletesthe quonrion forn, ihc suppli.r s W.b applicationpricesthe orderwirh
:. !ro$ curlenr priccs and shows thc additional cost for various forns of delivery-
:rright, wirhin two working drys, or the n*r week. The enployee nay elect to visir other
:piiers' Web home prgesand repeatthis proess to sedch for addnionalitemsor obra;n
npedng pricesfor rhesme item. Ar nentioned in Chapter7, botsm solimre programs
r.u follow a uscls instrucdonsirlry crn alsoL'edsedfor semh and idendnc*ion.
;electionandNe9otiation
r;e rhe ptice quotationshavebeenrcceivdflom erch mpplier, rhe enploycc enmines
. and indicares, byclickinson rhe requesr-for-quorarion forn, which ofrhe items,ifany.
I b. o.dered fion a siven supplicr. 'l'hc cnploycc also spccifics rhc desireddelivery date.
iL' dar. is uscd.s nrpur nrro thc supplicr'sorder processing TPS. In additionto price,ad
.:r s qualiryand dre supplicls scnia and speedof dcliverycan be important in selcion

:JrchasingProduatsandServicesElectronicalty
: employeeconpleresth purchar o.ds b), rendinsa conpleredelecrronicforn ro rhc
-::lier. Complicationsmay aise in payingfor the p.oducts.Tpically, a co.porarcbuycr
. , nakes sevenl purchases from rhe upplier erch year has esrabkhedcredit with the
::lier in advance, and allpurchsesue billedto rcorporareaccouDt.Uurwhenindividuals
their firsr,and perhapsonlv, purchasehom the suppl;er,additionatsafeguudsand
"c
..ues arerequired.Pan ofrhe purchce rnnsactioncan involvethe customerproviding
- :dir card mmber. Howwer. computercriminalsould capturethis dara and usc thc
i nation to make their own purchases.'loavoid &is problem,sone compdies have
: : J opcdsecuriwprogramsmd proccdurcs.For cxamplc,SccureElectronicTransmions
. Tris cndors.dbytBM, Microsofr,Masrercard,andorheis.Anoiher approachro pa/ing
:oodsand scflic.s pur.hasedoverthe internei is usingelectronicnoney, which co be
:img.d for hard c.sht PayPalis onc *ample.
Th. I'ayPalsericc ofcBay is thc dominor oniinc paymcntsysrcm.Foundedin 1998.
:'jrl. an eBaI Conrpary, cnablesany individual or busnrcsswirh d c-mail dddressto
.:rrtlv, easily,and quicklv sendard receivcpryncnrs online. there arc more than 40
rrn PayPalaccounrncnbcr worldwide,and rhe serviceis rvailablein 38 cduntries.
, ::s dd scllcs on eBay.online retailes,online busineses,and ftednion.l oflidebusi-
i .:, rre ffsa.ting with PavPal.To sendhoney, )'{,uenterthe recipients e'mail address
- : rheanount you wish td send.You un pay with a credii carddr tundslioh a check;ng
rnr. The recipientgetsan e-nail thar says,"You've Got Cshl" Re.ipientscan rhen
-
:r dreir norry by cli&ing a link ir rhe e mril rhat trkes r\em ro auu.payallon. To
.,, , c r henoney , r h e i n d i v i d u a l m u s rh a v e a n a c ountw i rhP ayP al .A l so,beouscl ,ayP al t
:-:.rcrions arefully elecrronic,the useralsomusrhavea creditcardor cLeckingaccourtro
. rir thc frurdsto. lb rcqucsrnoncv for d aucrion,nrvoicca customer,or senda personJ
,ou ente. recipienfse mail rddresand the rmornt ),ouarerequesting. The re.ipient
'he
:.:. :n e-mailandinstructionson how ro pa)-youusingPayPal.6
toduc t and S erv i c e D e ti v e ry
' : :i rernercanalsobe usedro delivefp roducrsand seruices,primarilysoftwareandwritten
-:..rl.Youcandownloadsoliwue,reporaorrhesrocknarker,infornationonnrdividual
-:nics, and a varieryolother wrirten repora and docunen$ dnecdr from $c lnrcrnet.
-: ctllcd el*tonn dntibntrz, scndnrg softwarc, rnusic, picures. and wriiten naierial
' the Intemer is f:rsterand en be les cpensive rhan wi& regularorder processing.
-gh
, ::onicdistributioncanalsoeiimnrareinventonproblemsfor nanufacnuere,who do not
- . :o srockhundredsor rhouands ofcopiesofthe sofrware,reporrs,or docunents;one
:in be &w.loaded ro curomen compurer when needed.
,r moreand horc peopleusethe Inrernel rhe elecrrodcdisrribulionofproducrs and
, - .s could be a major relrnue soure rof solirde and publishinscompatries. Yer, mosr
 Pet r i B! ! , r 1 , r o, t r Lr or iy 5r e m s

l: productscanot be de{ivuedover rhe lnrc e.. so tlrr), d dd;vded ;n a varieryof or:i

ways:ov.rnighl crrrid, regularmail senicc,truck, or reil. In v,me cases,the cusromcrr...
l
elcctto drivc to rhe supplierand pick up rhc producr.
Many rnanufacturers and reta;1e6havc oursou.cedrlre ph),sicall,)gisdcsof delivcr'{
mcrctrandiscrocybershoppers-thesroring,packing,shipping.andtrackingofproducts.,
providerhisservlce,DHL Fedenl Fiprc$, Unired Par.elSeryice,and orherdeliveryii:-:
have developedn liwre rools and nrtcrfrces thet direcrly link cusroncri ordcr:::
mnufecturing, and invenrory systcmswith their own sysrem ol highly autom::
werehouses..aii centers,ind worldwidcshippingnrtwrrks. Thegoalis ro nakc thc uar,-:
of Jl infonmtn,n and invenrory from rhc hduhdurer to lhe deliverylLrn ,o r:
consumcr fit md simple.
Fo. dtunplc, when a customerordersa prinrcr aLthe Hewler-PackardVeb sire.::.:
ordcractuallygoesto redEx, which srocksall Ihc produ.tsthrt HP sellsonlinear a dcdi...::!
e distributionFlcilitr in Memphis, a major FedExshipping hub. ledljx ships thc or:,-
whi.h trigges an e'ha;l norifiadon ro rhe.u$oher rhat rhe prinrcr is on ns wry anr :
invrntory not;ceroHP rharrhc FcdExwarehdusr nowhasonelessprinrcrinsrock(serfii-:
8.2).For productretu.ns,HP cnrcrsrerurninforharnrninto its own rysrcm,whicl i 1ir..::
ro ledEx. This signalsa FedExcouricrro pick up the unwanrd nem ar rhecusronds h -!
or busines.Cu$ohers doni needro fill out shippinglabelsor packqe rhe irern.lnsr.-:
the ledEr ourier usesinformariontransmittedoverthe l.ternerro acompurcrh his o: .:
tru.k b print a hbel from a porrableprinter athchedro his bek. FedExhasconftol oa
rrurn,and HP caDmonitor its progres from surt to linish. -:

@
P r oduc tad d In fo rm a ti o nF L o w
for HP Printers ordered over

F..iriry
I

After-SatesServi(e
In addition to capturinsrhe info.marior ro conplete thr ordd, .omprehensivecusr -ir
informrtion is capruredfron rhc orderddstored in lhe $lpplier'scrsrome!dar.bdc a
informario. can includecusrorErnane, a.ldrs, Elephonenumbers,contacrpcson. r:.:r
history,ard someorder dcrails.Il 1;r example,rhe cusromerlarerrclcphoncsrhc su:r
to complainthar not dl itemswcrereceived, thar smearived damaged, or.ven arprr:ri-
useinsrucrionsarerot clear,all cutoner servicerepresenratives can retrievethe ord:- ;-
fortution trem the database via a personalconputer on the;r desks.Companiesarcrc: 4
the cepab;liq to anwer nanv afrer:rlesquestbnsto their Veb sires-how ro maintr r
pieceofequipnenr,how ro.ffecdvelyusetheproducr,ho* ro receivercpairsurderrvar:-r..
 Er{ro.. coimrc | clr6pt4r a

E-Co m m e rc e
C hatl enges
{ runber ofchalhngesmu$ be oler.ohe for a companyro conveftns businessprocesses
ron rhe faditional form ro e conhe.e proesses.This sectionsummarizes a few.
The fir$ major challc.seis fo. the compary ro definean effecdvee-comhere hodel
.r.l strates/.Ahhoush a runber ofdilTerenrapproaches.d be used,rhe nost succe$ill
.-.omme.cenodels includerhrcebaic componentsi.omduniry, conrenr,and comnercc,
-: shownin Fisurc 8.3. Me$ase boardsand chat nx,ms are usedto b 1d a loFl rozzr
:.6'ofpcoplewhoareinreresred in dd enthLliasdcabour rhc @mpanyand irsproducrsand
:6ices.Prov;dingusetul, accunte.n<limely cottctt such* indusrryandecononicnews
:rd srockquorcFis a soundapprorchto get peopleo return to your Weh sirerine ard
.-:.tin. Connerce involves consumerc ard bminessespaying ro purchde phrJcal goods,
:nrnarion. or sericesrhar arepostedor adveftised onlinc.

Content @
Three BasicComponenlsola
Succes5futE-CommerceModet

Commerce

Community

i maior challerscfor conpdies movins ro business{o-@nsume! e,@mnerce ;s rhe

.=: ro changcdisribrtion sysrensard wo* processest<, be able ro manageshiphens of
'r.idual unitsdirecdyto crlnsumer.liadirional disriburion srsremsscndconplerec*s
. .iodud ro a srorc.The sore opensrhe cascs,rakesrhe indirdual unirsout, dd sracks
'. on a shelf: fhen constrnerswalk rhroush rhc aislesand pick up whar rheyneed.In
erce,<,mpaniesneeda dis[ibudon slsremrhat on nanage
r,:: casedistribution,in which c$es ofgoodsar. splii opendn rhe receivnrgdo.k ddthe sPtit-case
distribulion
: Jual irem & sioredon shelves or h bins in the warehouse.lhe disft;bfiion srem A distributionsystemthal req! res
. Ix rru .k i n d i v i d u ait,e m,. f he dem,nd\oi b,,,i ne,,.," -.on.um,r c a s e s o rg o o d s l ob o pe n e do . r h e
" " bt e. h rp :n d r e c v n q d o c k a n d t h e n d vi d u a t
. .nerce fuifillneni oe so great that nany online vendos oursoui.ethe funcrion ro
t e m s t f o m t h ec a s e st o b e sl o r e d n
- :iies snchd FedExand UPS. the manufacturerswareho!se.
loihcr iouch .hallcnsefor e-comn.rce is rhe intesrationof ns web baed order
' :.$ing sysems wirh traditional nainfrme cohpurer-bred invenrory (nrrcl and
. :
-.tion pldning s)srems.ft's one rhing to Jlow salesrepsro placcordes overrhe Veb
, ..dhertoletrhehlindourwharproducts{e;n (orsoonrobcin)inlentoq-aDdavailabte
: r. That heos rhar fronr end web{nibled .ppliadons suchs ordd Bkins ncedro
, :5dr integraredro rradirionalback,endappliadons su.h x invenroryconrrol md
' : .ctionplanning,asshownin figure 8.4.
 P.!t B I Bu. nrs rnlo.ftr m syslems

@
Wb-8ased 0rder processing
l'lustBeLinkedto Traditional
Eack-End Syitems

T h eE- Co m m e r ce
Su p p tyCh a in
A' d n , u.cd i n C h:pro 2. ,l t brN i nr*o,8ani /ri on, , unrri n, nurnl ,s
of\ r t le JdJe, :j a-
(N $ . i hr \uppD(h/rn manag.mcnr proce*i . r keyutue.hai n tl l ,r. tor nor 6m nr a.
supplychainmanagement o trc ^ hu,i ne* opp,,nuni ri eri fonveneJ ro e.omme,(e.S uppt ycf iJn t r
A keyva tue .har n
c om pos ed
ot asebem 'rehendou,
is @nposed of thrce subprocsses:demand pl-"i,s r"
demafd planning,s!pply ptanning, d.._i.
a.d demandluli LLment. pl dnni nCo Jl ou,e ,hc i si , ,mob, ofen,erp,i \creou,e -d.ip;;;k*
,o m ecr, lem : nr r d
lupply
o e h J nd rurhumenr ,o tul h dehi nd qui ckJ)Jnd cffi ,,en,l )r\tr | i gure8. 1r .. t hr . , bl. - : q
o r d rmod tl uni ng i \ ro unde,j Jnd,u.romrA bu),ngpnrern, od
doelop alqr r : a
c o l l rb omri \rtong.,trm.i nrermedi rre rerm.rd .hon." i i ,_" ._" .r_,,.,i", T*. ""
Supply plmning includesstrur%icphning, inventory planning,
disaibution plannrr
p rd i u r emen'ptD ni ng.rrspon,ri on ud ruppty
;tami ng. Jtocari on. I h c goJ of or r - d
.u ,rrmenr b ro provrdctar. a.umre. /nd reti ahhdetj Lrrytor.unomer
or d. r , . Lr cm m
fulfillnor indudc .rder cap rins, ost"md ..d.. p",;t t"e b;G
nanagemenr, and order tulfitlnerr. "e,ifiarion,

rrry Th4!fs!!g suFerr

rr$.iry
5upptyChainManagement

HffiHWrutrffi om.nd Fulfi n6t

HHffiHffi
 I o'"o*.
"

Conve6nrnto e-commer@ supplychainmanagoncntprovidesb$inesses an oppor n;ry

tr.hieveoperatio.alexcellenceby ircreasingrrycnucs,decreuingcosts,inproving cuv
r{ satisfadion,and ieducinginvenrory.Bur ro achicvcdris goal requiresintegraringall
-bprccesses rhat exchangeinformarionand movc goodsb.Meen suppliersand cusromes,
:Ludins mamn:]cntre6, disrributors,rctailcrs,and ary oiher enterprise
withi. rheexrended

ocreasedRevenues
andDecreased
Costs
::lim inat ingor r e d u c i n g ti m e -c o n s u m i n g a rd l abor-i nrcrsi vcsrcpsthroughouttheoder
- i deliveryprocess, moresales canbe compleredin rhesanrnnepcriodandwith in.rared

mprovedCustomerSatisfaction
:erscd ard norc dcr-riledinfornatn n at!,ut delivery daresand curcnr sRruscar incrcde
,ona loyalry.In rddition, rhe abilny to consisrenrlymeercusromer' dcired delivery
- :s wirh high-qulity go<xtsand serviceseliminaresany incentivcfor cusronersto seel
- :r sourcesor arpprr.
nventoryReduction
Acrossthe SupptyChain
: rh in.reasedspeedand accuracyof cusromcrordcr information,conpaniescan reduce
: . need lbr invenrory fron raw matcrials. to saferysrocks. to finished gdds-ar all rhe
:.nnediatemanufacturnrg,storugc,and tnnsporretionpoints-For example,Nippon Steel
=. rpply chain managcnenr sofsrre fron i2 Te.hnologirs t,) cur delivery lead rines for
' Juctsand rcduccinvenroriesfor bodr itselfmd its cu$dne6. The $liwre enablescus-
rers with Vcb capabiliriesto accessordering,producion, dd .iuali.)' dara from rhc
rranls srelmareli.ls,coilcenten,and steelplmtdivisions. Howser, Nippon's supply
rn numgencnr s)rrcms wce pul ro the test when d exptosion at its Nagoya sreelworls
'icp,cmbcr2003forcedthetenporaryshutdownoftwobla$turnacesrharprodueneady
. tilih ofis romlourpur.T'lo ensureaddedprotctionagansr$,ch u.foreseend;srupdons,
. :r companiesare incrcasing invcntory loels above the nininun to nake sure rhat rhey
n,cctchargesin forccasrcd cusrornerneedsor unerpectedproducion pbblems.
rhrough improvedsuppiychainnmagement. conpeniescan set their sighrsnor only
nproving rheir profitabiliryand scwiccbut rto on rnnsfoinnlg eniire indLsf;es-Io.
-::: ple,asmenrionedin earlierchaprcrs, radio frcqucncyidenritcerion(RFID) technologli
rprovingsupplychainmanagenenroperadom,r.ducirgccts. loweringinventories, and
idnB inprovcd cusromerserice. The use of the technolog has the potenrial to
, .Lurionia supplychah opeaions in severulindusff;es.Major rcaiies and rhe U.S. De-
-"rent ofDefensehaveissueddmrllinerfor rhe;t major suppliento arach RllD tagsro
'.r andc oes of v a ri o u s g o o d s th a rth c y s h i p ro rh cm.sA i rl i ne.ari erspl dtouseR FID
:. ro track air passengcrs'baggage.tHealhcre providers ud pharneceutiel companies
: . r en consideringthe useof RFID to rcck and conrol rhe useof prescripriondrugs.'o

Eus ines s - t o - B u s i n le8s2sB l E - C o m m e r ce

:.nush lhe busiDesnro-@nsumer (B2C) narker grabsnore of rhe nrys headlines,the
.. . . $- r o' bus ine$ (B 2 B)n u k e ri s o N i d e ra b l y l a rgerardi sgrow i rymuchnorerapi dl y.
:..ess'to'businesse-commerceotrerenornousoooorturities.Itrllowsnanufaaurersro
( J r o$ , r , , * o ,rd ,,,d e .J a d ,, o rT e ^e n re p ri .;a,hech,n.e ro ,e ro a gtobJ mrrter
::: iiom rhe statt. Morcover, e-conmere offer great pronise for devetoping counries.
: .:ng rhemto enterthe p.osperousglobalmarkerptace, and hencehelpingreducethe gap
'.. rer rich and poor counrries.'fhe enrr/ inro a slobal markerplacealso coms with nany
,.: :ngcs,asill$rrared by thc "Ethicaland SocierJksues"specialinteresrfeature.
Ihc npid developncnr ofe conmerce presenrsgrert challengesto society. Even though
.: i rrncrce is crearingnew job oppoftunities,it codd alsocausea lossofemploymenrin
- : ,ionaljob secros.Mdy comprniesmay fail in ihe inrense.ompetitiveenvironnrnt of
:lnere and find thenselvesout ofbusincs. Thercfore,ii is viral dur ihe opDoftuniris
- : roliations ofe-onnercc bc urdcntood.
 Canadian
PrescriptionOrugWebSiteg WsconsinGoverno.Jim Doyte.a Democfat.and M.-::- l
TheqtDbatzatron of e comnrerce p.esentsbusnesseswth chatL GovemofTm Pawtenry,a Replbrrcan.beLeveth.r n. : r::
engesaooveand beyondcuttLrfaL adaptarions Atonqwth conven o ." t^ , d1 .9 up . . pp, ,r . o
ence. t has broughtfiercecompetiiionfor goods:nd seruces. u. u--a ro, a.. .o .o . / 6 t 9dr 6.r v6 . . . .
^r0 " ,
0ntinepharmaces maybethemostdmattcexampte someAme.cansa.etlrm ngto colnidesbesdesCanada tf: : :::
of thisfact.
A s wt h m a n y i n d !s t.epsh a .ma c ecuat tc ompanipn.e enloycheapdrugp.icesTheAmerican D.ugCtubWebst. ir.
es the.
p.od!cisd ffe.enttyfor ditfe.enrcourlries p.icesfor prescaptton cneapprceson druqstfom Br ta n fof nstance.
medcaboma.e determred by a colntrys economc we[ being Manynfavorof qtobaLp.escnpttofmedrc nepcingd, e, . . .- !
srrucr!re the amo!nt of demand{of seroussccusatrons aganErthe FDA we afe he.et! rer, : _*
meorcatrcns competrtro.in Lhema.ket.and other IEctofsThe FD A theydontw o.kforthebi gdrl gcom panr eso. t her : :t ob:
.esLrlt5 that Amercanspay more fo. pfesc.piiononrgsrnan $ d lltrnoisDemocratc Go!e.no.RodBtaqolev.h
consrrneB n mostotlre.colnt.resThs fact becameobvoLrs The ontineprescfiprtonmedc ne blsrnesss ndicdr,r= -r
io
the plrbtrcwhenCanadian phamaciesbeganseLtngpresffprion rssuesthat w e ml sl contendw th w hr t e buit dn_o ::::r
e commrce markets How rhe US govemmeh,.-r !
Web stes sLrch as wyw Canadapharmacy.con. h|w pharmaceltical companies resotve
this ssle wiltsei d !E:::j.
Canadalvleds
can andr.lanyorhersshowedAme.cansnai me. fof manyothe.su.hcasesthatares!re to a.ise n theful!f.
no.lhemneghbo.spayonty30 to 50 pe.centwhai s cha.gedn
rhAu.ir"d ,dr cri l ' catThi nki ng0uesti ons
- d . .o ua \a i d. ._d.,
u. d oaoon 0u. , I
" J.h p jd u q H ow efl ecti vecan n.ti onattaw sbe n cont r o( , !
phamaces lhe Jederatqovernment tooka sLandagainstblyng p!fcnasesrfom ol he. coui tri es?W h.t aclioncc: : . i
p.escrptlonsfrom forcgncoLrnt.tes c ringthelackor.egutaronas fdefalgovernmenttake rf i l w antedl op ur . n endt ! - : -
a poternatheatth rsk fa.clstomeG TheFDAWebsitestates. t s
rttegaltoranyone, inclldlnqa forignpha.macy, io sh p !resc. pron 2 W hat sol uron w oLrtd
you recomri ndt hat m ght : . : i
o.!gs rnataf notapproved bythe FDA ntorhe u s. eventhough
thedrugmaybe tegalroseLtn |rat pha.macy the pharmaceul i catcompanirhees, FDA.and t he. . : *
s colnrry...
t , . f m - o - d L D Ao o p/p- r,ed,n9 andthe.cti 2ens?
n!mb-"r. of US cn2ensbegan -g e d -" o " c r "
blyng d.!qs onlne New U.S
based onlne blsinesseshave atso arisen. WhatWoutdYouDo?
BuningtonDtugclub.con, which act as inte.medt..res berlveen a ""oo o o4-lra--9-,o. .- E
U S citi2ers:ndCanadan phamaces paida percentqe ofsates ^ A n . . r n c . r o .d ..
by the Can:dianphamacies,thesebusnessesasssr Amercans ' o. a 9" s p" .o, . "- s. . _
oanosyourep.esenthasahugetocaLfoLtowng, andyolrrt:n, .+
with ffding ihe besrprce from the most.etiabtandtrushrorlhy
thepotntr.Lto m.ke i t reattybgThebandsWebsit enas- : : *
pna.macesSeveratsuch busrnesses havebeenbroughrto coLrrt bLri l danati onaLfottow fg,w i rh
hugesates n20 sr at es, whcr:: :
bythefede.atgovernmnt bLrthaveforthemostparrs!rvvedthe rheb. d .6.enr.o o at.ou. a^..!.s.o,a - : o. ar . ) r
,c
slate governmentsftust|aiedby the federatgovemments thep.ceofC D ssol dontheW ebsi retomaket hemu,ost e. :or: :
mb trtyto provide .ecenlpoplta.ityThenextstep s ro beginp.omotng the b: I r
thetrcitzenswithaffordabLe prcscl,puonorugs,
naveDegunresearchrng w3ysta sidestepfedefattawsand obtain othe.colnt.ies.Tob! Ldan intematonalald ence,yo! w tt-::: :
C:nadaf d.!gs for ther state\,!o.kersand senio.orzens.More eni i cethosew ho havenot yet hea.dthe bandwt h ds: . . a
than25 states.re nowexptornqthe rnasspLrrchase priceson CDs.Youhavedecidedthargt2 CDssordontrc , :r
ot Canadian
d.!gs TheStateolWsconsinhassetup a Websitethatconnects Ll ni tedS tatesw l l tbema.keddow nto95f of
fo. qnsat es
ts citrzenswthC.nadan phamaciesthattrs foLrnd a.esafe.
PhafmaceLrtcatcompanes aretakinga.tionlo slopCanadian 3. s i t fa . that l J.S cl ri zenssho!td be chaf geom c. , .
pi3.macEs1.omseLtngtoanyoneo!t5de thatcolnrrys bo.de|s. Inoseol tsrdethe cou.tryto pu.chasel he bands C: : .
Suchg antsas Pfizer,GtaxosmithKUne and EtiLty havesystem 4. H ow canyoui mptementth se-comrne. cesysr em s: , :
ai caltybegln drug.ato|ing in Canada. Caiadanscomptainthat rnrefnal ronar custome.svi si rng rhe ban dE web s: : . :
tre .atoningba.etyle.ves enouqhmedcre to be chfqedl essl or C D sw i tho!roffendn9 U. S f af s - : u
demand.Azer atsocur off detivery to lwo CanadEnpscnpran canyoube sufethat U .S .ci ti zens w on' rt . ke advan: : : :i
drlg whotesale.s becalsetheywe.e sendrngmedc ne backro the drscaunted pr ces?
r.
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^" - b/ l8 o"- - .J . . no rop 50U R C E 5,F.anci sR camotL'R aroi nq ol C anadanD
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" e" rp." s.a-s .,," h" n", . , . ,
M.terts netrs.con: Prcs.t piion D.ug mpodaron CompanyTh.r :r-
 Eh.rrcM cosderce qb.pid 3
I

-6e Cedian DrugsOpnsin Ok\ahfri,- l!.a!!h & U.trr.ift W@k, WG.onsini Ptdi&piionlhrq R.s@rceClnrr'Website,a.ftssddApril17,
z.t 16, 2cc4 etr/,lerls-rattt.,r,: T.dd Rkhmond, -F0A Blslts . zt04. &gavklgesig,6xF9 \N6beire,acces*,Japril 17,nan, w.fd..gov
0ru9 we! sire," //p 4ndaa.d P.65 trla.eh 13,200a: 96te ot

u e r l B 2 C lE - C o m m e r ce
Bus ines s - t oC- o n s m
: commercefor @nsune6 is saining broad acceptance,although mme shoppcs rc not ya
:rnvined thar it is wonhwh ile to connect to the hrernet, searchfor shopping sirc, wait for
re inages ro download, try to ffgure out the ordering prcess, md then wony about whethet
rer credit card numbers will be stolea by a hrcket. But aftiiuds de chusin& md an
::reasing numbcrofshopperste benefitingfron the convenieneofe-conmerce lntime-
:rapped households,omumers are *Ling themsclves,"\Vhy warte tine fighthg crowds in
-:.pping malls when from the onfon ofhone I can shop online mytime ad hrve the
rods delivered dnecdy?" Thce shoppes have found rhat many goods md *ruices are
when purchded via rhe Veb-for exmple, stocks, books, newspaper, airline tick-
-rlper
.- and hoel rooms. They can also g* information about autonobils, cruises, loans,
r;urane, and hone prices to cut better deals.More thm just a tool for placins ordc6, the
.r:erner is energing s a pamdise fot conpaison shoppers.Internet shopperscu, for ex-
:: ple, unleuh shopping bots or aaes snessuch r Google or Yahoo: to browse the Interncl
.id obrainlis$ ofitems. prie, md nerchants.
In March 20M, Yahoo!mnounced plansto buy Europem onparisoo+bopping site
iJkoo. Fran-bsed Kelkoo reacles abour l0 percnt ofall Europen Inrernet usen md
runts nore rhan2,500individu,l mercho$ amongits payingostomets. The siteenabla
i.rppe6 ro @mparepri.es on 3 milion products in 25 .ategorie, such asbool6, eleronics,
phones, movis, husic, md tavel senies. Yahoo!'s puchare ofKelkoo highlighs
-nb;le
:t con"ergenceofVeb searchesand online shopping, which wil help Y.hoo! achieveits
.-:J ro c.earc rhe nost conprebensi'e md bat user *per;ene on the Veb. The purchoe
rl alsogive Yaho! anorherway to help ntketers nch onsunen by loeraging the Veb's
:,:t'at reach.Yalool can row sayro ns bigget advenisem,omparies such r Coe-Cola and
--!dal Motors, &et they can ech global audiencesthrough ia ponal. "
Bv usins B2C e{ommerce to sell direcdy to comumer, producen or providen ofcon-
.-rer scrvie can eliminate the middlemen, or intemediaria, bewieen them and the end
::6umer. ln many cases,this sque%s coss and inefiiciencies out of the supply chain md
r lead to higher profits ard lower prie for onsune6. The eliminadon of intermediate
:r:-mv.arions bemeen the producer md the consumer is cdled disintemcdiation disintermediation
The elim nalion ot intermediate
o f g a n l z l i o nbs e t w e e nr h e p r o d u ce r
ConEumer-to-CongumerlC2ClE-Commerce
,rnsuncr-to-coosumer (C2C) e-ommrce ;ovolva onsmere selling direcdy to other
..rsumer. Often this exchmge is done through Web aucrion si.es suh ar eBay, which
-:bled peopleto sellin excesof$8 billion in merchmdisein one 3-month period in 2004
r -rher consurnersby auctioning the nems otrto the highd biddr.t': The groeth of C2C
s sponsible for reducing the useofthe clusified page of nmpapers to adveniseand sdl

6to b a lE-Commerc e
i:: oseof rhe Interner is growing tapidly in make$ rhroughout Europe, Asia, ud latin
!-;.rica. So, e'conmerce sirs are broadedng th& focus from Nonh Amerio comumex

Eqrope
::: population ofEurope is about 380 million. Although thar number is expeaed to slowly
r:iine, the number of Europeans who go onlhe to purchase itens is qpected to in'
Recendy, a n* value-addedrax 0r'Al hw wc enactedto level the playing field
--:e.'r
Pali B I EGf.ssrnlJ,maroi sFbms

betweetrEurope and U.S.-brcd companics*lling i! r Europcln -conmer. mari;:i

t,d ou\l y. U .\ ecomre,t' .onti ,ri e, Joi ne bu.i re- i 1 au,nn < hr d f or . h, , _:
,dJ.J 6. purri ng,hei Ir ur,,pern.ornr.rp.rn,I J d,.JdrrnrrBe. ( ir t r er r t y.Lr \
'ilue
h u rghr' ,rhr Inrer V A T,Jre. I \ terccnr.nd \r.d. n,rd t\nn" rt hle r \ . F gt . .
"r
25 percclt. Abour 90 percent of onlinesrtesin Europcak 82B sales.The Nordic corurt:.1,
re the mosrwired, and,i8 perccnrofswedent online populationhrs orderedsometh-s
In ,url conrrsr.JunrrgfJl ,,002.U K ,,nti n( .J* reprc.cnr.J a nr.re I oer cenL or . ^- . ,
U K rerai t.J* . In rhe I ni redsrrr.,. rt.rrng.,, ," * ." ,." - r. r |ei"".
"-
Asia
.h i n, retre,cnr.,hugcmrrl .r opponuni gtor.onrnarrn-.rr" urdrt-r t t . , h. .
rrrJ r.
.rl riuni .expe.rcJ,oi nU esrl l oml ..)h,l l i onp.uptrrodal r" rhourtr r n. . t io, r b, , , - . .
* ," ' d i ng ro th. Inrernari onrr
tn\ri ,u,r ror {ppti cd\srcfr, qnrl )\L. Ct , i1. ,i. . . , I
to have 50 ro 100 nillion Inrernc users.J.p.n has an e$imared r00 million Inr:,: -
users.'6Over the nd! 10 ro I5 ycas, Chim ;nd rndia will eccouDrfor nearlvha]l..: trj
Internerosagein the world. so f:r, rhe bissc$.hallensc h stuins rh. Chine;. !Erk::
-
c e n sorhi pbytheC hi ncsegovernmentoverw hati tspeopl eseeanddonisee. , : I nadJL
.,,meu.s..omprri c. trr. hfenJ., sed ot pro,,J,ntr\. chi ne\epo\r n m er rs i, h, r \
_-
to enable&ck;ng ofchinere tnre.neruscrs.Two ofChinrs teadineonliuenedia. con--
n ,(J,i on,..ummercc.mJ mobi t. qtrrc.rJd.d .eni .., .,,,.p,,i i ., r e . ot , u. . ,| ..t
NetEase.com. ExchangnBhessagcs via celtphonesand handhelddfliccs is a commo! F:;.
ri .e inchi nr." i ' hmorp.opl r.v.l i i srh,oustrJmi \or nrw ,.6:me..r nd h, , r or o7 _
preselectd on ponalsard then downloadedfor viwine.'r
\nu,\ K orernr l eJderi n' ernr.otr..e..rob,,,,dbrndr..hnol opv$, r hm or cr n. , .
p e rc enr,,1 rorrl hou.ehol d.hrung r..,* ro hi gl .,1.ed l nr..n- .e ni. e. r , r e. . . _.
s j o permorfi . \rcl cr1 ,* e-i bi l i n err.our+ * ,tn,or r\rn 5ou,h K, {ear r oS, , , .
8-conhsce iswidelyued nr the narior'sfinanciatsecd,and od;ne sharctrd;n;ictu,:: -
to r m" rc rhrno, rrcnr of A r \.urh M,cra h!,k. urr,.nri n. JnJ m obit : 1, . , !
' rdc\.
' e ru i.e' .Thego\-crnhcn,d(.l r.i l ,hrom.i rt,,peni nSFgo\(n,h,1r
ur ir No\ cr ber : _
rh e r Mo,rr, ol dcv.l upng.' ni n' .srIed W . b.rre,a u/..f,, gr.4,I rh. , o cr n, r nL
f
\.ry n e\ onl i nr.Thc \ourh K orcJnm,,bi t(phonr
rencrnri ,n | ,,ei . " r. . ,o, , eot , t F . , . ,
i n rh c w ol d, $i ' h morerhr r,8 pc,..nr ot rhc \ou,1 \orcJn p,,t,rtJr ion, , wnr ng. r
phone 6 ofspring 2003.r')
ln l.die, a low persdnalconputer and tnternerbre, an irrmature tetecommunjc:: r,
infrastrucruc,h.k ofsoriry, a,rdhigir a.e$ osts slowlhc
srowih ofc-cohhe.ce. An: ,{
the prcducrsIodiar consumersbdy onlinc te cinmarick*, greerirgcads. cloths
---
serres,books,nasrines, fasr food, ncdidb6, ind eduqrio hne;ial. Credit caii. i
.ommonly usedro conplete rhnsdctn,nson the Inrerncrirr h"ny counris, bur rher.
-1:
od/ 5 nillion .redir cardsers in lndia our ofa populado! of I ,061mj ion. In rerncne.. :
provideh havebeenprcgressivly reducingconnecrionchargcs,rnd rhe articipatedsp:.;
oflntemet accesrlrough cablcrelevision.oulddpand *.;,d ..1,- r,.t
-
LatinAmerica
Brril and Mexi@, rhc econonic gian* ofL.rin Americr, re teidiry the wiy in rerr. ,
doelopirg e ommoa busine$csdnd rhe rcquisninfrasru.ture, lcg,J...d reg,,I.,,-
founda.ionsnecssary-ro suppor rleh. AcnfiH. Chile, Veneueta,a;d cnomb; rr
up a seord tier of coumies wirh modsn urbm cenrers,trirly largcdome*ic ecoror.::.
and insriutbns and mrkea sophistieredcnoughro sustainrheir own e-conmcce in:.
rrics.Costatuca dd Panma Ie mrking someprogressin drc c cohmercc field. B.l . i
Bcuador,Cuaremah,Cuyana,Dd Hondurrs fac srb$dbiat hurdlesin dwelopingsus,::
ablc,healihynarkets.Bankingandfinancialservicesorg,rn;arionshavebeenar rhef(neF r
01 e-comhercdoelopment in Ladn Arnerica,inrroducinge-bankingand c bnk.:g
systensfoi their clicnts.Governnenrsarourd the regior at$ are acdvetydevclopinsr.!
rnekinguseofe<ommercesystems.:'
Strategiestor GtobatE-Commerce
ObvioLdy, @npDies rhat wanr ro succeedon thc Veb cannoLignore this gl,bat .-.:
Dseloping a soundglob.l e commcrc st.are$'is oiticat tor ensuringrhrt Web sitc: ::
rclevdnttorhecotuumesdd busiDessesacompady we"t ro rca.h. thok."$o__
arc in Cl*eland, Singapo.e,or Frankturt. -he;hcr
 FLedmn:.
commsP I chapter s

I he 6rst stepin deveiopinga globaleammde $htegv is to dercrnnrewhjch global

:rkets makctle no* sense1brsclling produosor *wics online.Onc rpproachis to tatget
.:ions and countriesin which a conpany:lready has onlnrc custorners. Companiescan
:.ik rh coudtry donains fron which cunent u*r ofa sirc arc visiting,and establ;shed
: ,oal q,mpaniescd look ro $eir oveseasoftcs to help detenninethe languageand
rnrrjesrc talgetfor th.irwcb sites.
Onceaompanydecideswhichglobalmarketsn wanrsto reach,ir nusr adapranexisting
i ccrrric Web sit b another luguegc and cultur-a ptocesscalled bcaliut;oa. lncal'
:(ion requirescompanicsro havea drep uodostandnrgof the ounrry, ir people,:nd the
,rk*. which mcus citherbuildinga physiol prsencc nr the countryor lirmingpanner
rs sorlut dctailedknowledgecanbt Sthered. Companiesmusttakepain$akingstepsro
',ue thrt c-commerce cu*omer havea localcxpcrience*en though they'reshoppingat
. Web sitc ofa foreigncompany-
Someof the stepsinvotvedin locatization
are the fottowing:
. Ilecognizingmd conformilg to the nuances,subdeties, and rastcsofloal culrutes
. \uppofting bsic tradc lawssuch as thoscoveringeachcountry'scurency, payment
prefircnces,rucs, and tarifls
. l nsuringtlDr rcchnological natch localconnectionspee.ts
capab;lities
: luing a sitero anotherurumry is not ecy. \0hen Dell launchedan c-connerce site to
. P(i ro con$tmersin Japm. it madcthc nistake ofsurroundingmostof thesitc'scontent
. h blackborder, a negativesisn inlxpdese culrure.JapaneseWeb sh"pperstok onelook
're siternd flcd. Also,supportli,r Arbn lmguascsis difficult becausArian alphabenare
:e conplcxand notallWeb developnenrtoolsareepable ofhandlingthen. Ar aresult,
nr cornpanies chooseo tackleAsian narkcts last.In addnn,n,gren re mur be raken
:hooscions rhar are televdt to a counrry.For example,nailboxesand shoppingcarts
. not bc frrniliar ro globalconsumers. Usersin suropeancounoiesdonl teketheir mail
rr latge,tubuiarrcceptacles,nordo manyofthcmshop in store hrge enoughfor wheled

One of the mosr imporranrand mo* rlillicult decisionsin a companl.sglobal welr

.:cgyiswhetherWeb contentshouldbc generated and updarcdcertollyor locally.Com
, * that erpand drough inrerna ,nal pannershipsnay be te'"pred t" h,"d."nrol to
. .ew inrcrnarionalentiriesto lake the gredrsr advantageofthe expertiseofemployccsin
. . cw markcts.Bur rurnins overoo nuch controicanleadro a huddle of@untry spccific
.. sith no consistcncy and a scaae.edcorporatemessage. A mixed modd ofcontol my
, !.sr. De.isionsdbourorporate identiry,brmd tepresenrarion, and the tech.ology$ed
,1r \feb sirescan be nadc ccnrrallyto min;hiaweb devclopnentrnd suppor ellon
. ell as ro prerenta consistenrcorporate.nd brand h*sage. Bur a local authoriq,cao
..-;Jc or conent and se*icesbcstrailoredfbr givennrkets.
lornpaniesmus rlso bc awarcrharconsumrs outsiderhc United Srateswillacess sites
::: dil+irent devicesand nodily their site d*ign rccordnrgly.In Eu.oPe,fo. ennple.
..d+rrtem iDTVs (intenctivcdigitalrelohions) arebecorningpopularfor accessing on
..onienr,with sone80 hillion Europernlouseholdsnowusingthen. Suchdwi6have
. :r resolutionand morescreenspacedrar the PC monitorsthrt U.s. constrnersuseto
.:r tlr lntcrner.So, iDTV use( expecrmorc anbit;ousgraphi.s.
I new group o1software od servicevcrdos has emdged to rddres \ircb globalizarion
,s. Thc group indud* companicssuchs Clob,lsight and Trodos,whosemultilingual
:, tt canbe integratedwith popuiarc-commerce andWeb contentnanagementsolrware
-r 'crdors suchasVignette.BroadVision,and Intesoven to build Web-basedapplic*
^,lbr cnterpriseswith globalreach.Thc mukilingulweb sitemanagenentsoftwre can
. :k *pecially weil for globd sneswith ccntralnanagement.
On the Vcb, ultimarelyrheonly wry ro conpetewith globalonpanies is to bc a glob.l
rp:nv. sracsful firms opeae with a portfolioof snesd*ign.d for eachtargctmarket,
- ,r shrrcd sourctugand;nfrrrucrure to supportthe network of storcs,ud wirh loel
.-kernrgardbusiness developnenrrcam ro mkeadvantage oflmrl opportunitiesSeruice
. idersconrinuero eherge to solvedt cros-botder ldgisti.s.pavncnis, and customer
. - re nccdsol rheseglobalteailer.
 Pdt3 BL,5re*
|

MOBIL E
CO M M ERCE
As we discusedbricfly in Chaprci l, mobitecommerce(tu_cohherce)
ieticson rhc u!: :.
s :k l r,. dr\i r.- r,,h r pn\on" r di gi ut .b.i rrnr.. r,I pt.on...rnd
\nri r phor e. .r o I __
o rre r\J nr, ol du. r bu.i n,,. H rnd.crnrnIh,,uR n.u.h d t ...o1
vor , ; olJ, N"r . .
Qu rl . o nm rR $,,rkj nt w ,rl ,.,,mmun,.ri on, LJr;r. .Lrh i . { I & I w i, et . . \ Jnd j. l
r,,d e !.1,' r.u.l ,w ,rcl c..Jrvrc.,,,,d,hei rretrred,trhnoto!ry.

Mob ileCo m m e r c ein p e r s p e c t iv e

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APPLI CATI O NS
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-:: Inrcmetho tevolutionizedthe world ofinvestnedt and finance Perhepsthe chansc
:... bce. ." greatbecauethis industry had so mmy built-in inellicienciesand so much
turu ty fot improvemenr.
StockTrading
3ntine
lc.re the world \Yide \reb, ifyou wanred to invesr in stocks, you called lour broker md
.;J whar looked pronising. He'd tell you abour wo or three conpado rnd then would
r r sellyou shtes ofa srockor perhapsa nutuat tund The salescornmissionwm well o"er
t rr tor rhe $ock (dependins on the pri@ ofthe sock md the nunber ofslnres purchased)
| nuch s ad I percenl s.leschqe on the mutual tund. Ifyou wanted information about
-
: rompany before you invested, you would have to wait rwo or thte dals for a one'page
:
:.rdad dd P@r's stockreportprovidingsummaryinformationmd a chan of the stock
:-:: for the past rwo yean to etive in the mail. once you purchasedor old the stock' it
.: :ld takevo daysto gct an otder confirnation in the nail, detailingwhat you paid or
:::r ed for the stock.
I h brokemgebusinss adaptedto the Internet futer thm any other arm offinmce To
;:< a rade, all you needto do is log on to the Web sneofyour online broker,and with a
r' keystrok* md a few clicks of your moue to identifr the sroct md number of shares
r r!. ed in the tnnsacrion, you en buy md ret! roritie ir seonds ln addition' an over
.::ining mount of free information is available to onlire investor*ftom the latest
::ritics & Exchmge filings ro the rumors spreadin chat rooms See Table 8.2 for a shon
.- rirhe nore valuable sites.
one indispensabletool ofthe odine investor is a Portfolio tracker' This t@l allows you
: :eter informarion about the securitiesyou owtr-ticker symbol, number of shts, price
r:. anddare putch*ed at a rracket \reb site. You can then accas the racker sitc to see
.,- srocks ue doing. (There is tyPiGlly a 15- to z0-minurc delay betwen the prie
'"ur
rrhved at the site and rhe price at which the stock is actualy being sold.) In eddirion to
::rning rhe onent value ofyour ponfolio, most sitesprovide aaes to news' chara' om-
r... p.ofiles, ud a.alyst ratings on erch ofyour stocls You.d al$ prosram nany of rhe
:;ren to warchfor artain events(e.g.,stockpricechangeofmore than +/ 3Pe@ntina
r:le day).vhen one ofthe *ena you specifiedoccun, an "alen" symbolis postedn*t to
r.- :*icted srock.Table 8.3 tisrsa numberof the more popuh trackerWeb sites
 Psms I Bu .n e $ ,n ,o ,n i r
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WebSite5U:eluLtolnvestors .. liri.liidet.iori I -i Pe{dee iniormario4 advjce, and
recor nenddrionsb;sedon.
potulariadio/W p*oMlilt
..-rr,Cr.@

htlp,//IlfunceLycos
com Enabl.syoulo qetslock quotes,
and prlce.harts and acce5s
mes$qe boads lor selectedsto.ks

te.liiDl,nw.cm Prcvid pe6oml finahcialadvjae

Melilet.ader.com Vrtualqalher ng placelor day

traderswiih bulletinboardsand

, covers
ti,;ra"i..oiai,ia"u-
reinvesthent
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rnEt.ompff resorleroFlps
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'r{.i ilftn rho rederdlgowmmnl,
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Siles

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:ttomirigsiixr .. r:,'.:. :
,r,.r:*i,iilii;;tiii11rrii,;;,i''

Amefr.a de .co nis an ont ne

brokefages te that offers
rnto rmalro nto oLsandac c ou. t O' "C d ,4, ; 6 ite ee A ;t.-;
man ag eme nt s er v ic es
I o. inv es t oB
 tt{rtr. commse I c}aptr s

Jnt ine B ank ing

ralincbanhinccusromeN@n checkSalanceof th* srvnrgs,chaking, andloan acounrsr
:nsfcrrnoneyamongac<unrq and pey theirbills.Thesccuslomemenjol theconvenien.e
: ror wiring checksin longhand,thi|k rhcy havc a betrerknowledgeof the; curent
-!nces, and appreciarcthe reduction of expcnditures on envelopesand samps. All of the
-rion's majorbanksand manyofthesn:llerbmkscnablerhei curome.sto t'aybillsonline.
he nunbcr ofAneriqns who pry at leastsone ofdeir bills online is estinaredto qceed

tlee's how elecronicbili paynelt wo.ks.You first sei up a list offtcqucnt payccs,along
rh their rddrcscs ud a codedescribingthe tlpe ofprymenr, ucJr u "home mortgage."
ren, when you go onlnrero payyour biiLs,you simply entcr thc codeor nameassigned to
-: chcckrecipient,the amountofthe chech,md rhe darcyou want iI paid. In man)'cs,
-: bark still prnrrsand mailsa check,so you haveto timc yonr online nansacrions to allow
i : bank proccssinsard mail delals.But mos 6ill payingprogram Jlow you to schedule
'. - ud ng pa/ments for evcrywcck, nonth, or quanet, which yot might wmt ro do for your
,,o loan or hslth insurencebi[.
l he ndt advan.e in orline bill paying is electrcnic bill presdtment, which elimhatcs electronicbittpresenhent
prpu, right down ro thc bill irselt Virh this procss, the biller postsan imagcofyour A m t h o do f b i l l i n 9 wh e r e b yl h e
bille. postsan imageolyourstate
-:remrnton rhc Inrcner and alerryou bye'mailthat yourbill hasanived.You then direct
m e n l o n l h e I n t e r n e ta n da t r tsyo u
,!r bank to pry ir. Sonc vcndors$rch as EdocsInc. and AvolentInc. offer clectronicbill b y m a i t t h a ly o u r b i tth a sd r ve d .
-::scntmentand paymentsoftwarcthar user mustputchasemd installon rhcil conputer.
rlrr companier,suchr Xigo (rrp. ud MctavanreCorp.,olTerelectronicbill praentncnt
: J paynenr asa hostedsewiceto subs(ibes. Aftcr decid;ng whether to purcnde electronic
I prcsenrment assoftmre or d e seryicc,cusromere mu* choorchow to li* the sysrcm
rhcn existing software applicrtiom and datr 6. automftd bill paymentand disputc
:.olLrrion. PaylessShoe Source Inc. chose Xign's seNic to distribureinvoiccsro abour

A uc tions
.- J EcLssedin Chaprer 7, rhc lnternet hascreatedmany new oprions for C2C e-commerce,
.luding electrodcrucriors, in which geographicllydispencdbuycs and rellerecancome
i.ther. A spe.i.l typc of auct;on @lled biuirgilows prospccrivcbq.er to pl@ only one
^
r for an irem or a seNice.Pricclinc.con's inirial business nodel emblcd con*ncr to
,:rLcvcsign ifient savingshy naning thcir owr pricesfor g@ds and krvics. Pricdhc.con
.k rhcseconsumeroffes and then prccrted then to selle*, who filled t much of thc
:. rand * thcy wishedar pricepoins d*ermined by the buyen.

Priceline.comis a patntedInte.net
bLddLnq systemthat enabtes
od . !j, ,i "d 11 ;'"d i:,'@ q\b Q t:.:.:) consumerslo savemoneyby
n a m l n gt h e i ro w n p f ce fo r g o o d s

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i eBayrele.ted Pimey Bows ro provide its posragc

seMce, whicij givs irs customeB t5
L tpout service
rLspSr.hipping
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INFRASTRUCTURE

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Ser,ei.re.ar:ngsfsre-

Hardware
A Web seryd hud}te plaforn .omplere wift .hc appropriatesoftMre
is r t ey e conhee
If il:Jx'ff
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il $":tr;:ii:lt#*m*l{l*nllff
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 A key decisionAcing new e comnerceconpaniesiswhetherto hosrtheir own Veb site
: ro let someoncclsedo ir. Man)' conpaniesdeciderhar usinga thnd-partyVeb sewice
:rvider is the bestway ro neet innbl e comhe.ce needs.The third-parryconpany ren*
:rce on ia conputer systcn and providesa high sped connecrionto the lnterner,whlch
Lnimjzes the innial out-oipockct cosrsfor e connerce sra.r-up.Th rhnd p.rry cd also
::rvide personnelrrainedro operare,foubleshoot,and manaserhe Veb serer. ofcou6e,
. numberofconpales decideto take full responsibiliry for acqunins,operuiing,and sup-
: ning the Veb seNer harde.e and software rhenselves, but thn approach requires
: niidenbleup-frontqpnd and a serofskilledand rained individuals.\rhi.hqer approach
:alen, theremu$ be adequatehardwarebackupto avoida najor busine$d;sruprionin
:.e ofa failure of the primaty web rrver.

WebServerSoftware
- rddition to the \trb seser operating sysren, cach e-commerceWeb sire husr have\7eb
sofmm to performa numberoftundanertal services, induding se.uiry and idenri-
"-.er
'.trrioD, rerriwal.nd sending of\reb pages, web site(acking, web snedselopnenr, dd
. :b page de"elopnent. The two nost popular Web sewer softwre packagesare Apache
l-TP Senerdd Mi.rosoft InternerInformarionSeryer.
-
tecurity and ldentification
..-rrir,vand idenrifiaiion senicesareesendalforintnnei Wb seres ro idcnriryendveri&
.:r r acccssing the systenfron the Internet.Acess coorrclsprovideor denyaccesto files @
:,:d od the ukr nahe or URL. Veb severesupportencryptionprocesses for rensmirring
:- .rte infornation securelyoverrhe public Internet.
ii rddirion ro mdaging securiq,end identificadonseryices, \x/ebsiresnusr bedesigned
trocr againsr m.licious etrackr. A denial-of+ervice atrack is one of the nosr diliicult
-::.netihreatsro thMit andqn beosrlv ifnknoclc ue-conmercesireoutof.ohnission.
ring such . denial-of-serice (DOS) attack, the arscker rakescommand of nuy con, deniaL-oFservice
{D0Slatta(k
:-:ir on rhe Inrcrnerand usesrhem ro Roodrhe ralgeiYreb sitewith requests for daraand An attack n wh ch the artacker
:;r smallrasks,preverringthe targermachinefron seNinglegirih e ue6. Many \(eb takescommandol manycomputers
o n t h e l n t r n e ta n d! s es th e mto
. :,. includingAmaon, CNN, e8ay,and Yahol, havesufrerediheseartacl6.One effecrive
f t o o dt h e t a r g e t We bs i tw l h
:.:rs of protectingagainsrDOS aracksis to useInternetseni.e providersrharoffer sone r e q u e s t sf o r d a t a6 n d o l h e fsm a tt
againsrsuch aaaclc. After all, senie providen are more able to detect and choke tasks preventingrhe tarqet
-i::umds
: raffic direcred rt specific IP addresses.r'z Cisco Slsiens, maler of rie Self-Defendins m6ch ne lrom seR ng legit mate
'..arork sr6regy,hd insralleda IP sourcetrackingfunction in its neraorkingequipnenr
.,ake it earier to derec a DOS raack ud shur down maliciou tral]ic.3r
?et r iev ingand S e n d i n g W e b P a g e s
: tundamenral purpose of a \reb seeer is !o prcce$ and respond to client rcqueststhat
.-: !.ni usingHTTP. In rsponse to such a requesr,rhe Veb seoer prognn locatesud
:-:res rhe appropriaie\reb page,createsd HTTP header,end appendsrhe HTML doc-
--:nr ro ir.Ior dynamicpages,ihe sederinvolvesotherprogans,.etiss the resulBfron
:: :ack-endproces, fornais ihe response, and sendsthe pagesand other objecrsro the
.,: dient progn.
-ening
teb SiteTrackinq
. :r s.(ers capru.evisitors'information,lncludingwho is visidngthe Web site(rhevisirors
:-i . whar searchensines and keyvords they used to find the site, how lods rhe;. \reb
. :..icr viewedrhe sire,whar rhe dareand rine of eachvisit was.ud which pageswete
: :rred. This dara is plaed into a web log ffle for tuture analysis. A i i l etharcoftai nsi nfor m at
on
aboutv sitorslo a webs le.
tb 5iteDevetoDment
I:b s;te dewlophent tools include featuressuch as an HTML/vnud Veb pageeditor Web sile devetopmenttools
, : Ilicrosohs FronrPage,NetSrudio'sNetSrudio,SoftQuad\ HoTMeraLPro), sofware Toolsusedto devetopa Website
:: :lopmentkhs rhat includesamplecodeard coded*elopmenr insrructionsfor lmguages ncl udngH TMLorvi suatWebpage
editor,software
dvetopmentkits,
: r s Jaw or Vhual Boic, and Veb pageupload support ro move web pagesfrom a andWebpageuptoadsupporl
. :iopment PC to the Web sire.Vhich roolsare bundledwirh the \(eb sener sofrwarc
r:.nds on which Veb serversohwarevou selecr.
 Parr 3 | Bu5nss hhrmar,disynem.

WebPageCongtrucUon
Wbpageconstrucrion Ireb pag consrtuction sofr@r uses\feb edit.

Softwarethal usesWeb editorsand

extensons to p.od!ce both sratic
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responseloa specificWebvisilor s
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combinq diilerent prcduct d.ra fonnars into a st
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Cart
Shopping
Todaymoy e-co'nmercesitesue o lectronicrhoppingc"rt to tra& the itemsselected tor electronic shopping cart
:urchce, allowingshoppenro viewwhatis in theircar, addns itetu to it, of renroveirehs A m o d e tc o m h o n t yu s db y m a i y
:ron it, u shownin Figure8.8. To o.de. an netu, rhe shoppersinply clicLsrhar nem. All e - c o m m e r c sei t e s l ot r a ckth ei te m s
setectedlor p!rchase,allowing
,.e derails about ir-inctuding irs price, prcducr number, and orhe. idenrilyins shoppersto viewwhat is in their
rrirmarion arestoredautonaricalry.Ifthe shopperlaterdecidesto renove one or nore c a r t , a d dn e w i t , a m s tit,a
o n dr e m o ve
:ens from the can, he or she can do so by viewing drc carls contents and removing mv
,r*anted itens. when the shopper is ready to pay for the irem, he or she cli.kr a bltton
.r:uaLlylabeled "proceed to checkouf') and begns a purclme trus.ction. Clickins the
ihtckouC' button displaln anorher screer rhat usually uls the shopper to fiJl our billing,
rLpping.md palment methodinfornatior ard to oMrm the order.

@
ElectronicShoppingC.rt
An eteclronicshoppingcaft lof bagl
attowsontinshopperstoliewthe r
setctions6nd6dd or remove rems.

E -c om me r cTer a n s a c t i oPnr o c essin g

i;onnerce ttarsactionptocssing mft\^e connecsprnicipanrsin rhcc .omnerce econ -rommercetransaction
-. and enablesa,mmuniotn,n betweentreding prrtne6, regddle$ of dEir rechnical processing
software
::rtmcturc. This s,ftwre tully autonetes rmsacrion proceses f,rcn ordcr placenent to Sollwarethal p.ovideslhe basic
con.ctionblweenparucipantsin
tie e comherce economy,e.aoLn9
Bric tmnsactior processingsoftm,e rakesdata fr'- the shopping at md calculates communicatons betweentading
rme discouna,salcstu, rnd shippingcoslsto a.rive the t,al cost.In somecses, the partfers, regardtessof their
. Tlarc dcrerninesshipping@stsby connect;ngdi.ecdy to shippingconparies su.h a technicatinf.astructure.
'\. FcdEr ard DHl,. ln other cues,shippingcostsnay be a predeterninedmount for

\mconda Spors wa foundedin 1902 u KayeSpons.Over the yearsit ha {irown ro

rr,ne onc of thc largestindeperdent U.S. spo.ring s@ds deale$.Amconde sels to
'-rl*Jen, nm ncrchmdisers,and distributors,but it alrc sellsto the generalpublic via
:-:r mail and thc llternct.In additior, it hasseverrlretailstorcsin the Nofrhea\t.By 2003,
' -:onda had outgrom ia cxistug web infnsrructure,which wx desisnedwhen the firm
. I rust500 prodtrcrs,noi rhc 4,000productsitcurentlysrccks. The sitesihplycould nor
:rJle the volumc ofuscr trafic and neededro upgradefast.In May 2003Anacondawent
: r'irh irs ncw wcb infrurrucrure,which is hosredbySCs, an IBM resellerandprovider
. ntornation qaicm solurions including Web sires.The sy*em conbines IBM's DB2
 Pa.t 3 | B**,. synem.
"i-.ato"

J :u b * . orqre ud,run. ,ov" r, u.i ngrh. I ,nu nFri ng

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m e ' c e\enrr dd w eb\pherr " l .rem.l vr b\ pher e. or
{ppt(ari on sener.borh runni ngon \4i cr o, of ii,r t ( / inJ, q
2000 sere.s forn rhe bsn for rhe sire s .-..-m",." ,.fr*;. Cw.bsph.," is ;;; _
l,va'based r@ls fron IBM rlIat altow cusroner ro ,eate od nmase sopl:;riarrd budnN "
*:l .'* ehptoy.ve,i\i8n, r"y{o" p,op,)
ll::.,..rn: y..i :ho
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,e * i n g .ofi w ,,. mu.r " cruJl v roureorderi ntorm,rronr" ." " .f rh. ,hi ppi"g. . . p, ", J
ship rhe poduo fron inrentory under rhdr nuagem-. l- *"-pte H;wt.nlp,.l*: "
ha an arrangehenr witl FedL{ ro hmage orden for Hp priniers.
WebTraffiaDataAnatysis
Websitelraffi( dataanatysis It is necssaq' to run ftird-party Web site tarfc data matysis sftwae
to nake senseof I
the data eprftd in the \feb los filrro tu.n ir inro u*nn informadon m inprcre \ a
Softwa.elhat processesand
* re p e rf.rma.e..foreumpl e uhensomeonequeri e,,* * h
analyzesdata from lheWeb lo9 tile * 8i * f.' k"y_: ; l ; i" ;
lo Provideuselul inlofmaron to n trc\.doe.yourprgr rppar i n rherop | 0 mar, "he. .
or doe. , ": -
mp roveWe bsle per ior m anc e. L o m p e u ro,,r I vou re Inrrd bdr nor $ i rhi nLhefi ^r Mo or rhreeprge.
of,e, ut o.you r *
n o m a rte how
r m,n' cngi ne,1ou.ubmrredyour,i rer
\i/eb se{ch ensins can also generate uetut information for ndkerers
abour tA_
porenrialcusroners,,s discusedin the ..Info.maiioi Systens@
\fork.,soecial fearure.

ELECTRONIC
PAYMENT
SYSTEMS
Electonic paynenr systemsare a key cohponeD. of rhe e_comherceinfrdrrucrule.
Curd
e-conmerce technolog;, .elies on user identification and encryprion
to safeguardbusir,_
t@ediom. Acrul paymena are made in a vdiery of ways,-inctuding
*
electronic wallets, and smarr, dedit, chdse, and debjr cd&. "i-.-"i.
digital (ertificare As discused in Chapter 7, audentjcarion .echnologiesr used
An atta ch men tloa n m ail ^ by oanizatiors to ..-__
firm the identjry ofa user requesttngacces ro infornar;",
fressageordata embeddedin a Wb alC,A _JA-.. .
pagethat verifiesthe identityof a M a ,i r.n m mr ro rn e.mri tm* .ageor dr, rmbeddedi n r V-eh,i ""...'a
,e,har vcj ,ties r he, dr ,r
or . rndo,d web \ire.A cenificde rurhoriry rCA) i, r I ru.,cd
$jrd.prr.) orgei& o: ,
c o m p rn yr h4 i ,.ue\dj gi rJt.eni nrrf,. rhecA j ! rf.p" " .i bh toreurure,nir h, r
certificateauthoritylCAl r h. -
A trustedthird pady that issues
j:lj9u1'o' . irc ma : io h . s ra n re durh * eu e . e n iriu , . , , * ; " r" , . " r, ., r , . i J . , , " ,
n iq
u rg i rrr (e n,r' c,re\(hu\ crei ,e J rrur ci ai n rh,oughourrhe
rran.nti on.vqilling \ . r
purchaserand suppiieridendties.

SecureSocketsLayer
All online shopper fear rhe theft ofcledn ard nubers and
SecureSocketsLayer|SSLI bdkins i,formation. To !:.!.
prevenr rhis fron happenins, rh secure Socker, ta), (Ssrf
A commu.icationsprorocotusedto _-,i,"i*ri.* p**l
u*d ro scuie cnsiive dara.The Ssr. cohinunica.ions prot.col
sits abo". rhe Tap h,_ ;
rh eo \l modeldn.^u* e,lh chJp,e,o. rnd o,he,pro,q.t. ,,.h
,. r.;:,;;j ; n i,
o e r,)e re donroprn .\\l i nJudarhan,l hri < ..rage.w hi " h,urh.nti ,rqrhe\r r ve; d -

' h e ,c l re n , .i fntrdedr..derermi n* Lh.encrypri onandhahi ngaj go,i ri m. . obeu. cd. *

cx,rbge, tr(n?rrn key\. The hrd,hale mry ae publi. key cn, ryprinn.
I ofiowiner
h rn d \h J k e\rage.drF mrv be ren\f{ rcd. Th dj u i \ J"
.n.,1,p,.a. _
r.l:ycuos {: ior rubjecr to inrereption or .tnifins,, "by y. " " .u,in*, t "'.
a rhird peny. For;omDac
wrh'rs io conducrseriouse commerce,such* reeivinsdedn
ord;mbe6 o.oth;,:
sirik infornarion, sSL is a nun. Although SSL hdd;s 6e
en.ry,piion;;;..;
e-cohmerce ffansacrion, a digiral cenifi.arc is necesary to provide
seryd id;nti6cat;on
ftrteting Meets Search Engine
MarketInsightchargesctents slch as GMa f xedamoLrnl rora
1r: :i3.ch enginesd.aw more visliorsthan any othertypeof
specfied time period,usr.tty a year.TheamoLrnl inctudes ticense
rf : ::t a. T hek ey wor d s l h a tp e o p l e ty p e i n to th e s esearchengl nes
feesconsuttnq lees,trainingfeesandan optionatexctusivit/lee I
| . _:'tection of pLrbtic
interesl.Whetherusercare searchinq iol
a ctrentwants exctusive access to data in a pa.tcuLararea.
r_i- ents, academcInleresls,pop slaE, spo.tsheroesor
Ma.ket nsights just oneof manyB2Bcompanestooknq to
r : : : : . 1hes lm olwh as tty p e idn to th e te x tb o x o l s e aerch
n gnes
capitatze on the vatueof lhe datacottectedby sea.chengnes.
f r ::: a snapshorof what is hot and what s not.This fact is
with rnarketinginiereststo Recently, ontinesupersto.eArnazon.com hascomeoutwtl-rts owl
r.-: : ng a numberof companies
search eng ne, A9 {the name stands Iorthe nineLette.sn theword
' ' -: searcnengLne Dusness.
aLqorithm which
J, ctaims to p.ov de mo.e reLevant
se:rch .esLr tls
': .ecentexpe.mentbyI4arkelInsiqhtCorporation attempts
, | , : :e Webzens-c t zensof the Web-with. Lrseful by inctldlng your pe.sonat ont ne serch habits and patte.ns n the
.esoLrrce
sea.chalgorithm. ThemoreyousearchwithA9,andthe moreyo!
, ::,Lectngvatlabtemarketinginformation to setl to ctents.
shop atAmazon ihe rnorcaccurateyoursearchrcsuttsbecome.
..: .s ght'sWebtootis cattedMyProduclAdvso..com, and t
Atongtheway.Amazonisabteioblild a hlge database ofsea.ch.
i. :: r5ed to .ecommendproductsto customeE.The initial
," : .t l.4yProducLAdvisor Web b.owing, and shopping trends that it can usein ts largeted
locuseson automobites and diqtal
marketing and p.oduct management.
-i :; wlih moreproducts-nctudnqsmartphones, PDAS,and
Thebls nessandma.ketingpotentiat of sea.chengines, notto
: _?aters-promisedfo.thenea.luture.
_l nrention lhe ad!rts ng dottarsihat dfve searchenqrnes slch as
: MyProductAdvisor com. ndlviduals ptanning to purcnase
_ Googte, havecaught the attenlion of big ptayrssrrchas f.4ic.osoft,
i : I g tatcameracanfindoLrtwh ch manuiactlre.andmodet
Yahoo, andAmazon. AstheseWebtootsare becoming recognned
:-i. their needs MyProductAdvisor asks some pointed
as fich so!rces of consumernformaton,ma.ketinqfi.ms a.e
., :_r attowingyo!to respondusrngasl'dingscaleto ndcale
iu.ningtrcmtradrtonatfo.msofconsumer.esear.hio companres
:: !e mportanceof va.ous featu.esand options.Fo.
suchas N4arket lnsghtwhoa.e .e nventngthebls ness.
r: : f youwreshoppingto. a car and visitedthe pagethai
-: : niormation aboutyourusage,you m ght movethe sLide.
.::: mpo'tanffof "Carrying caruoslrchas bkes,skis.etc OiscussionOuestions
,: -: rLderfor"Carpooting
oriranspodng
chld.ento Leasl ' w qd " dv" n doa vd t" t i q, " o. o. "
" ga
tfad i i onatmarkelng f.ms?
..' : - aus er . ept ie s to q u e s ti o n s a b o u t!s a g e ,p rce,b|
bodyands 2 A s a marketng expe.t,w h .h companyw outdyo u p. ef er
._r otheralt.ibuies,lvyPfoductAdvlsof pfovides!nbased to w ork 1or.Market ns 9ht o. a l l .m thatconduct sl. adi
: r, '0 ,,5d ,\eh e5be. dr ' L L. ir er d ha ^ o r d ti onat ma.keti ng .esearch thro!qh customer f oc! s
.,r,:.:r is most mpoftni io MyProdLrclAdvsor Richard groupsandon-the-st.eet i nl ervi ew s?W hy?
or v o. e. .s . t dr e. . ! / e obea
'd
:.nsuner Reports,wirh ndividlatizdrecommendations CriticatThinkingOustions
:.nptetetyon wtut youwanl, lnbiasedand obtectve To
-:. : MyProdlctAdvso. 3. [,1arket]nsi ghi provl desdetated nformal ononcust am er
doesnol acceptany .dvertising.To
'. p p.a o - ac . r r u< Fd r < our F v J Pod
prel erences cottected from peoptew ho v s t ts Webs ie
Ud . i . o J
C an thi s data be consdefed representatl ve oi a Ltcus
,.: -.m cottecting
demoqraphlcnlormaton suchas gender,
tomers,most customersor somecusl omers? How can
:.: .r qeogmphicffo.maton. The aggrcgatedata that
::r-:LAdvrsordoescottect-prefe.ences th s d.ta be Lrseto l nfLuencepfodLrct
devel opme nt ?
of customerswho
4. Ma.kelInsght has ni neemptoyees. W hattypeso f skr lt s
:::, to bly-is goLdto companiesLikeGM who pLrrchase
andexpe.ti sea.e.equi .edo{ these ndi vd!ats?Howdoes
th make!p of thi s team di i fe.from that of a tre d t ionat
': :ro havelnfo.mationaboutwhat you lcustome.sr wanr,
,E ::: segmentthe marketby prce range,bldget,whatever
: -: hawyouwoutdusethecame.asowe cansegmentby
SoURCES:Jan InsqhtLaunches,"
s Marr,Markel artlzlr'rsAp.il9,2004,
.-rttwood said. Saya camerumanlfactlrer s thnking w.clickz.cofr, MyProd&r Adr)3orWebs ie, acce.sedapr I 20,2004,tr/lw
i ::rmem,,,v{himprcvedresotutionWittitgeta bigo.a t'ttte nyp.oductadvisotcon; John Bartelte, can Amazonunplug Gooqle?
: :ra.e? We can flnd out how many peoptethfk good A6iness2 0 Apt115,20AL w.br5resrz.ra A9SearchngneWebsite,
a..e.'ed Api\20 ZA1L,Mag.con
!, :. s mportant,saidSmatlwood Marketlnsghtscurentty
,.: lth GIVof varous prodlrctscenarioslt wtt hetpGM
_,
" qiz eo' ! t em a 4 e d d ' e p .e s e . ' o rb F
 Pait s | 8,. rir",-dioi sysr"..
^6s

The SSLlscure SocketsLayer

encryptonlcohmunicalions
prolocotassurescustomersthat
inlormationthey provideto
relaiters,suchas
numbe6, cannolbe -editcard
viewedby
a nyon eetseo n lheW eb.

One tip to the sccuiry ofa tansactn,nisvisibteo! sdeD. Look ar rhebo$on telic..i.
ofyour browserbforesendingyour cedir carrlnumberto an e com,rercevendor.Ii,
rr
ue Netsepe Navigaror.hake slre rhar you scca sotidkey in a smal bluc recranglc.If.:.r
u'e Mi n^otr trpl"rcr. Lh. words \e,urc v/eb .irc jtper ,.e.,r t,rr,egotu toc-k.
" .\" ,
you'reworriedabourhow securea secureconncctbnis, visit Netcrati ar zaz.acrazf,;: r
r.,/'{1. Ar this sircyou an rlpe in anyVcb siteaddres,anddete.m;nethe equipmeni
h =
used for rcurc rhns.crions. One mo'c tip: to ensure securicy,you shout,t ... ..
n * .q r el ercofy" ur Ja' " rrrebr.q.errrh, T$rr rhebrc-r,, rhet .l l .,,f, . ,"l*avs
. . U, , .

E tec t r o n icCa s h
Eletonic cashis an mounr of noney rhar is @mputerized,storcd,h.l uscd*
Af ah ou nl of money t hatis cash:r
e .o n l ,e rre ,,rn.r.,i on.. { .on.urne,mrrr openl r..ounr ri rh r brrt and . hor
co mpu tfzedsl , or ed,and us edas ,c r
i d c n l l l cj i or In rnabi Fhhi , or he, i d.nrrryro ohr,ri retecroni .(a\h. fhe r r ,sn. ne, , r
ca snro r e -co mm e. c et r af s ac tois . =
consumcrwan.sro wirhdrawelecrroniccash to mrke apurchse, he orshe.ccesssrhe br
\i | l -e Inrdrer sJ pre\h' \
frcof^fi denr N . tpi i ) " ui grut .eri fi . r r e i*u<d r ;
.e n i fi c ati on aurhori q.{ i e,,he bsk \eri f e.,he.on.umei , Jenri ry.i r,,.u c\ r hecon. L.:
rhe requcstedmornt ofelecroric.ash and dducrsthe sur amont from rhe
omur_.
a..ounr. The electron;ccashis sroied in the coDsumer,s electronicwaller on his or ::
conpurei s ha.d drive,or on asmarr.ard (both aredis.u$ed late.).
Consunersan spendrhe;elecfon;c csh when rhyIocatee_connefesitesrharac._
itforpaynenr. The coosumersendselectroniccashto rhe me.chanrfor rhe spec;tied.oj:
:;
the goods or senices. l'he merchlnr validatesrhc etecfton;c cdh ro be cernin
rhar it ; ,,tr
forged and belongso rhe cusromer.Once the
soods or serics areshipped ro the consur.:
tbe merchanrpresen$rhe elecrroniccashto the issui.s bdnk for dep;sir. The
bank r_
rhe herchanfs accohr for the mnsaaion douDr, ninu a snall scrice chargt
-edi$ T h e re ,re ryo ,h i ncrn pe.o, etedroni , .a.h: i Jenri fi eJete.rror i . .^h , , d
_ .,
eh u.h rJ,^ Lnowh dktzt,arh). tdentitt.d ete.rr,,nicca,h, onrain, inforn.. """", :
'rroni. ^ r
' e v e rl :n B fi . i denri r)..,1.c pd.on r ho ori g.nJv w :rhJ.erthemons fromr h. hant . \ .
In m u ,h lne\r-, munerr.reJrrc,rd" .i denr;fi .dete.(on,.cJ,hearbte, , r r bsh, ou: r
ihe moneyd ir novs rhroughrhe econony. Thc bank can detrminwhat
DeoDtcor r-
s rn i /r' i o n, buush,.w he,erh(, boueh,,r w t-enrhcyboJsh,., rnd ho" _, J , i*
c F o n v mou.el (,,onacshw ork,r!ti kl ci tpJp.| (sh.O..eJ,," .ImorrJe.rr or . . _r "- .
ur' r | (rn be.| cnr u, gi venrw Jy $i ,hourtrrLi r g r r r r , r . ". r 1
Irr' r. A re q ot rhe,omprni ,, rhJ p,o\i deJe.rroni , sh ne.hr:.m. i ncr ae ve, , __.
M o n d e x ,r$rl " bl enou a t' ri r ,,1rhegl ohrl Oaf\V ,{R f v V Jo@ pr ogr Jm . ;
^rerr
 n{hi.ftmmd* | chaprer s

Watlets
E t ec t r onic
,nlineshoppcrsquicklytire ofrepeatedlyenteringtheirshipnent md paymentinfornation
.::h rimc thcymakea purchoe.An elearonic*zllet holdscedit cardinformation,electroric
::,h, owncr idenrificarion,and addres inform ,n. It providesthis information !t an A c o m p u t f z e ds t o r e dva l u eth a l
holdscrd i card info.mation
lnnerce site\ clcckour counter. en consu-en click on itens to purch*e, they can
r:;n dick on their elecftonicwallct to order the item, rhu makingonline shoppingmuch identiiicationand address

5m a r t,Cre di t,C harge,and D ebi tCa r d s

.line shoppc.susccrcdit and chargecads for the najor;tr oftheir Iniernet pur.hases. A
-:d;.rd, slch N VisaorMasrerCard,hasa preserspendioglinir h*ed on the user'scedit
rr, rndeachmonth thc usercanpayoFa po.rion ofthe mount owedor the entirecredit
:d balance.Inrcrc* is chargedon rhe unpaid mounr. A chatgeed, suchas Amerien
.,.rress.caniesno presetspendinglinit, and the enftc rnount chargedto rhe erd is due
. the end of rle billing period. Chargecardsdo not ;nvolvelines of cedlt md do not
- : lmulare ;nrerest.hdrges.
t)ebir .ards lool likc crcdit crds or automatedrelle' mach;ne{ATM) Gr.L\, but they
r:rare lile cashora personalcheck.vhile a credncardk a way to "buy now, paylrter," a
:.rir cardis a way to "buy now, pay now." Debit cardsallowyou to spendonly what is in
:r bankacounr. ft is a quick aansact n betweenthe rncrchantand your personalbank
-ounr.V&en you useadebncdd. rour noney is quickly deductedfiom your checkingor
informationabout
-,.ngs a@ounr.C.edit, charge,and debn ords curendy storclinncd
on a m:gnetic sripe. This informadon is rcad c.ch tine rhe card is swipedto makea
-
-::has. All oedit ord cusron.$ dc prorcctedby law f.om payinsany nore thd $50 for
-::Julent transacrions. AtMsa,online purchrsesaccounr forrhehighestamounlofpurchas
::rl 24 cenrsfbr oery $ 100 spent,conparedwith 6 cenrsfor cvery$ 100 overall.I ndeed,
. .sk of bogusc,edn ca'd rmnucions h* slowedthe grow$ ofe-connerce by exposing
-:linors ro subsranrial losssand nakins onlineshoppersncrous. Basedon thc resultsof
unual suney of e-connerce .rime. sccuritycompanyCyberSourceestimatesonline
.ks will makc awaywirh $1.6 billion of $94 billion Gbout L7 percent ot mnual U.S.

\lasre{ard srituatesthat 7 per.enrofits $922 biUionin annualcadpurchasesarenow

. rg placeon rhe\tfeb. Ar a result,the fitm now requncsrhat high-volunemerchanaand
proceson co.duct qu terly dssessmenis of deir Vcb sitcs,or MuterCard will
:-cnt
Joing businesswith them. Both ho* and networl b*ed sofmarc ofilrings providc suc.h
- ..sncrrs. Host-based tooh res;deon rete* md dektops md uscsof$rre agcnrsrhatcan
.: .. ro a hostro repon rheirlind gstoa manasenentconsole.Nctwork-bascdtoolsscan
, - rtrly in w1s similarto a hcker prcbe.The agenschechNc acccslogsand the identiry
rucwho accesedfirancialdataon the aner. However.if thcreis no coordinatedstaff
::uch, networkadministnior misht th;nk that the networkis under anackbcouse of

Thc snan srd is a ctedit card sizeddevicewirh an cnbedded mi$ochip to provide

,:ronic memoryand proessingcapabilitr.Snan cardscar be usedfor a var;eryofpur A c r d I c a r d s l z e dd e vce w i tha n
embeddedm c.ochlpto p.ovide
:.. includingstoringa usersfinanciJ facts,hcalth insurancedan, credit cardnumben,
e t e c t f o n i cm e m o r y a ndp r o ce ssn g
: rerwork idenrifiotn,n codesand paswords.Thcy crn alsostore monetaryvaluestot

rmrrcards areberrerprotectedfrom misuscrhancorventionalcredn.charye,anddebh

:. bccauserhesmanetdinformation isencrypted.Convention.lcredn,chdg,aod debit
:. clcarlyshowyour account.unber on the fdccof rhc card.'lhe card number,aloog
, r r forgedsignorure,is all thar a thiefneedsto purch*c items and chargethem against
- lrd. A snan card makescredit theli ptactica y nnposible beouse a key to unlock the
-:: ptcd nrformarionis requi-d,,nd thereis no sternal nunber that a rhiefcan identily
. : ro physicalsignarurea rhiefcan forge.
P.!tB I Bc:.r ,rh,maroisFcms

Sman ards havebeenuound for over a decadeand rc widell, ue.t in Europe.AurrJ;

rnd Japan,but rheyhavenot caughron in rhe United stzres.Uk hs beenli;ited bec,s
rhd de $ few sman dd reader ro recordpaynena, and U.S. bankng iesuladons
h:.:
slMd sndr.ed nekedns dd acceptance d well. Andan E*pres iru;chc,t its B:r
cardshan cardin 1999.You on usea snrt cardreaderthar rrtech;sro
rou. pC hon::i
ro ma*e online purchereswith your Amerion Exprcsserd. you nu$ rhe Amdi_
L\p.ss Web she ro ger an .lecdonic waller ro eo.e your c.edit crd inforhario, "lsn
dd shtpfii
addres.Vhen you wanr ro huy sonething online,you
s" r. ,h..h-k"u.**. .f;i\ j
mr' .h l nr..\w i peyou, B l ue,rd rhroughrhe reder. ri pe rn a p-vor,J. r nd
1ou r e d, .
T h e di S i rJw Jl erruronJri ql l y retl ,rheverrdor y" ur credl ard
l numbc,.ir , spit ur iond- :
a n oy o uf 5nrpprnS
C i ,i n l i mi ,ed',i
nrormaoon.
opper u-e. rer,i h, TaB d hegrr phung our compur erchip.
_ :
Ia rg e rvi v ads i n MJr.h 2u0a.ts\ l ho t]r,re "n
)cs J6rr i r i nrrcdu, ed r e, r r d. . . !
move dealt a serbrk to prcpohenrs ofsmaft card rcchnolosy. The r.chnolosi allowcd
d,:.
holden ro domload disounr couponsfron rhe rnterneroi in{rore kioskronto
$c ,
and ihen uselhe couponson shoppingtips ro Targersroies.38

THRE ATS
TOE- CO M M ERCE
A l w i than/rfl ol uti ontrychange,ahosrofi ssuesmusrbedeal tw i th
e-@hherce trdsacrionsarc sal! and comumus are prorecrcd.Mary represcntsignil).a
tbreac to irs continuedgrowth.The foltowingsectionssuh oarizea n umber
of rheserh,.,
dd prsen. pructjcalided on howm minimiz th.r nDpacr.

E - a n dM - Co m m e r ce
In cid e n ts
Ar menrionedprev;osly, o.ganiat;onsuseidcntifiarion technologies to @nfirh rhe i;_-
rir)'ofa sd requestins&.ss ro informldon or lssers.ju,t a shoppssd.
@nched
the legirinae ofsites, e-busine$es .re concerncdabo.t th" l.si,#".y .f,h.i. .,,;;.; "_
Ar a re$lr, d inceing numbcr of conpaies are investingin biomcric
rechnoloe.r
protftt borh pa.ries. B;ometric rechnolosy, which disttatly ercodc physiot
ataibutei'._,
peson's voie, eye,Aa, or haod and Nociares rhemwnh btotogicj arributes
stored.: r
n i e .i .@mmmtv u,edi n \ccurrw oryani zrri ,,nr .u, h r,h" FB I ;" j", , , , b- . .
" " _rr y
l o r i tuk(e. C uren,l 1. ui ng rhereJnotogl ro + , ure onti ncrr.rnv.
'ng. r ion,r m : r
boih @sr md priva.y redons. k can be *pensive to ourfit everycutomer
with a biom_
*dne., and ir is diflicuk to convin@ cosuners to supply somethnrg as pereonat
and :.
ti n g u i ' hi ngx a fi ngopri nr.In spi rrof hi s. J gros,ngnumb,r ot n* " ,;"f
*^; * , _
{ e .9 .,Unj bsk. l i Fr Fi nanci J.redi , I ni on. H unrn8ronB ank.hare,. trr due I m pt o, _
FdetrlCredit Union) e onsidcring rhe useofL,.,ocuc sysrem.
Heishrened securiq. @ncerns in rhe wake of the SepFmber I I reroisr
. att2cks i:a
iftre$ed inre.esr in the use of biomedcs ro dcvetop fdter and nore elTective
immigrc-
rcreenins system. The U.s. Deperment of Honeland Security is *aluadng
bioie_
rchnolos/ to h+ rill saps in U.S. bordcr_securiq,pro.edures. The DHS
b;shr I i,;n
opticar-s&ip .sd/wrirc drivq and biomerric verifiadon s'rrens ro be
used in-rhc L :.
Vi s i ro r odl mmi gm' i on\rrrul nd(ari onTechnol ogp,,,so-.fh.,..hnot oe) , , h. ;
d e p to yrd" % ar,i ou u.5. poraofen.q. B orde,_n$si n;.g" " ,:,." ;, * ,d
, * a, ; . "- , ;
on ry-of tle moe rhu l.) mittion prrmMent-r,idenr rd borde,_cr6,ing - cr rdJ i$uec F
rh e u .5 . sovernmenr and.hfn Jurhenri s,erhe bi omeni ,d.rr.rorcd d; r he. {, 1. . f E
vyem dem DH\ in,perroruro po$ibte (ourerfeir ar.i...l he DH5
n Jl.o renine .,:o
rNc,un tingerprin,b@king ur ion, ud derkrop$rem3 ,o digira v crprure
ed eie.r, ,:
rru y (u Dm hngerpl nrrmrge\rrom i ' mi gE ri on ,ppti .rnr. ro ,he FB t.
The f ingc, p,?
.an rhen b ued ro conducr crihinal backsround checls. r,
 Ehd,m..cmmse I ch3ltd s

U S .C u s l o m s . n dB o d fPfo te cto n
o l f i c e . su s et h e n e w US V SIT
b i o m e t r i cp r o 9 r a mt o t in g e fp fi n t
: n d p h o t o q r a pvhl s i t o r sto th e
Un ted Slateswho requ r visas
lso!fce, Ef kS Lesser/Getly

-re ft o f In te[l ec tuaIP roperty

over intellctualproperry(music.booLs.iivenrions, paindngs,and orherspe&l inteLlectuat property
--{irs
::iprorecrdbyparenrs,copyrishrs,ortradehdks)havec.earedavi.rualc-commer.ewar M u s i c ,b o o k s ,n v e n r i on s, p a i n n fq s,
. l-rom music filcs to patentedonlin @upon schemes, hardly a day goesby withour a n d o l h e r s p e c i alte m s p fo r e cte d by
p a t e n t s , . o p y r i g h los r rfa d e m a r ks.
-. rcw suit bcing filed. Everyvear,Ameican businesses loscbilLionsof doll$ f.om rhe
- rrrtation rnd seleof.ounE.feir soodsand rhe infringenent ofcopyrights,oadenarls,
--: ratents.The entertainmenrand t|avelindusrrieshaverheir futuresridihg on rhe our,
-- of theseintellectualprcpeny baales.lilM, for cxanple, received3.415 pareD$in
., 1. 1r wd lhe el*enrh confcurive rear rhar IBM was the world\ nunbeFone
:-ror.4'rEachvear,IBM earnsbillions of dollm fron ns parena.Los of rhis rcvcnuc
" - I havea swereimpacron $c firn.
.irhough IBM Corp., lntcl Corp., and othdr te.hn,rlo$/ leadershave long suedor
: .::rned to suerivalsovcr pareniinfringenenr,rhesreregt'isisly. lhercasonisthatovd
'. ;r decade,techconparieshrve drmetically increasedrhe numberofparrsdnddount
.r lcesrharrheypurcha* from eachother.Lawsunscoulddamaserelarionships betwern
-:: cr and vendore. In spir. ofthn, Hewletr Packa.d filed a patenrinfringcmcnt lawsuit
.r-, r Cat eway inM a rc b 2 0 0 4 ,a l l c g i n g th a ti ts ri val refusedtopayl i censi ngfccsonsevenl
:rtented designs,includinglaprop hinges,keyboardsthar requirepuwords, and rhe
r : rhat poinls to icoro on a conplrers vldeo display.The lawnlir could r.sult in d
- i oftcrs ofnillions ofdolh6.a'
IOs m{st alsobe.rfulrhar rheydo nor becomccmbroiledin copyiighr;nfringenenls
.nhavdre usedto developrheir compary's\vcb sires.The SCO Gioup (SCO) prcvides
, - ne soitrrionsfor shall ro mediumaizedbusincsscs and rhe; brdch offices.SCO so,
:. includeUNIX pla*;rms for mesaging,aurhcnticarion. dd e-busineslools.SCO
, .:.. thn a najor soliwae manufacrurerrook confidenrialand.op),righkd sourcecode
- saoi Unix V operaringsysremand uscdit to build thr; vdsnm ofl-;nux. SCO is
,.- r lr s uins najo.u s e 6 o frh i s v c rs i o n o fL i ru ,rl l egi ngcopvri shti nfri nsenenr.H ow
' :he law has not vet establishcd that SCO s intellectul propeq, is paft of rhc Linu
r, . ing sysem.ShouldSCO'suit bc found to havenrn, CIOS everrvhercwill nccdro
, :rccrnedofpending iiLigationbecause they implemenredl.inux.a':
i. drc arguerhar unscupulouse commercecompaniesrhreaienc..ariviry by enabling
, : . ro stealthc original worl$ of innovro( and anisrs.For exanplc, dre Recotding
: , : . r A s s oc iar io ro fAn e ri c d l n c .(R IAA ).e q u e sredhLl ndredsofsrbpocndandfi l ed382
 Ihft s I Eusn6s rnrorhdiorsyslems

.ivil bq{ir',g:inspeopte who rltegrdJl,hrr.,j mu"i, fftesithg,jtr. fhn adon w! o

.,rehryupopurrr w'.h ,h p,imrry on,umeB, you,tb rnd younS
Jdutb. who betie\edr
downlo.drrtr. \hr'ebh m6i, fits fo, MtJ ptavc^ k rheher tiing
ro hippen ro re.J,dc
huic sin@ rhe I 983 inftodtcrion of the CD.ar
In repme to rbuer an.i srrongtobbvrngbr omen of in,e ecruJ
Droffrry. $r I -,
prcn6 ha becn,in. reaed tnow tding .r0yerr. from dJ'e of rppt;q,ion).
op;ris}r. na
ra r w \ yerB .rnd hore tandsof opyri ghr i nfi rngemens rr now .ri mi nJ of f en, e;
Anorhe,chs ul i nrel l r(ruJt
propen)tJw .ui b;nvnhc.prrns on bui nes pr qe_*. I r
setunes
fitcdui, rsainruoBter.,, .B"dt);"f,;"si"s ;
"y"{-
rcrre.r ro T*.'.
rhe @mpav "" ;,;
\ bid for-plJcmor prodk N. Ok, rure'. bd-to,.ptr;-c,tr *_.:
sd'e axows @mpanies to bid for sedch_i*uft plemenr based
otr ;wmt kewb.s
Ad k rtirb pdv ovsrurc r-prehi um ,o hrve rhei ;fi rm rpper hi sher
i n +. r i. , jr . , *
ro u n oI n ordrro dnve.,rri i cro rhei ,.i K \. O\enu,cal so,uedFi i dv
hl r.@m ior Jt es. $
i n fin s i ng orhe.me p,renr.orher , ompri es ha,eb* " * .a r,._^" ,r..i . wJ. i. ,
"r -
B n n g proD rem.w hJ r\ tnr properdrenr of prcpen ri gh6
i n M i nf or m r r ion. hr <
tro rc m yi rh( urry ot c.dmmerceprrenr l aw .ui rr,rnc. so(;e,
ot ovr r ly eqq, _. r
p ro re cri " nofi nrel l ecruJprop.rrvri ghrsrJ ofru i nq economi & , ri ,i a.

F r a ud
A\ more pople ue rhe Inrerner for econmerce, they need ro know thar
lhe herchdr.:j,
whom they re dealing ;s lcgitinat. 't he Berrcr Bunress Bureau,s
Onl,ine Reliabilin =i
h e l p \ d i ,ungl i 5h rru,vonhl omp,ni c, rmong rhc rhou,rG.,
l ^," ". , * , ", , r . . *
o n rn .. Jl | ow rn' lon.rmeF
, ro eai tv i denLi A.trcm
,
the fisr waveoftnterner.rime consistedmostlyofont;nevesiotr
ofomine hodd. a
u ' u J g er' n.hqukk.cheme..Forcumpl c.manyp.optcrr(eneJnteat,nmdepr r ur ( g
\
rMl s i l ri ., rhe,rhJp i n rrnne, | ,, rund. ou, ol rh.i r Lounrry.M or c
ln,rF ' l r... f3
i Mv rr . rtuudJaN \ hi rc b.gunr,,optorr rhcInrerner rorxeiuremo,e .ophinr Jr eJr . q
s rn g ,rkc w cb.!' f. rnd \prm. F" r exmtl e. a .
rhonr U .5.a" nsuntr I,or - r ionAe, r : -
\e r u p ,b ow n w cb i ,e. \eal .and horrd ,,fdi re.ron. fhe trte
compane eyhg rhar for 91,000 rhey could purch*e rhe.ighr " rsurzri on vnr c m r _ I
b display irs rr d
phishing Phishin"geDrailssoding bogu me$agespurportedly frotu a lcgitimate
Bogusmessagespu.porledlytroma insdfution ro :n
p e r\o J r ,nrorrurm trcmLu,' ,,mc^bv.onv,nLi ngrhem,,,goro...po , , f
leg lrmale instit!trontoprypersonat Weh. I c : E
{ p o ,i w eh.,rcrpfqF r^ beJ tcgi ri nre \i rehurJ. tuJ 6
rfrormal|onrrom cuslomersby ) eL,.pL| ,onJ i nt o,nr ||on r t u
convincingthem to go ro a "spooi unsuspecd ngvictins Phishc$havesituulatedrh. nssage andWeb sitesofCitibank,
Lk.o
Is It B d nk.N r' \J(/e!.V na. H ,ti ru B ,nL od W -,p.i e,.t l , .i ,t
,tt . , , - , ; *i;
requns a drsre ofsullibiliry hy rhe rcrims. However, a seoriry n,w
in Micros"fti n rcJ
Explorerallowedphishea ro hde rhe nue rnrcnrt addre$ ofa \reb
pasfrotu rn,@
Expldq's addrcs bar, nakiis ir qen nore difficutr to idcntity rhe phon;
sne.6 ve_E
B n n l i n sofA ul rJi r w d hi , h) r phhhi nF\m u.i ns Fal .. _,,r ,r,,i * .* J
, . , "- . , , . . .
w e n p n Lro rl l k r unomo\ r" o gi ! i ng up rhei rpN w ,d\ In hrnt r(ounr, .
t he
d n e d o ur rheJri JrI by ri ngu.er,to fal ercni on o[rhe W evpacV eb, ir e r "n. E
n, J: - a
' cdi re. "
openiDgdre realWsipa \(/eb sircin a sccondb.omer wi.dow, h;dden
'fo 6nbat I.remd f.on the user.-
frdd. pC Mall, r h{dwa.e, sortqrc, en.t consumei elecrroG
,rL i l o . h a i mpl rmenR Jd ry,rrmw i rh rhrcetIeF ofder.n,. rorar.hi ng
rn ud, J. . r o, s.

.n ' n e ..,u.h/.A @ C raphrql l yni .nr:r,hed.u,rorneri rtormrLi onrnov( Leallr ddr 6, l'
a U.S. billiDs add.e$). l he k@nd line of defenk is ro try ro narcir
the order asart r
' n e g a ri r edrrab* eonui ni ng ri rudurenr
o,deri nti nmJ,i " , oU e.kd o* ,eieh, ye; . . - ;
r,n i rre \erot derchc,un,tre. hei ngptud ,o hnron(i n[o,md;or ro.c; wher l, . r,
" rden
In ro rm J i onmrchc,. l Jrri ,hmutri pr..rotencrcdj rurd,. rhi ef" i err
" si u. e i coh u
rhip-to addrss or relepho,re nunber. Laci 4nd dery dd.. m6t u($"tully pds .h."rg
all rhree layes befole it an be .cc.pted. DuriDs its sqlnry che.k, pC Mail
musr be .e;l
not ro aiien:re legitnare curonds white
rying to detecr fraudsrcs.a,
 !Gn,.r..-oi nure I c h o p t ers

lntineAuctionFraud
rlin. auclionsbroughrin abour $ I billion in sales;n a fecn I vcar.rnd the),represenrrhc
rlbcr-onc Internd fiaud, iccordins ro rlt Natn,.al CoNunes L.asue.The majoriryof
n lraud.ones froh so-calledpcrsonLopersonauctions,which ac.olnt tu .oushly half
: au.tion sires.On rhesesircs,il is up tu rhe buFr and scllc ro resol\deraiLs
ofpaymedt
.:J delivery;the auctionsnesoftir no guaranrecs. Srickingwithauctionsireslike eBay(uzra
;r .,2)thatensur rhe delivcryand qualiw ofallthe iremsup for biddinscanhelp bu),cs

S pam
: :)ril thar is senrro a widr tmge of peoplcand Usenelgn ups indiscrnrinalely;s cnled
.:o. Spamallowspeddlersb hawk rheirproducs instantlytu rhousands ofpe.ple ar vir
rl\ no cosr.And obtaininge-ndl addreseso spam is now. snap,rhmks ro so-c.llcd E m a i t s n tt o a w d e f a n g eo f
.-: &er ?tuq4tu rbat snoopUscnerchn gtuupsand @Uecrrhousands df *mail .ddrcscs p e o p t ea n d u s e r t 9 f ou p s
r singleday. Do not respondto spam;respondingwillonly confiLmro dre spanmerthar
, e-mailrddressis accurutemdactire. Instcad,simplydelerespan o soonrs vou get it.
fe s|am is lruly offcnsiyeor obvhudy iiaudulcnr,fomard the entire message to your
rner srice providcr, rhe Fedr.al T.ade Connisston (uuu lit.r!ot), or thc National
:rJ Lformrrion Cehter (auw.Jidud.ory)atd 8k rhtt lhe senderbc bd(ed from sendnB

I he lederal l ndc Connissi@ (FTC) consisrsof 1,100peotle who scryero regulate

.rp.iirion and ad $ e .dnsumerprorecrionage!.y. In add;tionro takiry actionagriDsi
::prnies suspcctcdof unfin businesspracric.s,rhe fTC has worked ro shrpe Internet
;v in a rangeofarer, inclurlingonline dispurcsand resolftions,Inremer basedliruJ,
: ffiqcy concerns.The ITC curreDdyhs an lnrcmcr unit ofinvesriearors ard hrvers
. prcbe lniemci-bded cohplaift and suf thc \fleb in an efforr ro fercr out bad

.oryeam,Intener uscrshrve conplainedofreeivnrg unwantedsexullyexplicit e nail

-,.'rges. ln ApriL200,i. dre federalTrade Conmission announ.edrhe adopdonofa rdle
.:r requiressexuallyorientedhrdhl !o includerhc warnnrg i*ually *plicit" to inform
rienrsandto facilitarcfilteringthemour. l.hephruscrnusr bein.lu.led in borh rheslbje.i
. r ianv e- m ailth a tc o n ta i n s s e x u l l ro .i e nma
re drcri al ardi lthededmni ccqui val ertof
:r*n paperwrappcr"in the bodr ofrhe ne$agc rharrhc recipientinitiallywill sccrhen
:=:rifg rhe nessagc.It nus include rhe prcscribcdnotice, cenain orh.r specified
:mirion, and no oder inforhation or inages.lnages my sill be presentnr r message
.ot initiall)'viewablein. proicw pare or upon first opennrgrhc c rnail.a,
>r r am id S c heme 5
:: rionalpyramidscheneswork b)-gerringrcw nrvestosto pay rheir rccruircs to join
, rf,imid ar rhc boton. The ns invesronrhcn (theoretically)get rich by rccruiting
ir :onal new invcsroswho will funnel noney up dr. pynmld. Of<,ume, o-cnmrlly thr
,. : e on rhe botton of the pyramidhavcrouble findins ns recruirs,and ir collapss. For
' rusor, prarnidr are illegal.Online pyranids often in.lude rhe saleof a produd or
,. -. likc virannr, .redir @rds,or evenelccfti.n! ro judfy downsrrem recmitmenrlees.
:r,, the producrrhar rhcscsupposednultils,el,mlrkedns (MLM) companieshawhis
, irpriccd or unwnted rhar the conpan reliesneinly on recruningllcs ro provideirs
. torv. Bew*v of anycompan1.rhat dcpendson rectunmenrGesro payyou.Alsd,aroid
::rnunities that lorceyou to buycosly inventdrv-F;nally,chcckwirhrheBerterBusiness
-.. 1( t ut ut u. bbb .tu n )a n a y o u rs ra tc a n o rn e y general ' somcebeforej oi ni nsmy(,hpan),

r,estmentFraud
' \ofthAmerican Securiries Adninis(ratorsA\$ciarion esrimaresihar up o $10 billion
. re l(,stin a r'earro invesrmelrfrard, prinE.ily rhroughrhe saleofbogus investmenrs.
:ll rhis fiaud is comnrirredonlin.. Sohe ofrhe morecolortul sc.ns involveel fa,ms,
i nd.l diamonds,and supcr-fastgrowinl;treesrhat en reach80 fccr ir threeyears.Call
rate securitiesboard ro mrlc surc the *ller and ils security"arc registered.Avoid
rq wirh unLegisrercd sccuriticsand t'r,kos.
 Psft 3 | Er ; r = ir . , m aio . t . r ei, s

Stock Scams
BelorerheInrernct,mostindivjduaG
hada rougfiiin,espieadins
rum06abourasro.k.:j
now anybod)'@n do ir. Net chat roons like UsencCs/,Mt /crrrr,.*' m.ke ii chcap.i!
euy for scanner to e1k up (or down) a stocLbard on f:rlsenrfornarion. Th scan:.
burs rhe srockat alo* price,spreads falscumors thr hdp dive rhc srockpriceup, and r..:
sellsaran anificlJly high pricebeforcrhc botroh fallsour.Alwaysvcrily tipsandinfo.mal r:
,vouger o ine end in chat roons with rhe companydirccrly or with repurablefimn.:
advisen. To be auly safi, avoid rhnrly traded srocksor pcnny sto.ls thr sell fof le$ dnr] :
a sharc,becruserher are the mosr.asil),manipulaled.

I n v asio n
o f Co n su m ePr
r iva cy
Onlhe consumers arcmorertisk todaydrancverbefore.One ofrhe prnna4,fi.tors cau.'r
h;shet t;sk)so,li". ptufh,g the pracriccofWeb advenisersrecordjngonline behavio. .
rhc purposeofproducing rarsercdxdvrn bs. Clickrrem daia is the dau sarhcrcdt:.::
Datag ath efe dbas edon t he W eb or thc Web siresyou visir and rhc itens rcu click oD.Frorn the narketer' perspccrive:-r
s tes youvsl a ndlhe ilem sy ou
useofonline prcfiling aliowsbusinesses b markerro cusronersehctronicallyonc ro :r:
'I he bcncfit ro curomss is bemcr,mon effe.r;re seric; ihe benefirb
trcvider ii :-:
increasedbusinessthet conresfrom building relationshipsard encou.agingcusrom.r, :
rerurnfor subsquent purchases.F-romtht consumersperspccrive, onlineprolilingsquc<-:.
our aronvnitv, which remainscru.irl to p;vacy on rhc I'reinet. And @nsuncs also:.J
rhat the pdsonal inforn.rior thus salheredwill be sharedwilh orhe6 withod ::::
knowledge.Iof qample, a numbd oflawsuirshav. beenfiled againsronhrc marketer!..-:
intendedr(, c.aiemassive darawarhousesofconsumerinfdrhatbn bv ln*ing cliclir:i
darawiih data (suchs auromobileregistrations and prodrd wardr] regisrariont a::r

The U-S.governmeDr hasnot inplehenred a fedcralprivacypolicyand inscad relt. ::

e conmerceself:regulatiorin naaers ofdara privacy.The BerrerBusincs Bureru O. r
abdTRUSI e arehdcpendent,donprcfirprlvacyinitiativesdedicaredro buildinguse6 :..i
and confidenceon rhe Internetandsupporringthe icceleraringgrowth of e-commerce.:.
BBB Online Privacyserl proghm, which helps.dnsumeB idenril.onlinr busin$se::'r
hono. privacyprorecrionpoli&s, coves more than 5,000Veb sitcsand hashundrer: r
dppl'ctions in proccss.Figures8.9 and 8.10 show the TRUS Ie and BBB Online l.:. a-
'1hc TRUSTe prograrnk bxed on a huhifaceredd$ran.e pus. :;
sedls.respcrivel)'.
establnhes\(ebsitccredibiliiy,thereblnakingusershoreconforrablewhenhaking..-.
purchases and providingpersooalinformarion.

@
TRUSTeSeat ,O* ' , t Cd { i {i,'F*b !e g r rl' r+

sj!!,j,Il!:q. t @ jg
 ELedtui. comnere: I chslld s

@
. r, ';i'F.d
BBB0nLinePrivacvSeat
Od L:l 13)",) /.,$ {'& e
*it 6

ul*Hs#lsrP' tnn, Irdr I lfi !ra{

\ set oi ofe harbor principles ho been establishedrhat addres rh hsues of norice, sfeherborprinciptes
A s e t o i p n n c p t e s r h ata d d r e ssth e
..rice, and ac.es a$ociaredwnh dataprivacy.A conPuy followingtheseprinciplesnust
. ::in consumesof the putposeof datacollection,allo{ @nsunersio opt out of having e commercedala privacyissuesof

::,r datashared*ith third panies,md provideuserswith acesso their personalinforma-

: :: ro reviervand posibly corrn ir. With an opr-oul Policy,the Web sire;s liee to gther
tell it rhat ir cannor,which rvpicalLy
--: rll infornation rbout you u"les you specificatly
.. rl'ts clickingon a burton.Wiih an opr-id PoLicy,rhe gatheing or se ing ofyour datah
:ridden unle$,vou specificatly
--: r.quire orSanizations
give the \yeb site permissionThe safeharbor principles
using penon,I infornation to 'irJ<ereuonableprecaurionsto
w
..::rct it fron los. nisuse,and unaurhorized acces.disclosure, alteredon'anddestrudion ' HowtoProtectYourPrivacy
r ble8. * lr r . o c ra l ri p ' ro h e l p .rfc g u a ' ro
d u r prna.v Whil0nllne

:ro'e registeringfirhaW.bslte,checkout ts Looklorthe BBEof TRUSTa*al llasiredoesnr erpLain

hNir plaE lo useyourinromat dn,baware!

E. CO M M ERG E
FORSUCCESSFUL
S TRATEGIES
l i ill the .onsrraintsto e commerceju* covercd,n is inporranr foraconplny ro dflelop
: :icrive web sn*one that is easyto useand accomplishes the goalsofthe companv'
,- . aiTordabie
ro serup and nanrtain. V/e coversoeral issues
for e connerce
a successtul
 Pu t s I 86i* . s Lnh. . "
- , , , em .

Developing
an EffectiveWebPresence
Y/hen building a \Ueb sire,rhe fi6t thing to decideis which t*ks the sitemust acconplt:
Most pspl agrcerhar an effecrive\(/eb sne is one rhat crearesd anracdve presence
that meetsrhe needsofnsvisiros, includins rhe following: -,:
. Ob rri ni nggene?'i l rormati onaboutr\e orgrn' zauon
. obmining ffnancialinbrnation for hakins m jnvesrmenrdecision
. L e v n i rg .heorgani zari on
. po,i ri ur on i " ue.
. Lrdning abourlhe productsor services " oci al
thar lhe orsanizationsells
. Buying the producrsor serices rhat the @npany offe$
. CheckinCthe slatu ofan order
. Gerringadyiceo. help on effectiveuseofrhe produca
. Regisreringacomplainrabourthe organizariontproducrs
. Registe.inga conplaint concerningthe organization's posnionon socialissues
. Prcvidinsa producrtesiinonial or ideafor a productimprovemenror nw producr
. Obraininginformationabouterranries or serice and repairpoliciesfor producrs
. ObdnioC conracrinbrnation for a penon or deparrnentin the organization
Once a compay deternineswhich objecrives irs site shoulda@onplish,ir on proceed:
rhe derailsofadually pufting up a sne.
As rhenunber ofe-coftmerceshoppeBin.reser, and rhq, beconenore conforlabti-
and nore selecdve nakins onlinepu.chases, i! hay benecessaryro redefineyour sne\ b!r{
businesnodel !ocapruien$busine$oppor$nnies. f orexample,considerthemajorrE.--
siressuch d Expedia, Travelociry, Cheap Ticker, Orbnz, and Priceiine. These siresuse. r
specialize in j6t one dea of travel,in*pensive airlinerickers.Now rheyaregeded b$:-
offerinsa full rangeoftravel prcducrs,includingain;nedckers,auro rentals.hotel rm-
tours, and las-ninute trip packages.Expedia prov;desin-deprh hotel details to l-
conparisonshopp.sa.d 4en offrs 360-degree vnual rous and expdded photo dispt:-.
ft alsoenicesRex;bleuaveiesro sear.hfor.ares,conparea;fares,and configurehorel::,i
air pricesat the sanetine. Expediaalsohs developed nuneroushotelparrnenhipsro rec*
.o$s md help securesrearvaluesfor consunes. Meanwhile,orbnz haslauncheda sp.:i
full-seniceprogran for corporatebusiness travelers.r0

P u t t in gUpa We bsite
Companieslargr and shail en esrablishweb sites.Previously,companieshad to deve.r
their snesin-houseor nnd and hi.e conrracrosro develootheir sites.Bur no loneerns
,o u l e a rnrhei nrri .a,i .. of H fvl o' Jr\ a. merer \\ ehd..i s1 .orr* rrc.or hi, e . o; . "". b
build your site.\reb sitehosringsenicesand the se ofstorefrontbroken are two opru
to designing,building, operaring,and mainraininga Web site. Borh options offer :
advantageofgening the \{reb sne runnins fsrer and .heapd rhan doins ir youBell espe.d
for a firn with few or no experienced web developes.
WebSiteHostingServices
Websitehostingcompanies Web site hostitrg compdies such as Bigstep.con and freemer.hdr.coh havenade ir p+
Companes lhat providthe tools sibleto serup a Veb pageand conducre-commerce within a matterofda)s and wirh ll:r
an dseruce sreq uir edt o s el ! p:
up-fiont ost. Suchconpmie havepackaged all rhebricdevelophenrroolsand maded5
Web pageandconducte-comhrce
wilh ina ma ltero fday s andwit tht t t e evailablefor free.Usins only a browser,you can choosea veb site iehplare suiredro f@
specifictype ofbusire$, whateverit may be clothing,collectibles, or sportsequipm:r
Using rhe roolsprovided,you an wrne rhe descripiiverelr and add ihasesofrhe prod!3
you wanr ro sell.Virhin hours,yoursire is up on the \reb and a@e$iblero nillions.
Theseconp"niescd atsoprovidcfreehosing for your srole,bur ro allowvisirorsro :e
tbr me.chandise with credir.dds, you needa merchanra.counrwnh r bank.Ifyour compr
doesn\ aifte+ haveone, rhe! ir nst erablishone.'lypielll thereis anondrlycharge c'
$10 ro $50 plus a rmnsacrionfeeof$.05 ro$.25,and ir tales ar 1e6ta fq dais ro esabs
a mer.hdr accounr.\Tnhour such rn account, you must acceptpayment by check or oos
order. ln nany cases,your site won't haveirs own distincrweb zJdtes*tuu.tuedhis
.,a . in.rdce. l rrero. will (uh' e.ri onot your .er uiep, o, id= |
' o r ' " rr.rore " ope s r
URL.
 Ehdrcn. comf,ei.o I chlptd s

!toretrontBrokers
. iother nodel for serlins up i Web site is the use of a s.oreftont broker, which seNess a
: Jdlenm betweenyour Web site md online merchana rhat ha"e the actual products and C o m p a n i etsh a l a c t a s m d d l e m n
(tuu.bigstzP.com), b e l w e e ny o u r We bs t e a n do n U n e
r:!1 experdse. Ar snessuchasB:rgstep you pick and choosewhat to sell
m e r c h a n l s l h aht a v et he p fo d u cl s
rarch rhethenesofyour sitemd the producrsyou rhink might interestyour visiton. Ior
: :lple, you on set up ro be a storefrontoperarorwith Vstore.conand build your own
: inestorewnh iri own uniqueURL. You crearetheproduc caregories, choosetheproducts,
customizethe stores you seefit. You cu build links ro your own pagesor other sites
-::
:rpiayrheproducrson yourown Web pages,creadng,in eFect,a virtuaLsrorefronrslocked
. :i nerchandisethat is aaually hadled by anotheronlinenerchant
'fhe storefrontbrokerdealswith the deraiisof the ttaosactions, induding who getspaid
':-.rhet, and is resporoiblefor bringingtogethernerchana and resellersires.The storefront
.':der is sinilar to a disrributorin standardretail oper.tions,but in thn ase no producr
-: rs-only elecronic dataflows backand fonh. Produca are ordetedhy a cutoner at
-: sire, orders ue processedrhroush a uer interface provided by the storefront broker,
- : ihe produciis shippedby the merchant.
irorefront broken nake their noney by taking a commissionfron the merchant-
.lhere fton 5 percerr Io 25 percent<r by collecringa findeis tue per cusioner from
:: rochanr. The sorefronroprato!uuall), takesa conmission,againin the nnge of5 ro
-' :rcenr. Ahhoughthesebrokeredsalesrepresent a lossofmrgin for the originalmerchat,
:: ,ncreuedvolume on often nake up for losr margins.By nuldplying rhe nunber of
,: rs for the pmducs sometimesby rhe rhousands nerchana stand ro make nore

Tra ffi c to Y our W eb S i te

3 u i l .d i n g
: Lrernet ;ncludeshundredsof thousandsof e comnerce Veb sites with Jl those
':: t ialc onpet ir o rs ,a c o n p rn y n u s tta k e s rro n g nexuresrocnsurerhatthecutonersi t
,-:. to arrracrcanflnd ns \reb sire.The fi6t slepG to obtainand registera domainnane,
,our domain nane should saysonething about your business.Iror ;nstane, sruff4u
- :
: ::t stcn to be a goodutchall. but it doesnt deso;bethe rature ofrhe business-ir could
, :e, thing. If you wot to sell socceruniforms and equipment,then ,voud try to get a
,.n rame like uau;odoeqLiPnent.con, ot ww :tuflwo'
--a.ormnlf4,.mm,
Thc nore specilicthe Web address, the beaet.
'..tr.raz.
. hc nst steptu attractingcustoner is to make your siresearch-enginc-friendly by in
A meta teg is a spcciaiHTMI- tag,not vnible
-::ng a nera tag in )'our store'shome page.
:re d;sphyed\0eb page.that containskeywordsrepresenting your s;res contnt,which A s p e ca t l l T M Lt a g ,n otvi s b l e o n
ofkewords the disptayedWeb pag lh:t
.::h engines usetobuildinderespointingroyour\Vebsite.Again, theselecrion
coniar.s keywofdsrepresentn9
.- :icJ to attracdngcustonen, so theyshouldbe chosencarcfulll y o u rs t e s c o n t e n l w h i chse a r ch
': ou can also use\feb sne tnlfic dara analysissoftware to rurn rhe data caP red in the e n g n e s u s et o b u i l di n d e xe s
. .: log 0le into useful;nfornation. This dataen rell you thc URI* from which your site p o n t n g t o y o u r We bs te
:: ng accessed, the searchenginesand keivords that find your sire, and other useful
::m at ion. Us insth i s d tta a n h e l p y o u i d e n ti fts e archengi nestow hi chyouneedomarket
: \leb sire,allowingyou to submit you web pagesto them for inclusionin the sedch

{a in ta in in gand l mprov i ngY our We b S it e

. ,r sre opentols must constandrnonitor the rraffic to their site ard the rcsponsetines
1r.::.n.ed byvisirors.Intetnetshopperscpecr serice o be berrerthan or equalto the;
..:i.eexpe.icnce,sa.tsAMRResearch(aBosron-based,;ndependenfesearchanal)sisfirm)
. r recentyear, almost 20 per.ent of online customgs suneyed reporteda negative
5'
r:.:icnce with at leasronc siteand saidthevwould not return to thet sire
\othing will drive potentialcustomersawaytuter than if they *pciene unbearable
: s while rying to viewor orderyour producrsor sewices-fo keeppacewith technology
-:: rncreasing trallic. it nay bc necesaryover tine to nodif. the rftware, databases,or
\(reb sneruns to ensure
good response
rines Keynote Sptens offers
-:vre onwhich the
 veb sne cusromr-experience rechnolosito arabze rhe uabiliry ofa Veb sne, a tooi r
monitor how \feb sneisnors useasite,and a benchmarksystemto ptovidecustomerscr::
on r site'sconrent.easeofusc, perfomrnce, brmd value,ard srtisllction.5l
\reb sireopentor mus also.oniinually be llen to new cendsard developmenair:r
areaof e-comnerceand be prepmd to takeadvmtageof new opporiunnies.For exa6: .
recenrsudiesshowrhatc"stonersmoreftequeorlyvisitVehsiresthey cancustonize.L <
whopersonaliasuchsitesalsonore frequendysubscibe ropaidsires,useo"l;"ebill p.'--
seoices,and promoteprcducrsvia e'mail ro rheir riiencLs, allofwhich makethem an ao.:
dseis dreatu.Personalizetionis the procss of tailoring \ eb pagesro specificaiLy tr;:
Th ep rocessol t a t or ngW ebpages individualconsrmen.The goal is ro meerrhe cusonels needsnore elTecrively and :i-
to sp ecifca tly t ar gelndlvdual ciently,nake interactions faset and easier,md, consequently. inceasecustonersatisfal ::
and rhe likelihoodofrepeatvisirs.Buildinga betterundertandingofcutoner prefere:=
alsocu aid in cros*ell;ng telaredproduca aod up*elling more expensive producs. i:
nosr bsic form ofpesonalizationinvolvssimpryusnrsthe@nsuner'shame;n an -.r
campaignor in a greetingon the \(eb page.A moradvan@dlbrm ofpersooalization i! r
enployed byAmuon.com, in which erch rcpearcusromeris greetedby nameard a ls: r
new produca is recommended boed oo rhe cusromer'spreviou purchases.
Buineses ue rwo rypesofpemonalizadon rcchniques tocaptured.laandbuildc"*.-=
profiles. Impbit pnonalizadoz rechniques eptu.e dara f'o- aaual custdner \.
sesion*prinrily bred on which pageswere viewed and which werert. frpl:;rpr.r'
,/trto, techniques capluruerpfovided suchu infornation from warar:r
suneys,Ner resisrradors, ard contestenay'nfomrdon,
formsfilledour online.D a canalsobe sarhE:.;
rhrousha@esto od.r d$a sourcessuchc the BureauofMotor Vehicles,Bureauof\ r
Srarisrics, md marketinga8riliares(6rms thar sharemarkelinsdata).Maiketingfirns ar=:
sare rhis informarionto build databcesconraininga hugeamounrofconsumerbeha.,:r
dara.During eochcutoner interaction,both qpes ofdata areoallzed in realtime b. r-
of powertulalgorithns to predictthe consumelsneedsrnd intercsts.l his analysismals :
possible to deliver new, rargeted informtion before the customer noles on. Bc.zr-
persomliadon dependson the gatheringand useofpersonalser infornation, privacvi!!!

The* tips and suggcstionsare only a few idex rhar ca help a conpany set up :-r
mainrain an cffecrivc c-cornerce siie. \(rith tedrnologr ud competition chu;--:g
.onrinually,manasersshouldreadartidesin print and on rhe \{cb to keepup to dar: :r
 E..d.,. cdfe,r I c h a p t 6 rs

ma nt..mecompLterbased.vento.vcontrot:ndpfo d! . t on
..mercei5a newwayofconducting
business,
and
5!ppty.hi rl nrn:naqemente composed of tl r.ees! bpr o
i.ih anyothernew apptication it
ot technotogy,
cessesdemandptannfg Lo..l c patemafketdeman d.s! p
1ts both opportunities
for improvementand pLy pLrnnng l o .tl oc.te the fi ght amo!nt ol ent e. p. Ec
probtems.
:1aL rcso!r.e5to meel demandai d demandfutl tthcnt l o f ut l Lt
demandqu ckty and el l c entLyC onl efson to e comBef c.
: . : 3nd ndr ld !:rts u s e e c o mme r.e tc .e d !c.
i . os t 5.s pee dth e fto wo l q o o d 5a .d n to fmaton.
.pp, " " q. " pod" b
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o" o.
' ic ! e! eLof c ! s to me f s e n rc .. rn d e n a b teth e cl ose " ,- op" ."

: r ^ 0ra. t . n: a mo n qm a n !r.c t!.e 1 55 !p p t e rs ;ni decreasn! costs mpfol Lnqc!sl omef sat sfaclon , and
" g " o B o" L
: : F c om m er.e .b o e n :b tc sc o n s L rr.e rs .i d. on
nq att subprocesses that exch.nqel nformatonand m ov.
t D w o fl d w d . ma .k e t5 E c o m m e..e
l ood o" ^" " oo." dd.om| ..!do
: ir p. . m s e f D rd e v e to p rg c o L rrtfe s . h e tp i n !t hem -r t
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: d! . e t he ! a p b e tw e e n. c h a n d p o o fc o !n l r e5
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: : s lo b! . . ess l B 2 Bl e .o mme rc ea tto w sma.Ll
throl ghoLrtE LrropeA s a, :nd Lat n A me. ca C hna . epr e
i. b! y al a to w c o s t w o rtd w d e .a n d i l o ffer.
sentsa h!ge ma.ketoppo.l !nty Io. compai es afo!nd lhe
: : t hc c ha. c eto s e l tto a g to b a tma .k e lr q h t l.om
gtobebe.a!5e i te nternetpopl Laton s cxpecl edto gr ow
: 28 e c om m e f.e s .!..e .tty th e L i rg e s li y pe of
fap dty.C ompanl es thatw ant to s!ccedon theW ebcannot
gnofethe g.ow th n non-U5 mafkets
: h t s qa n . q a c c e p ta n c e
b !s ,n e s s -toc o n s!mef
. m m ei. e s s L tt re ta t\re l yn e w B y !s l n q B 2C Thefl rstsl ep n devel opng. qtobal e.ommerceslr at egy
s to del e.mne w h ch ql obaLmafketsmal e the most sense
: : . t o s et t di .e c ttyto c o n s L rme fsa p .o d !.e . o.
o " ,-!l d. " d r '"
t m n a teth e m i d d temel
erl stnq U 5.-centf. s l l o anothe.l .ng!ageandc!l t! . e- :
: j ; f es bet w e e r1 1 :n d ts e n dc o n s L rm e fn many
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: ihe v c ndo .to p L rfc h .s el l re te ms p ry l c f the
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r det r ne r n e l i e c t!e e .c mme _ c e s l .a tegy
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to en.bted.!et.pmentof m .ommer.e sol tw arel o.w f eles.
: : 1, . . r m e. sa n dd e .tw th s p tt c a s ed .tf b l t.n A
: _ . hat lef gefo f e c o m m c rc ers th e ,n te q raon t ol
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b!s ness to consu.ne13thfoLrghetect.onrcstof elr ont s
 Bu sn PssiJi.n !L r i Synar:

lr c s r qne da .o !n d a n e l e c t.o n . c a ti rl o gand 5hoppng .a.r A cl l at paymentsare made i n a v..ct y of ways -

nr odetA .y b o .ma tl s a 5 i n g teWe b s te that ofi e.s mai y eLeL(.rncc.ti r,ctect.oncw rttetsand sm ar t , c. eo,
pf oduds a n d s c .v .e s a to n lcn te .i e i l o c ;t l on Man!facr!re.s
. r o jo n n g e l o c t.o n r.e rc h a n q e sw, h .i e they caf j o n w rh
c om perr 0 1 5 .n ds u p p trc rs to u s ec o m p !te r.ai d w eb si tesl o
b! y ands e L q t o o d et.rd
, e m a fk e t n l ..ma1i orj.nd , .!n b:.k Principle
of f . - a op e ra to n ss l c h a 5 rfl e n t.ry .o n j fot. they are arso Users of e-commercetechnotogymust use
ls iig e c o mme ..e to i mp fo re rh e e ff. encyot the sett.q guardsto proteclthemsetves.
p. oc es sb ymo vn g c u s l o me rq !e r .s a rro Lrt prod!cta!. Labrt
t y and p..e 5 o i l n e T h eWe ba l to w st .m s l o gathermLr.h R cvot!tona.y .hange .tw ays nvc{vesconr f o! E- :
m o. e nr0 .rn a tl oanl r0 !tc !s to me rb e h a v.r ,fd prel eren.e! oo. q 6 ,.ua.
^mo
t hant heyc o !l d !s i n q o th e .m.fk e t n g a p proaci reE Th s new addres5ed n.e se.ur ry. i tel Le.l !at prope. r yngf :
t e. hnot 0 9 hy 3 sg fe .l ty e n h a n c ortre
d p ra ctce of mafketseq E nd pnva.y E comme.ceshoppefsmlsl be . r
m ent al, o na rd e n rb l e dc o m p J re s to e s t-btsh .rose. .era q!ard 1op.otecttl rer . qhts so.u. ty,andpe. son; L:
t r ons hps w i th th e i c u s to m e .sD e ta i te d Into.maton:rbo!i a ri craasrngl y or9anrzal ronsare Lr sng de.
c Ls t 0m ..s b e h .!ro f.p .e fe re ..e 5 n e e d s,and b!y.g p.t technotogesto conf.m i he dentry o f a lser , - :
t ef ns alt o w.o mp a ne s to s e t p r c e s . .re terms,r.i to. ac.esst0 nl crm.t (l nof assetsB l ome lrc t e. hnor !
p. om ot0n s a d d p fo d !.t fe a t!.rs a .d^ eogthetu oL
se .dstor.i ze
t sf et aton s h rpw i tha c !s 1 o me .T h el n te r.ethrs atsofevol !- l a.e. of handand associ ates themw th b ot o! . ar :
t r onr z ed l h e w o ftd onlv e s tm e n t.n d frn a fce espe.atLyonti ne sto.ed i a ti l e 5 commontyLrscdD orc. nizaror s . :
no. k l. . d n g o n d .n ti n e b a n k .q T h e nre.net has atso a n/gna.q.ee0r se.!. ty
c r ealed m a n y o p t o i s fo r e l e .tro i c a!ct ons, w l refe Li rw s!l i sol e. nteLte.i !alp.opertytjnvecr ear e.:
qeo! f aph .a { ty d i s p e .s e db l y c .s a n d seLte.: c.n come

Prluciple
Principle Organizations
mustdefineandexecute
a 5tra
E-commercerequires the carefut ptanning and besuccesgful
in e-commerce.
integrationof a numberof technotogyinftastructure
Most peopteagrec that.i .fte.tve Wcb : t e . ,
comp0nents.
c.eare.rn arrracl vep e5enccand meet st he . . . j
A n! m ber o f n l .a s tf!c t!re .o mp o i a ftsm!st be chosen.nd v5l ors E -commef.estartLrpsm!st decr iewhelh- ;
nt egf at e 1d 0s !p F o .ta l i rrg e!o t!m e o ftra n E .ctonsw th.!5 b! l d afd oper.tethe W eb5l tcthemseL ves o. o! L!
I 0m e. s ,5rrp pet .s .i d o th e f b L r5 i n c spsa rtnercw o.rdw rde. i l ncl of W eb s Lc l rostng scrvi ces.nd sr o. ef r o. .:
T hes e. om p o n e n tsn .l u d eh a fd w ..e W e bseFj ersoftw afe provde.l ter.atv.s to bLri Ld nq y.!r owf Web 5ilt
e . om m e rc es o ftw a ..n d fe tw o rka n dp acketsw i i chng cf!c,3ttobLri tdl ri rffc toyo!rW eb5i tebyregst enr! _
C! r f ef Le -.o m .n e r.ete c h n o to gfe y tre son rhc!se or den n.m. that . .etevantto you. boei i ess m aki. ! :
L l. at ioi a i d e n c ry p l i o to
i s a i ,a q !a rd b u s nessr.ansacti ofs search-engi i eIri endtyby ri ct!d/nga m. r a t a! ; i , . ,
W ebs 1eo p c ra to rsm!s t p ro te c tth . . s te s agi rnst a denat, p.ge and !e rg w eb ei re t.aff. d.ta . nat yss st
of s e. v c e l D 0 5 l a tta c kn. w h i .h l h e a rta c terl aksLL,,Irj .fo 460, bop6 i . o
" " dd.oJ
or m anyc 0 m p !te 1 5 0 n rrrel n te .n e L .n d!s e s themto ftoodrhe stanttymonrtorthetfaffi cand.espons. l
m esa55oi
:
t a. getW e bs l e w th re q !e s tsfo r d a raa n do the.srrra,rusK s. ,L ro JdL
-
p. ev entng i h e ta fq a tm a .h n e fro ms e ru L nlgeg t mate!safs ens!re th.t l rsi to.sh.!e ! qrod expcre f ce wher .
A di9t alc e .t 1 c .te s a n a tta c h me nto t .f e ma tr,es5.!. or
dat aem be d d e dn a W e b p ;rg cth a t v e .ti e s the derr ry 01a P ersonatza(i on
s th p.o.es. o{ ra t o. ng W. t : :
s endefo. a We bs te T o h e l pp .e v e nth .od I dl .
t e rhe' tof .fed r .a.d .oo o,.( i ,d o

n! m ba. sa n d b a fk i n g n fo .ma ro n rh eSe c!.eS ockersLayer l i re c!stomcrs needsmo.e el fecti vaty

and eJnc, . r
c 0m nr unrc aotn sp fo to c ors t o s c dto s e c L rfeattsen.t v. data rnterac| 0nsl a5tera.d a.: er ai d, conseq! ent t v
custome..rl sl aci i onandthe t keLi hooodi. epcir ! :
 is a nw wy ofconducting busines, ud aswith 9. V4rich of the following is a challenge that nst be
r<i* rcw applietion of technology, it pKnts both overcome fo. a conpmy to conven ns busines proceses
ities for imprmment ard porcoti:l problems. from rhe raditional forn to business-to-consuner
e-connerceProcesses?
r.. c - t l o l e -b u ' i n e - re q u i re
im pleme n u ri o n -
a. define an effective e-comnerce nodel and srategy
b. changedistdbution qatems and work ptoceses to
r. changesto existingbusine$procssesj subsbnii,l
be able to manage shipments of individual units
inv$tnent in IS technolos/
direcdy ro consumers
:. .onversion ro XML software stand.rdt lava
c. inregmreno \\ eb-boedorder proce"ing
'yrem.
Prog'unlng s$'Pts with rraditional nainfrahe computer-based
; implementation of dght securiry standardr web
invenrory onrrol and producrion planning
siie pe$onalization
l. markersegmentadon; Web sireglobalizadon
d. all ofrhe above
.-rzon.con is an ennple ofwhat form ofe-commere?
10. managenent sofrwue ombi"es ditrerent product
r. A2B data formats into a standtd format fo. uniform vising,
b. B2B aggregating, and inregruiing atalog dan into a central
i. B2C
d. C2C Jl evmP l e( oF-
l l . Mu.(. book' i Fvenri on..re

l'n:ine sales of products to consunen no* *ceed Usen of e-ommetce technolog must w eafegudds to
riiriorul retail sales.True or False?
l -. om m r , ( e : { pr e rry mu .h l rmi re d ,o m rn u fr.r u' i n8
12. Phishidgentailssendingbogusmesagespurportedlyfrom
ins; senice firm havefound it difffcdt to ta&eadvmrage
a legirinate institution to pIy penonal infornation &om
r drn new business approach.True or False?
onsumec by conrincing them to go to a "spoof' Web site.
-rr Mo countris expecredto show the fasest gromh io
m m e( e ov err h en s r l 0 y e d FJ re-J n d
-. 13. Daragatheredb*ed on the Veb sitesyou visit md what
requires the caretul plaming and integntion of itens you click on is called -.
of technologlrinfra$ru.t@ component!. 14. A snan crd make credit theft prrctJelly impossible
becaue a key to unlock the encrypred infornatron r
r ruhistage nodel for purchaing over the Internet
required, and rhere n no external number that a thief can
tcudes search rnd idendfication. - ud -,
idendft and no physiel signarure a thief can fo.se. True
lu-hdidg, product or service ddivery, md aftetsales

T\rh ofthe folowing is NOT one of three subprocesses Orgmiatiotrs mut deffne dd q@te a stntesf to be
r;upply chainnanagemenr? sueessfrrl in eommerce.
r demand piaming ro anricipate narkei demand 15. A(an) - is. specialHTML tag, nor visibleon the
:. supply planning to .llo@re the righi amount or display web page, rhat contains kel{ords rePresentins
enterprise resourcesto meet denmd you site's conlent, which searchenginesuse to build
: demud tulffllnent to tulfili denand qdckly od inddes pointing ro your Web site.
efficiently
: pronotion to in.rese customerdenand cHAPfiR 8: Sf,IJ-ASSESSMENTTEST ANSVERS
l:e useofelecrronic achanges conrinues to grow rapidty. (1) a (2) c (3) False(4) lalse (5) India ad chim (6) selection
dd nesoriadoo(7) d (8) False(9) d (10) Caialos(l l) intel'
lecrualpropeny (12) True (13) clicksueamdatr (14) True
(l t) nera tag
 F ds I Bus m s ir or m ar . is ln n s

KEY TERMS

busrness{o,business lB2Bl e-commerce transactionprocessing SecureSockets LayerISSLI:-_

e conrmerce 350 sottware373 smartcard377
bLrsrness-to consumer lB2Cl etectronic
bittp.esentment 369 spam381
e-commerce 350 etectronic
cash376 spLit-case
distribution
355
caialogmanagement software 372 etectronic
exchange 364 staticWebpages372
ceftificateauthorrty
lCAl3?4 erectrof
rcretaitingle taiting)
363 stofetront
broker385
ctrckstream data382 etectronrc
shopping cari373 pprycnarnmanagement
sLr 35:
cybermatl363 etectronrc
wattet377 technotogyenabted retatians-:
consumerro-cons!mer lc2cl nteltectual
property 379 management 367
e-commerce 351 marketsegmentation 366 wiretessappLication
protocot,,
deniat-of-servicelD0Slatiack371 metatag385 362
digitatcertif/cates
374 personatlzation386 Webtogfite371
disrnlermediation359 phishing380 Webpageconstructron soJtw:-:
dynamic Webpages372 productconfigurationsoftware372 Websltedevetopment tools3-
e-commerce software372 safeharborprinciptes 383 Websitehosiingcompanis::r
WebsitetraJlicdataanatysrs
::
374

R,EVIEW QUESTIONS

t. Deftne $e term e-conncl.a Idendry od brieny dercribe 11. \{4Dr is .he wilele$ applicarionproto.ol?
three ditre.enr forms of e-@nmer@. vhich forn is rhe 12.W hy i s necel rdry i o conri nuero mJinr ainand
larssrin terms ofdoth volune? 'r
an disiing \reh site?
2. .r is elcroni darainrelchdq? \Vlrat indusries have 13. \/lut rol do digir.l .enifieres and cenificare
bee! leadeGin rhe uc ofEDl?
Pray1ne-comnerei
3. Idenrify rhc six stagesonsumen experiencein rhe salestife 14. \0lar is the SecureSocke$ lapr ud how do6 tr
cycle that must be supponed by a suaesstul e-comnerce
I 5. Briefly qplain the differencesarnong sman! oedtr
4. \/har h supply chain managcmenri
5. What is the purpose of adding rnesage boards and chat 16. \fr,r acrion5qn you rakero m,nimrze$e rist
rooms to m e-colrherc veb site? victin ofe commercefraud?
6. vhat benefitsco a firm ehine lhrcugh@.ve6ion ro an 17. \i,llar acrions @ you rake to saleguard your i
e-cornnerc supply chain nanagemeft slarern) privacy d )'ou surf the Vebi
7. \*Aat is disiaternediarioni Vhar is its que? 18.
8. DeF,n. n .o4nt ( Wftich [orm of e-commerce crn r 19.V4ar is technolog-enabled relarionship rrl&
20. Idenriry the key elements of technolosi i
9. ar ffi sme of rhe spsial linirations rhar complicar requiredto successtully
imptemenre{ommerce
rhe usofhandheld devicesfo! m-commrce:
10. What {e some of the isues osociated with the use of 21. \X&ar is a denial-of-seryie .ttack? How cln a web
electronic erchages? delended fron such aa aaack?

DISCUSSION QUESTIONS

1. Briny sunnrize the srarc of global e,conmere 2. w h) " T mrn) mf ur" .rura. rnd rera; t erou, . . . - .
Europe,Asia,and LarinAmerica- phvsicallogisricsof deliveringnrcha.disc ro sho:
 E t{ron.comn' a I chaetds

rrr advutag* doessuch a s$ategy offer?Ate there any 8. Discussthe pros and cons of e-conmer@ conpanies
r :.nd.l issuesdr disadv.ntages? epturing &ta aboutyou o,vou lisir rheirsites
j1l doesn meanio loalize aWeb sitc? ar aie sone 9- V/hat is an ele.tronicexchange?How suc@sstul haveihey
.iie stepsinolved in doins ihis? been?Vhat aresone ofthe and
benehts issuesassociated
: rf is it said that the acceptanceof n connetce n
a.rqraphicaly dependent? 10. Oudine ihe key stepsin developinga corporareglobal
: i MaJt,iheworld s numberoneretailchain,hastutned e-comme.cestrategr.
tr:-r rver.l irviBdons to join dchadgesin rheretailand 11. Describehow the DoubleClickNemorkworks.
::rmer goodsiodusris. ls rhis sood or bad for the I 2. Discss rhe diffe.ence betweenelecronic bill payment and
' ::all U.S. economy?\flhy? elecronic bill presentment.\0hat arethe bcnefitsand some
::ril,v and briefly desoibe three potential n-commerc issues.sociaredwnh each?
13. Discus how you might gaiher Web t|afic darafor anal$is
r " r he ue of c .c o mme re ro i mP ,o v e(p e n d i ngor ofyour fLrni Veb site. \v11atdecisionsnighr rhis data be
::rufrcturing, repan,and oPerations(MRO) goodsod usetul in naking?

OBLEM-SOLVING EXERCISES

'. r tean, develop a ser of c*eria you would use to nodeling rools availablewhh the softnre package.\{rrne
. ru]te variou businesero-consuner Web siteson rh a pragmph discusing the issrcs and ssuhPdons that
', or pr \ . oiu. ( . o
P ro te \ri o n l .o n .rm e rd a tr' :e curi g affecr the accuracy of your five year Projection and the
r .rvment pro@s, etc. DeveloP a simple spreadsheet likdihood rhat e<ommerce will achioe this tbrecast
these criteria. Evaluare five different popul* 3. Do researchto learn nore about rhe useof\(AP aro ottrcr
- rraining
: :: siresusingthe criteriayoudeveloped specificarionsbeing developedto supporr m-commercc
growrh of B2B' Briefly describe the specificadons you uncover' Vlo is
- ': :esearchto ger cu ent dara about the
l::. or C2C e-comnerHither io lhe United SBtesor behind the dwelopnenr of these stmdatdsf \fhich
:idi'ide. Use a sEphics sftware package to crene a line standardssem to be gaining the broadestacceptance?
- the gro{th line Preparea on- to so-page repon for your insttucor'
=rh represenring this growth. Exrend
i.: beyond the available dara using mo dilletent
'ea6

ACTTVITIES

]r2eine ihat your tem h6 ben hired u consultans to As a team, choo* m idea for u e-cornmerce\veb site-
rc"ide rcommendations to boost the treffic to av.b site products or scnie you would Provide DseloP an
r.r sellsspors appard and equiPment o in ldenii{y s inplementation plan that oudines the steps you need to
u* ideu a posible for how /ou cd increaft tramc m t.ke and the decisionsyou mur make to ser uP the Web
o- Ve6 site. Nqt, ran&your ideasfron bst to wort. sire md make it opendonal.

B EXERCISES

::l a web site rhat provides i""estnenr ponfolio malyses that are ava;lableat this Veb s;te- ComP.rc the
::;Ling. As a rean, select five srocL-. to mak. an chmge in the ulue ofyour ponfolio ro rhat ofother reams
' =:ginary" purchte and allocate$100,000anong then. Conpare the urious featuresand mallses availableat yout
.-:rk back in one week and determine the changcin Elue web sie ro the sitesusedby other tems
: .our investnent.Make a list of the vatiousfeaturesard
 Bu sn e ss n .r .n a r ' i syn e n 3

Do .esearchand docunenr rhe c$.enr srard of rhe l or vouri r .rru. ror.InJuoea di .. u * i o1o r you,, , J
Recording Indusrrv AJsociarionof Americas fighr ro the legalrryofshadrs nusic liles.
prevenrrheillegalsh.ringofmusicfi1es.
\Vrnc a briefreport

CAR,EER,EXERCISES

l. Do rerarch ro idenrill ihoseindusrrieswheree-comherce ). for i , rr.l o.en." reerfi JJ. de.-ri beh , $ \ or
is naking $e b;ggesrnnpad and rheleasrnnpact.prepare o l -.,rore,i ..,r\e..omm" r.c. trr,L h avcn"
! bfiefrepoft abourcach;ndusrq,. careeryct, mswer rhis quesrioDfor n,meonein n:'. .l
financc,or human resources.

VIDEO QUESTIONS

Warchthe yideoclip Find rhe BesrDealsonline aDdrnswe. 2. What scamdid the reporrc warn aboutegardin.
e,onmftreDdd reviss ard rarinss?
1. \Vhat servicesdo \feb sires like Epinions.con orfer @
consuners tha! .re un$,ailable through radit;onai
bfick-ard no.rar nrll shopping?

CASE STUDIES

Case One hfed and equppedw i th handhetdconrp ut er sr : :

posterChitq
lzumiyaofJapanrE-Commerce t.ansacti onson the customefsdoorsi epAn
. en: - : .
' em i " qu ed oLd ol e o
lz umy a Co of J a p a n s a re ta i tc h an g a n t rhat offe.sfood, rn harmonyw th the exstng systemthar set ue:
c t ot hng c ons!me fe L c l rocn5 ,f!fn tu .e .a n dh oLrsew dl es. i
c out dbec at t e d th e Sl rp e rWa L t4 a rroJf a p a n H eadquaftered l zLrmi ya
w asabteto keeprheove.head to wsot i:
in 0s ak a,z um i y ae m p l o y smo reth a n2 ,5 0 0e m ptoyees ar B l ofJef the seryi ceat a p.ce that w o!td at t . acr '- i
r et ait out t et sF. o u n d e di n 1 9 2 1w rh th e mo l to trgJr{l l auy crrsi omersThe numbef of customersi s g . ow- , -
goodsat t ow p . c e s , l z u m i y ai s a p o p l ta . e /e [ establshed i ndi cati ng
that the new W eb enabl edchann et wiL=.
. et a le. f hatha sb e e nq u i c kto ta k ea d v a n ta g eof boi hthe B 2C .espectabte .etu.n on i nvestmentfof rhe rer at e-
andB 2B bene fi l so f e c o mme rc e .
r z um iy a wo fk e dw i th l BN 4to d e v e to pth e l a stesrl ow est- h" ^ ad- Tp, /! .
-i ,B " ,or ng
c os tont ne gr o c e rys e N c e i n .l a p a ntz l rmy a c !stomefscan e 0 4e.err.oug, te -. b d . , ; p i - . h 4 \ 4 o .0 .....
laa an ta M izuniya co,t4 ptacean ofder ano n.ve g.o- E N change l \A 4R E li.he preme.Internet-ba sed b, :
c e. es det v ef e d to th e rd o o fs te p w th i n a n h o !r' A ymaki ng busi nessexch.ngei n the i fl ternatanaLrer aI m . - :
g. oc ef y s hop p n ga tm o s te ffo rrt s sw.e h o p e dto ncreasel he ' -l oi i i ng the W W R E pLacesus i n a uni que
:::
f f equenc yof o rd e rsa n d i n th e p ro c e s sb o o s tove.al sates, l col tabo.ai w e i th the w odd s Leadng rerai te . sa. c :
s ay sK az unobTu a n a k aE . c o m n re .c ePfo j e c Team
t Leade.. rure.san0 grves!s acessto experttysel ect edt e: r
T o o{ le. s L rc ha s e rvc e , z u m i y an e e d e dto s gn f cantty and l d dard.. b o"d i dto d.
"
c hange t s b! s i n e s sp fo c e s s e s .n J o fma tto systenrs n and testedstfal eges.5ai dN oi oH ayashlP resider r : :
nl|3s t . ! c t Lr f e .l n v e n i o rym.n a g e me n t s y s tems,storage ' e nrl P r ra.to.6 " nd.-D r" . .r aa.
f act t ies .and d i s k b l t o n n e tw o rk sa tt h a d ro be adj l sted retaters s!ppl e.s, partners.and d st.i bl t or c : : ;
t o s Lr pport he t n e we ,c o m l i .c es y s te m.S u p p ortstaftw ere of 62 membefsl rom A fri caA s a, E Lr.ope.
N of t hA- :
 Eialroi.c:mntr? | ch4id s

r . er . a. w t h c .mb n e d s a te 5o f a p p ro rm a te l y5900 2 Hovrdoes the Wo.tdwideRelaitExchanqe

IWWREJ
' ^e ex c har ige h a 5s a v e dt3 me mb e .smo reth a n$450 efs?
retate.sandsLrppl
benefit
e e g o ta t o i s
: r , . od9ht lr e! s e .t o n tL n n
: c ng aqq. es sv e n ts L rs eo f th o n te rn e t and CriticatThinking0uestions
. . , t ng wt h ne w w a y sto g ro c e rys l ro p l z u m , vahas . I." ..od'- . r dd.o o" r gL" a.
-L d
. . i t s c Lr s t om o rs w th ts n n o v a i i o nas n d p fovded
al l ow st5 c!stomersto shopont ne?
e. dL. J ogo! obo
'd .
pd' . oo a 4. H ow does l z!mya s l ol n nq the W W R Ebrng ad dlt ionat
r oo
o
benettsto the other membersoi the W W R E ?1 not he.
rn drn g ,iro the gt obat m ar k t pt ac e W r t h s ! c h a t L t l w ords.W hatcan l zLrml ya br ng to the tabtethat co! t d be
-
: .f e co mmer . e z um y ! m ghl be c ons der e d t h e ol nteresttootherfetaters' l
_ td rof e .om.nr c e

zunlyaJonswwRE,BtdnessWn. Mav27 2AB ww tens'

SOURCES,
neiscan tzrnya Fa3le5r, Lowasl-Cosl 0nLine Grocery Sefri.e id
)apan tRM SuccessStories,act*sed Aptit2n 20A4,Mibn on lztnva
por ' .* o oo od 6dod
Web ste, accessed Aptt\ 21 20AA Mtzuhia.arA ThP WdrLdwide
o e" oP' b""d" ma " Felal ExchanqeWeb site accessedaprl20 ?AAL M\|.tld de.eIatle''

:.i-.: TVro The technotogycompanybehnd D ytans mm m com -

me..e campai gns i he Y 0U IEcorporatl onY 0U IE s n t be
!Di. s CandyBarSweetenslts Sateswith bl s nss ol creannqand d stri bl t nq trhat i c:l ts t^/f eless
!.:,:nmerce nl otanmentY OUE standsl orY 0U ,l nfot.!nment, . ndEnt er
tai nment S hane qo. presdent of Y OUE , thi nkst hai I ng
: . . ol ! ps c a te tre n d yc a i d y :h o p s re c e n ttyo pened dti L e e oo' r'
o"o,.j e -4.dq' a."r'oi .-l e.
: iL3nd, 0r t aid o ..n d H o !s to Ow n n e d b y D y ta nLa!ren
andyo!ng ad!tts:theydr ve t.afi c nat onl ybackto lhe Web
. - . j l: r s hon d e sq fe r R a tp hal n dJ e l f R !b i n D ytans
sLteb!i d fectl yl ntoth stores
. t ar m sLobe th e mo s tL rnq L rea n d!n rl v a te dcandy
-: :: r r s t or e hom eto th o !s a n d 5o f c a n de 5f.o m a{ tovef goesta.i edtheY 0U 1E cofporaton ant ci patng th atm . f
l ei s rn' r commercew l tl q.ow rapdtyoverthenext t ewyea. e
r Dy t an' s e l L 5m!c h m o feth a nc a n d yl ts In venr0ry
TheY 0LlE W ebste stal sthat l n tessthanl ouryea. s,m of e
lem sf f om f o u fc a te !o re s :C a n d yC o !tL r.e l a ppa.etl ,
peoptew i tl usethe r phonesl o accessw rel esscon t entt ir an
: lt et s Cs nd yC re a io n sl to pa .e s m a d e f.o m c andyl ,
!sethemfo.vol ce l t s estrrnal ed that ovefa b l t on m 0b t e
r r S pa B es L d eth s e b .i c k a n d mo rta rs h o p sth al afe
phone!sersw tLbetookngl ornew conten romrhe. m . nLLe
I as c r es tn q a L rn i q !ea n d c a mp te l e ty u n matched
phones' A cco.dng i o i ndustfyanal ystf fm Y anke eG r oup
: iiper en. e n a n a rc h i l e c t!ra tLsyg n i tc a nt and
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rcfce an d m . om m ef c e t o s elt p. oduc ls . E urope-80percentoi att w retessphone!5e.s-wlt l pLav
anti negan-res Lrsngw i .eLessdevrcesby 2005.P .ohFResear . h
: r m ! hl as sL rmeD y l a n s c a n d y b a f.caotto m w 5c!s
p .o d u c ts
o o t n e a fd i o h a l e them pfedi cl si hat therew tt ber' 50ri tl on mobi te!l amng pt ayer s
: pLr f c lr as
D ey ta n5
,.roftdwde by 2006.
: : . y lr he. e n l h a w o rL d B !L D y ta n s to o kth e tra.l i
s te p fu rl h e rb y l a !n c h rn gw hai t TheY OUE W b s te ofl ersdozensof r ng fonesand celL
I e . om m erc e o n e
. a rp .o c u o-! ' phoneg.aphcs l or $l 99 each t atso offersa nL r m he. . t
mobLe ni otarnmeni .pptcat onsandi s devaLop n!l s nqLeind
r : 5e anddow i to a ds o m ei te m sl o th e r c e L p t hones.
m!rti i ptaye.games.Y OUE s keyto s!ccess l e5 i n b! it d ng
ot e,y a! c an p !rc h a s ea n dd o w n L o acda n d vthemed
apptl .atons aLongs de pow efJ!t p a. t nef s
: e. s lc h as Wa n t C a n d y b y B o w W o w Wow and
Y 0U E sw retessgamesandothef appti catonsafep. om ot ed
: ! qa. byt heA .c h i e sfo r 5 2 9 9 Y o Lcra na ts osendan
ffo m th e D y ta ns W e bs te Tvpe n rnd brandedi n co.l un.t on w th h ghty v s,bte b. ands
: f c e c andyg ra m
entertai nment p.operl Lesandothefmai o.med a event s
: . et t phoie n !mb e r s e te c t: me s s a g e.n d c t.kthP
: let lv e. t hei e x tm e s s a gYeo u c a .u s e th e m e ssaqes
: Dy t ane g f t c e rtI c a teo . to n v te ! 1 ...d t. mFel 0iscussion0uestions
1 A .e cett phone!se.s I kety to be annoyedwhe. lhev
: pLensr o e x p a i d i l s m m n ' rc o mme .c eo f Jefl ngs .ecei vetext message5Irom D ytans
: ?9 pac k ag eth a t n c t!d e sa p e | 5 o n a trz etedit mes seN ce?W hY o.w hY not?
: r aledr lngt o n e ,a n da to tlPo pg ft c e .t I c a tet o sefd 2 W hym qhti h stypeoi e commerce campagnw of kbet t er
: i f r om W ebo . c e l Lp h o n e D y ta ns 3 l s oh a s s everrt fo. a ptacel ke D ytansC andy B er than fo. a hgh end
. . . ed v ideog 3 me sa t i ts W e bs te v /h .h a .a deattv retate. t ke 5ak' sF fth A venue?
: . . c es s r f 0 m a s ma n p n o n e .
 Pblt s I Bus n{ s r nhr m am s ys r p m s

CrlticatThinkingQueslions SoURCES:MarkHazlin,'DylanLaurens suga.Shop,Morcporenr

Super Bowt Halr T me snaw,'
Nyu Ljle||ne Fetulary I
3. W ha t o th e r b u s n e s s e sm i g h t b e netj tfrom usi ng rhe
l.unatsh hyu.edu/pubzone/4 ewire/O'qo,tzph\ Beth aar
Dy ta ns m c o m m e rc emo d e t? merce-How SweetCanlr Be?' e,cohnerc e guide con, J! e 23,20A3,
4. How m g h tc L rs to me rs re afcth t e y recei veLrnsoti ci redtext econmerce guidecom/newslrends/arricLe.php/222631 1 ovtans Ca
websie, accessddAprit20,200t,w.dytarccandybarcam,Ihe
adv e .ts e me n tsl ro m D y ta ns o n th e i . cel tphone?U ndef poraronwebsite,accessed Aprit2020A4,M.yauie.con
wha tc o n dti o n sm g h rl e x ta d v e rti s i ng
w ork?

Caso Th.6o deal s D l Le. w anl s to butd a businesst hat t inks

ReatEstate,.onr
BuyingandSettingHomesOn(ine shoppe.s w i th brokefs H e bough t RealEst ale ca-
accompti sh hi sqoalR . eal E state.com
ts r un ! nder u, e
T hef eat e s ta l ema rk e tm g h t b e c o n sd e redthe hoLygrai Lof Iand:nqTpe.om moetl .,out r-l i .p endngT, F" - :
B 2C e c o mme fc e . M a n y re s p e c ta btecompani eshave toc!sesexcl usi vetyon real estate,f ndinqa hom e.r .
s ear c he dfo . t, b L rtn o n eh a v ere rL rrn ewdi th i he pri ze.C on feal tor.andfi ndng a maftgagecompany.
s idefCe n d a n o t,n eo fth efo re mo spt ro vd ersoftraveLano rear v o . ^ i o h _ *o , d e f h o w
d o u . n e s,."n p ,o r
es t at es e ru i c e isn th e w o rl d In 1 9 9 7 i,t p u bti shed a W ebs te o n ^ e r , 9 . u c o m p > w r 'r e o l t o - s l ae d - <w " , t.t
t hat auto ma te drh e ti me c o n s l m i n g p rocessof ctosi nga servi cei s provi dedat l he erpenseof t he r ear t of .
hom e s a l e , e ti mi n ti n g h u g e a m o u n tsot papenTork. That R eatE state com sn t out to .epl acethe r eat t orit ooes
busnes sfa i te d l.t th e np ro d u c e d[4 o v ec om,a one stopW eb substanti at cutf i om the real tor' scomm isson:onenr :
s it ewlt hh o metl s ti n g sa n dto o L s i ohr o n rebuyefsanoserLers. e\a.r. A porron o .re P er\e rdgeo
T hat deaa l s ofa i te dM . o rere c e n ttyC, e n dsnttr eo ro createa R eatE state.conr earnsi s qi venbackta t he cust om er-
dr s c oun to n trn reea L e s ta te b ro k e rc a tlBtue
ed E dgeThat,too, l orm of qrftcardsfor H omeD epoi .For exam pt e, yr ,
f ar led.T h ere a s o nfo . th e s efa i !.e s s e e medto si emhom i he chasea $220,000 homei hfougha .eat t oryo! m et r i-
c ! s t om e r' sL rn w i ttl n g n etos stru s t m p o rt anttransacl i ons to R eal E sl ate.com,youw outdgera 91,00 0g f t car df or sf :
a! t 0m ate ds y s te msra th e ri h a n c o mp e tenthumano.okers.
Cef dant' sh !s tra t o n sw i tho n ti n efe a te s tarew ere sharedby Cultinqlnto .ealtors commissions,which havefatrr
m any oth e .ss e e k i n gto w i n th e g ra t. the tasi decadefrom 6 percentto 5.j pe. cent ,r s r
T he d o t c o m b o o m s p a w n e dd o re n sof Inte.neroaseo R eatE state.com someneml esi n i he indust r yNo o. :
bf ok e. sa rd o th e .c y b e rre a te s raite d e a s. M crosoft,yahoo, mo.e at stakeffom reatestatecommissions t han Ce-
everyoneafd ther. brother poufed a Lotof money jnto real w hi ch controLsmore i han 25 percniof t he o. ol
es t at e,sa i dBra d n m a n a to n g ti mep u b Li shefor rearesrate busnessthroLrgh i ts C entufy21,C ol dwetBar t keI ,d":
t f adene w s .T h e y c o m e i n s l a .rye y e d a n dsaytheseR eattors franchses C endanthas broughrchar gesagainstl. :
ar e id ot s .T h e ys p e n da l o r o f m o n e y And . i hey ,cduzerney iivecorp, owner of ReatEstate.com, for fatse aover:
c ant unto c ki h e ro teo f th e R e a l to r.Sorh e yget out. C endanti s atsopLrshi fg the N ari onat A s sociat ion
ot R
A lt eri e ny e .fs o ffa i L eadtte mp tsa tth i smarker,nrosrnave to adoptr!tes that w ouLdpreventsomeList ings f ior
g v enup,l i g !rri nth g a tth ero te o fth e R e .lEstarebruK ersrmpLy usedon W ebsi testhai earnmostof theirm oneykon
c annotbe a u to ma te dSo n rep e o p teh, o w ever,fi nd thi s g1 5 r.ts. W i thoutaccessto al t ti sri ngs i n an a r ea,RealEst at .
t r lt on m a .k e t i .re s i s ti b tea n d c o n ti n !e to too( ,o, rew w o!td tosecrdi butyandcustomers.
thar witL attracr home buyers Barry ls nterActivecorpwoffied? With ihe qrowingsu..
Dt t e. , CE 0 o J i n te fA c tl v e C o rpi s, j u s t s' rch d person R eatE state.com, thereare boLrnd to be manyt egatba: :
InterActiveCorps the wo.td s teadng muttib.andrnre|acrrve w i ni he r pi eceoi thgr l . B orw i thi tstre nsact ions exc.
c 0m m erc ec o mp a n y In te ra c tv e c o rpo w ns E xpedi a.conr. 5 l ' o ( : o n " n - u a ! , d i o a n ^ u d F a . . - qs o - o + - -
Hot els . c o n r, th e H SN c h a n n e t T i c k e tmaste.14ai ch com, mi tton i n l ees from b.okers,R eaLE s t at e. com
seer n:r
Hol^i 6 . o m I d o . o k o 4 . o . ..n d o h e ca-prn es provrorng a servrce tharIntefests
homeblyer s. t appea- :
0nihe s u b j e c to of n ti n e .e a te s ta te ,D Ltercommented,' f nte.A cti vecofp has fnatty achi evedw h at so m any
y out h nk a b o u tre a te s ta tew, th o n emi i o nbroke,sdnorfl r h:ve attempted but fal ted at detiver inga p. . .
lons of do tl a rsn c a n rme .c e ,a n d n fo rm a t i oni harnow rsal i e e-commerce reatestateservi ce.
6d
' o bp ac c o s b . i d ;. d ' d .sq t g re a (e ..p. .r ,J d pp e.l
pt ac , aioru s to p ta y R
. l g h tn o w ,o n l i naed o p ti oni sti ny,andovef Discussion
Questions
t im e t w li 9 .0 w .
W ' vi si tso-u.h-o.po,rtcu I ro et. r om eso\ er r a
StLrdiesshow that ihe Web does ptay a .oLe n rne rear
'h d orre. p ooucts(. - d s a I I . a r e r a- o h o .e l I
es t aiem a rk e t.T h fe e -q u a rte rs o l h o me buye.sturn ro the
lnt e. nett o to o k a t ts tl n g s a n d te a rna b o utnei ghborhoods B esi deshomes,w hat othef product sar e dif f icut r : :
T hent heyt!rn to re a ti o rsto v s t h o m e sa nd negot.tethei r
 comms.e I
Etecronic ctt oi6 s

SOURCES, Salt Hansetl,'Polnt.click.En6.del ,vc, rr.l tDeg April13,

I ThinkingOuestions "LendngI.ee Codplet.s Acquisitiodor
2OA4 w.nfine'cah,
riy dopeopte semto distrustautomated systems when RerlEstare.com."PP Newsw.a Oecenhet 23, 2aa3, wletlsneti. com
ReatEslarcom wab site acce3sedApril 22 2004;hte ractivecorPweb sile
::omesto reat estatetransacilons? accestedtpr1l22,2OOI.,@.ir..r.4 Cendanr!!eb slt., acceseedAprit 22,
la you think that the NationatAssociation of Realtorc
.- u.dbe alrowed ro sirhhotdt sr ng- lro-r co-pani"s
1reRealEstate.com? Whyorwhynot?

' nlrnetLlse15
Lyman,.iay, Milton F-
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'TheMushroomngChnese nte.ietMarket,"E
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Aptir3,20A4,M.lexis nexiscom, 'SonyEricssonand Han
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::rnounce EasyoveFtheA r Downtoad
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:_:b ow Erc'E Co m m er c ec onlinue5loG r owv er y N c/ e
r tt yr , 21 B u r g e fA n d r c w , 'S H
e a b LE a n q l s hL, a tn A m e . i c aR i 5n 9 , F_ t",
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-...e fines, March 26 2004,accesseda\ @.ecamnercettmes May26,2003,accessed al @@ conputeNartd.con
Adrian, Bradford,"ConsumercNeed Locat Reasonto Pay bv
r:iaader, Sleve "Web Site Adds nventory Contol and Phone carhef orolp lune 16, 2003, accessedal w-z
:.'.eas\ing, Canputerw d,February2a,2003,accessedatw@
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:_rn. D ck 'DHSMovinqls Buyng Poweronl ne, c,nPurer- c t \ . a F 4 5 , 1 *o r n . n 'r | e e r , a p r 8 , 2 0 0 4 a r .e - q e d a t
.i -i4 February6 2004,accssed ar w canputefuatldcam w. infortuatiohweek.coh.
s ileac c e s s eadl
Pay PalW eb 'HolidayPrep, PC Mall Fghls onlne Frald with ThreeTiered
r-d Mo ne ya nd Re quesMt oney at t he
.^., paypal.conon apil 17, zaal Delense. NetwarkWalld Fusl,, December16, 2003,accessed
\ rponSteelBackin Black, ttt can lntematiohat,Novefr5er 6
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: .a.Carot,'RetatersSeeRFIDAhead,ConputeMartd.Ja^uarl wideretailerchange.o.g/rs/en/about w.e/aveNiewhtn on Aprit
: ))AL accesseda\ w.conputeM d can 14 2AAt,
:-:{^ Bob, "Delta Air PfansRFIOBag lag lest Canputel 2A Utlder,Steve,B2BExchangeSrrt\os, Conpute*arld Fe6to'
,.-rd iune ls,2003 accessd a\ M.camPuteMrld con ary2 2004,acceesed at ,ry..anputewarld..an
29 utfetderSfeve B2BExchangesuN rats, ConpLteMarld,Fehtu'
:'?,,n Bob, 'FDA Backs RFIDTagelof Tfackng Prescdption
a-,s., ConputeMrtd, Fehtuary23,20n4a.ces.edar w can' aty 2, 2AA!.accessedar wwconPutetuofld .on
30 Scheer 1,,Robed,'ThePriceotE Paynenr' conputeMarld.Mav
::tan, (eth YahooPays5575Mlor E-Shoppinq Site, F-eat_ 26, 2aA3 accesseda\ w.conPutetuorld con
ar w econnercetimes 3!. Rosencfance, Linda EbaySelecl5 PitneyBowes,CanPuteMo.ld
-.-ce fines,Match26,2aAt!accessed
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eBayprofit NeartyDoubls,0ollook Raised Reulers
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ery,.r4 Septenberl, 2003,acce.5edat w camputetuortd .on
-...e fines, JutY 26, 2003,
35 Bednarz,Ann, "HotidayPrep,Ana.ondaSportsPlis Web Infras_
::la, Allson,"Crossng over: E BusinessTranscendsNatonat kucrurero the Test, tenrorl wortdFusianoecenher 1a 2aa3
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r* econ ne.cet ihes. con.
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naNum ber Near t y S0 M i t l ot -n ,
-,Tdn ,Ja y,'lite rielUs er c inCh
:: nnerce fihes, -)anuzry15,240!. ac.ess.d a\ M e.onner.e'
ret
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\ Wo r d 1 , s e n , 6 p t 5 . / O A . , " r . e e '" d a tw . ''L <n . an
^a
 Bu :r e ss r I: n lL cr S/srens

t8 Maestn N cdLe,TarqettoPhareoul SmanV 6aaads Conput- Messmer,Etlen,CralterWebThreats H tFinanceFtrhs

erworA,Marh 3,200,1a.c.ssedat wwwconputetuortd.con. WottdFusion,March 15, 2AA4 acces.eda\ http.//.wt'ust -
Ve rt onDan ' DHSBr oadns
B om ek c sUs ef o r B o r d e r C o n l r o t P ol d" P "o d/ v" 0'I
Conputeyarld,October13 2003 accessedar w|| canputer '9
Detdnee Netwa.i lta.ld FLsran De.dn6q 16,2AOt .

ThibodeauPatrck HP Movosro BoLslertnte{te.t!atproperty Weismai Robyn,"FTCCommssioneron

Rgh15Enlorcemenl Canputerworld,JanRry12 2AA4accesserJ netce, E-Connerce l/ire5 octobal
ar M ..nputerwadd .bh
Fof p a l e n t n f r i n g e m e n r
Ko n. ad R. har d HP SuesG at eway C l a b u r nT h o m a s N e wF T CR u t e sR e q u r o sWa r n i n q
or :
lnla.nationWeek, Mat.h 25,2AOL
a.ces.edar wM intarnatneek f a E ^ dn b-- dl a^A -"- .p . ,00 ." i d

42 Fredenberq MnhaeL,Showdownat The SCo Coral, r'irrna 50. Mi l tafd E Li zabel h, Wi nne15 and Losers i n the Oi L-! '
tt.nweek Match15 2444,ac.assedat ww.intomatibnweek.can Mafkel E C ommef.eTnes,D ecember2 2003 ac c es s .::
For, Pmm, "RAA Sian.e SoundsA Key, Conpltetuartd
Seprember222003,acce5sed a1 ||w .onputer||arhJtuh 51. BpdnJ ' _ !o dd, o,dp U ,odn 0, c 5 R -\ . I I
We6m an Roby n ' FTCCom m5s onafon t h e F u l u r eo t E - C o m l at1"
^,n, t u.,,0" p. 0 " . o , / 0 0 ,
". Np ra \tt..,o .
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/,5 MeL t oJ r . , lohn
P, B qBank Cus t dm er s T a r q e l endrbeyr n e t S . a m ^po.l
'12 2004, a..etsed at ww
" on,
infornatohweek.con.
nets E Conner.e rines,December16,2003, accesqedar trry.
4
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I
 PGin rq systems I
EnterprseR6ource
Tnsactoi Processngand c!,pi.! o

INFORMATION SYSTEMS IN THE GLOBAL ECONOMY

McDONALD'S, UNITED STATES
-5erve-l'm Lovin'lt
SeLf

this scenaxio: An oveNrought da.d pulb into McDonald'a a,nd drops the
rememb! four
-.tluoff in the play ara. DreadiDg tbe loDg line while stra,ining to
ijds
:lnplica.ted lunch rcquesis, he turns to head for the countr to pls.e tris oder'
!s be does so, he noticss a new additioD-a kiok. Upon close! e4'mination' he
: lizes that tle ca,It not place food orderE from the plavground. FoUowing on'
*ren menus, and with a little help fmm the kials, the fattrer places his older
rlld swipe6 his atbit oaxat. A few minutes later, a McDona,ld8 smplov srriveg
:3 ihe pwg"ound with ttre lunche.
sou.nd harat to believe? Believe it! Such systNrs are in use at 3ix f,teDver
'rrcations a.nd one in Chicago. "It's a.parent 8aver." sa.y8 Christa Sna'U' dirotor
C restaurant innovetions for McDonald s
Th self-serve option is being Fovided at McDonsrds cou[tel3 aa v/ell'
juat step up to
Bather than wa.iting for pe*onnel to bcome avoila,bl, vou cn
;? iouchscreen moDitor to browe thrcugh mentrE (in th truditional sensa of
*e wod), view photo of items. select what vou like, totsl your order' and pa'y
oash, debit card, or credit cad.
-nb The new self-ser.r McDona,ld's retaurants he.r experiencd iDoreaad 8a'le3'
Tby? BecauEe they sxe able to pmces orderE mor quicLv, incrasiDg trre daily
ile volume. A160, cuEtomers, who appreciat the spedy serics, urc more llkely
D return. Other factoru msy be behind the increses a weu Some erabt8 be-
iFe that the tenta.Iizine photo of the food items may contdbute to impule
n{i!g. Arso, some cuEtomers may feel more comfortable 'bigging ouf'wheD
perhapE judgmaDtal pei8on'
fia.ing an order with a marhin rather tball a
Are McDonald'g self-Eerve svstoms taJ.ina jobo away tom people? Not st atl
raployes who usecl to take ordsG ar now asisting in other axsa Thry hslp
gpare oralI more quickly, a.ssist custom*s in lealniDg the tre"'' olde trg s}'3'
:tI, aleliver food to cuetomer at their se,tE o! on the pwground, a'rd hslp
laintaD a cleaner rst3umrt
The ser-serve s'tems at McDonald's provide an exoellent xarlple of the
:{Iits of ffedive transaction processing sy8tsms. AB t.ou'll recau eom
:tapter 1, a tmnsaction prccessing system, or TPS' suppolts and Fcords bt13i-
traIlss.ctions. Ar etreciive TPS prcvides incraed labor eficiency aDd faster
rrvic. which in tuln buildE customer loJ,'alty a,rld pror/ialos a company with a
n.opetitive aalvantage. McDonard's nev, Evstems certainly Bem to be bavtng

McDonaLl's is not a.lone ir providing slf-Ervice. Th Home Dpot is leading

r:- way anong r?tailrs in setting up self-chckout lines. Of th 1'?Og Horns
>pot stors in the country. about half have elJ-checkout line Jotm Simlsy' a
airme Depot spokesman, said th rsponse ba.s been positive "It ha exceedd
nr expectation by about alouble," he said "About 35 percent ofths salE rceipts
" Wal_Mart is al8o ex-
{aeratd by those storcs are nade by the slf-checkout
I.imenting with selftheckout By adding four slf'chckout lanes to the tvpica'l
:5 cashier lines, wsl-Mari ha.s duced th lencth of its oheckout line and
Fsrt s I Blsiiess n{ofmar
onsysrems

incraaed its customI srvice in th aiales by freeing additional ss,tscterks

assist customerE in selecting prcducts.
From libraries to airporis, autonated slf-seFice slEtms are
customers with check-ir and checkout. The systems ar designed to be
trienally, a,ndcompanies prcvide pelsonnel to a.ssistcustorFrs when
axie---rto auovr them to check out th tmditionsl ws.v.As with all
compaliss must powide a backup when automated s'.sternEfail. r,or
wheD the nv.ly de6ignd, colortul S?Obills flrst came out, they were rejected
many automated sysiem. Sto peronnel hact Io intervn so rhar cu6t
v,/erc not inconveniencd ty the programmina gritch. The smooth running
order procsing slrtems is esaentia.lto th suFival of an orgadzation.
backup systems mu.stb pmpa.rdto take over when pril]r,ry systems bit.
Asyou read lhischapter, considerthe fo(owing:
. \{4ta. 6ct do rhsacrion pr(Bsing systemsh.ve on the ficiency oI m oani,.ri
and ia reputation with its curomen?
. What risks hal McDonaldi, The Home Depot, dd \ral-Marr raken in Dlovi
sellchecLout systemsand whar prccautioro havc ihey ta-knto midmize rhe lisks?

Ar you can seein the opning vignat, bllsinsss rely on informadon sysrem to
thir daily trdsaction ac.iviries.The nany buines aciivnies asciared wirh supply, di5d
burion, els, narketin& ac@mring, and rerion 6 be performed quickty, while arcidiq
w{re dd mistals.The goal of rhis computcrizarionis uftimarelyto saris&a bsj
curone|s ard provide . @mpetitin advatrrag. by reducing cosrsad improving senie
Tnsaction proce$ing ua one ofthe fi6t busines proceses to be cornputerired,
without information system. rccording and prcccsi.g busines tmsactions would o
huge mouts of an orgaization's re,ourcls. The rmsadon prcssing s),sten {TpS)
provides enployee, iflvolved in orher busines prc.sscr-the rnanagementinfonnation
rem/deision support s)aEm (MIS/DSS) dd rhe spccial-puipos infornarion s)..emFwi
dau to help them achim thcir goals.A tnDscrion processins slnm seres ar the foundrri
for the other g,stem (rc Figure 9.1). Trasaction plocesing q6iens prform rourine
erationssuchar sls orderingand billing, often perfomins the sameoperarionsdaily
wekly. The anounr ofsuppon for decisionnrling that a TPSdnecdyprovides
 TEisadon Pro.essngand EitefprseR6orre plan nq sysGm5 Cbq,t ro
I

@
Ir t t TPS.MIS/DSS,and Spedat
InformationSystemsin

! tt t I
Thesesystensrequirea luge amountofinpur dataand producea largeamomt ofourput
or conplex prcesing. Ar we move from ffmaction Pro-
-;thout raluiring sophisticated
::*ing to nmagenent inbrnation/decision suppon. ud special'PurPose informatiod
lss mutine, more decisionsuppon, les input and otrtpur' dd more
rphnticated and conpler proc6si.g end analysis.But the increue in $phisrication and
: nplqity in novi.g fmm tmsrction procesingdoesnot mem thar it is lessimportantto
::usines.Innost ses, all thaesprcns*rtc a resultofone or morebusinessiratreclions.

PROCESSING
OFTRANSACTION
AN OVERVIEW
SYSTEMS

:'eq' oryuiation has aaruacnoh?tustiry y'te^ (rPS), which prcc* rhe detailed dara
:sesory ro up&re recods aboutthe fundane"ral business oPeratiotrofrhe oryaniation.
in.lude order enry, invelrory @nrol, payrolt, acomts palable, acounts
-r6e sysrens
.;eivable,and the gmerat ledget, m nme just a few. The inpur to ther systemsincludts
::iic busines ransactiotr such as customer orden, purchde orders' reeiprl' tine caJds'
.\oices, dd customd paymena. The rault of ptocesing busines rmactiom is that the
: =an iaion's E@rds de updated to reflect rhe satus of rhe opeetion at the tine ofthe last
::oc6sed rratrrcton. Autonared TPss consk of all the comPonents ofa conputer based
.irrmation slstem (CBIS), including databaes, releconnuiedons' pople, procedures'
r: aNre, and hadwde devicesued to proes rransaaions. The Pro.essinsacrivitiesindde
:a collection,dataediting,dataorrction, darananipulation,datastonge,ad docunent

l he U.s. Bureauof Cutons and Boder Potrcrion (pm of the U.S Departmentof
:rmeland Secuiry) ha.sthe busiest rarsaction processingsystem in the wdld. At Peak
. rkloads, the bureau'ssystemprccesesan incredible51,448 tratuacrios per second'
ing to a study onducted by Vinter Corporarion, a marketing r*each and on$nring
'.rord
':m. The bureausmngction p.@essingslsten u3s d AdwntageCA-Dara@n dttabde
-,m Compute.Associates and runson IBM eSenerzserieshardme '
For nost organizations,TPSssuppon the routine, day-o-day activities that cur in the
'rnal coue ofbuines thar help a conpmy add ro its poducts md sewics. De-
'alt
:tndins on rhe cusroner, \tue my nean lower Pnce, better renice' higher qualiry, or
By adding asignifiontanounrofvalrerotheirproduts and*dces'
-.iquenesofprcduct.
, rpanies enore further organizadonal succes. Because the TPSS often Perform acdvnies
',.'.d .."o"s-such as ordc prccesing md invoicing theseinlb'nation
.rds-play a criticatrolein proiding rtlue tothe cmtomer.For ample' by capruringmd
-".--
..;ting the mo"enent orech packge, shippos uch m FederalExpres and Unned ParceL
i :i icelUPS) areable to provide timely and accuratedata on rhe euct letion ofa packrge.
npe. r d r e. e ' ' e n * n " c .e s a n o n l i n e d a ta b o eud.byP t@ i di ngrhatrbinumberof
ll
. k " s e. f ind t h ep x k a g e..u n e n r l o o ri o n .Ifrh ep:, krgt ha ben del i vered. rhevo * e
siened for it (a senice that is especiallyusdul in lase conPdies where pack gs an
-ro
,.:oni "lct" in internaldistiibudon systensand m,ilr@mr. such a sysremPrcvids .he
. , for rdded ulue rhroughrmproved.urom* rerune
 | no, m ar . is v . , em s
'-'" ", ' "", .

Fed Exa dd s v at uet tos s eNr c ebY

p rovidrntqm ly andac c ur at dat e 3
o nti.e o n lh e ex ac tt oc aton or a

,T -'",-.-
F..r"KMr ll:li:;;: r;;.

: tia,

T r a d itio n aTt r a n sa ctioPr g e th o d and

n o ce ssinM s
0 b ie ctive s
vhen compurertud traosactionproessing svstemsfint .'olved' only one me:: ':
of prcsing wx available.All tnmactiom *ere collccredi. grow! called ,z'.,.r .':
bat(h proces5ing system proesd togedrer.Vith bat h ploess;trg slsteml business tansctions e ac.umur: ':
Me tho do fco m put nz d pr oc es sng overa periodof time and prepared for prccesing rs a single unn or barch(se Figute't i
ar e
n wh ichb usins sl. ans ac r r ons The rime poiod during which tramactioro *e accu,nulared is whatcver leogth oftin .
:ccumu tat dov era per iodot lr m e ofthe usen of th* slstem lor *nple' ir may be inpomr' :
ncdod to neet the needs
a .d p fp ar dr or pr oc es sngas a
procas iowricesand cusroner paymenr for the accounts recivable ryslemdailv O,: :'
orherhand.the papoll sptem mav receive line.ards and prcces them biweeklvto c:.:
chccksandrpdateemployee earnings reco.dsas well asto distibute laborcosrs Theese::-
chancterisricofa batchprcessing slsrem is that therejs o-. dehv betwee' the occutte"'
ofrhe evenrand the eventualprccesing ofthe related rransa.ion ro updatetheorgania(rr:

ontinetransaclionProceEsing Today'scompurertecJrnolo$- allowsanoihc procesingmerhodcalledonline fialrg

IOLTPI tion prcceshs (OLTP). \/irh rhis fom of drta proesing, eechrlansction r proc.i::
pr oc es sng nwhic h
Co mpL tri z d immediaiely,withoul the delayofaccumulatingtnnsactionrinio a batch(se Figure'r ::
each transaclionis processd As soonastheinput is aiLable,aomputerprognm pe'foms the nccessa'v prcesinr
mmed late t ywt, hout t he delayoi ''
ugdaresthe recordsallecredby rhat s;nsl tansacrion. Comquendy, ar any tine, the a
t r . ns ac lr onsnlo a
accu mulangt
in an onlinesrstem:lwaysreflecrsth e curent sratus.When you makean airlinere*n: : : t-
fot irormce, the rtaroectionis procesrd, rnd ail databrses, stch asseatoccupancvrnr -
couotsreceimble,areupdaredimmediately. This type ofPro.esing isabsolutelyesserti!r
buines*s rhar requiredataquicldy and update ir often,such * ritfircs, ticketagencies;:
srck ioveamentArms.Many.ompanies have found Th OLTP helps rhem providei;i:
mo.e efficienrseryic-one say ro.dd Elue to thcir activitierin the cyes ofthe .!so-
lncreasingLy,companiesate usingrhe Internet to pcrform mny OLTI' litnctions A : -:
enry uith prcus;sg s a.onPrc- r
wpe of tnnecrion pto.esing, calledonline 'Lldred
h rN .en brch rrd onl i n, prc(* i ng. w :rh th i s ryP eol
rhecomputersystemwhen thry occur,but dty arcnot p.@essed inmedinl)- Ior eni :.
who yo" call a oll-f.ee n"nber and ordet a producr, your order is rypiolly enteredhr: :r
compute. *hen you maL. the cJl. H@ever, the ordcr nay not be prcessed untrt .:a
oenine aliu buinesshou*.
 ns: rerr,r. P LJi r i q5!i ,m. I chtpt6r s

*N @
L-.1*!*i BatchVersus0nLine
TransartionProcessing
process
lalBatch nq npurs
and
prccesses
datalnqroups.1bl
n
onr ne p.ocessrnq,sansacr o.s ar
compteted a s l h e y o c c!f

I
&;
li 0 n Lr e Tmnsad on P ro.essnq

Wh e ny o u o r d e ra p r od u cto ve rth e
p h o n et,h e v e n d o rm a yu seo n l i n
n t r y w t h d e l a y e dp r o ce ssi n gYo . ur
o r d e r l se n t e r e dl n t oth eco m p u te r
a t t h e t m e o f t h e c a ttb L t i s n o t
p r o c e s s e idm m e da t e l y
ISource:NobyF nn/Getty magesI

:Ltn rhoughthe technologrexistsro nn I-IrSapplicationsusingonlineprdessing,ir is

is more appopriate
.lonefor all applications.Ior mmv applications,batchprocessing
r .osr-eHictive.Paroll rhn*rcdons rnd biLhrgrrc rypicallydone vh b*ch proces;ng.
.. ricgoalsofthr orgoization definetlt ncthod oftransactionprocessing
bstsuited for
rious appLiationsofthe conpan). figurc 9.3 sho's the tal integntion ofrlinni
. r.tnrn pro.essirgs),stems.
 Pet s I BE ie.r rmdo, syiem5

w
Integretion
of. Firm'sTPSS

ry
q4

*pF-l
Beeu* of rhe importare ofnamaciio! proce$ing,organizations *pecr rheirTI,>: tr
ac.onplish e numberofspecificobje.tires,includinsthe followinsl
Procs' Ddtd Geneftted Bt aad About Trd",actioh!. The prinarv obiectivc of anv Tl: r
ro c ,prurc.oro.e* .od" ror. r,r{,,,on,dnd,oprodurer\rri c,y!ndo.m enr , r . .1
ro ,o u ri ncbu.i ne.,,c' i \i ri e..
Ihe.ebu,i ne$..ri nri e\r" ntrdi rc.Ltori ,rdir r . \ r - - j
ro ' e l bneprcdu.r.i nd rrvi .6 ro .uromc^. procc-i ngorder,.pu" t,""g , ", *. .
.u n ,rcl l i ngi nrenon. bi l l i ngru,rcnen. r,i pryi ng ppt;e^ nd
_
D u 5 ,ne!.r,rrrrre\rhrr re\uh,rom.u.romerorde,\ The,eacri vi ri ,, " -p
r6ui r _. . . , .
r in t r an- - ?
rhat arepro<rd by rhe TPS.
Uriliries, reloninunications coinpanies,finandal_seryices organizariorx.:j
,
inded mmy buin*rs re underenomous presure.o p.*"*
dos&ircns in ned,real rine. Unftrtunarel).,rhir IS infrasirucures "".._i".g., "otu-., "
r srruggh. r
hJndle(hr in.rs.d workload.Bur now improredd;rr-m,rugenenr $fr$rrc s iJ
i
n o re .dJi rrty!\.dnd, rnsLr:onprce.,i ngcrprbi ti ue..rn.aerheDL, den. B" . r
()p i m l C rcup i , a readi ngpl ayerIn
rhegj " batopr on, rurk.r and empt o1. . pe.. . <
foreign dchange reans in Horg Kong, London,Murnbai, New ydk SinEaDor.
ro tto . l hrnrmi eJ,smJ rael obrt Irexun supp" ,t,o,B hu,eof {; r : \ ( . -(.
Bol<ing Soludon (GBS), d tinancialsoftwareapplicationspecifi;ay delsned io de ..
a cosi-effecdve, flexible,and con!.olledwo d,J!s
sl.bJ,"pp.n *""i; ft. ..".__
paymenc, and esh-nanagement aciivides.Aled's a,t"-.","s"-..t ,.ft*""
p ro e $ mi l l ;on,orrrd.i .ri on. rn r h^ri on oi rhe merhJ U ddi ri o4J,ldr bsc$ : ,-.?
uke.
Mat aa i n a H kh Dcg.a ot A,,, u. v a ad I aRgt One oore.uveot
ry. "nv I t\ i. trro,
d ru InD uf rl d pror,$i nB .fLfl r befi ,rr.he i nrrodu.ri ,,not .ompur c, r e. hr o -q
ehployeesv;suallyispecred all docmenrs and reponsintrcdued inm o orodrce; :
B ,(JuchmJturer,U i bte,he,rrv,ri ;n. a -
' h rT l ' \ . " .rotr.ni m..u,r.,, $ut ,
lroted iihe and effoft dd rquiringr6ou.6 ro correct rhem.Ar ediringprogm ,r
e]mplq shouldhwe rheabit;ryro derernine rhar dn enrryrhar shoutdr;i "40 h. _
is not entered* "400 hou6 or "1000 hom" because of a dataentn cror
 rran;i d on P ro...rnsand E erpfFR 6dfc Fl Ji i i ! sFt.n5 | ch'pt'fe

An imponmt conponcnt of dara integrirv is to avoid fraudulcnr rmsacdons

qrd
l<omm*a ompanies facc this problen wh'n accpting c'edit or debir
i"formatioo ovet ihc Jmuncr. How can ther onpanies nake sue that &e peoPle
m*ing the purchxcs arc who they uy thev are? One aPproach is to ue a digital
is a smrll computerlile thatseoesm both m lD ord and
codes'
a .ignarute. sone belicve th2t disiel cerrificates,wh;ch ur conpl* nathenatical
-"ili".,Liigi.A -.,in-te
ue alnost fraud pooi
As rhe of,tarab.ingprccesedand stored;ncreases, it beones nore ditricuit
'olm; all inpur dah Doidg $ is crnic'l' how4er'
lor individuals md nachin* ro revim
bccNsedae ddinfornarion generaed bv the TPS areofan ued bv otha informaion
sysrem in an organization.So. a companv nust ensureboth data inregritv and data

PtoduceTinety Dorunents and Re1,o*. Mntal wtsaction prcessing s)stemsantl<e

TPSs
d.ys m produe rcurine documenrs.Fortunarelv.the ue of onputet;ed
sieniJie'ily reduas this response rime. ImPrcvtncnts in info'narion technol%v'
in
cspaiallyhtdwu. md ale.onmunicationslinla, 3llow$anseciionsto be prccessed
rl" ,bitiry to conduct business transa'tioru quicklv cad be very
, *".,,'r*-"a..
(invoices)are*nt out
ilnporrantfor.n organiationt bonon line.Ior in*ane, ifbills
. *'t"-*' f.* d,y. *rlier than ussl, Pe)nenr mavbe recived arlier' A number
" nonitor howtinelv a companv is whenProces'ng
ofranucdon praessingslstens can
md dcunents. Sone monitoring ofrwre paclages
ua"srctioroand p,,rlucing epons
ln .onpa.e actuolpetfor-.nce with corpotate goal' and objecrivc.
.
Sofr*ae d*elop*s at Nuthern Trust Corp chmged one of the bmk s databue
.*i"1 Ifleft unaiiended,the enor coJd haveintcnuptedthe
"',t.*,
'rrnk'sabilhy to producea handfulofkev repora usedbv rhebanks custonen' sucha
-hi.h -.ror'
would
;mtitutional invesrorsmd ust nanagen. Without ther reports'rhe cstoners
ha'e nad' ugent oils to Nordrern Trufs
hrveprcblemsthc nextnoning md*ould
helod*h lnstead,the proces;ngproblenwasnoticedbvVilv Technologvi lntmsoPe
:.0 appLicrtio"-monnoring system,in*elled oo 16 aPPliado! sfl'rs aI the bank The
.d';f d,rput fron the aPplicarion.luerving thc datab& had dropped belw.ar
that
..ceprable it'*shota, and night opeaton were noified bv Introrcope of
adnilistntorwho was on oll' found thc
.].'iopnent. They in n rn arou,eda d.tabte
dl .**, it, enabl;ngrhe svst.m to process nolnailv agaiD dd continuc
""a -*-t"a
:roducine iis reporrson a timely basis.l
' oth.; b*i.:" rransi.don doniror;ng soliwarc,Q Nani! fom MQS software'
busines
rrovides managen with real-time visibilitv and conrrol over their crnicJ
ac o, nd < n .+ . L rl l o " . rtrr' r" rra.k od vrer rhe ' r" rrr' o i ndi ndual
r und nrrndrrg ofhor :J rhe Ts
' . ' , v nion.. w n F ,i i ' rA rm rs r' ' " n g ' i n a berr'
hordware,nework, databars)affect thc deliverv of kev business
-omponeonGoftmre,
,.^i*,. r1,,, the softwa.eembl.s m..gers rc discoveropPotuirics fo inprcrd
e$anced
,nnsactbn llow, which can lead ro nrcre*ed revenues,reducedcosts'and
-pentional productivitY.'
'
Tinios ;s also ctu.ial for rclaredapplicationssuch as order prc'e$ing' invoicing'
..-r*. .-.*lr"trt., invcnrory conrrol, and accountspavable Baaue of electrcnic
?.ordingxrd tansnision ofsalesinfirmation, tusactiorscan bc pto'esed in sconds
. re. th-ano"ernight,thu improvingcompanies'cash flow CrsroEB find c'dir cafd
bill'
.hrrgestheymade"o"thc fi""ldav.athc billins Pe'iodon rheircurrentnonthlv
often
. \acde Labat Efrciencr' Beloe computctsexisred'nanual businessprccessts
-.aun,i rco*' fullofilerkandequipment roptoces thenecessalvbusinessrransacrions
other
Ioddy, orgdiations haveimpiencntedTl'Ss to substentiallvreduceclericaland
A snrl mini.omPutcr lioked to r companls osh rcgisen hu
..t'".".q;'"-."...
Df , . edr r c o n fJ l o l . rc ,k : e ' " nd fi l :ngcdhrner"
-r' e - b\ turrhd
r \ r s r lia ri o n . ," i r g : ri rg + r sFr' * l abor el 6ci en' v-
' .' " ," ..; Inc' is a povider of healthcare'
:..amining b"sincs proccssingFor exmple, Actna
in $e Unired
..nt"l, ph"i-..y, group IiF, dnabilitv, and long+un ore beneffrs
l3 miLlionmcd;Gl nenbers' 11 niLiion denralmembcrs'
.-"'. r, **"r,pp-";--ely
PstB I E, ! . . s s r r of m ; r . is lnc ns

7 nillion phamary members,and 12 nillbn group insuhnce cusroners.Its arr-

rcven(esdceed$19 billion. and ircnployshore rhan2,40uISworkcr.Aetna isworl-:
with IBM to build a srreamlinedclaim p.oce$nqateh to.educc rhe time and cii.
leeded to pay an insuruncechnn. IBM also is hclpiig Aelra build h.ie setf{cF :
systetu for irs cusromen."\re want to hke a ledcship p<rsirion
in creatingconsun:,
dire.red hedrh pLansiIT is *.hafs going to allow us m c.eareald ddminisrer(t- <
plm, sa}sVei-Tih Cheng,CIO md seniorVP arArna.j
Heb hoidj lhrtue,l.tot.a wirhour qucstlon,w are quickLybecomnrga sen :.
orienredeconomv.F-vencompanid whoscmain acriviryis producingpbsicrl sd.:
such as hourhold appliane nrakersdd automobite ndufacrure6, reatre :..
importanceof providnrgsuperbr customcrsenice. lncrcasedsenice has also hn :,
entertairmot indusrry.Scver.lWeb sires,arnongrhem MovieTi.kers.com,fanda.:
M o qeforr. I l -.M" r e5fl kr rrJMori e,..on.p.,.rder rrn." .rr,n pm . e. . ing. .
!o enablcmoviegoers ro buy ticker over the Intrner, sving theh hou6 oflvaidn: :
liDe for rhc hotr6r new shows.One obje.tive of TI,Ss is to arsisran orsnizatn:,
providnrs frst. fficienrs.Fi.e. SomecompanisEDI sy$ehs GeeChapter6) rl e
custonersto plae ordcrselectronically, thu bypassingslowd 3nd eiio.-t. -.
merlDdsofwriften o. orxl cohmunic ior. 'nore

Help BriA dd Mdi,tzrt Cu'tond Lordb. A tin's @nstcrionprcessing svsrerr:, ,

oftcn rhe tueansfor customea to comnunicare.Ir is ;hporranr rlr the cuso:.
inrencr;on wirh rhek sysrenskeepscrstomerssatisfiedand renrning. IBM pro.:::
softwareto help auronotin maruActure.s meet key businessctulteng$, incluc
.ttaining nofe effecrive
.om municariotuwilh cusromersandsupplieB.IBM Middlc\.:-
So l uri onsforA uromodveTel emari csi sdsi gnedrohel pauro nt . kds. om m uDic. r c\ :
custohersro berrcrundersrandhow pr<rducrs arc ucd and how they can enhar( r.
csrotur's qperierce whh iD-vehicLinfornarion systmsaswcll $ Iblemer,dctr.:.:
appliutions, conrcnt,and seniccs.6
Athiae ConpentheAduanageA goalconnon to alnosr rJl organiz:riorsisto gin:::
mainraina compoirive advmtage.tu discusedin Chaprer2. a conperirjle ldunr_:,
providesa significanr.rd long,rem benefit lir the organiadon. \X&en r t|:
dndoped or nod;ned, rhepdynnel jNolled shouldcarefdllyconsidcrrhe sisnif.:-
md lons{crn bebefirsdlc newor nodified sysen mighr provide.
Vall Stret fims are conrendingl{ith one anoihc to olTer ligh end xr]t:-
n a nagemenrseni .esrorheri .hesrcl i enrsThi sstraregri shi ghir dependelt onr he.
of in{o.lurion s)'srensro providerhc s.Ni.es and irformtn,n rhat atituentinve:r -
expect.Swissfirm UttS is a gl{rbaly,calrhnanasemcrr seNicesprovider.wnh 69., ,
e m p l oycesmdmai noffi cei nZuri chandB asl andopera,nsi n
morethan j0coun( . .
'l hc firnde.ided ro uk internalsraFro enhane irscxistingTPSs'
tunctionatiq,and,:.:
ns goals.The new q,steh is cdllcd Crnsuhvorhs sd is ddigned to elimtJj::
boundrics beuen applicr rns, .aording to Scoft Abbe)'.Ullst c-lief techno,:..-
oflicer. fhc company's7,700inlesrmerr advnenuserhc systemfor nany of th eir ,i:
rasks,tuclud;ngcheckinsaccounrposirions.conducrinsresefth, enrcringo.de6. :..:
takingrotes.allwnhourhrving ro Davigate throughscprateappticarions. This entrar..:
$'srempmvidesa cornpetitneadvantdgrfor UUS,Abber s)s. UBS jurifies irs $. r
nnem.l siF fof rhc svstetubecruseit doqn t wart o help a softwarevendor bui[ :
systemit could larerrcsellto UllS rir"rls. Ve'd bc rsking for rcquiremenrs rhar ar -
many waysun'.iue compded ro our competiro6,"Abber says."We'r nor toolins
giveawaydnt intellecurl propero."
Sone ofrhe waysrhar cohtanies can ur ransxcrionprocessirgsystemsto achi, ,
comperirileadvanrage ar. suhm.rizcd h Table 9.1.
Dependinson the specificlaru.e and soJs of rhe orgrnizdnm, aN of theseobjec. .
Inaybemoreimponanrrhano rltrs. Ily mccrjig theseobjcctiyd,T PS canstrppo,.rcolpo..::
goalssuchasrcdrcing c6rsiincftasingprodu.tiviq, qualny,anrl customersatisfaction;
:::
funning morecfiicientaDdeffctnc opeLariom.For exanpt., ove.nighrdcljverycompar:
 TD trsactonFro.e3snsandE nrerpfFR source pbi n i q sysrems I

,r.h as FedExqpect thdr TPSSio increasecuslomerseryice.Thse system on ldare a

::ienrt pack geat any time-fron initial piclup to 6ul del;very.This improvedcustomer
rlbrnarion allows@mpadiesto producetimely infomation and be nore resPonsive io
:r*oner needsand quenes.

@
Examptesof Transaction
Processing
Systmsfor
Superiorsedice p.oyidedto Useol rccking rysremslhd are accssibl.by.ustomEro
competitivAdv.ntage
3?irer rdldGh'! *.h trpplEB

Superor inlonation gathering systemloenslretharprodu.i.ordeed

useotorderconliqlralion
wilt meelcustomei3objctiv6

U5eo'.orr.o6rv. pl3n1.ng,lor*ash1q. and,.plen ro

.nsorcrhe right amolnt of iNenlory is i. sloes 'm.nr

NGACTIVITIES
PROCESSI
TRANSACTION

'rng wirh havingcommon characretistic,ail TPSsperforma conmon set of bmic data-

::-..6sing adiviris.TPSs capure and prces dara that describesfundmental busines
::rsactioro.This daraisusd m updaredatabmaand:o producea u;ety ofrepors people
r::h within and outsidethe enterpdseuseGeelisur 9.4).The businesdatagcs drough
. cusrtion proesing scle rhar includes data collerion, data editing, data correction, tran5action proce55ing cYcle
::r manipularion,datastorage,anddocumenrproducdonGeeFigtr 9.5). The processol data collection,data
edit n9, dala corection, data
manipulaton data storage,and
Dalaent r y an dn P U t

EmptoyeeI me cards

@
overviewofa
A SimpLafied
Rawm6teriats;packin9 Procssing
Trensection
m a t e r a t s i s p a r ep a s Sy9tem
 P&.3 | Busnss tnformdrcnsysGms

w
DataProcssin9Activities
Common to Tran5action
Pro.essing
Systems

DataCollection
T h r p rc $. oI apruri hs.nd g,rheri nBal 1dam nece-ary,o .ompte,e,r dn. r . , i. _. .
r
L a l e dd a r . col l < dod. In .omerne. i r canbe done mmuati i . ,u, h o bv, o t Je. t inq
n"r
Th ep rocesso fca pt uf ingand w ri ,,e n.J$ ordci so, (hanse.,o i nvcn,orutn ofi e, Le.. dau rct,e.ri o;k
9atheringall data necessaryto d, om : ( . 2
,p e o r de\(e. \ucha unnen. poi nrof.Je deri G\,rnd reni nal ,.
co mPlete tran sa c uons . ' n.o
pur
D rra l l e,,' onbegi n,tri d, r rtu6& ,,on re raki nga curomerorder r , nd r e. u, . u
&
rh eo i g i n a ri onol drrr rh:t i , i nput ro rh. rnnw cri onpro.r.nnerynem DaE \ hour
t
aptured ar rissource,md ir shouldberecordedarurarely. in a rimelyfashion,wirh minia
m a n u delff oi i .r,d i n r fom ,h2,@ bedi rf. ttym,e,ed i n,o .heompurq E ,h q, hd . _
E
oe oak lrcm J irocumenr.I h,( dpproah i, .nI.A .aM.,tah atuoaanaz.An exrpt
r
su.ce daia auomaiion is rhe rl,seof auromareddwices at a reail srore to speedthe checkd
proca*ithet U?C odes rad by a sanner or RrrD s;snals picked up when Jre tr_
approachthe chekoutsrand.The u* of borhUpC bar cojes dj RFID taes;squick ,;:,r
mo rei (u ra,e ,hanh., i rs r cte,kenrtr.ode.mruJ
) ,, ,t-r.J ,.s,rer.-rhepr cd, . :
lor ea(hirem i, dererninedarronarically,md it, prne i, tound in ,L,enem d,ubae. -:r
p o i n r-o fqj eTP S l B tbepri (. dara ro de,erd ne,he. u{omer, oi tL.t he sroE. inLr nr .
and purchr5edarabass recordrhe numberofunits ofd nen purcha*d, rhedare,rheri-
and rhe pric. The inrenrory darabasegenemtesa manasemenr repon nod6,ing rhe s:e
nmager to rorder items rhat havefalen below rhe reo.d* q,,,tiq,. Th" d.r"i"d;*.h.-,
daebme can be ued by the store or sold to markerins *,*.h fi;* * ;
deBiled sales.nalysis Ge Figure 9.6) . ",,,f";-*,
Muy grery srorcsconbine pointof-sde scanners and coupon prinrers.The sv*a
re p ro s rmned $,hare," h' i mer.pr.;fi . producr,,,y.,S ^ or o-j rro.e, a, he. *. , r
scannc, a appropriateoqon-perhaps a nilk coupon_is p.inred.Companies
co !F
to be promorcdihrough ihe systm, which;s thenrepogramed to prlnt rhosecompo,=
couponsifrh cstomer buls a conpedrive 6rand. Ther Tpss help grcaq, sroreso inota
pronts by inprcving rheir repearsalesand brilsins in.senue frcn oihs busine$es.
 Ti r;3.1.n P fo.:s5f ! rf d E rte pr* R soJre P tarf i q 5tn,m5 | chal tr e

-_-------1
g
\- F --_---1 r

t.+.r-J
"
l-.+
l--
I PoinFof-5ateIransaction

u T h ep u r c h a s eo i i t e m sar th e
--l. s c h e c k o Lst t a n du p d a t esasl o r s

kEugt
n v e n l o r yd 6 l a b a s ea n di ts d a t:b a se

lata Ed i tin g
- T ponant s t ep i n p rc c e $ i n g d d s a c ti o n d a n i s roP erfomdataedi ti ngforE l i di tvand data editing
..pletenesto derectanyproblems.For aa-ple. qumtitva.d costdaramust be nuneric Theprocess of chckngdat alof
vatdi tyandcomptet eness.
: rancs mu* be alphabericodtrwise, rhe dau is not valid. Ofto rhc odes uociated
- rn hdividual tnnsction are editedrgain* a database conrainingvalid codes.Ifrnv
:: :mcred (or *anned) is not pesent in the daeb*, the tlamactionis ajected

: ata C o r re c ti on
, rorcnoughsinpLyto rejectinvaliddata Thesynem shouldalsoprovideerot nesages
.: :lerr rhoserspomible for lhe datacdirins function. Eror ne$agcsmus! specifvwhai
rld is occurringso rharcorrectionscanbe madt A data@retion involvesrcentering
T h p . o c e s s o f r e e n l e n nm
q ske ye d
- ..:e'ed or m;scanneddatarh* wasfound dur;ng datacdiring lor emnple, a UI'C that
o r m i s s c a n n ed a l at h a tw a sl o u n d
::urcd mu* be in a ntter tableofvalid UPCs If the codeis misreador doesnot exist
're table,the checkoutclerk is givcn an instu.tion to resan thc irem or kev in rhe
' :narion hanualLy.

:at a M aniP u t a t i o n
.J , . r najoac t iv ir,v o fa T P s i s d a ta ma n i Pd a ti o n,rheprccesofperformi ngcJcul ati ors
The pfocessof periofm ng
: uhcr dan tamformations reLatedro busines @Dsctions Daia naniPulationcan in-
sulmariTjng c a L c u t aotn s a n do t h - ofd a ta
:: clasil,vingdata, soning data into categories, performingcalculatnrns.
l r a n s f o r m a r i o nrs l a te dto b u si n e ss
a, and storingdarain rhe organizarion's database for tunhcr proccsing ln a prvroll
for example,darammipuLrtion irclude muhiplying an employees houtsworkedbv
'.
: . rourly payrate.Ovcnime calculations, federal and srare
t* withholdings anddednctions

la ta Sto ra9e
hore darabaeswith nq rransctions.Once the
- la,to.age involvc updaing one or T h ep o c e s so t u p d a l rnogn eo fm o r e
.-rrrc ptuces is @mPht. this data can be funher procesrd and manipuhredbv other
d a t a b a 5 ews i t h n e wt r a n sa cto n s.
,:os r thrt it is availablefor mnasemor decnionnekins. fhu', althoushrn"saction
, .l'asescanbe considered a by producroftramaction procesins thevhavcapronounced
,::t on nearly all other informarion rysems and decision-makingprcccses in an
 Pds I BGre$ itormario
n sysrems

i o d u stioann dRe Po r ts
D o cu m e nPr
dodrmentprcductlon TPSS orodu@ imDortaft buriness d@unenrs Docrmdt Prodetion iniolres
The proce$ of geneEling outPut ."tp"i rcco.d" .cp".t.. Thee docments nay betrad-opv papo reponsu displavs
"nJ for *rnplc' arehard<
computersrens (sonetimesrcrenedrc x nf cop) navchecks,
doomenrs produced by a PayroI TPS, while an outstuding balarce repor fot-invd
displayedbyan accountsreceivableTPs Often, r6ults flom '
-igkbea..fr-opy
TPi -p.n
p**d d;;.;*- ai i"pur t" oth". (* shom in Fisure9 6)' wher'
"* "y.rerns
rcnrlts oi updaringthe invntorydaeba.sem ued o ceare the srck erceptionrq
ta oo. ofm"n e.-en, ,.pon) ofircru uhosc inremory loel is bdow Lheeorder poinc
'r.
i*,-enn \uh rs chek. rnd h\oices. mos TPS( prcvidr od
"aa;1"" '. ""i.,
usctul manaeementinfomarion and decision supPon, such asPrinred o' on-seen rcPo
that help moaers ad enployces paforn various activirie. A rcpot showing onmtl
i. o". o"tnplc nighr be a document listing itens ordered from a sup
"."..y
to heli a recciving &rk check thc ordc for ompletems when it trives A TPS car
-other
prodre repons required by local, state, and federal agcncies,such u statemena of
wkhholdingand quanerlyincome$aGments.
T'..rgl'.ut *i' ct'aprcr *e *ill l@k it som. @ys conpaies haw dnPloved TPS
help thern mca organization.l goals.

ISSUES
ANDMANAGEMENT
CONTROL
TEnsaction processingsysrensare the backbone ofanv orsaniation's i'fomadon svs
Thev caoture facts about t}te fundamentat businessopera.iotr of the otgdizadon
without *'tich orden qnnot b. shipPd,cutomers qnnor be invoiced' md emplolta z
suppliers cmot be paid. In addition, the dara capucd bv tht T?Ss flows dowrstrm
oti'". syae* in the Like any stuc.ure, an organiationt infomadon s
-g"nization
arc only asgood asthe 6udation on which thcy are buili. In fact, mosr organialions
grind to a sceching halt iftheir TPSs failed.

BusinessContinuitYPlanning
bGinar3clntinuitYPtinnlng Burin ss(lntinuity planniry identifies the businas proesq rhat nust be reiored fin i
ldentiflcationol the b!siness rhe evcnt of a disctei to get the buriness'soperationsrest{tcd wirh ninimum disruprio'q
prcesses lhal mlst be restored also spccifie the acrions ihat must be tako and by whom to store oPenrioff Order F '
firstlnthe eventot a disasterand esing and shipping c exanples ofbusincs proces*s rhat nsr be resmed asquidd:
specilicationot what actionsshould
posible. Disrrs m be narual emergenciatch a a 0ood e fire or u eu$qu&
be ra ke n.n dwho s hooldt ak et hem
i"e."otion, in businesorrcs such* bbor urst terrori"t mniry' h&krt aiiack'
axtre ofan impotmt file. Kcy rctiom include safewacuation ofall enPloltes, Nes
ofthe disrcr's impar relotion to altermre work sPaces, backup and ecoverv ofimpo
elecnonic od manual busincs reords, md useofalrernate equipnent'
One of rhe first srepsofbushess continuity plarning is to identify Porenlial thEE
problos, sucha natural disastas, cmployeemisuseofPesonal comPuers, dd poor in
conrol procedures. Busins oniinuiry plming also involva di*rter. preparer
Bmincs'maragers should occasionallyhoH an unamouned lest disaster"-irnil* o
{irc drill-to cnsrre that rhe disast r Plan is eff4rive.
Com ou iesvary widely in r}e drorc ughnqs and em<nvenes of then bui nq' continu
plnning,.rd sme hava hrder rrmere5utug busincs rhanor}les Howoerdiflicult i
i-.-.,t.0*i.'.,-* affo'dro gounprcparcd for opeadonrloutagesR'cnJv djr
Lers*.h j. t'l-th"^, po*er blackoutandr}e Californiawildfe weakedha'ocvi
"s to workers and investorswer e$inarcd to be $4 2 bili
U.S. businesses.Blrckout Ls
byAndason Econonic Group, wtile SafecoCorpoation esdnates busin6' wildfire cl';
at $3 milion.3
 rE nrad.n P fo.e.. i !rri d E .r.rprse R esoure pL;i r nq 5i /'emi chl r.re
I

D is as t er
Re c o vrey
-l6sterreovery focuseson rhe acrioN $ar mNr be takento restorecompureropd.rions
.J $vi.es in the evenrof a dis6rer. 1r includ.s providing for altrnarecompudngand Acl o.s that musl be laken lo
':a!ork tuihie$ the tnhsfer of kfl pesonncl, dara,and softwft b a backupsireiand rhc f e s l o . ec o h p u t e ro p Bti o n sa n d
services n lhe eventof a dlsastr
. . J e. Lm pion n .r* ,n g J a d .o mmu n i .r on..
" l ,l ru t

C o m p a n i elsi k r o n M o !n tan

e n v r o n m e n t o r r e c o fd ssl o fa g e .l n
t h e e v e n t o t a ds a s l e rvi ta ld a l aca n

L S o u r c eG: e o s t o c k / o e tty
m a g e sl

.{cneashrernerandTelephone, an IntenetseNiceproviderinjackson,Tcmesee, serves

- ur 10,000 lnrerncrand 2,500 relephon.Lromers. I!was hn by a ferociousrornadoln
r:: 2003 $at ripped sfaight thmugh Aenaisone{rory building, leavingonly a pile of
' ::lc. Acrcr losr$1 nillion in hardwde md sftvare rhai nishr. Fonumrcly,Aeneaswd
. .: and had a disrsterrecoveryplan.Conpanv managebderermircdrharthelikelihoodof
:qorist etta.k on ihewesrernTenneseetown wirh a popularior uder 60,000ws slim
rine. Instead,rhey concludedrhar becauscof thc town'slocadonin rhe cnrlal U.S.'s
-:mous Tonado Allel lhe plan should addrc$ rhar non likely .auseof d;ssrer. lhe
.,Danys bGinessconrinuir)'plan hinged on moving operadonsro ! site r\Ied wirh an-
-.r rlrn, providins 6r ahernariverelecomnuDicarions serices and nal<ingbackupsof
- ::::1 cutomer and bitling data.Ahhough rhe ronado conplcrcl' leveledAeneas's olice
- :Jng. the fimwa\ablero be up and runnins asain in rhreedays. This relocation
was nor
':,rless, howeer, because the colocariorsirchad an insufficientnunbd ofsercB. Aenqs
::lones had ro order addirionalrners o.line, haverheh shifped ovenishr ro rhcir
1.s, and rhen inssll rhcn at rhe new site.Furthernore,heoue rhe backupsofo;ricrl
': nrarion wert not srorcdof sne, Aener wrs lu&,v to find a radable resion of rhc
-.!ne. recor& dal.baF on a dcstroycdconputa.'

Tra n sa ction
P roc es s i ngS y s temA u d it
- : .rccounlingscandals of2001 and 2002 sputed corponte l,ord hehbss, lawmakes,
.:::Lrton,and srockholdenio prcsnre corporateet'cutivg n) pi(xluceaccur.tefinancial
',:rc and do so nr a tnnclv fashion.h Jrly 2002. the Sarbanes-Oxley Acr ms enactcd,
' :h ser deadlines for public companics ro inplement procedures
to ensurerheir audit
::nrte*could documenrfinarcialdara,v.lidarc.arningsrepoits,and vdili rheaccuqcy
:mrmatnrn.In rcsFonsetorhe new requiremcrts,busnus rnragers redhand;ngrhar
., : f inanc ials ) ' s!e m s p rc v i d e re a l -ti n c d a ta fccdsandupendi t(redndsJesupdaressorhey
- drure their lunbes arc corcct. Unfor(nael). sone organizdrs were unablero
.l uc eac c ur ar er e p o rts .N e w \ro d d P $ tri s rh l eadi dgU .s.nrake.ofd,ypasra,w nhsuch
:.Js asArncricarBcauty,Creanette,Ideal,Ronhni, and SanCiorgio. ln 2004, thc 6rn
..i tbrChapter1l bankruprcyprotection,
blaming*oyears ofaccounringproblenscauscd
' rulry transactionproccsingsvsrcns.'0
 Pdr I EEr es ; nlr r a, r , s Fr . h!

Sarbanest-t'rleyalm focusedrttentionor thc sccurityof dali and syihs- Reguho:,

nrrcrprcringrlrc Fin:ncial ServicesModernizarionAd (Grarnnrleach-Blilel r reer:
sysems sccuriry for nDancialsruice providers.including specificstandardso pr:
cus(omcr priliry. ln rhe healthore industry, thc Hcalrh tnsuance Potubilin :
Acounnbiliry Ad (HIPAA) definesregnlations covcrnrghcaithcare provider to ensu:::
rheirparien!data;saddluately prott.ted.'L
Clearll-,CTOsmu* act o proent the kn of accourtug irregularitiesor l,,s! .a
privacydraren get theirconpmies into ttodle and crdc nrv6rorconfidence.On k..
sYstem
transactionPro(esEing k to conduct a tensaction processing systen audit thar attcmpts ro mwer four
audat
Ane ram n aton olt h TPSt oans wer . needforwhichit rvasimplementdt?
Doesrhc s)'srenmeerrhe busiDss
whe the rthe s y s t em m eels
. whar procedures ud controlshaveben e$ablished?
lhe b lsin essn eedlof wh c h t was
mp teme nt d, what pr oc edur s and . Arc rhesepo@duresand controlsbeingusedpmperly?
contmts havbef establshed, . Arc rheinfo.marionsysremsandpmedures producingaccuntcard honestrepor.
wh eth erth esepr oc d! r esand
controtsare bein9used property, In additionro thcscfou basi. audningquesriors,orherareasaretypica y ;nn\t:
a ndwh elh eflh e if lor m at r on during an audit. Thcscareasincludethe djstributionof output documenr and tpor:.
sysremsan 0 p r oc edur es ar e trainingandeducarionassociared wirh elsring aDdnew qrrems,and lhe tihe n{6r.
p rod Lcn q a ccur at eand hones l performvrrious taslcrnd to resolvep,oblemsand botilene&{ in the s/stem.Gderi ;
ofimprovementarealsoinvestigated and iepoted du.iry the eudit.
lwo $pesofauditsexist.An inrcrnalruditisconductedbvemployeesofthcorgani::'
an ertemal audit ;s perlirLmedby ac.ounting fird or .onpdies and individur.
mociated wirh rhe organization. In both intenal md dteri"l audits. the auditor rr
all prcgrams,deumentation,contLolreh niques,the disaste.plan,
ituuran.eprot.tt. r
prorecrion, and other sl stems maDagementconcerns such as efficiency and effecti' er.:,.
the disk or rapelibnry. This checkis acomplishedby ;ntNising IS personnel:h;
forming a number of testson the conrt'utersystem.Externalrudits rre imponri:
sraklrcldereand orhereoumidethe company,in addnionto nanagersmd enploycrs
rheconpaD. A numbe.oflnternerstartupcompanies, nrexanple, oventatedthen in-
which rcsultedin high srock*ajuarions in someases. An cxtc.tul audit by a tep-
ardi rg companyon help un@vef$ese reportingproblems.
h enablishinsrhc nnegriryof rhc conputcr programsand oliwre, an audit tn: :
audirrrriL be esrblishcd.Thc audir trail alloss rhe audiror ro lraceany output hom the cor:
Docume nta lion t hit at lowst he systcn backto the sourcedocumerts.\virh maDyofthe real'timeand dme-sh*ing s.::
au d lo r lo tracear y oulplt f r om t he availabletoday,it is crremelv diflicuh to fillow an audn tnil. In nanv c*es, no re*::
co mpu tersystembac k lot hes 0uf c e
svsrcmnrpursqistsr thus,the audn trdl is drmyd. Insuch cases, theruditor nus.:
dgrrc rhc actualproc$ing addition to rhe inpua and outpu* of the variouspre:
In a! alrempr o uleguard the priucy of medicalrecorcLs, rhe federalHealth Inr
Ponabliity md Accounrabilily Act requiresthat heahhcareorsnizarions,
providers,and insunnce companiesestablishan audit tnil ibr eachparientrecord.
-
individual'snedical .e@d moves,each applicarionn rouchesnust ihprint; $i:i
identifierthat.ites kr/ penon who handlerlit and for wlut purpce.
\flhile the CIO rnut tal<can aciive iole in elsurnrg rhe intcgrity of financial rcpo:j*
systens.draCsnotthc sarncr guaranteeing the mrerial accurxcyoffindcjal star.mcrr. &
mne ofthe conprnies underscrutinv.not erenthe m6t conscieDtiouand inturndl { r:ll
s,uld haveuncoveredthe finmcial itregularitiesthat weremcuring.

TRADITIONAL TRANSACTION
PROCESSING
APPLIC ATI O NS

lLhi. . c .u o n *r f r e . e n . r '" v e M s o f 'f l e t u l . o m n o n n n . r . i o 'p r d e $ ia Bt!r "'

purchasing,andaounrins busine$proce$esGee'l abk r:r
suppondrorder processing,
 rE nsartdi P ro.e*i qai o E i rerp.3eR 60!rca Ftai nng sysrem; I chl t3re

w
TheSystemsThalSupport
OrderProces5ing,
Purchasing,
andAccounting
Functions

0rder Processing
Systems
shipnent planning,ship
.-r.derprocessi.gsyst.-" includeorderentry,salesconfiguruion, orde.processing
systems
-:nt execution,inventory control, invoicnrg,cusromefrelationshipnanagment, atd Systemsthat proces orderentry,
s a l e s c o n l i 9 ! r aot n s hi p m e n t
:rtiry and rheduling. The business proccsessupportedbI thesesystdnsareso.ritical ro
p t a n nn g , s h p m e n t e x e cu u o n ,
:: operationofan enterprisethat lhe onler processing are sometimd reLred to as
sysrems lnveftory conlrot,ifvoic n9
:: lifebloodof rhe organiation.' Figure9.7 is a systcmlevelllowchan thar showsthe
;ous systemsand the informarionthat flowsbetweenthen.Arectanglerepresentsasysem, m a n a g e m e nal ,n d r o u t n g a n d
thcflowofinformarionftnonesrsrentoanother, andac;rcleteptesents
, .re represents
th;s ose, the cuiomc..
-:. enrityoursidethe srstem-in

@
OrderProcessing
Systems
"M.lt
cusromerord.rnp.Gon.r

ri r
@
|}

a
3 r derEnt r y
--. ordet otry sysren capturesrhe basicdatanedel ro prc@ssa cusmner o.der orders
P r o c e s s t h acla p t u . e sr h e
b a scd a ta
::. ;omethroughrhc nail or via a telephoneordernrgsysrem,be garh*ed by a *alTofsalcs
nededto processa customr
d;ecdy fron acustomer'scompterover a wide
rftivc via EDi transactions
-:!enlatives,
s- nct*o'k, orbe entereddirecrlyoicr rheIncrnet bv rhecustomerusingadataenryiom
:: re firn's \feb site.Figue 9.8 is adan nowd;agam ofa qpical orderentty systemThe
r': tlow djagmh shdws the erious busnressp.Gsrs thri are supported b)' t sFteh and
:. t*v of &ta b.oe.n proceses.A rectangle wirh roundedcorncn represents
a buiness
!l
 BL, i,s i r fm; n,,! :m5

w
DataFLowDiagram
olan0rder
EntrySystem
0.d ersarerec v edby m a I , phone
ED or th e n ler net lr om c us t om ef s
o rsa (esrep s andenler ednlo t he
o rde rp rocess ing s y s t emThis
.
a pp tcaton alfec lsac c ountng
nven lory,wae housn9, linanc e,
a nd nvocin ga pplic alions Not lhal
n an nte 9ra t edor d.pr oc es sng
systemo rde renlr yper s onneL hav e
a ccessto ba ckor der ,inv ent or yaf d
.u sto mef n for m air onf r om
sep a teda tar ilesof d r ec t t y
th fou ghth ep f o c es s lnq m ec hans m
l5 ou rce Ge
: or geW . Rey nolds ,
lnfarhat bh Systens lar Managers,
rhirdEdtian 5t Paut,MN West
Pub lsh n q Co , 1995p. 198l

OnccurcrrconrbreB rrehredroonl i neorderhgsl ntcmsnrvol r t sr ccssbypeopl. . -

physicrl disrbilities.Se $e l-rhiql and SocictaLlssuei' specialinterestfeature:: ,
dncusion of online acce$ihilitr.
\rith an online o.d. trccessingsystcm,such* one ued by direcrrcrailec,rhe I :
-
ofeach ;nvenrrrv nem (ako ci\ed a sLock hepins u*, or .Sn"rl on the oder is check- :.
d d d n i new hdhdsufi ci enrl i ni shcdprodudi s.\ai l abl e.rfanord{ i tenr cannor be: t . :
e s u b sti tute
i tem nar be sl ggesredo!. b.ck ordcri s.reared theorddwillbeiilled: : l
\rhd inveniD, is retlehished.Order proccsing sysrem crn Jso suggesrrelaredire.:, l
onler takersromenrionro promotcaddonsales.orda t*e* alsoreviewcuton,erp:, -.r.
historydatafremthe accountsrcceivab)esyrem to da*minewherhercredircrn beexrer:.:
One an orderis enrcrcdrnd rcceped,n beontr an openo rder.'l ,i-picallr,a drl\ , - :
joumrl (which includcscusroDerinfotuatbn, producrso.dered,quarriry discoutrr!-::

El e ctmn;c
dal ai nterchmge (E D I)canbeani nponrnt p* t oftheorde renr r y'll'S r :
EDl, a custome.orclienrorganization canplaceonlersdirectlyiiom its purchasingll'i -,:
the orderprocosins TPS of aDoihc oigrniarion. or, the ords proce$ins TPS of ihi i r.
plie. companiesandrhe purchasingTPSofthe custonerscouidbe linked indnecdr rh,: =
a rhifd-parv clearhghousc.h arv &rnt, rhis cohpurerro,compure.link allos ctr: ,i
and effecrivcproccssnrg ofs.l.s ordR and enablesan orsari,arionro lockin cusromcii--,.
lock our compcritor rhroushenhancd cu$omq rcnice. \0irh EDl, ordersca! bc | ,,a
anline ofrhe day or nighr,and imnedierenotilicationofoder receiprand pr@e$ir:
':
be made. Todar, more ald morc compariesare usine EDI to mrke piperle$ bu, ?a
t.anslctionsa raliff.
 lor Everyone The!! deti esatsop.ovdedetat.d fstr!.1c.5." h.vrto r . t t M
-;e rhrol grryti tl .es!E gei ons
; h t . ar Lonr ate .L rs to Ee re ..rc e sn r:n yb !s n e s te .are
B e5d-" s.cmrtv.u(th the taw otherr.cl o.:..n m ot G t e
: ig nga s : 91f c a .t p e rc e n ta g
oefth ep o p l ta to .0 nea!i
:.om som tlpe of bls nessestomaketh."_systems a.ces:btLoahP"ctesso'HeLen
:e!en peopte s .slr.aled ta s.ffef
o, o ,B
l sabLtyr.fu: cl a.cessbl esyl rems C ompanGth. r hole
: - a l" al8l pe..e n o i ' I 0 0 0W e bs i e s e x a mn e d1 at to
i l otr' .Cbt.d !5e' 5 i n Lrs.btt/test: of the_ U /eb!te s hale
. : ' t he m os lb. s . c l a .c e s s bL ryl !q ! re m e n tsT h emost
djs.rycreda 35 pere.t ise i th! speei at wh.q .ertir. iasks
: r iadv a. t aqed a c 0 trd L rs e fs .w 3 o !n :b L e1 on a !gate
h .e
col tdbe.crpLel ed bv.tt!reE 5!.evel .ne crnl erefl l .. m t he
:..'ty des,qnedsL.s evenwth the lse of aLtoF:rtd
::,defs A5 a .e:!tl d srbt.d peopLe .rc !.abie 1otake
n shoft a.cess,L\te syslem. n:ke gc.d b!sness sa.se
r : ! t eb bas ed ,e rv .e s !.fr . :5 m a kn l ttl !th :a n dhotet
ncLL5!edesqn :eq! r,rs tllle t. io edd::onatn!:stmert il I s
: 1: m . na! nq b a n ka ...!n ts , s b l v n q m o !e t.(ets
_: r ebl. ds be ," .a f.l n d fol 0f y e a fs ,fc l (l i r.:h s s hoft i cuded n .i ! natsysi e- dl s qi e .nd t as.l resbl sne Eses
of
ne L h.. f ea.hi i qthel argenpcssbt..!rl .,me.po.!tato_
10tlr:nr !p lhc s.ne h!"dtesio
-.na0ed
I pr . l. . at . . b yCs a b tepde o p i e .sl h ep h i . c a trol :d
: l ah. . n; i B e nti a s s l .. C ri ti catThi nki ng0uesti ons
:Ll s5!cd. sleflr \{ar" ig to bL:.ess.sth.l th-ay. not I M.. l ,,1ai :i eci .rmaroftheD R C ql atcdr..i r' :r. yr r - ab
'rth exsl1 !eq Lr iii. c c es s t aw: .0. qanz ilof s lhat . f f e r s te5 hrve h!faLesl of the .l s.bi ed.:p.. J tv l he br id
. :e ri.e5 or.r t hev ieb 3t e. d/ har e. t e! . t d! t ! Lom ; k e u/l rat' e.i ! f.s ol //e0. t," 5thatt.! _.!e ! s l .d i r ! ht : r . t
: te s.c..s5 bte lo d eabt edpelFt e. ! ! . n! c 5i! : r t c n a5 h!.dtesrof bL.d pers.i t
-.
: rqe .1 e.o nimeid.l:oi s to hetpWeb s L. owrefsiid 2 \rvhys t Li .1:o m;i y bLt i -a5!e5h:!ei qnofcdtl r . r c. ds
.:ri! do M the b. 4, a. r ?! t whef e Ll. . es m n s - " r s .j the d srbl cd I des!i " ! stst.ms 3.i vrai 5 1e! . 1
, tlre ndu5r./shcLrldbe prep;fed fo.dsebtcd pe.pre to
' ]b at
" "dv WhatWoutdYouDo?
r t. wlri.h M as s c f ef ee . Bit ans ! s ir b l t y
As CEOr' A..TraveLc.m t.! h:!e been.onLrr-lodb! Bard
::!i A.t IDDA I v r hc i elJ Lc . ih. t t s lih( t lt t o. r
jr.,/.e5 t. d: . . m : nar . . ! lr . 5t a a. abt ei ! e. s . n I C .nl ey..ndFfdr,A tl o reF at Law w . tl r new sl hrl yr!..0 . 1p. iy
sbel nq:!.dbtJ !ro!p tf a -c.bted l ses T!.A ..Trrr' ct.on, i4ieb
: ,jcude. .r d:tLie.at.ly iol p..!d i,q t! the d sabL.r
ste hr5L.ef d.s.!i ed.. thatr : .pos: bt .fa bt.d !e E. n t .
, :,.f/.e!/h.h h pfcvl:., or s p.eparedto t,o,r de to
n!!!rl . rheI Lr,el en! th i 1! !:e.i s.rccf t.d nq5ol tr r e a An
: , ihe plb l. lhs . . LLr d- "s: . . es : t o anc L l e t l
ftJt r!.i !,rtoi i d.Je: thl t b.n_o n! tl rel veo 5t-" rp t o t ne
: :e rr.e : M.s t dc r eLoped c onnl. es h: ! e 51t ar t a " ! 5
req!..d r.c.j s b Lt! 5t.ndards r.l td .ost thcc.mE ^! . ( lLr qht v
::r-ile 5 -a: tn eAm ef . ans ! / LhD 5. b i t es A. t t D Pr ! h ! 1
$200i l : N Jl t!1th..o.t r LL!.:. t.a i /.!r ' l r.Lrdc!.i .f ef i t he
:: r. r. th -ab :53 of dis Ebt t f I em ploy r ent s t . te . n d
' I d"o
.the_h;it to .dLeit\,rrod l!,r! the s/st-a-: Ihe :Ft.:n Lr.!f.ae
w tttakeabousx f;o" thcA ddi ! there.!st:toth fev Lrblele! . 1
: ii .|cie L-q : . m - ! . . aUons T_. . t f ec loi t h s p. o b t e m
..stE i-at f.! a.F nholi l. ^.Lr' :i s ot!.s,!i't m Eht..sl r]!e..
:fa \\rde Yr ' eb Cons or l! m LU/ 3C]:.n . . qanz : 1 o n
: lc!,.1.0 iq i:eroFe.aLrtcLc.h.o.q e!'of the t4/eb.i:s
j.t rDs f.. ..ea: n. Vr'ebs tfs .fd ir'.ten: that a.. : s trcrt.r!-tcl !q\re i t.tnedsmafdrof aard 0. it ey.
ow^ arc F n.h andthc I cl ..t. ai d nod ' ,/!o!r 5 tc ard or de.
pr!.e:sl i g l ystem5t 0f !l .uLa tc! f g' t i f 5 t.o t lr r f d

r - rc! !a len t ill. r f J l t e. r f . " : ! C t . r y iid !. L r . L

4 f ,r' .! re. d. t. f!.:r l he 92! !!! i o a.kc loLr r
W eb basedse./.cs.c.e.. bL.to el eryon. ( tl r her ene
.L! o r.or..iro nc .rl ' e. t!:!fe ercefsrs? 0r a tt the .ne : m. nre si- e. t
t-"xta ite.n nl ! es lc . . t t . . . t eit . o r : . n: !!ff.e ) \,' Jr..iLy!. ot .et rfi .:F to! ercr.L r. t oLr r
r e . 5|a n_ gt t Lo r f ak e i. ! gat or s m Ft . t l] r t h e
:.! 5.r.e n . e. de. s
:tl t!ict .n.l t ! . pef . ble ! r . [ e! t ] . . r d ! r . {s - v
SoURCES Sres Mun cer A..ess bLdof Fa.e rhe Fore i Larv. /r'ep^1 .r,a
A ge ![ 22,2nu
:: .te.f n a! q aI on m ec r r n 5m : l P !bt.Wpb s l .s nrpossbLeror0 :abL?dP eo.i ?to Lrs. Ti e 0 $bi L i y R qhrs
 Pei3 | Eus ne55hro,ma,,ons\',r.ffi

1 CommissionWeb sile, t..es*d M.y 23, n\t!, M.dr.gb,or4 "Diebili! Righls La*. accessed May 23, ?0d4 ai
oiscdmina|onA.t l9?5 k. 50l, a.cessedMayX, 2A04,at M.legis- csuid..htaten.hard233st "w.b kcessrbilii Inlliiive, .acc6*d May
'd-Dnr n,o Ca.L' dctt..s t oa, e505Ac.nr? 14 A G, o. rd Disaor'y 2001,at w w3.org:/WAl.
:
I

Profto wers!se sa s ophs lic aled

ord erp rocess n9 s y s t emt hat el6y s
o*, {.1 .j ts al ira$ r-lf-"' 'd D- t 3 .) 4
a con su merson L ne or der f orf r es h
llowers d recttyto lhe grower.
A r|rl-r.!:
Thfo ug ho ur the p f oc es st,h, " I+zah Ik@\ (rirut |inna a,!l &( rui Y.i*-le,
ProlloweB sysi-emgene.aresa
se f e s o f e -ma t m es s ages t ot he
cuslome . p rovd r ng! p- t o- dat e
n foma tiono n o r der s r at us ,

artr

As dkcu$ed in Chapter8, orderprocessing is beingdonethroughe-.ohherce and:?

terners)sremstoagreare.extenttoday.Ior eunple, PmflNe6 operaiesanInErne.brr:a
order prrcsing qstem lhar deliven flowcr straightfron the grower to the recipier:r
doootep. The ditec deliveq' offresh floweE frcm rhe srostr bypdses ihe sual disftibu3r
centenand retailfldris$, reducingtransitrime ard otendirg rhe lifc of rhe flower for
re.ip;ent- The orde. p.ocessi.gcycle beginswith opturing the cutomer order at -
PrcflowersWeb sir. The order is then relard via rhe Inremer to a specificgower, ba*d -:o
rhe rypeof0orveresoughtand thelocarionof the recipienr.Ea.h panicipatinggrowerhr.
l'roflowc.ssNer serup ar irs sire,which receives ordersdd prints them. FedEr shipf,]r
labels and sreerins cards arc als prinred for each order. The gbw. then pack hvdn:i
cooled flowen into a special box that is shipped via FedEx for next<la)- delivery to e
recipient.Throughoutthe prccss, rheProflow.rssystemgenentesa seriesofe-nail mesa3o
ro consumerFwhen rhe order is placed,when the flowers re picked up for delivery, si=
rhey drire, and who sigN for lhem. "

S a L es
Co n fig u r a tio n
salesconfiguration
system Another inportant opect of order procesing is salesconfiguation. The sajs conffgr*
Pro ce ssthaet nsur est h6tt he tion rysten ensuresthat the prcducts ard servicesordered are sufficient to acconplish *
p rod uctsan dser v ic es or der ed
6r e
cusroners objecrives ud wi work well rose$cr. For enplq usinga salesconfigunro
sulfio en tio acco m pt islhe
h
cusiomef s obj,"clivesandw llwo.k program,a salesreprerentarive knos rhar a compurerprinro needsa certaincablem: e
tAN qrd so that it can be comated to dre l-AN. \Tithout a salesconliguation proge
a sala representative
night sell a custonerthe wrong uble or forgetrhe LAN crd.
Salesconfigurutionprogramsalsosuggestoptbnalequiphenr. For*mple, ifacusroE
odcs a handheldconputer. the sales.onfiguhtion prognm will suggesr an AC adapt=.
backupsofrwareand comnuricatios ardr to oable the user ro connecrwirelesslrs
prinles, llN, and rhe Inrcrner.Ifa compdy is buying a Boeing787 aiplane, a *les e
figurarionprognm can help the salesrepresentative work wnh rhe companyro detern*
 rF REor.e.rani rs srslms I ch,prd e

:; iumber ofsers rhar areneeded.the mosrappropriarenaligarionsvstehsro instell,rhe

r. of landinggearrhar should be used,ard hundredsof orh.r alaitableoprionsthar can
p( r ieo br r h e r
salesconfiguradonsofnrare.analsosolvccusom$ probtemsard answerrhcirquestions.
::. aanple, as al s c o n fi s u ra ti o n p ro g ra m c a rdetomi neeherherrE doryroboi madeby
: manufacruiercan be conrclLedby a conpurer sr.th developed1,r anorltr ndufac,
:d. Saics.onfigu.arion programscan ehninrte hist!t6, rcduce osls, and jn.tar
,luc s . Y ouhav e u s e d a s a l a c o n fi g u ra ti o rp ro grani fyouharcevergonerorheW ebpage
r dajor juto haNlaclutr and speciliedyour dreamcar conpLr wirh speciJoprio;s
i iearures.For exmrpl.. on.e you choosea badc model,drc salesco#jsurarion $fivare
r.::rnines that onlvcerrainenin6, exreriorfatur6, and intcrior colorsareavailable.

5hi p m e n tPLanni ng
.:n o.dersreceivcdrnd an),orherordersnotyetshipped(openordes) areparsedfrolr rhe
-:ir en!ryqsrcn to theshjpmerr phnning rysrem.The sfiiphcnt plmning s)r.em deter- ptanoing
shipmnt system
:i.s which open drders bc filled and from which lrrrrion rhcy will tr shipp.d.This S y s t e ml h a i d l e m i f es w h l cho p e n
: (ivial r*k for a small"ili
companywirh lors of inenory, only or shippinglocation.and o r d e r sw i l t b e f t l e da ndfr o m w h ch
." cusromes.oncenllardl in a smallgeographicrrea.Bur ir is an drrmdy conpliuted t o . a to n t h e y w t t b e s h p p e d .
tof a larg. globalcorpoarion with limired nrvcntorv{nd all ordc6 for all irems.an be
-.
..ir, dozensolshipping locarions(plan$, warehous$,conrEcrmanura.trrerc,erc_ljxnd
-. oirhousandsofcusromes. The trick is ro minimia shippingard warehousnrg costs
.. sriil nceLingcusromer dclivervdates.

M a n yc o m p a ne s u s eRFIDta g sl o
s p e e d o r d p
r r o . e s sn q t h e a n d
,. m p fo v eI n v e n r 0 ray. c u fa cy.
l S o u r c eS: p e n c 0f r a nt/Ph o to
Ed t l

. hd output oflhe shipmentplanningsntcm n a phn rharshowsrvhereeachordcr is to

.' idr ndapr ec ne s c h e d u l e fo r:,h i p p i n s \' trh rs pe.i tccai eron a spci fidal
c eaD d ne.
'. .',ten alsopreparcsa picking iist rhar warehouseoperarosuseto rler rhc ordeied
J ., hom the{arehouse.Theseourputsrmv be in paperforn, or th! may bc conputer
- j\ rhat arernDsmirredelearonic.llv.The pickins li$ docu'rent, an dinpic of$Aich
, -.nn in ligurc 9.9, lists rhe cutomcr mme, nunber, oidd numbd. and atl irem thr
:t: : c enor der ed. Ad c $ ri p ri o n o fa l l i re m srl
, o n gw i th rhe numberto be shi pped, i s al so
 Pet 3 | BlsrEs iroifi . n :ysr.trrs

' r o) n,ker
Mr K t h+ g,e" ,ty i htrcvol .,. rbi t,ry,,, mee,c, ,,,,rer der jnd L, e. r L. !
h r.h c,u.edi ,.Jr" nri onorn,npl i ti ng,h..ti $Jr.sJt.or..t' .i ni ,..rppt v. hr ir . ,
E
sloloing c]-cier;hes, ard bdrsins nrores.i"-. r. ,h. *r .f;;d,s _*.;
:osis,
demdd. One major ds {,f improvemeD vs ro ituotr a new shipmot plaming rra
rhar savedir a lot of nonev by reducinsrhe nunber .fle$_rhd,f; rtuj.load shlD-:3
and optimizhg its shipplngpa(erns.,3

@
A PickingList
Th s do cu mentqu des war ehous
mp(o ye es n loc atn9 t em s r ot an
o rde f No lethe s ec ond6ndr hlr d
cotu mnso t th s Lp, whic hi. s lr uc t
the warcho us e wof k er s whe. elo
to ca teth e rte m s At s onot eihatin
th s nslan celhf ee c 6s esof lhe
lh rd tem wer ebac k - or ded0nc e
teh sa re prck edlr om r nv ent or yr hs
daia rs entredinto the data
ft6n ecton pr oc es sng s y s t mand ,
a p6 ckn9 stipands h pplngf ot ic e

S h ip m e nExe
t cu tio n
shrpmenlexe(utionsystem Tle shipnert *eution sysremcoord;narcs the ourftdv of r11productslion an oe:- +
Systemlhat coordnatestholrflow ri r.w i ,hrl -eoLi p..i reo,d,.i .eri ng!uJti Dp,odu.,.,.r,i re,ncr.,on" r . . I h. .
o l a ltpro du c t slr om t he :rtc
o rua nzat o n.w it h t he oblec vt eot depdrnd! is sualy resp.*ibl"d.;h)"i""lr p-k"gr,g *a a.[*;,g I
d etve f n9 qu atly pr oduc t sof t im e oxromcn andsupplios.This deliveq.systencu indud. "rif..I".. .1
senices,rr".kiDtop*,,
,rJn..e.i,. lhe .).'emre,ei.e, t,.J<ing I n I on -ail
t-e.t-pnlr pf"..,.e,, ,.-
somcrn,, orden.,rnorbe n ed'hrnJ.,.,,.,pe.ifi,
J. o, ;,.,.o; i, .,,i."1. *..
meannrgthewarehousedoesnorhavesumcient quanriry ofanireh ro6Uacusronei!.i=l
shonago en bc ourd if a productionrun did nor producethe expecredquantin .
l re mbeueofmnufrcrui ngprobl enx.Thecompan),poti cvhavben or m slp, . .
::
nem, ship asmm)' uDirsof rhe ireh s areavailablend qote a brck udq reowsr r,:. ur
.emainde.,or rosubsdruteanorheritem. Thus,asjremsarcpl.ked.nd ioadedfor shinrd;
warehouseoperarorsmust enrcr data about the enct iremsand quanriq.of e..-hr;::
a
loadedfor eachddtr. When rhe shipmenrexsurio, ,"".- p....*i,g .,.t. i, ."-. .*,
the sy$en pasesthe "shippedorden" busjne$ ffarsacronsdowosrrcah!o rhc in\n:
sysrem.Theserr$@rions speci| dacdy wha! iremswerc$ipped, ho$,nuch ofeaci
cj
wnat pe$on or.ompmy$ssenr rhe ordrr. This darais usedto sererarea curomer n,:,E.
' l l ' e .l - ,onrru
oe.u i or w ,remJ,o prodr(. pr, | j rg dG rmenr..s h . 1 Ji. . n,t o cJ r aj
-
rcm." .ebci rg.t-ppedrh". i. br *"t . - : r .
' h c i ' e n,bei ng,\,pD cd.' ,,rrl l ,u.romc." hr
and \rhat rlr euctsrarusofall irehs in rheo.deris. Sofr<opydara srch*thatpo,,
by advanced shipnenrnoticesandshipmentracking si5rerns isals ma.tealailablero r

Elecrrcnic Afts Inc. is a !;deGgane maker lhar is onstantly rurning our:

prcducre* many m 80 a )err. Thc firh uscsa numbtr of sfmr. prctag$ f;m,-
vendorsrhat enabksn to .detinr on wha ve call 1008"4oro.,
t hclp;ns u rc..
w!'ve packedrhe or&! nunber ofproducrsin containen,"sr N.r.rcw;t,;oioi Vr
CIO. A cohpurer-gen.ared pick lisr d;@rs wafehouseworken to oick cotain orocr
s h i c h Je by ei rnerhJn,l t-e.dor \ed.-raer.. q. r8t-ed.
JnJ rtrerlor ded.D-
-rtued
coUectedar eacl point and fal inro the waehousemamgemenrsysren. .,This *.al
irn wlnr go, pa.k d, shat got loadcdonro c ruck, and whais beenrtceived'b1'the
.romer,Yrestsrvs. \Ye ve *en sr.xr r.rurns or that." r

rve n to ryControI
: trch itcm picked during rhe shipmentexecurbn tft).e$, a tra$rctn,n pn,vi.lins the
' i. runbcL and qurnriq picked is passedro rhe inventoiy'contol system.In this rva1, Inventory-onlrot system
:.mpur.riz.d nrlrn roryr.cordsrrc upd*tedro reHectthe exactquantiw on h:nd oi each S y s t e mt h a t u p d a t e 5 lh
. 0 m p u r e r z e on v e n r o r y.e .o r 0 sr 0
':. keepingunit. Thus. rvhcr ordcr takcn chcck the ifrcnrory levelof: trcducr, rhey r e f t e . l t h e i a c t q u a ntty o n h i n d o l
. nt.uredt informrtion. e a c hs t o c k k e e p i n q! n l .
L)nceproductshrve been picked our of nntrron, orhcr d@umcr$ and rcpor$ are
rrcJ bv d,einventorl .ontol applicrtion.for cxanrplc,rhc inrcnrorystamsrcport Gec
i, c '1.10)slnnariz6 .ll invcntory itcns dripped over r specifiedtirre period. ft can
rJe stock runbcn, dcscr4xions,nunrberofu,ri* or haod. numbs ofunns or<l*ecl,
-: onlecd units,avcngccosts,rnd rclatcdlnfomarion. Ir r usedto deteLninewhen t,
:.r nueinvotory andLow muchofcrch itcn to order,and irhehs nrinimize siockouts
: .rck orcLers. Datrfrorn Lhisrcporris ukd.s inpur ro orheriniirrmarionsy{en,sto help
-:uctn,n anrl oportn,ns nanrgrn rmlr:zc thc producrionproccs.

@
An InvenlorySlatus Report
T h i so u t p u lf f o m l h e L .ve n to r y
a p p Lc a to . s u m m a fz e sa L L
n u e n l o r iyt e m . e h p p edo ve ra

Oneobj tcti vei sto ni n

, r lm o$ x Ll. o n rp a e s ,i N c n i o rrn u s r b c r g h drcont.ol l ed.
. :heanounLofceshticd up in inlentory b,!placinsjust th right rhoui ofinventorv
. tr.uy or warehousc tooi.
, g,!r r.odrpetiriv. adv.niagc,n.r'r mr.uticiuring organizfn,nsfe nbving10 rcrl
, :renorv contol svsremsb.scdor ltFlD chip technologror b{ oding the finished
-:r. scanners antl radb Ll*phl rern nh mountcdon forklifis,and sireles l-{N con
:rrionsto tack eachtimean iten ismovcL{irrhcwrrchouse.i)ne signilicantadrantagt
.he ;nvtntorv detr is morc accuntcud cuncnt for peopleper&,roingotclerent4,
: rx,n phnning rnd shipmcrrpl.nn iig. Also,\areh ouseoperatn* canlt ternnined
,ldrrg dirccrionsto thc forklift drlrtrs.
P*i3 | 8 ,.....
"1 ".- .t""' y.' "..

In addnionro beins usefulfor physic-algod& su.h asauromobilesardhonr applid5

inventot con$ol isessentjal fornrdsr;es in rhe servicercror. Suchorganizarionss ho:r,
airlines.rental-cr agencies,and udversities.whi.h primarill- providescrices,.m u.. r
ventory appliadons to help them rnonitor oe of rooms, airline seats,car rentals.+
drsrdn.apacitJ'. Ai.l;neshce an espcciallydillicoltinventxyproblen.F,mpryairlincra,
(inventorv)haveabsolurely noelueafrcr a planeukes olt Yet oHbookins canresuI i:. r
mrn), $ats being sold and cusromcrconplain*. Sophisricared reservarion
sysr.lx !:a
eirlinesto quickl)-updneand add seatingssigrnents.
The us ofRllD ragsthar srppon source&taauromiion is rcvolurioninnsin\e.::F
man.semenr.t he RFID ras cd br lcded wnh inrornarion sudr d a produ.is expi.:r,E
dateand rempentrrc,which crn bd sdnnsl from a disnnceofup ro 30 feet.ERP!rf.-:x
prorider SAP makessofmarc rhat on asyriare cenain datagathercdfmrn readingRi-f
tags-For sample a cetain catronofprodud Gn be a$@i!red wirh rhc shelfit sns.: D
give grcery storesberterinldmarion about rh* invenroies.Anorherr,vpcofsofiwr. r.
ablessuppiierero ur suchdararo notiry a sroE lhar a shelfreedsro bc replenished su r
evenlhar a perishablcirem is nearingits expierion dareand irs prlceshouldbe reduc:; -rr

Ccurl Male ls a retailerofbis md rall nois rpparel.It olle$ i$ merchandise i- :+

tones rhroughdiveBesellingand markeringchanncls,includingoler 465 rdail and. j
stores,two caralogs, and nvoe conmercesnes.'lhe n rm isrcplacinga I 5 veafuld hain t-:
inrtntory-contrclsptcm with noddn soi{are rhai is inrcgr.rcdwirh its poincof-sal:
-;
tcns. As a resrlt, whenone ofits rores sellsan irern,drc salewill autonaically flow in:r -rt
inleniorr control applicationand also be uscd ro g.ndate .ustond-dehand repon-.:r
infllence bu)'ingdecisnrns. The inlorory-conrroi soft*areenploys RFID rechnolog :ru
employeesm ro scanbaccoded itenx asrhey prck rhem. The inprded sorlwareand Rj I
ragsde expeciedo helpCasulMale cur cosrsin irs disrribution cener by nearlvT0pers
and savcrhc rerailerover$20 nillion-roushly 5 perccntofsles revenue.16

I n v oicin g
Cusromerinvoicestuegderard baed on recordsreccivcdfromtltshipnent execur;on
This appli.ationencouagesfollow-upon cising salesactivities,increases -'l
profitabilin.:ra
improvesc$toner sdice. Ms! iDvoicingprogramsruromdti.dl!, cohpure disounL. ..
plicablcrucs, ard othernis.ellanou charses(seeFisure 9.11).Bccalsenost.ohpur.:-l
openrionsconrainelaborare detaboeson cusronen ard invcnrory,Mny invoicing:.:;.
arions fquirc only infomation on rhe hens ofdercdard rhc clicnt idenrificetionnur=
rhcinvoicingappli.etiondoesth e resr.lr looksup rhc lirll mne and address of the cuitr x
derernineswherherthe cu\romerhas an adcqure credit nting, automaricallycomr:*
dis.ounts.add\ taxesand otlerchargcs,and preparesinvoi.esdd envelops for maili.:
Invoicingin a serviceoryaniarior can beevennore conplicatedthan ;nvoicingin rJ.
ufadunnsand iehil nfN. l herrick is ro rnatchrll servicsrendde.lwnh a speiffc curr r
and to include all appbpriate raresard chargcsh calculatingrhe bi1l.This is espr:;i,
difficuLr;fthe daa neded hr billins ha nor bccnaccurat.lyard.onplcrely uprurer r!
T PS .
Alier flounde;ngon rhe brinl ofbankruptcyfor nuch of the I980s,rhe Had:1'D:.+
son Moror Cornpanyexpcricnced rapidsalesand pmducdonsrowth nr rhe 1990s.Hos.<
durnrgthis period,Harlq-Davidson\ business practicesand accounapalablc sysrors.*
incomparible;the conpany uscddi$erenrpaymentschedules and busine$ proccdub r
eachofns main facro es.After ycan offeedbrcl that the firm wascrearingexrra*ork r,r
xpenrs, nor jusr for irselfbur alo its suppliers.Harley-David$n emba*ed on a miii,:!r
to integrateand standardize busincsspracicesmd inturrutn,n sysrems acrcssthe cornp:r
Now supplien suchas SourhwcstMetJ FinishingGn ha.age paF6Jesand rcceiv.6l.,c
.l.xly that the companygetspaid within sevendaysof submtuinga! elecrrcnici r.:
Sourh{esrMelal'sown iDvoiciryrystemgenerates an EDl,basedinvoiceassoonasrna,:.il
is sh;pped.Beauserhe conpanv olFrs a one percentdiscounrfof lhe quick p.ymci: o
sy$emmonirorsinvoices,paynenrs,and shipnenb closdy.'-
 rrn.a.roi Pf..6s ne ard EnrerFF Re$!G t!m, iq srcm! | chtpt.i e

@
A nourpurofrhei nvoic ngsyst m a
customef i nvocerl l e clst hevat ue
ol thcufrenlnvo.e aswelt
, as
w hchpfoductsthe cu slom er

,lt

t{l

c us t omerR e l a t i o n s h iM
pa n a g e m e n t
{ CRM I
-- Jrcused in Chaprer2, a custoner ielatiotrhip mamgment (CRM) systen helpsa customerrelationshiP
:::rpanr ]lmage all aspecrsof custohd en.ounte6, induding ro*eting dd advertising, maflagementICRMIsystm
:<i. custonerserice afrerthe sale,and pmgnms to Leepand retain Ioyalcustoners(see Systemthat hetpsa company
::ure 9.12). The goalof CRM k to understandmd anricipatethe needsofcuJrent and m a n a g a t ts s p e c t so t cu sto m e r
d e n c o u n t e 6 i,n c t u dn g m a fke tn g
customerreteniionandloyalrywh;leoPtinizing theway thar
r::-nrial custoncrsro increase a n da d v e r ts i n g ,s a l e s,cu sto m e r
: iuas and sewias aresold. s e r v i c ea f t e r t h e s : l e a n dp r o 9 r a m s
CRM softwareauromats the functionsofules, marketing,odsenicein
and integrates to reta n toyatcuslomers.
r rganiation. The objectireis to capturedataabouteveryco.ract a comPanyhasFith a
.,,,oner rhrcughe'ery chnnel and sroreit;n the CRM systen ro enablethe companyto
: . undenlod cu.roner actions.CRlvl softwre helpsan otgmiation build a databc
. ut irs cusromec that derribes rclariomhipsin sufilcieni detail so that mnagement,
;e.pcople, cu*oner serviceprovider*and oen customeB can acces inforution to
::rh cutoner needswirh productplansand olTerings,rmind then of senice tequire-
::rs, and kum what other productshe or shehaspurchased.

ll
 PerB | :r tn .n ic- m :r :' sin Em s

w
CustomerRetationshiD
Manage
ment System

is a Ctu\,I $hregic advisorthat rigorouslytesrsrhe availabtcCRM p.ci,:-.

.ISM,Inc
sch yrai. Teble9.3lists ISMI 15 top-.atedpacks.s in alphabeti.alddd. Thse;a.L:f,
eored rhe hishesraccordinsro t7l slcction crirerla,includins 105 business fun.;otu ri
," .h ,,i .J i ,nre..rnJ I8 L.cr ti rl dt;ne,..LD D ori ' e{ure,.

@
The l5 To p-Ra t ed CRM

So urce:ISMPre s sReleas eM af c h
2 2 00 1i,ISMAn nounc es W lnnef
cliq"ii-4";+ni!rl !"n;;1.!l :;:,0;!q{$*q!*:iitig!
ofs
Top 15 Cuslom erRet at ionsph
6ila i"r;p;;ciii.rtad I -. r. : l
Ma na ge menICRM
Awads
( Soih{
I afe
"'.,,",.:::lryig{if ;::l;.l1:r::l:t'
,,t::'',t,;1;l':i:
M edum
& Smalt'ofEn tef
Bu s ne s spf s eand
Sot ut ons
e.ad:i,iriceMir.ij..,.,.. '.lr:r:i!!&g;t!;;,]:l:,:
l::l.i:r::ir,
i:lr:,::r',r,
aicRiMs!0rtdi; - .l
SalesPa9eTechnologieslnc
..,
o ;siicir ia;dr ' .,t ,:.ti..I i..:,IIr,Ii ,Ir,.:
r.lr.:iiird:,rri].t:i :-.:::.
SaratdgaiAyenuevarsion6.2

sr.LL.?.t:. . ,.i.r. r: s;;!;r.!r;!n;,..ltrl,it.rr'r,:]rl::.,:..,

r.:tr:.r.
qrowBueinessSot!tionsvere
on2.1
sr.rtua.Pr6;d* Rtr*rsioi t o

'lhc focusofCRM invohc huch lbre

rhan instaling new sofrmrc. Moving fio: r
culturc ofsinpll scllingprcdt.ts ro placingrhe cusomer fint is qsentiatto a succe,,:r
CRM dcplovmenr.Beforeanysolilvarcis loadedorLo r.ompur$j a companvmusr rcr.-,
 'iiher r.u$oner callsasalesrepr6.nt.rirt of cusromerservi.. rcprcsentarive ln additun
.ringsutiomr computers.nost CR\4 sFremscan dow bc xccc$cd viawiEless devi.es
lh$.iirDAirlines i' usidsr CRXI rysremro t'.ovidens nanagerscompleteviews of re
,ne'srclationships with customcnrch astravelagen.i.s,corPonret.aveldepartnens,
.: ri.ket $hoLcsaLer. Until norv,relariorshipswith businespame$ hire beenh"naged
ii!ush kpanrc xccoun$,deteidingorho{ rhevbookdt icles. If a rravelagencvbooked
on Hrwaiiar rhrou$ a sl,bil resenations]sren such x sabrcand also through
-.6
- :" ri ian s Web site, nnn.ger could n o t*il! sccthar.B<ausethe CRM sof|\are aglre-
::.! rhar inLrmrtion in one vierv,salesend rn'icc managers can nov offc deir business
.ornss wrlumedcalsbsed on txal purchasst|rough all the s:is channcls"ll'we don t
: a gorxl relarionshipwith a travd rgcncl, they mal book you or anotherairline, says
:Jon l..ke. Hr$'.iian s seniorVP ofmarkctng rnd sales."As we cnhanceour view of
.. customer tlrtiomhip andconsistcndlrppl,vgoodsales practices
and grearinfonu tion
. r rhrr cusromeL, re shouL{hrve a comp*itnt rdrani.sc in rhe indurv "'3
iomerincs ir canbe diffictrLtto gcr thedaran*dtd to suppoftrheeffeciiveuseofa CtuV
:m. This is r les$n that Gerenl Nlorcr GrP. lerrnedrhe hardmv when n o ed out
: \l sofnvarein ShanghJ.GM scllsnos of;s vehiclcsin China Ihtuugh ns joinr vcnrure
-rer Shanghai Auonorivc lndustryCorlurtion ard wanred!odevetope moreconplere
i:rsnnding oftlhinese cer buvcr. However,localdcalen had nev* heardofCRM and
: r incentiveto proirle GM thcnccesan cu*onet rndsalcsdata. Thev werereluctart
.-ruse iti somcrhingthey neverhad to do betore,and thev jusi werenl usedrc it, says
::ons Wu, CIO for GM China.Sotocrsure thar the netdeddarawascaPtured,CM buiLt
.L:b fortrl to make ir easirfor deJcs to order vehicLes. To usei! rhough,the deales
--. : gnx idet hc es s e n ti a l o s o n e ri n fo rm a ri o n rheC R Msv* cmneeds' N ow ,bydefaul t,
. .r rve get a nhicle orde., we gcr rlr cu"omer drta ar rhe sametime,' wu sa)s Thc
: r, ikd sold ncarly190,000vthides nr Chim in 2003, md vcaF@ervearsalesjumped
rrcen! tu the fisr @o months of2001.r" Someofrhe incre*e was attributedro the

io u ti n g a n d S c heduti ng
.:' .,mpurcr nanutirctu*n and sofrwarei:irmshle dwcloped specialized tnnsaction
:,-siig s1Brcms 6r companies in th. disrtiburbn industrr'Somedhr.ibu&,n aPPlicadons
, :rr wholesale operadons;other arcfor Letailo t specializcdapplicarionsTruckingfirms,
, .:ige disriburos, eLecrrical disributon, and oil and naturalgasdi$ibution companies
.:, .rlr a fervexamples. Like ai ins,dktriburion conPani4 musr alsoderemine the best
-, ,i en res,urces.
for cxanple,a notor freighr comPanvnight have100 deliveries!{)
.:. during the nextweeL,includingloadsfrom Miami ro Bo$on and Seatrlero Sdt Lake
{ routing systen hclpsdererminethe bestway to get productsfrcn one locadonto
S y s t e mt h a t d e t e r mn esl h e b sl
w a y t o g e l P r o d u c t lsr o m o n e
hescheddhg systemdeterdintsthe b.sr inne ro pi.k up or d.Liversoodsand servi.es
. Jmple, rucks crn bescheduledto delivcrautomobilethnshission slsters irch Cal
' r ar ox 4ic higa n d u ri n g th e s e c o n d w e k o fs cptcmber,w henoi l andgaspri cesartl ow -
:. obiccrhesiE b carvaprofimbleloadon therenun rripandto nininiz rotaldisrance S y s l e ml h a l d t e r m i n e th
s e b e st
u m e t o p c k u p o r d e tve fg o o d s
: . : erl,which canrcsultinlos'cr [re], drivo, andurcknanrrcnancec6$ For rhcseresons,
- - disriburioD.onpr .shNt designdTPSS ro hclp determinewhich routcswillallow
.:icicnr rn ice,whiLcmaking cosreflictivcuscol'drire* and trucks For firms such*
:. schcdulingand rouring programsare conncctedro the.rglniarioD s order and id-
.r'l l'S.IedEx usesan rutornatedvehicleroutilg and schednlingsystcn that ruesthe
nc nrlbmrationo deteminc which packages shouldgo on which rthiclcs aswell as
' ::lirery rouiesdrircrs shouldtrk and rheirseqrcrcc ofslops FedExalso uscsr geo'
.LGl ilfoimarion srattn to gcncntc conrputerizednaPs and turn-by turn dircciions
.:rh drinr. l he technology.nsrrcs rhlr d;rtrs covcr rhe t$er miles in drc shonesr
. rhuss:wingrlme and redrcng co*s.
 Pd t B I s ir e$ nr o, m d. ns ls em s

PURCHASING
SYSTEMS
purrhasang
transaction The puclrasing rhsaction processing systemsirdude invenrorr conrol,
processing
systems procgsins,receiving,and.ccoun!spalableGeeFigue 9.13).
Systems
thatncLude
nventory
con lrot,p !rch 6s eor derpr oc es s inq,
re cvin g,a ndac c ount spay abt e

@
Pur.hasingTransaction

InventoryControl
Ananuhcruringfim hasserehlkindsofinvenrory,suchasraw mtqjals, packinenare:a
fi n r.l -fd8ood..ard mri nrer.nc pan,. r,.h dry runr' * rurcr. d(einir e ho" . . r
otther itcmstheymust buy ro nDIe and ship rheproducrscstomen -u{ haw oidered.Ir ::
buytoo nuch, thg' will tie up too much ash in idle inrenrory,but ifthevdon.tkeeoenc_e,
o frh , rm\ ol hrnd.rheyr i l l beun rol . r" reer oen,rd Jnd to,. * te.Ber ue. A m : *
'e
i! tacking current raw narerial inventorycan cost niltjons of dolar, quins rhe ma,
fr,ru re rromi ,,pnf.ab i yr8e6\ehrLfatrer' dyd,.u$edrt-eu,eoran:n, . F; or y. . o _
.y ' r.n f or' l ni ,h,d prcducri rrenrory.A .i ni l r nJrv.uon pro.esng syr en
Lr n be_. a
to tnanagethe i nvenrory of theseirens.
CadisleEnsineeredProducrsis a supptierof rubber and plasric productsprim:-r
to aurotui{e.s.the fim ;s sysrenaricaUy elininadng wastein ia factory openrionr t!
r mo ' e ro el i ri n:rc el m i rvcn,oryol ,het\e.. arti .te;rptem$,.J , ; r u, on- . =
pa.rs-reploishme '
nr s) ien m tlack pans on hmd and autonatiqlly rcorderneededh:r.
b u r o n J yr h, r rhecu. rri n d,p.r@ r^s t he hrl eo ro.i moti l i e or hedulins. r , r
-i rm

P u r c h a se
0 r d e r Pr o ce ssin g
An orgaria6n s purchdng depanhenr n"ic.lly hs a number of enployeeswho * =
.p n n ,,b l . l o, Jl r. oL,.t-.i ng
" .ri vi ,,r. V /hrn$e, nur.,,1, or l .:ch. o. , ir , n. *
 rEr;a.fun Pfo.?ssi! ard Ertefp.* r.,0.-" pL". nq:v,t-' c'r'Ert" s
I

rhe purchr'insdepetrmenLi' irvolvrd lhe pucha'e order pro.osing vtem p!rchasorder processlng
-r.hr.ed,
.. p. p. r c h^i. g ." p ,.--' . r} e i r rru re.r on. qutkJl ,nd em.' e' / l ' eF
-.rt* . Systemlhal hetpspurchasrng
.rgan;don has irs own Policies,Practi.es,and Prcedures for purchuing suppliesud dep.rtmenls cofr pletetherr
t r 6 n s c t l o n s ! u c k l yan d e fi ci e n ti y.
' rpol i e rhrcughrhe l n erreror:n Tn'
r om p" ne' r e i n c re ^ ;.g l yp u n h ^ i rg n e e d e d
,-n.t Th" pu..hasingdepannent cm Ecilitatethe bulng prcces bv Leeping
"".h"ng". hasgiven
:ra on sqplien'goods and serdcesThe increued ux of teleconmunicarions
rany purchasingdepaJtnenrseasieraces to this infotnation For insmce' technologies
,herhe Internerand public networksallowputchdng mamgersto comparcprodu'$ xnd
rriceslistedin lnrernet caralogsand large+calecomumer databues once the supplieris
=lected,rhe suppliere'conpurer svsrcmsmight be ditectlv linked to the buven svstens'
.rrde6 cd besedtviaEDl, reducingpurchsingcots andtine spentandhelpingcompmies
ranrrain low, ,vetadequare,inventory levels
Cornpmiesarealsousinglntetnetexchangesto helpthenpuchatmrdials andsupPlies
.r,liscounted prices.As discusrd previously,m Interner*change is formed bv severJ
:-rmprdesidan irdustrt and canbe open to all conp. 6 in rhar nrdustry'
The Naval seaSprensCommand (Navsea)developedrht seaPofteprocurementsvs
::n to buv profcssional senics fortheU S Nara rnd Marines Profosionrlscnicesindlde
gr m n: nr gem e n ' .l o g n rr..' rp o o n mS :n e d n g " rJ fi nrn.rJlm:nrgemer' rl d rhev
: - , r nt r " r oourS < 0 0mi l l i o np < l e rr' U * " f rh c1' ,.- 161rt' " rnrtrl l l ' ut r\e rtmeto
:-.dplffe an ecquisirionfron 270 dap to les than 42 days,nainlv beome paperworkht
.:e' elininared.In addition.NarSeah* redued costsbl nore thar 10pocenr with rcLme
ajcounts by workins with tegularbidder':l Here'show rhe sexPonsvsttn works: The
r;ogrm nanagerlogsinto SerPonanddefincsrequiremerafor the purchase ofprofessiond
.rices. O"* the fom.l purchde requisirionis ipproved' a conrncringofficcr creates an
: idronic biddins eveniand invitesa group ofcontractos to submit bids once bids uc
::e;ed and the biddingeventcloses,NavSeaurn enlure proposalsonnulliple criteria'
rcluding the biddeis pot performanceand rhe pnce iCs o$erins, d reIl s its rechnical
::pabilitles.The goal is to lind thc bestvalue Once theddsion is nade' Navsa issues!
: . hr , or dc re' e ,' o ri c J l l r,' rh e u rn rrrg ,o n rru.r^r'

c 6 m p b e t st s o ! p c o mp a n y6 q to b a t
m a n u l a c l u r eor i p f e p a r e dl o o d
p r o d u c t s s, a m e m be ro f th e
w o r l d w i d eR e l aI E xch a n g e
IWWRE)an Lnternetbased
b u s i n e s st o b u s r n ess l B2 8 l

manufacturera s ,n dsu PPti e r sTh e

WWREenabLesrtailersand
s u p p te B i n t h e l o o d ,g e n e t
m e r c h a n d l s et , x t l te /h o m a,n d
d r u g s t o r es e c t o r st o su b sta n n a tY
reducecosrsacrossProduct
d e v e t o p m e net ,'p r o cu r e m e nat n d
s u p p t y c h an p f o c e sse s.

lnsead ofsearchingfor the lorcst pricesfom a lisr ofupplhrs, nuv compmicsfm

n" nnenh rn .* i r o n eo , * o ru j o t.rP p l i ctr rbri rporunr prr ' ' nd nr' * i J' rh
' . " ei. h * d o l p ri e rn d rl -e r rbi i rn ro dcl nrr uuJi o p' oJ* r' on " -'
' ' ' . i' . " " . 1. " .
..nsisendy.For *anple, the maju automotivecompdies requestrharrbeirsuppliershave
 p l .l Ls o. oR l ees.l ok t(, rhei ' opdarn^ h N { ;.hi gan.th. i bi l i ty ro. ondu. t elecl
.onlner.e follownrgEDI srandfds n aho. L.y fi.n,.

Rec eiv ing

L i k e cenrrl i z.d tui chasi i gjrnanvorgrl i ^n,ns h.rt x.entuti ?cd re . njngdcf r r ( f .
rstorsitrlclor irking po$cssnnrof. nr.onring ir.N, pe.rirg rhe,,, and rourDs :::
n) rhe pcopl! or deparm.r* rhrr odded rhcnr.]n adJirbn. rhc re.eivingdcp&une.r
riucstlic tur.hlsiry d.prrrhdrr lrhen nens hik beenrcccn..d.Thi\ noriti.rdon nr
donc using : prpcr f{,rnr callcd r Mu,i"r frt)ot or ct(rroni.rlty rtmugh r hr:
r.' N r .rn,n c,r{cd br enreri rud.h i nh rhcrc..i vi ng' tt,S .
r\]l ;npori:nr nrN'ion ofnr.!r r.etrire dcfxftmentr is qQlry conrrolbv insperr
l n s p ccri orprocedurcsrndpn.ri ccs.r setur ro l ro knthequ.l i L!ofi n. . n, nEir ( h, l
tr.n,srlnr hil insfecrion.re rnrb.ck b rhe!Tpll.r, orrdjLrnncnrsrk nade ro con)ter.
ror l.u[r or deGcriv.pftrrlu$
If anvsupfl i csro$ \enddrci r.u$on,c6ad\an.eshi pmcrLnotj ca.'thn business rr
i.'nnr is ifpur ro the .usroR.r's re.ei\ing slstenrto crrr. i rco(t of.xpedd rcci|l
Systemtha t c f e. t es a f ec or dol i d d i tn)n.i r.N re \hi pp.d w i th : ba' .ode on rl ,e.o[ai ner. A r rh. k. eiving io: [
so.ker scifs rlr bJ..xle, i!.1 a iransa.rionis senrro rhe re.en.iDgs\^iem, \.hii
dcNill.atn,n numb.r is hlrchcd rgainsrrhc lil,ofexpecrcd reipt records.This addif
chc.k imfrcres dr r..urr$ ofrhr receningproces.elin,iDa(cs dr red ro prrb.nr n,l
drLaentry,rnd rcr{ucesthe n.rual eRilr rcquied. As comprniesn,olc ro the ute of |.:
.hips rhar rrunlnit p,odu.r idenriicario! trrfi,rmirior, rhe .e.eivjnepr{ess l,i sp...

A c c o u n t sP a y a b le
accounts Payabl system Itrcaccomts parablesvstemarrcmp$n, incre.scar organiT.rions con! ot oltr pur.hr.
syste mth at n ( eas es 3n hprovecsh flow, nr..easeprofirabilitr,and providemort cll,cctive managcnentoftur-
oru anzd o n 5 c onr r c rov or
pu rch .sln g,m pfor es . as hf t ow
li.bilities.Chck bsupplier for naterialsard services arcrhhri,, r ourpurs.juotrrco.
n cre asesp rort ab t it y andpf ov de5 pr) ableapplicrdonssri \t ro lunage c.ih now and minini,e manualdara entrr. I npuI r:
no re e ctv e m ana9em enr or the furchas. orderproccssnusysen,providesan elccnonicrecordto rhr accountspI
rprli.arion tht utdlres rhc r.(,unrs p.yrtJldacbascro ceate a liability recordsho,
that the finn has made ! comnmenr ro puchase a spe.ifi. good or se^ic. On..
r..ounts ira*rbl. drparmerr r..Nsa bilt froin a supplicr,rhr bi is lcrilled and chcr. .
for accurary.Upon .{ei!ing nori.e lbar rhc goodsand rFices havebcor delnerrd .
sxtirfactorymanner, thedarais.ntredinro rhea..oura pavabteapplication.A q:picalct.
h.m an rccounr payrblc rpplicarionis shoxn in l-igure 9.14. ln additn,n ro conrr:r :
srandrrd!,nmrrioD found on aD),ch..L, mo" accountspa,rabte checksinciudc rhe n.
o,dercd,inyo;.e dare,inroic numbc6. lhqmr ofca.h nn, rny dilounrs, ard rhe :.
:nounr olth .hech. This infdnririo! rLlo\r rhe comprnv to consolidatesenrrt i o
-,
and b illsinro e singleparncri. Man)'conp iniespay rh.ir supplierscl.c'ronicalt),ustDgE
-
rhe lnrenct, orother electronicpamcnr svstems.
I n spnc of the abilin ro usee-cornnerceto buy goodsand sen.iccs. tlr ftco nciti.ri!.
purchrscorden, {rppli.r invoices.and shippingdocunrn$ wirh orc rnotherso bilts.tr::
paid is $iil a ii.r-nncrsne manuxl pnrcss. clob.l ex.hans. Scni.es (CXS) operrks ,
of tlr lrge* tl2U c .otumc,!. D.t$1,rk in rhc world. wirh noie rhar 100,000r.r,j
$ rh .rs a..ounri ngfor$i rLi l l i ori nsoods:ndscrvi ces_Ionnerl yrw b llvowncdsubsic, -
.f GE. GXS rvasacq!ir..l t,y frarcsco Parner anr{r!\' ope.ar.srs an indepcDdcNit-
CXS ocaLerlrn:pplicrrion tharauro',aresthe recoDcitiiti(nprccc$. The v;ilvare rrd. ,
LDi. Y/.b ba\ed,and spraJnrecr do.umots nto ar XMl. daraformat ,nd rhcn ri,".,
thcm aviilabl.nlin. ro it\ rEding prrtneis. D.ri tl]ndr;or, {orknow, and rhc nor;i.
rh .r " l r. u.,,\,..t..." t r,1,. rh. pr n] , . , . r "; .
' r1,.....
coxliinii .onrp.nics rchierc thc auick,parmcrt Jnc.un6 r!.1lo*.er i.rcrrory coss r;
'o
\.re !re.r.d lioh onlir p.o.umdrl proj..s.:.
 T.:rs:.1I P ro.e.r na aft E ,:rrr._i . F:sorftL l tJ i 1!i i i :mi

w
r:f A C h e c k G e n e r a t e d b ya n
A c c o u n t s P a y i b t e A p p ti ca l i o n
T h ec h e c k5 t u bd e l a t s r t m s
o t u e r e d n r o L c ed a t e s n voce
n u m b e r sc, o s lo l e a c h l e m ,
d i s c o u n t sa n dt h e t o ta ta m o u n to l

\ corrmon rcportprcducedbv the acounc par'nbleapplic.rionis rhePorchassjourdrL

. .hom in Figurc9.15, this rcpon sunnerirs all tht organ;ations biLL-paving aci"itics
r prniculrr pcriod. rinancirl rnanages use dis rtportto amlwebills thathavebeen paid
:l,c organizlion. lhis infonn.rion is rlso uscd rc help analyzrcunerL ard lurLrrcc*h
, nccds.Data s summarird ibr crch suPpl.r or Paftsmrnuf.lcturer'Inloicc numbe'
.: rprion,anrcunts,dscourts, and totrlcheckingactiviw areincluded.h addition,manv
rhasingreportsnrclLrderhe uJ rmoum ofchcks gereratedbv the accounspavable
:litrion on a drilv, weeklv,or monthlv ban

w
AnAccounts PayabLe

G e n e r a t ebdy t h e a . co u n tsp a ya b te
! p P t c a to n I h s r e p or ts!m m :r ze s
a n o f g a nz a t o n 's b i lt- p a yn g
a c tv t e s f o r a p a r l i c u l a p
r erod.

I hrc.oun$ tavablcapplicrdonricsinro orherhlb.nradonsv$enr' indudingcashfldr

.irsis,vhich helpsanorgani?ation ensurerhatsuffcienrfundsrrc availablefortherccounts
: : blc applic ar i o n a n d c a n s h o rv th e b c s s o u rcesoffurdsforpavncnrcth* mutbcnade
: rhc accountsparnble application
 P-is I d. "* - ir . r m r : . is y lr ens

ACCOU NTI NG
SYSTEM S
The primarv accountingsrtems tucludeihe budgd, accounrsrcceivable,payroll. ;s
S y s t emr shatinctu dbeu d g e t, managenent,dd gene.all edserGe Fi gun 9.l 6).
accounts receivable, payrott, asset
m anagem en ant,dg e n e rate
l dgr

Fd"r
J*t t*
. i i '54 l A ".'.'
ri P I !rmo-r
$l

El" ,

@
F ; nandat S y 5 te m s r
B ud g e t
ln an organization,a budseris a financialplan rhar idenrifiesitehs and doitaramounr!j
lhe orgaDiaiionestiharesi!witl spend.Insomeorg.niations, budgeringcan bcu expt:rr
and rimc-cosunins p.oce$ of lrouJly d;srribudrs and consol;darins infomation. b
budgettransactionpro{essing budgetrrms&tion proce$ingsysren auromates mmyofthetoks requircdro rnass bt1lr
dara,distributeit to users,and coninidare rhe prped budgers.Automating the b::s.
Systehlh al alto m at esm any of t he proccs allowsfinanc'alaralFrs nore lime ro mda$ it ro neer organiational go:; r
tasks requrredto amassbldget
se.ring cnt.rp;se wide budgcting targcrs,ensuring r consisrenrbudget m<x1elr,r
d ata ,d ist.ib ule rtI o us er s and
,
cofsolidatIhe prepardbudgts assuhptionsacro$ fie olg'rnizarior,and monitoring Lhe status of e.ch depemr.

'l-hchidn), cohperidre Dafureof loday'sbsinessen;ronn.ni, .oupled

wirh n!.ni,r
demandsfroh shareholdcsand fede.alregulatorsfo. morc accuratetinanciaiguidanrt ,
forcing .ompaniesro implennt morc rigorou\ budser,pldning and financijl fok.r,- :!
proc6ss. Flch monrh, Kiispy Krene Doughnursdcvelopsa rclling t2 montL sales::,:
profit budgerforecast$ing historicaldaa md guidarccfron managesinsidethecom;:r
and finmcid offices ar conpaniB rh.r operatKrispy Krene frmchises.Thc proces,
",-.
oDcedonehanully and detrhenred ir spreadsheers, bur ir rook t,rc much .ffort anJ :,r
nor yiel.l dmeb', useful infomaiion. Now the compary hds implemerred borh :<
procotdresand sftwareio ddelop a nore robu$ budgeringprocess. With the new pro:.-:.
Krispr Kremeis ablcro edjus!budserfore.a\6 ro orhcrneasurcssuchasncw storeopenr:,:
andto @nparefoecd$ roacrul resuls.Theproccs and s,liwarenwyieldtimely, us:u
data for decision ruling.r'l
 l r:f sr!L,r Fr..es5 nq J i E nr.rp : R P r..rri P ta,n r! 5i nenq

Acco u n tsRec ei v a
bl e
rea.counts rceivabl sysren ninages the c$h flowoftht conPanvby kePingtrackof system
a.countsreceivabte
': non.v owedrhe.onpenyon cha.ges 1orgoodssoldin.l kn'i c6 pertomd. WIn goods S y s t e mt h a tm a n a q e sth e ca shf to w
abusinessttus- o i t h e c o m p a n yb y k e e pn q tfa ck o t
. \hipp.d ro a ciNoner, cusomefs a..ounrsPa)rhlesvstcnreceives
'hc t h e m o n e yo w e d t h e c o m p a noyn
from thc invoicing slsrem,ald rhe customcr'saccount s updaredin the a.connis c h a r q e sf o r g o o d ss o tda n dse r vr ce s
-rion
,-rinble svstemof the supplier.A srare,nentreflecrinsrhe baian.edue is seni n, r.tiv.
roners. Upon rccciptofpayntrt, rhc amountdue from rlatcusomer k rcducedbv the

I he major ourpur ofthe applicrtion n nonthLy bills or sEtehents

receivable
".counrs
., ,r r custorncs.As vou cd sccin I'igu'e 9.17, a billsent to r customercan include thc
::rc irens wcrc purchase<I, desdiptions.relirenccnumbers,abd a'bunrs In addit n. Lrllls
'lhe acdnts
:. irclude d,ounrs 1;r va;ous periods,torals,rnd allowincesntr discounrs.
ri'rble appl;cdon shouldmonitoi srl.s acriri$, improvccashllow by tcducingthetime
. re.n acusromer's re.ciprofnemsordcrcdandpaymentofbillslorthoseitems,and cnsurc
:r d6romes .ont;nu. ro conr ibuteto profir.bilitl. Mosr rysiemscan handlep.vmeni in
rricrv ofwys, includnrgstandaLd buk checks,aedit ..rds, monq'wiriru scrvices' rnd
luncLsttarsftr via LDL hcicaslngly,cohpalics ar Lsing dr. htcr.er lof thir
-toric
:.,urts rcceivableapplicarion.Usilg rheselnernet slsrcms,cu"otue$ ca! pa,vrheir bills
ire .onnecte.Lo rhc lnternel on ihcir home PC, rt r rcnil st"*, or usirlgI handheld
':puLernith a wirelts comection b dre Inrener.

w
l e a F v w rN o o w An Accounts Receivable
Statemedi
G e n e r a t ebdy t h e a c co u n ts
a ,b i i t 5 se .t
r e c e i v a b laep p t i c a r io n
t o a c u s t o m e rl u s u a ltym o n th l yla n d
d t at s i t e m s p u f c h ase dd a te so T
p u . c h a s ea, n 0a m o u n l so ! .
l4A.l--.n4,1d6

rs33

15?

. h .ccountsr{tivablc slstem n "nrl to nanasing thc cashilow ofa firm. One major
l ircreasecashflow k bv identilvilgoltrdue ac.ounrs.l(epors aregcreratedthat age
un6 io ident;ly.usioner whoserccounrsre onrdoebv rrore tltn 30,60' or90 davs
:::Lrliciion m1v be nrtriatedt, collcctfurds or teduccdrecustoner'screditlimn {ith thc
depcndingon $c anount r)wed.n Ldegreedi rr.ness.
\n inpoftrnr fun.rio! of Ih. .c."unts receiu"bleappliotion n ro ldentili bad cedit
.. Be.rusc a s;able rmount ofan organizru,n's Ncrs can be tied trp in accounts
. onc objecdrt ofrn accountsrtccivableapplicarionis to ninrnia lo$es due to
'rble,
Jebts rh$ugh earLyidcnrification oi potemial bad-dcbt cusomers Thus' manv
::nies routinelvcheckr cusronreisprvmot hi*ory bcforeaccePtingan s order'With
:r.s h relecomnrun;cadons, companies co seaLch hqc narionaldat)bdcsfor !hnanes
: .n rnd nrdiiduLs who haveben rcportedas delinquentoD Pa)'n.!rs or asbad cedil
., Nrher usnrCdtermLdrra like thit ii r T1'Satfliclion, however,cornpuies mus be
.nrelycauriou rcgardnrgrheaccuracvoldrc data
 Pet 3 | BEiE! ir d ia L o r r ip m i

I The accountsrceivable agingreporr,shom in fiarre 9.18, is a htuable srecr :rd,

,c .o :n .. e..i ' rb. " ppl n.,i ,,n In mo.,.se,. r 1i ,repo;r.o,.,r our.,,.o,
s, leil . . . r L
by drte. For unpid bills rhat h.ve rdained outstandinsfo. a prcdeterhired aho:,, d
,i n c .,,r',rdc fori ,-." 1J.,be" ur,,rdr.dl ." * ...,i a..r,.r,ornr.,e.ri ,aL cq.
re p o as iw . Tr' nrs, . . 1 i .r rr.Jr re tooi ,i o targin.t. ,h,, ,,. onqo,.,. ue . o , t . ;
.,n b .i ,l i o " f.l Lpr,,prn.nr rrreo,J,^bei n!.el r todel i n.l rel r.;.,.me F. _; . . ad
r.poft an bc producedon a customerbr-customsbasisor in a smnary lbmat.

w
An Account5 ReieivabLe Aging

The ou tpu tffoma n ac c ount s

.ecervabtapFlicationtetts
man a!e fswh atb illsar e ov er du,
etn er cu sto merby c us lom e. or na

P a y r olt
The .wo prina.y ourpursof the payroll q-sren a.e rhe paroll checkand s b. \,F:r
disfibured ro theemployes,and rhepayrollrcgister,whichis asunnary reporrofrlt :rri[]
i rAa ,.i o n ,. l n,Jdri on.rhepayrol l.r" empreprqv-2\r" .enenr,Jrrh;en do, , ..E
for t* purposes.Responsibilityfor running $e TpS appli.ationcan b
setrice@npd). Orher firhs may rely on a puchued softwareapplicarion6r::inl
o ro .6 ,i n 8 . sone of Lhe.epJ.& ge. rre ,-ord for .p(i fi . ;o,!n; o, \ ": . 5
"
ac.onmodlie ew;de nnge ofuses.
The nunber ofhoun workedby eachenployeeiscoltecredusinqarerjeryof {tara5
J .,c e .. i n JuJi ns,i mecu,
" .. ri me," rd..:nd.nou.rri " tdr,,-.oJtc.;o.dni .c, ii *
rn ,J tte d i at aadmp* l a,z. l n J rru,,.ru.i n8 nfn. hou,. $ofkcdrnd hbo, . - i4
b c .rp u ,e d by ob.o rhrr r\i . "q.
b. p-.ed or ro rhe mr ui a. r r r r c : w
l .re n ..d D ruri ' tsrhi .d" o.ni bl e.be,.er" nal y.,i ;d.onl ,.t oer trbora| ] or m er ,. . s.
andsheduling. Bannd Health,an operatorofhospitals,long-tern carecenrers, fanit, *
id. and home .re services, realizedthesebenditswhenir deploveda newpalroll appli; -or
system.Bameremployeeslog or for *ork at on-sirercrminak,via de \reb, or thrcE a
i h re a L ' n c\oi e-,e.totue thorre rppl i uri on. rhordr" i ..JprJrcdJrd.e.rr,, R, l=c
payrcll rysremandis oailable ro mdagers for decisionmaking.Now, nursingsupeno
canadjusrsuflins plansbasedon fictors suchswhich empl"yeesha,e *o rkcJ o".., o
which skillsareneedcdfo. ashift.,s -,,
 ,r !.r 'Pf.i es !f!.r .l E . fr .r : i .;.!r r l L. .. I ch.pte.e
"r.r,,.

prlroll dati is usedro prc!.,t $telly, bmteklv. or mouhlr emplove

rrd.c colle.tecL,
h.cts (seeligrr. 9.19). Often pryroll applicariors have lDI Jr.dgcmen$ rvith
rlovcesban[s to nake directJeposiainro emptorcci accounts

L2l1 w
A t y p. a t p a y c h e . ks l ! b d e l a t5 l h e
e m p t o y e e .h o u r sw o r ke dl o f Ih
p e r o d s a t : r y v a c a t on p a yl e d .a t
a i d s t a l pt a x sw l h h el d a n do th e r

r-, vou can seenr figure 9.19. thc papoll prognn has pn,ducer{a rteklv pavchtck,
regolarpar' f.ehiun Px,r'
-r ncludesthc cnploveei hourly Lare,rml houn so.ked,
.rl rnd **e u rvithholdings.ud orherdeducriors.In aJdition to pa,rchecks, mor
progranrs ptod ucc r papoll jounal, shosn i n flgure 9 20 A tvpicalpavrollj(Nrml
'll e m Pto ye e s
A r u p o r lt h a tc o n t a r ns
:,ns cmploveesnrn.s, rhe ares whcc empbvets woLlcd durmg Lhc t'cek. hour
. a m e s ,t r r ea fe a w h r e m p r o ye e s
i.11,rir. pay Ete, apreniun factottor ovcnimepay,err ngs,rhe ernngs $pc,vanous w o - k e dd u . n g t h e w e e k,h o u fs
;rons. and net pay calcularions. I;rancial marages ai dle oPratiomllcvci urc the w o r k e 0 t h e p a y . a t e ,a p .e m u m
tljourial to monitorandconnol pay ro tudivirluaL emplo,veesAs vou canseein Figurt ractorror ov,.rtme pay,3rn ngs,
drc pa,vmlljournal also includts toralslbr hour rvorked,earnings,deducdonsrnd e a r nn g st y p e v a f o ! s d e d u cr o n s,
a n dn e t p a yc a t c u t aot n s

@
Cneraled b y l h p a y r o tt
a p p lc a t o n .t h i s r e p or th e L p 5
m a n a q esf m o nl o r t ota tp a yr o tl
. o s t s l o f a n o r g a nz at o n a n dth e
m p a c to l t h o s ec o s l so n ca shtto w

ii. manr o u iransact n proccsing applications,tht pafroll afPli.ation irrcrf.ces

oLhcrappliclions. All paroll cnries areentccd ilto the gncnl ledgersrsenx fur
roc, rherecrn bc a direo link bcrweenpavtoll acrivitiesrnd produ(nrni nrv.ntor)"
:ol opcrations.Dirccr li,rks are olicD usedfor manuhcturing opcrationsor jolr shop
rs bccrused*rcollccred o. h""r*orked f",n lhc pavrollapplication helpsderen ne
rtrl costof conplcting variotrsjobs. Ior mtupl., if an emplorc I'ho *rns $15 pct
.pendsl0 houtscornpleringa panicularjob, thc hbo. co{s fonhrrjob 3k $300 1his
oinrtormarnrnfrom rlrepayruLlrpplica n n usctulin dertnniningrlre .on o produce
Ju.l or.ender i sn'iccand thts nr dctcrminng its profiabilnr"
 Psi s | !Jsres irofnar oi sls1ems

A s s e tM a n a g e m e n t
Capirat arets represenrnajor investmenrsfor rhe orgmization, whose value appean c:
b a l a n cesheerunderfi xeddsers.Theseasse6haveauseful l i feof sevelvea6or nor i:
655et mangement transaction whlch theirralue is depreciated, resultingina tureducrion- The as*t mamgement
action procesing sysremcontolsinvestnenrsin capitalequipmenrand namges de;:
Systemlhat conlrots nvestmentsin tion for mdimum idbenefils. Key fearuesof this applicarionincludee$icienthandl=
capla teq u p hnt and m anages
a wide rangeofdepreciationnethods,country-specilic tu reponingand depreciarion ;-
d ep reca lionfor m dx lm umt ar
tu.es for rhe various countiGsin which rhe firn doesbusin6s, and workdow-Irr
proc6sesro esjly add,iransfer,and rerireasses.
Valt Disney Vorld ir Orlando ues aser mamgenent soliwne ro rack dl nr
inprovemena, ilspectionsof no developmena,renohtionl repairs,replacenen:r
u p 8 ,d e.ofi u., rbou,ei errhrrgon rhepreni .e,. fne ,oftw e hotd.dr $. m m n. -
million work ordeB.The datais urd to producereponson hisroric.tdaraand lrer:r
qusesformaintemnceorrepan,and dalysis thar helpspinpoinrproblemsmd resoht
\firhour suchsofNare,companieshaverrodbletuanasinslhcir Nets be.aur rhe\ ::
know how one job relatesrc another.\0ith as*t managemenr softvare,workes tL.:
eNerprisewidevis ofall the ssers acr6s rhe orgeftadon. Thar @uld keep a.or
ftom, say,rchedulingrepairdfs*enl buildings'roofsar the sme rime it is resurt::r5
porrion ofiis p&king lot, prevenringworkes froh rerchingthe buildings.:6

General.Ledger
Everymonetarytrarsacdonthat occu6 wirhin an orgdiarion nu$ be prcpert r(::
Pevnent of a supplier'sinvoice reeipr ofpaymerr fmm e customer,and papren: ::
genralted9ersystm emplope areexanplesof noneeq' ratracrios. A conputerird genenl ledgers
Syste md esign edt oaut om ale desisnedro.llow auiomtod fioancialreportingand&taenrry.'l'hc sener.lleds.ri
lin an c6 lrp or linganddalaent r y .
tio! producesa deiailedlist of alt busines tnnsactionsand acriviries.Repo.rs,in.
prolit dd los (P6.L) sBremcnrs,balanceshets, ard scndal ledgersta.emnrl, crn a
qaied (ke Figure9.2I). Irurrhernore,hisro;caldaracan befteptad usedro genenr:
mal$es dnd ftports fo. vadou accounBdd soups of accoms usedin lhe sereri
package.Variors incohe and expose ac.oun$ can be genented for Lhecunenr pen
ro dare,andmonthtodaresrequired.The reponsgenerared by rhegenenlbdserappl:.
areusedby accountinsandfinarcialndage.s to bo nirorrhcprofirabilityofrhe o rgan
ud ro conrol .a.h flow.
Financialreportsrhar sumnarize sles by cutono and invenrot' iremsce
produ.ed.Ther reporc de sed b)-harkerilg and finmcial nanagersro detcrnine-i:
.ustdhers arecontriburingio sale and invenroryiiem that aresellingu opected.
Akey to rhe properrecoidingand reporting offiracial irans.tidns ;srhe corpo:.:
chlrt ofa.counrs GeeTable 9.4). This chaft providescodesfor eachgpe of expr--
revenue.By enrednsrransacrioscorEistenr wi rh rhc ch&i ofaccoun6,financiald.:
reporredin r sinple and condsientAshion acms all organiationsofrhe enrerprir.
it is a multinationalcorpootion.
Niche P.etajl|tututu.n;chertntl.,z) nanages nine bourique retail web sitesthar e
specializd item asjoggins smlles, rrhletes' Sunto warches,innaubles rhat senc r
beds,and high end childrens cd s@$.To keepeftware cosrsdown,insreadofpariN
lhan $50,000for sophisticared seneralledgerand a.cosdns software,ihe conpr
sribes ro Nerledger,In.. This online Fnice providerolTersa setof inregnredacco
appljcarions th,i captureranscdons diiecdyoffNiche Rerail's!(eb sitesat a cor oi:
$250 pernonth, which alloq NicheReiailto avoidhiring additionaldaraendyperv
for nuitiple accountingapplications.
 T r r ,i r Lr r P[i :s ! I q:f. :f.i ft.:. R .:!. ,_! Pt.,r ]l :r s c T ;

Elry
O u l p u t s l r o m a G 3n e r l L e d g e r

A n n . o m e s l a t m e nltto p )d e ta i l s
s a r e s c, ! s 6 a n d o Pe r a n t9
e | p e n s e sl o p r o d ! c ed sl d te fr e .to t
n c o m ef o . a n o r 9 a ni za l i o na .
balance s h e e lL c e n tete
r ft.n d r i g h tl
L) nr. &a\ic. pro\iderssuch$ r.\erl-edger aE exrcmelv vahiblc ro snnll busnre$rs. b r e a k 5 d o wans s e t sa n ldl a b i ttr e sso
:le rgrppli.r&,n\ rs a nenvo*ed serriceon r rronthly subscriprionbasn,tlrry recluce lhal manager5 c a . se ea l a g L a n ce
w h e l h e . n c o m er s c o ve r i n g
-f irrl costsof enterpriseatrli.atnns.r Anorher pforider of \vcb bascdeccounting
e r p e n s e sA q e f e f a tte d q e r
..s is hcrLth.arrsupplr.hain r*nvm yendo Neoibmia,lnc.,widr a \i'.b bis.d prod
s t a i e m e nltb o l l o m l tEck cfe d ts
|r1 nrtcgfurcsrvnh heakh.rre p(^,;ders e{isringfaiienr regi$nr on, bilhrg, gcn*:i
::r, ard snrgervrcherltrlingslstens.]rAntl because the web-b.scdsysrcnis lilir hosdl
: rttired r n onthlv subscripriorlic, no ir fiasrrucrurc, nr.h en!.c, or u ps d work
'ir
r. n be donby a heahbcirrconpul's irrcmal tS orgrnizrtion.'!
 p- t g e " ." * . n ,' .a " " :i .r..,
I

Iry
SampteP.rtiit Chartof

I.IMALsB

TUITION
Fr;feeiidn'isa ke!

INTERNATI O NAL
I SSUES
Busines*sare increasingly openring acrcss.ount.ybordersor aroundthe qlobe.\.Iulr -.
.i o n rl -opo,rror.m,rr,ddre..nrn\i s,r,rnd-ompt,,i ,e.,rpr1i n8.b,,i t dir ". :
openiing rheir TPss. Different lansuages and cukurer, dispaririesin rS inriasrruc.--:
varyinglawsaDdcctons.ules. and multiplecuneDcies arearnonethe chalcneesoftini.
,l l rh e bL,,nr,.p,nr.,...J.rone. rrd.:o. di " ri e,o., i rur;" ." .onpir . . -
-,t
D i f f er e nLt a n gu ag e sa n dCu ttu r e s
ft is dificulr o ser peoplefrom s*enl courries who speakdifferert tanguages and ,,::
$ n e rukd i n d,ffffrn,. ul .u' e.,o eg,(eon r ngtr.ork oro.< - t" ..-, . . ; ". p", . .
d o n o r ' oLInel i w o k :1 te i n r afl w orkedenqronn.rr. Ire.p ,e m
' tu
n a n y n uL nauonrl.ompani e.rr. ab.ero e,fuhi .h .i o..." .,rf-;i on. w ir \ r hei nL.
pdmes rnd roil out standardIS appliodons for all to use. Hower., rhosesranl.:
applicationsolien don't accounrfor all rhe djfferencesanong buines Darnersdd :-
p o v e 6 opeft' rg,no' fe,p,rborrhe" orl d.o.--e.i m,.u.v,eqri ree.rea.ive"r J, .
, u ro mi ari on- for eumpl e ocn rhorth Ln& i .h t-^ b..on. , .k;drro bbine" t ""L-
rh o n g e h uuK . and .en,o,mJnrg{.. mJnyp,uotr $:rhi 1 ,.Toi ari o1. do nor . per : -
g l i .h . \ r re,ul . .o' i (rre ruy need,o be de, gnedw i ,\ t..J ." ngL,S , nrer i". e., , r _. .
rhc suc.e$fulinplemeorarionofa newsvsreh.Cusromizarionruyatsobe neededftrr c:
n ( d .: he U .\. d" rr l nmd, noFrl dry,e . rheLurop." r l ornrri ,d. l .monr yr ur . - _
J J p /nu ..,err mon' h d-' . 5ome,me\ utr6 m" r rl .o hr\. ro i mD tem. nr r anuJ p, . , .
!o ovenideesmblished fomarting to enabtesi*remsro funcrioncore.tly_ --

D i s pa r itiein
s In fo r m a tioSyste
n mIn fr a str u ct ure
The lack ofa robusror a conmon infornarion intiasrru.torecan als cMte Dfobtcm.
t.s re l e ,omrrunn" ri .r.rdu,ryi .hi ghi y.omFU ,i v.." i rt-m,rrvoprr,nrb r t , , ghq, -
rerviccrt relalivelylow rares.Manv orhercountries'rctc.onmuniadons seNicesare..:-
rolled br a ftnrnl sddnnenr or opearedas a monopo\, wirh no i,cenrivesro pro,
t4s!and indpensivecustoherscnice. Ior example,much of Latin Americalaesthc re: -r
.\e * o rrdi rl rrerrcru,s,.rndorl i nem,rkap.a.e.reJr,^ norcri r-rr L, ; F. lh. i:
rrk . i r d l l . uI l or mu rrrdi otu,.,mp.' de.,,,s" , orl ; F qi rh rh-i r t Ji l \ n( r i. "1
n6s partnen.Ever soherhing* nundan. d the powcrplug on a pieceofequipmenth
i. oDecoun!rvnay nor fi! inro fie powo sdker ofano E. counrry.

V a r y in gL a wsa n dCu sto m sRu te s

Numerousti$f canaffc.t the collccrionand dissenin:rionofdata. For one examole.hu
' rq . n o,1e,.,rr ri ' p,,.n,.r ,hr (o,di ng ot $u..cr i i l TJi .c a. . qj. o, . o
/p
 i q;ri :,t. rr r R pnr.: -' i Jnrrq5F' .ms I
r cr:rLrj i P fo.a:s chapter e

!unries havcpassed lawslirnring iheransbordcrflow ofdrta Linkedo individualsSpecif-

:allv,EuropcanCommunity Directive95/96/EC oi I998 rcquiresthat anl conpany doidg
rusinesswirhin rhe bordes of$e 25 Euopcrn Unn,n membernationsprotcctthe pimcv
:icustoncn and employees. ft br" the expon of dra to counrr;esthat do nor ha'e dati
:rorectnrnrandardscohpdblc to the EU's.lnirially,the EU countrieswereconceLnedthet
:5e U.S.s lrgely volunrall systenof darapriracydid not nes rhe F.Ud;rt.ive s srrinsenr
.f,ndardr.Eventually,rbeU.S.Deparment ofcomerce worhedout an agreentnt to allow
\ ftrican cohpaniesro im port and exPondata faiLructo gainthis compromisewould hare
limned rhc cxchange ofinfonnation aboutcmployees rnd consumen
-ocb'Trade cutom nrlesbeneen narioDsareint.rnarional laws thar set pncices for nvo or
aore n at;dns'comDercialtmsaciions.They covcrimpons rnd cxponsand the s)6tcnr and
:roceduresdealingwith quot*. vnas,enttv documerts, .onmcrcial invoices,for.ign $ade
: D*, rhepaymenrof durya. d txes, and rela!<l isues.Iot exadPle.thcNofth
: n*ican lree Trade Agreenent(NAF IA) -"nvothcr
of 1994crcatedtnde custom rulesto rddrcs
:; llow of soodr throughoutthe Norrh Ame.ican.onrinen! Tht gr.ar nunber ofthesc
..,stonrulcsandth*charg6 o'dtinecrcate ni$marcs forpeople who nustkeeptxisting
l'Ss.orsisleN wi$ thc nlles-
for *ample. no EU regulations, colledrhe Ratriction ofHaardous Substmccsrnd
.rare Elecnicaland ElcctronicEquipmcnt,rcquiretint elecrroniamrnuiirctuen tack and
:: uage haardousmrterialsin thecomponcnrsth.y uscin theirproducts.l o provea product
:rDplies wirh theredirecrivcs,a conpol ms haveinformotion systemsand audn od
'.ioftingtools to rEck evervparirunherand rhe quantityof chemicls eachpalr contains
i\llt Reserrchestim{a the avcageIS cct to supponconplidncewiththcs cnvnonmentrl
: :.rt;es scee& $2 nillionper manufrcturer.Holet Packardisworkingwirh i$ supplicrs
: .nsurecompliadcefor irs 36,000 producrs Havnrg ro nonitor elecrronicNastethrough
:: supply chain also hx mant changesro HPs busines mode\ and
:rrionshipswirh cusrones, supplieq and rcrailerc.ro

Lult ipleCu r r e n c i e s
re TPSsofmuhinationalcompanies must conduc tnnsact;onsin nuldple cuiienciesTo
:r so, a rt of *choge ratesis defined,and rhe infornation system apPlythe* nr.s ro
:::rolarefrcm one curency !o anorher.The q'stos nu$ be curenr wi$ foreigncurencv
r,:hangerates,handlereporlinsand orher $ansectionssuchascashrceipa' ;ssuevendor
:..oens and custons staremens,record retail siorc pqnens, and generarefinancial
-::ons in the currencyof choice.
Unned ParcelService(UPS)prcvidesan emmpleof a multinationalconpml thit nsr
::n *nh ther issuesmd orhes asn expandsirs Par.eldelive') kNice into China UPs
:rc both nultinadonal conptn;esopenrins in Chinaand localbusineses.The compuv
::;rided its dnver with versionIII of its Drirer Infomadon Acquririon a.d Deliverv
llAD) synemfor handhelddqices on Chineserortesro enablethen to eprurecusroner
(lommunicationsaredone in realtine
.naruresand rensnit delivery$arusinforma ln
-oush en inrernalpacket-dataradio thar connecn driles to UPSi world de dlivelv
-.-" o' t . upS l"' .n l*"diare plansto upgradeto venion IV ofthe DL{D sysren.rvhich
::pons Bluetoothand a nnse ofother wnelesst.hnolosiesbeise rhos stahdtudsm
::r commonlyured in Chim. UPSh* devclopedmd dcployedChinese-language verions
: rs\roddShip, Qumtunvi*v, and CanpusShip shipping'henagemor svsttu rnd has
- ie rhen widell-accesible to its custones overrhe Web. Intoduchgsmall busincssesto
.,onred shippingftchnologyisker to UPSs abilityroserremillionsofChine* custmen
lS 1lofro parfd and iD;nll \reb tcrminalsat smallercustonen that genuatea lot of
UPS servies Education;s anodrerkev
-sine* to nake surethar ihel contiruc ro use
::npooent ofUl'S s expmion in China.UPShadto train the dritre to undertmd English
., rhrt thev would 6. ableto uploadthe colec shippingin fo.dation !r rc Ih en svsrensl n
r.liron, Ul']S runs seminarsand confcrenc* to cducaa buincs ownes abour the
.-r'"1og and its benefits.UPS also is working with Chinesebusinesses b help dlem
shipping datr.rr
-:ndardize
 Pdis I Blr ir , r r r r n. f lv nPr 6

ENTERPRI SE
RESO URCE
PLANNI NG
Ilexibilityand qLrickr.spon* ft hallnarls ofbusine$ conpetjriveness. Acccssro inri
tion at rhe earlicstposible rime can help busine$essove customersbcncr, raisec:,r -,
n rl J ' d .. ' nd,--, m,l ..,ondi ri on.. I n' ntri < r. ou.e p r,n,ng,l R t, i, r k . a
in instantace$. Afthough somerhink thf ERI, spremsan onlv for ertrcmclylug. :: r.
prnies, this k nor dr c.se.Shall and midsizedcompaDics, which geDerdlynrdud( : ,.n
rarying fbm $50 million ro $500 nillion nrannual revenuc,rpresrntrhe grearcsr 5:r.r
for ERP .ompanies.Accordingro Mikc Dom;n),,serior dJlst ar the Yankccctu
- t.
consultingconpany. "ir's the larycstopporruniw in rhc rnarkettoday." ERp qse: ;::
d,mmonl) us.d ir nanufacruringconpanies,collcgcsrnd ubiversirics, prcfessn,nrl,:- r
o E Dia riors,retailen,and hcJrhcareo rganizations.3, A fw l@dingrtrdoB of[R I, i .:n
arelisrcdin Tat L 9.5.

@
SomERPSoftwarVendors

iRenaissance

|{:G/fto
ERPSotutions

NetERPsofh{are frcm Netsuite

p f o vde st gh ttyinlegfat ed,
comp reh en sivERP s ol! t iofs f or
o us n esse s,9 1v ngr hemac c es st o
f ea t-trmebu srfe s s nt elliqenc and
e
thu seia bt nq b lt fdec ison

lSo !rce iCo!fte s y oiNet Sut e nc )

i*ffi:"xs

,t*.s11.,

A n o ve r vie wo f En te r p r iseRe so u r ce
Pta n n in g
The kcy ro ERP is real'rimemoniroringofbusine$ fun iotu. which pernirs rnnell r:-r,
ofl<e,vissucssuchasquliry, anilabiliqv,cusrorrer*ristd.tn,n, peformncc, dd pft.r::-r;
ilr. FimDcialxnd planningsystcmsauomaticallyrecciveinformatbn ftom marufa.: : a
and disr.ibudon.\(lhen somerhnrghepprns on rhe marufacturingline rharaffccrsr t.-::*
sinration ftr emplq pad;nrgnntenJ inrenrorydrcpsto a cenainl*d, which aft- rr
abiliq to dclirer en orderro . cusroner a mesagcis rriggdedfor rhe.pprcpriak :.:..o
 T,rri d.i P rdr.;s
nql i i pr.. R cs.urc:.ri rr! 5L:remsI chi pte s
-rt.

The key srepsin runninga hanufacruringorganiarion usingd ERPslsten

r purchasing.

9ev et opDem an d F o re c a s t
'nr r nAnufacrurirBorg-rniation,the tradirionalplanDingpro.es begi$ snh the ptp*
::r,nofa lorg-rcnndenand foreesr.'lhis foreestis preparedup rc lll nonths in advance
:J arrenpn to predicrthe weeklyanount ofeach prodLrctto be purchasd over rhis dme
r:nod. Thedevelopnot of rhcforccasrmayrequilespecialsoli.rare modules,hkroricaldara
.-ted ro shipnents,md discsions wirh ner$crs ofsalcs,manuEcturing,and finance
lanizarions.Someorganiarionsquire rexrsto inplencnt an accuntc,rcliablcdcmnd

feductDemandForecastfrom Inventory
.. dre fbreca*ed demanrl is drducted fron *isring invcrrory to projecr futrue orntory
....1s,rhe systemw;11displav points at which dddiriord finishcd products nccd to be

Det er m ineW ha t l s N e e d e d fo r P ro d u c ti o n
. 5ill of materhls(BOM, a sort ol"recipe" of partsand nrgredienrsneeded)for eachiren
be piodu.ed n used to translrtefirnshcdprcduct rcquircmen$ inlo detailedlkrs of
.:uuenents for raw mterirls and packrgingnaterials,rvhichwillbe requiredtom:ke and
- o eachfinishedproductitcm.
checkInventoryfor NeededRawMateriats
re forecastedneedsror raw maetials and packagingmatcials uc subtractcdfrcm the
{ing nNcnioryof rheseirems.Again,the sirremeventuallydnphysrnd triggenpurchascs
'trdditioml ircm .equiredro meerproductionne.t!.
S c hedut eP r odu c ti o n
:e ERP producrionplauing nodule usesihe demad.llitre.st md firished product
prcductn,nschedules.
-,entory dararo dcrcrnine the week-by-week
15sess Need for Additionat Production Resourceg
r: producrionschedulemayrevealinde$ing ituighs, such* rhc ncedto build additioml
- :. (itcrunng capaciry,hire add;tional*otkos, ordevelopnew supplicrsto prcvidcsuffi-
:r nw marerials.Ihere new requirenen* can be input into thc purchasingsystcn and
' r nr es our es m o d u l e s o fth e ER Ps y s te m m d beuol bymamgcsi nthatareatodevel op

:rnanciat
Forecastin9
' . :hegencntcddatacan be fed into the llnancialmoduleof the ERP rysternto preparca
: :;it and lcs forccrt statcnenrro a$6s the fin s furureprofitability.This profit forecast
:rm can be cd to help stablish ftw budgetlimirs lor the upcomingve*.
lean tuanufactuingis a newmanufacturirymodelsomeconpaniesan consideringto
. d pruhlenswnh the denmd lbrccastapprcachjust descrihed.Leanmanuhctunngrins
.mproveefliciency,elimimtc product backlogs,and srn.hroniz prdductionto z.tk1
:-:on* clenrnd rarnerrhanlongrcln forecasts.l he major rRP vendoBr now offering
,:: oaoufacturingsolutionsto hclp companiesbuild prcduc* o acuJ denand. rather
::r forecots.The solutiomincludesrpplio sclf-senice portak that enablecu"oners to ldg
,o a !0eb site and enter their plannedordcn for weeksir adunce. This enablesthe
....facnre' ro p.oduc. ro acul denand nrnc than a lorg-nnge fo,ecut of dubious

Inplemoration of a Gao nanufacturingERP sysremfrom lLos Systemshc en:bled

. : hr c lA ngelos G o u rme tF o o d s to d ru n a ti c a ll yaducctheri mei rtakesIodevel op,tst,
,-: distriburen* producrs.The makerofspeciairyfrocn and relilgeratedproducrssuch
- :ugra and eLrcnesuad to spendsixhonths to bring ncw producs to market.Now the
rprny or do o in les rhan 90 days.T;he to mrker is a critical success factor fbr a
r::ialty-foodsmakerbecaus relailer dealwith finicky co,xuners who change then ninds
-,::ently. Vith rhe ne$ lRP slstd, Mi.hiel Argelo's is able to operute Lring a
, rin rinr productionprcess. Ls freshlv made ingredicrrs are receiledand products are
red. packaged, and shippedro .erail customers widin 24 hours. Nearly 85 percent of
 Pd3 | EF iF ' i.o m a .isyskm .

MichaciAngelo s ordersare schsluled via EDL The receiptofo.ders jniriatesifie

proes. When m orderis received, "-.:u3
inventoryis checkedin rc.l tihe, so rhc companvL:q
whdhr ir hasirBredirnrsonhand to fillrhar order.Receipr of an orderako triggersa:o
of data qcharycs with rhe othcr applierions in the ERP systcm,rlening buversrF-: *
purchse and prcductionmaDagen\rhar ro shedule.ri
In addliion rc Danufacruing and findn e, f.RP s)'srens.an also$rpport rhe h::
resourcc,sales,and disribtrtion ftncdons. This inregntnrd breaks throush rndit:ld
.o o o J r.. ' ,,rrdrne-nd.rrJam:ri .rJl yJl e.r h. cn' i ,c,,tg,ni a,i or. l , . er , r r n, . r .
n fl c n rp .i ,,r^r ' ropl \o.r .l R l ' stN ,({ l n.e,pri ,.8.t0,i ade.gncd,.h.,p, or ; : . s
imp.@c businss peformarceby prcvidnrgnew softwa.cmodulesro suppoftfinancs.r,rd
managemcm,reuuiting, and re.t slate. Thesenq modulesenable@mpaniesto n,;::
.q l p m(n, md nr.ni n.e. gci nrrr r ul i vor !,c.a..
-nd brdg,' . bi ," i ' ,. , , , "- . j
posrirg for ieal-dmerecruitingon rhc Y/eb, einply wirh govenmenrgujdelinesaDd:-"
darcsGuch $ rhe finan.ial repofthghd cer.ilicarionrequiremen$of the Sarbrncjas
Act). and providebudgetins.nd aDalrsis roolsfor real estatetransactions.r'

A dv an t a g e sa n d Dis a d v a n t a g eosf E Rp
Indeasedslobal .ohperirion, new needsof ekcutires tbr condol over rhc rolal .o- .{
p.oductflow rhhugh rheir enterprises, and ever-more-numerous cusromerinteracio.,&
drivins rhedehai d for mrerp.ise-wjdcaccesstoreat-rimc iiforharioD. F.Rpoffe.sinre.:nd
,o fm n .rr un,.i rgl c' cndo r,,hel pnearh,-(need,.thepri m,rubencl tr . . f int 'enr . r - |I
ERP in.lude elinimrion of inel+lcicftor our&red s)6iens,eding .doption of inrr:rad
work proceses,improvnrga.c$ ro daia for operarionl ddisnrn naking, and tech..:,ry
srand.rdization. ERI']vendoBhavealsodcveloped specializcdsystos for spci fic appli:rr
and marketsegments.'l'hc "Infomarior Systens@Vork" featuied6cribcsrhebeneari
lendnB conpany realiad by adopdngd ERP sliren.
Etiminationof Costty,InflexibteLegacySystems
Adoptior ofm ERP rysremcrablesan organiatnn ro elinimre dorns or evo hf:d
ofseparatcsysrens and repiacedreh wirh a si'sle, intesraredserofappli.arioDsforL\el]:rG
enrerprisc.In nanycases,rhcsesy*emsaredccades old, lhe originaldewlopesarclonE.-:8.
andthesystem re porly docurenied. Ar arcsuft,d\e slsternsare*temely dif6cul:; i
whenrheybreak.md adapringrhen o meerncwbusin*s needsratesroo lons.Thcr b.: I!
an anchortuound the organiadon thar kcepsit fron movnrgalead and remaining
petirivc.An ERPsysrmhelpsmat h rhecapabilitiesofan orgarization'sinfomarion $--*
ro irs businersneeds-ven astherenecdsevolve.
lmprovementof WorkProcesses
Comperitionrequircs.onpanies ro structurerheir business processesro be x effecr.: ed
custome.orienredasposible.lltP vendohdo considenbteres@rchro dennethe bN 15-
n6s pro@sses. The)'gatherrequirements ofleadingconpeieswLhin rhesanejndu{n ad
.odbine rhemwith research ffndnEs froh researchiNdtutions and consulrants.The ie-
v;dul applicarionmodulesincludcdin the ERI slsrcm re ihen desisncdto suppon+r
bestpractices,rie nosr efficienrdd efGcdrewq6 ro .onplele a busine$proce$. t-:!l
Thmo stein cen t and ef f ec tv e implemenrationofan ERPsysremensura gmd work prdc$es basedon ber p.acrices:3
waysto comp tele abus ins s
example,for nanaging curomcr pa)denrs, rhe ERP sy$eh\ ffnuce modlle can be .:{-
tigured ro rcflect the mo$ eficient pqcrices of lcading .onpanies in d indLsrry. t-:Ej
incremedefficiencyensuresrhar cverydaybuiness operationsfollw rhe optinal char. J
acdvnies,wirh all ur^ suppliedrheinformarionand toolsthey needro conpleteeach::s.
 Consotidation
0pensDoorsforCottege
Lender proftersente.edntolCEfofprccessnqThesolh^redoesmlch
::n c f.lanagementServces lAMSl,as0O-emptoyee academc oi thewo.k n decdingwhch toanoptionis the bestf t preseniing
: _ov ide. , lsf ec
a en tw n n e .ot/O f ma g a z i n e s En i e f p.seV atue recommendatrons to the colnseiors iof consderation.Loan
The companydevetoped an entefpriseslstem that so colnseto.s can.uthorze toanswthn the systemoftenwh te the
-:,.n rts work praesses that it movedinto rs markels, patental cl stomer soni hephone Theabti tyi oappr ovea t oanin
=;ed in valle, and eventuatly was acqurcdby edrrcatondt th,s mannef can redLrce the wa ting periodfo. bmrtes nd hetps
-_rg ant Salte Mae To tearnf.om th s C nderettastory,let s AMS to.n counsetors handte morccalts.
Consolrdatnq disparate systemsatsohetpedAI,1S s nforma-
: .i5 oa ou ,sro- . e01 . r c ie rs o ". I,e p one -o o- non systemsbudgelsby consolldtln9 and shuttingdownredlrn
_ean academc toanprogGn-iihat bestmaichestherneeds danl syEtems.n implementing the ICE p.oject,AMS savedon
: r. 3ratt f namiatpict!.e Thecounselois pnmaryresponsib tiiy ticensng and ma ntenance fees n bothtssystemsandp.ocessg.
or ! . egor es ol oon bes r s . - s 6 At one ilme we had four separate ldatabasenstattar ofs] of
: : reeds n AMS s previoLrs system,each Loanclassifcaton o.acte. says Clo Ma.ano Norweve consoLdatedro one trnas
: : own onhnesystem,whch counsetorc usedto determlne cutolr Texpenses bypprox matety,i0 percent.
: -: eligbiLty.Dlring a phoneinterve the coLrnsetor wouLd The C E systemalhetped so A MS entera new tneofb! s ness
i :: navgatebehleensev..t nterfaces, whichw3s noi onLy consotidation Loans, n whlch bo.rcwers combne ,r!mer!!s
: : r or t hec ouns e LboLr rta tsno.o n v e n e ni ot rth ec l s ro' rE ' s edLrcaton toans ntoasngte, tower ntercsttoan.Theserypesof
! _::tzed thai f t integfatedlhe processes andsystemsintoa loansnowaccolntfornearly25 percent ofAPIS srvenLreTheyve
. ooproro- o - to q .,6 o .n 6 to ., - e 3 r d , ? o. ,-6 created a new ma*el abtity c.eated mofe.etabte pa.tieGhips
= rrc. The ERPsJ,stem ihe finn c.eatedwas n.nred CE- wth !n],,fsties and did I atl fof $3l1,50l, says PauL Catfney,
: : ed Counsetngand EnroLtment. executre vrce pfesideni and C0 ot Staples, a member ot the
::-rv ERPsystemswefe designed pfmantyformanlfactufng Enlenrise Va t! e Awards judglng panet. They re theposterchiLd far
:' : i! c t on pt anninlgn.i h em rd -1 9 9 E 0 sR P s o t!to nesxpanded
| : .t..ie -.o s.<r "- . ' ^a . dt . . d. o. n q - / se - <,
D l scussi on
0uestl ons
. : t e lt 90s E RP s o l u to n s w earE
g an b r.a d e n eto
d r nctude I H awhaveA MStoancounsto.sact vi t es chanq eds nce
-r rlch as AIVSs,:lt@ing themto consoUdate nfomaUon the mptementat on of the IC Esystem?H owhast he bat
" .e,.cdb" .ompu-er 6-
:i: of the advantages of consoLdat ng systemsinio an ERP andt me spentw th custom.s? ^
. ed- c . o-o' d " d o o c \ S -" - i " 9 d a t " o" s* 2 H owhasthe IC Esystemal Low ed
" "du A N 4S
toancoun set oftso
:: .s to signifcsntsavngsin time andexpense by not havnq be mo.e effectve?
.eferenceor marntarnmuttlptedatabases aod by beng
f -:3: -espondlo clstome. irqulfes qucke. [4anycompanes
Critic.l ThinkingQuestions
:::keis of nlonnaton.etanveto the r clstome|s,"exptalns
: : :l lohn Maiano 'The mofeituts integEtedandrhemore 3 Consotdaungsystemsrnto a centratzedERPsystemis a
.'::: ntelLgence yo! canga n lrcm that,the morcyouareabte commonactvityfo. manybLrsnessestatetywhat,doyo! think,
! :. : ' ! at Lr e
s c r os s thceo m p a n y . has causedbusnesssystemsto becomeso dvidedin yesrs
: consoldatron at AN4Sgre.tly nc.easedthe effcrencyof
::_ coLrnsetors becausethey were abte to descr;be,.e- 4 Whai s the advantage
or h nng la.gef ms LkeSAPro desqn
-:_d. andapprcvethe ta.n psckEgethar bestmatchedthe an ERP,ratherthanhir ng smrtle. vendorswhospeciatize
in
:: needs . A [ l5s to aang e n ts n o w h a n d te1 m i l L o n o l tbound
- 0 bo. d Ld r! -u r .-o 0 p e .e
" 90!RCESj
Lal.LM TheyGorlt
: : 3ro.to iCEThs in.reasen caUvol!meresuttsfronrcdcrr tagethet;
CtOMagazineF.6
ary15,2AOL
M.taco.4 Toiridn Payweb erte, ac..s.ed May 23,|AAL,at h ps://se.ure
-;:::! increasedefficencyand the systems abitty to tutonper.an SatlL MaeWeb ste, accessedMay23,20aL at wwsalEnae
-.date mofe colnseto.s A famtys comptereJinancal can/abouthbt ans.htn|
P ur 3 | Eu

The Dial CorpoEtion, neker ofsoap and other consmer godr, is itutalling a slr
hillion sd of sA? AG: bsines appli.ations.Dial is jlstirying the dpese by explaini.:
thar it wdts to dploir the sme applicationfunction lity ud bestpracticesu*d bv ro;
rival mmufacturer such s Colgte-Pnmofive and Procler & Gamble.Dial CIO De\o:
lones said,"SAPhasrealiygot the; ams erornd the bestpractices[in rhe consunergod:
indusnyl md enbeddedit in their sofrware.'SAI hu parrrrered wnh Colsate'Palholi,:
P&G, md othen to codevelop features
application for
tailored the consumergoods industr.
Asa sul! othefERPvendoa havefallenbehindSAPellingto companiesin rhe consune:

Increasein Accessto Datafor operationa[DecisionMaking

ERP systemsoperatevia an inreg.ateddatabase, using essn
tiall)-on setof dau ro suppo.
all busine$tuncdons.So,decisions on optimal sourcingor c6r accounri.s,for insr.nce.c:
be run acrossthe enterprisefrom the san, ratherdun looking at separate operatinguc:.
and rhen trylng to coordinarethar informrion manuallyor rcconcilingdatawirh anocr
application.The resultis an organiation that looksseanles,not orL,vto thc outsidewo:.:
but alsoto rhe decisionmkers who arc dcployingrcsourceswirHrrheorgdizado!.
The dar. is inregratedto prwide ocellent supportfor openrionaldecisionnaking i::
allom conpaniesto providegreatercusronerseNiceand slppon, strengthencutomer a.:
supplicrrelatiomhips,and generatenwbusiness opponuniries.!-or example,oncea sl.-
peror makesa nm sale,the busincs d.rtacaptureddurirg thc salcis disrributcdto rcla,::
odsactions for the financial,sales,disribution, and nanufacruine busnreshfttions ::

lJpgradeof Technotogy
Infrestructure
An ERP systehprovidesan organizaiionwith rhe opponunity to upgnde and simplili :r
infornation technolo$/ii enpLoys.In inplementingERP,! companynsr derernines h t:
ha.dware,opefting s)5tens,md databassit wantsto use.Centralizingand forn:1ia-s
rhesedecisiomenablesthe o.sanization!o elih;narerhe hodgepodseofmuhiple h*d" r':
pladbrns, operatingsysrems, and databms iris cunentlyusing-mo* likelyfrom a van=
ofvendoN.Srandardizadon on fawerrechnolosiesandvendorsreduces
ongoingnaintenr=
andsuppot coa aswellc the tniningload for thosewho b ustsupporrthe i nfra{.u..r:
Expense
andTimein lmptementation
Cening rhc full benefin of liRl' is not simpLeor auromadc.Allhoush FIRPoftercm-
stntegicadvantagcs by sceanlining a conparls TPSS,ERI is rime-consuninsand is :'l
ficult and uperoive to implcnent. Sone companieshavespot pan and tensofmillion; r
dollm inplenenring ERP svsems.A suney bv the Meta Group on lcadingERP vendi-,
wo.kfor200 $er companiesin 12 industriesrsaled thar ERPnrvcslnentsw.renade 01:
rhteeto five yers. On avenge,25 percentofthe costwx spcnton sofrwae,40 percenr:r
proftssionalseNices,dd 2 5 percenton internalstall Thc sofrwdecostanounredio I r! :
percentofthe conpmy's mnual revenue,with snaller conpaDiesspendinga grearerr':.-
.enrage.The inplemoration iimefor rhe* projecsws approxinarely20 months.AnoD.
sevenmonths were needdl before the benefirswere realized.r'/
Ditficutty
lmptementing
Change
In sone cases,r companyhasto radicallychangehow it opemtesto corfbrm ro the ER: :
work processe-its bet pnctices.Thesechangecan be so drutic to long-rine emplo,-
thar rhey rerirc or quit nther than go throu gh the change.This exodusen leavea firm sh:r
of*perienced worken.
DifficuttyIntegratingwith 0lher Systems
Most conpanieshaveother svstemsthat mut be integratedwith rhc ERP slsten. TL:*
sysremscai includefindcial malysisprogrms, Interneropdations,.rd otherapplicari.:
Many conpmies hevedperienced dificulties ruking theseother systemsoperatewith o<
ERP sysreh-Other conpaniesneed additionalsoftwareto createtheselinks. In Ocr<v
2003 GoodvearTire EcRubberCr- disdosedthat it wotld haveto restateirsfinancirlrc:::
back ro 1998 becaue of {:lnancial.rc$ resultingfi,n a faJty inpldentetion of E:i
ofrwoe o d a setofolder applications that ue usedforinter.onpany bilting.Thecompr
*id thar it e"peasro lower rhe net incomen rqorled during the restatenentperiodb, ::
 TEisa.l on Pro.ess nq aid EnrefpnseRe5ourcopranr nq syslems ChsDior e
I

much s $100 miltion. The ER? slsremwd insnlled in 1999 and runs Goodved's @re
tr .oudng funcdom.$
Risksin UsingOneVendot
l he high cost ro switch m dother vendor's ER? systen makes ir exrrenely uilikelv rhai a
irn will do so. So, onc a conpany ta adopred an ERI systen, the vendor knows rhat it
ias a ".apriveaudiene" and hsles incenrircio lisrcnmd respondto customerissuesThe
. ,s h. o{ r o $: ( . 1- a l $ c re J r, r h i g h l e ,e to f n .k -i n ,heevn| he t-R t ,endorJl N . i ,,
lrodrct ro becomeourdatedor goesour ofbusine$. picking a! ERp sysremjnyolrcsnor
rr cloosing rhe Sesr oftro.e p.odu.r bur a/so c,!@sj,g tle .,sht lons_rerh 66i,e$

Qiskof lmptementation
Feiture
lpLementing an ERP q'sren n enreneiy chaltengingand requiresrenendos anouns of
''-r , . *. he ben I \p e o p l e .rn d D l e n tuo fmd e n rnr \!ppo,r. l ai ted FR | ;n.ul ari on.
r.n , r \ ur r1r c m, m p l e m e n b ' i o p
n o b l rm. ra rh e rh r o.honconrne, i n rheotore i Ml t
,.r d h. n t her er r . p ro b l e ruu i ' h rn F R t i mp te menb,
" i on. i t , an he exper.i re.In 200 r,
'h io, r nor no gen .ra fi l l e dr l rk \u i r rg ,i tu r i n L R I Lendor* eki rq $s t0 mi ron i n dam_
Ees stenning fron m allegedly f.uLy ituBtlarion of the company's ERp and srudent
rd inLr r r ionr pp l i u u o n .a rC re re j u ds D ,eU n i w n i rr. .tfl etsl sl areu. Lhedbr,Jd,l
:r in$all atullser ofrh ERPvendor'ssrudenradninistnrionapplj.irions.But afte!ir began
rng lhe rcfrwarein 1998,univesiry omcialsblamedrhe technologyfor probieN in p"ro_
::!sing financi,l aid, enrcllingtrmsfer studenrsand recordinggrades.The p.oblens led ro
:tre rhan $5 nilion in losrrevenuebecaw ofan inabiliryro tack and coileft receivables.
: I J J dir ionJune | f.re d e s e a d i ru re \ro p u rL h + ery.ol d ru;nn,me/ndknerw i ,h,n

ERPsysrems dccomodate rhe differenrwayseachcompanyruns ia bushes by either

'' . r d ngv r dy m o retu ,L i o h rh J no n r b u n n e * ," u j d everneedo! i nJudi nsL6roni ua-
n , ooLr h, , J t @ fi rm ,o fi n e r me q h a h h o u tdJ r eadyber.to.e mJ(,h. s { r R JJn the
,:.lisputed king ofthe first appr@.h. R/3 is easilyrhe br@d6t and m6i fea re rich ERp
:lremon the mdker.In an effort directedat capturingmore c$roners in the fasrgrNins
=ill-busines rnarkei, Peoplesoft hs tato a diilerenr approach. peoptesoft conpteted in_
F:1don ofsseral ofits applicarios wnh ihoseofJ.D. Edwads & Co. jtsl fou; honrts
r::r completingia 2003 $1.8 billion acquisirionof Ertuants.ao peopleSoftthen doeloeed
'rD r , er pphar ion .,h rr(o mb i n e rn o u rry .p e ,.fi .b u,i ne,,prer" e..;,tudi ne,oti ure
- n , e. i{ llt un.i rl m rra g e m e n r. d ,\rri b u ' i o n .." nu6.,,i ;" s, h,-," *d
T in I T r ndCem e n if.h e ' o fru re i , a v a i l e b lien fo u i ndu" .l -,peci 6.., 1.., " ..;" ,.
ti ,, ;.6,,..11
-,. r h. ' u, r F . who l e -l ed i .rri b u ro ,' .h o m eb d td e ^ . Jnd," " .tru.ri o. hmpJni e,. Fr.h
L r: ohq p.e@iligued wirh s hany as30 indusuy-speciffc buines pr@ss. Fo. q_
!-!le, the constuction conpany suneinctudesa job-cosiingp.oce$ ihar le$ conpanies
Eine a job in lhe sofmare, such a.sbuilding a bidse, and then identiri, and tlack dl rhe
:-:s xsociaredwith that iob.a'
SUMMARY

Principle ope.atons rest:.tedw i th m ni m!rn d s.Lrpton; t at 5: : :

1l e5the act ons that ml si D etakenand bywh. m t . _: :
An organization's TPS must supPortthe routine, !
operati onsD sastef re.o\ery 1oc!sson t he a. l. _:
day-to-dayactivitiesthat occurin the normataourse m!st be takenl o restore.omp!l er opef.tlons3n. : :
of businessand hetpa companyadd valueto its n the evenLof a di saste.A ttho!gh.ompa n
productgand9ervices. abo!t the mpoda.ceoi d sasterptanni q and r e. : :
decadesmanydo notadeq!ateLy 0repare
T r ans : c ton p fo c e s sn g s y s te -s l T P Ss a l .e a l the heaft ot
TP S apptcatons are seen thfol qhout an cr ga' : :
n
m os t nf c . r n s l ro sny s te m : b !s .e s s e 5 t.d a y TP S sconset
Theorde.process nqsystemsl ncl !de ord. ent f y,5: : :
of at t t he c om p o n e .t5o f a C B l S .c tL rd n q d atabases, net _ :
I g!f.ti on. shi pmei tpl annng.shrpmentexe cLr0.t
wof k s peop tep fo c e d !re s s o ti w a .ea n d h a rdw ..edevce5
contfol rnvoi cnq customerretatonshp rran. ger : i I
t op. o. es E t . a n s .c to n sAttT P Ss p e fi o fmth efol l otri nq bas.
fo!t ng and sched!tng 0rder entrycapl !fest he b: : :
. t v it es iala c o l te c o t n wh ch n v o i l e s th e c a pt!reofso!.ce
i eededtoprocessac!stomero.de. 0ncea nof der: : lr j
dat at o c om p te tea s e t o f i .a n s a c to n s d a ta e dl tnq w hch
and accepted,t be.omesan openo.der.S :les conl : : '
c hec k sf o. da tav a td ty a n d c o mp te te n e sdsa ta cofrecton,
ers!fes thatthe pfod!ctsandservcesott . edaf e:
whLc hlnv oLv eps.o v i dn q fe e d b a c k .la p o te o ta t p.obtemand
1o. customefneeds S h pment pta.i i g det ef nr. - '
anabLing ! s eE tc c h :n g eth e d a tad a tam a n p!t3t cn w h .h
openordersw tt be f ttedanCf fom w h ch to. at r onr f .
s t he per f o fma n c eo l .a tc !ta to n s s o .t.g cate!o.zng
sh pped.The l ysten D repa.esan orderco ntr r nal.
s Lr m m ar z ng :n d s to r n q d a ta fo . I!d h e . p . oce:si ngd:ta
that s sentt. l he cl stomeranda p ck ng t st Lr s: . :] , -
s t af age.which n v o tv e p s L a .l n gt.a n s a c to n d ata ntc one or
houseopemto.sto I tt the orde. Tl re sh pm er t - ' :
m or e dat ab a 5 easfd d o c u me n p t .o d !c to n , w i rr.h nvotves
systoms l sed by the w arehoLrse operato f st o enle' : : .
o! lput t ng r e c o .d sa n c .e p a rts
w hatu/asactLratty shl ppedto l he cl stomer t pa5! . : '
T he m et h o d sc r tf:n s a c to . p ro .e E s l n sg ystem!,ncl ude ed oLha .o r ! l
od" " .: oi .oo|
" oB d oo'
each tem p ckedduf nq i he sh pme.t exe. lt Lon. _:
. e5s ng . v ol !e s th e c o tte c ol n o f l .a n s a c to n s .to bal .hes
trarsacton provl dng stocknumbe..ndq!ant t y s : :
wlr c h . . e en te re dn to th c s y s i e ma t fe g l tn r i nte^t5aE a r L;
the t n shed prodLrct i nventorycoi trol .ystem .I f c
g. o! p 0nl ie t.a n s a .to n p .o .e s 5 l n q l o l l P l rLl ow 5t.ansac"
:ystem 9enefate5 c!stom. nvoces
t ons t o be en te re da s th e yo c c L r.s y s te m sth at Lrsea com
re.e vedfrornthe shLpment execui l on systemTh. , --
pr om s e bet w e e n b a i .ha n do n In e p ro .e s sn 9ffe 0.t nevrth
\d rel atl onshimanagement
p sysl .m monl .r5and t r ; : . ..1
4 a
"
.ustome.l nl efactj otto ens!.e Il rst quatrlyse. vr . eI i :
o. c ! . bot pf . .e s s i rq rs .o i p e d o .m e drmmedi arel y
i ml m p.ofl s R ol i rngai d schedLri rng sl stem sar . . '
O f garz at i o rse rp e c l T P S5to a c c o mp l r sh a nl mbe. of
d str b!ti oi f!ncti ons l o determi nethe besl ! l:
s pecf . oble c vt e s . n c L L rdng p .o c .s s L n g
d a ta gei e.al ed by
F I companys fesour.es.
qa q 060
' The pLrf.has nq rnl ornrato.5ystemsn ct ! d. _
ac c ! r a. y and i n fo rri a to n .te q r ty c o ri p t i g a..L.ate and
c0nl .ot,pLrrcfr:se o.de. p.ocessng, ac.o! nI s p: r i: .
iim et y . epof t srn d d o c L rme n ts..re rs ,n g t. bo. efi c encv
.e.ei ! g Thei nventorycont.otsystem trac kst he . .
het plngpr o! d e i c re a s e da n de n h a n .e ds e fv l ce,ai d b! tdi i g
packn9 mate.i atsand raw maLenatst pfovdes "r :
o r o o q ra .o o
to !se.s onw hento ordefadd1 onaLm.tera t 5 TheF
ef f ec !t e T P S c a . h e l p .n o .!.n z a t.n g a i . compett v.
ofderpfocassrng systems!ppori sthepatcr es,p. a. i : :
pro.ed!.cs of l he p!rchasng departmentThe: :
Cl0s m ! stta k e .te a d .a l e n P re l e n tn q i rcc0Lrnl ng,re!'
po oo6 r ''.
ut ar t , es ,whi .h c a n q e t th e i f .o mp a ne s n to tro!bte :nd
s sopptef5 The.ecevng syst en : : :
an o.qani zrl i on
er as einv es to .of n l l d e i c e O n ek e trs te p s to . ond!.t a TP 5
dataabout.oce pts of speci fc mnl eri aLs from slF: :
a! d t t hatat le m p tsto a n s w e rfo u r b a s i cq L e stons l l ) D oes
thatapp.ovatl of payment.an be gr:ntedor f er ! : E.
t he s y s lemm e e ti h e b l s i n c s s.e e d i o r w h c h rl w as Impte
n- " . o. s r." d L" b. do"
m ent ed?l2lW h a tp ro .e d L re sa n dc o i t.o l s h .! e beenestab
recevabLe. payrotlassetmanaqeme.land , gener a :
" Po d " d . o b" o 4d
Theb!dget:ystemautomatesm:ny 0l i he lasks. e.
p. ope. t yand? l 4 l A reth e ,n i o rmaot ns y s re ms and.f..ed!res
amassb!dg-ptdal a,dstf b!tei tto !sers an dcons. r: : '
pf oduc ln!ac .L rfa te a n d h o n e s re
t p o rts ?
D pfeparedb!dgets Theacca!ntsrecevabtesyst emr : ,
8"" "o e ^ p o ,d d 6 0
the cashfLowol the cori panyby keeprngl fack o f '
or ganiz . ons
t m!s t d e l e to pa b !s n e s 5.o n i n!rty pt:n tfrat
ow ed the con' rp:ny.l he payrotl procc sslng. i: : :
s a 5 te.s l i dentti es
aniicpat as a .dm i i m z e s th e e l l e c !s o fd
processesempl oyeepaychecksand perf or m si- - .
t he bus is s p .o c e s s e sth a t ml s t b e fe s l o .edl rst l o gel
 Tr s n s : . r o F
i r o : ! ;i q a n . r E n l e r p . +R ! j L c p r a mr q s ! : r m q
I chaptde

r l ons r elatn! 1 orrme w o rk e d d e d !.tro i s c o mms

Principle
: . id t ar es .I he o !tp !l s a fe !:e d ro h e l pc o i tfo tp al fott
: : . 0 c ' s r r r Low s .n dd e v e to pre p o .tsr. th e J e d efatgov lmplementationof ah enterpriseresourceptanning
:-t T lr e as s e t m a n a g e m e n t s y s te m c o nrror5 system enabtesa (ompany to achievenumerous
' : . enr s r n c apt a t e q !rp me i trn d ma i a g e sd e p .ecat on bu5inessbenefitsthroughthe creationof a highly
. , n! m t axbene ,i tsT h eg e n e .a tte d q e rs y .l !m integratedset of systems.
J e coros
- . ner ar y r . . n s a c to n rn d e n a b te sp ro d !c Lon
of
: : eo r n; n. ar r e p a .ti n g . E ntefpns-"
resoLr..e
otani rrsl E R pl.oti rv..e s a se t ot int e
g.atedpfog.amsrhat managea companysvi Lar
oLr siness
ope.atonsto.anenrrem!Ltsi tegtobatorganzar on r m lst
-:ciple '11
hetpmuttinationatcorporationsform business q, d "s"
oo.o a, rP D r
with their businesspartners,customers,ano rem mry vary rfom vendortD l endo. mosl E R p
sysr m s
lafles. cod 6ad d a,n" ..o ,ooa o . .,goa
' ^" ^ ,
" " OO,o, ' o "
r_ : : 15 c om pt c ato n sa .i s e th .r m !tri n a ri o n a.o t r pora .
" o.t " o/ ooo. I o,, n"
' - - s t add. es sin p { a i n n g ,b ! td i i g .a n d o p e .a tn g the. s!ch as h!man r.so!r.es sates andd str but or
:
- es e . h. t t eng e srn c U d ed e a tn qw rh d i tfe .e n rran " tD D . --
,,-.: r li. ut t ! f e5, d i s p n i ti e si n tS n fra s t.!c t!.e v d,y,,9 d o " m." ,o o o.r. I d o,. , eqo
: r . ! s r om s f ! r e s a n d m !tt p te .!f.e n . e s sysl ems.pf0! drng mprovedvro.k p.ocessesp ! v
o nq
accessto datato. operatofrt decs on maki fgand c. eat
ng
rneoppofi !nty to rpg.aderechnoto!ynf.astf!cru. e
som e
ot the di sadnt.9esasso.tri edw th an E R psysrenra r e
r h: t
rney ..e rrme cons!mi ng, drftcuti , aD d erpens
ve r o

PTER 9: SELF-ASSESSMENT TEST

{,
' / r r ioo. lI \ m u \r s p p o n rh . ro u ri rc .d a l -L r .l ay
Dita should be ciptu.ed it its rute, anLtit should be
' r r oL. urI n r h . n o rmd t.o u n eo t b rrn e * m d h.l 1
r
E.orded rcurarely, in a tin,cly fidrn,n, wjrh nininul
. r: l add nlue to its productsand scnices.
mnual eftun, od ii a fornr rhat can be direcrlvenrcrtd
:) ot rhe lbllowing sctsof chancrerisricsare usuall nlcrolrpurer rutherthrn trying the detatron some
'nto
,: . .red qih ten$.rion proessirg svsrerns? ope ot.tocutnenr.Tnrc or !'tse?
6. N rhe process
of.apruring aDdgarhoiDgrll
sophisticare<l
ard complerproceslngrnd analysis
oah nccBqry to cohptcretnDsacrions_
proces r.ige anouDrsof drta ard
frcduce larye V&ich ofrhc inlowing strtemcnrsis rue?
rmounrsor ourPur
brLchprd-e$in{ro r a. Disdtrerrecorcryfocuseson the acftDs rhar musr
: frcducc .x.eprion rcporrsrnd supportdLill_dorvn Der*e Dro rsroreconpu rcropera,bns.d serdces
rn the eventofr disaster.
b. Businescon tinuiryplanning identiliesthe ouMess
, .,-,".".r;."n- rps is n) captu.c,pmccss.
"r-, prccescsthar nusr be restoredfiAt in the elent of
: :.re rrmrctons ard to pr)ducr ! v.riery of docu
a dnurcr t, gct the businesssopdarionsrestrrred
, . klirc.t to foutine busines-acrilities.TNco. False?
wirh ninnum distutdon: jr rlso speciEcstLc
i: of the follo\irg is N..OT on of the b*ic
acrbns rhar nui bc rakenand bvwhoh ro rcrorc
i.Drs df a TPS?

c. Conpanies van.widrly in rhc fiorougfincssand

1.. i ..r...or trrrt.r.r.F.,.o1r,ri ,)
. ' ttj , ir g
d. au of dt abov.
rnalyricalmodels
\ l rur6 rt cbj t o, r
-n or rPS *hse busness reeocoto proces a cusromerorder.
.,lrttrl orcr a period of rihe
.ing rs a singleunn ts calted
 Pd3 | Bu e r' " rn rrr" o i s s t.il

'Ihe svstem asociaredwidr ordcr praessing should be I5. Th EU is srill evol'ing due ro irs recenrqfanri-
' , ghrl . rr' ,g r, e d . -,rl - .L ro r fro rnor. h,.on.l tg ' rp tt nembcr, and asa rcsultn hrs had rtryl;ttle impa.:
to another.True or False? developmentard u* of informationsrstemsar
t 0. lnvemory conuol, pu.chaseorder prcessing, receiving, globe.Truc or lrke?
and accountspryablc systemsturke up a se! of sl.ter$ Implementationof m enterprisereeurce pldning .
enabl e'a .ompo1 ro Jri e.e numer ou'bu. in. . .
The unsaclon pro.es'ng s)slem auro -
tlrough the crearionofa highly integrated*t ofs$ta
m.tes manr of thc rasl$ r.tui.edto anassbudget drta,
dki.ibute itto uscs,and con$lidarcrhc prepardbudgcrs 16. Vhich of the iollowing is a primirv b.-.-
12. ihn ad wd pd$dl iDJury 2002 and had serdeadlinesfoi inplemcnringan l.RP sr,stenr?
public conpaniesro inlplement ptoccduresthat tnsurc a. eliminrtior ofnrftlcienI sy{ds
rhcirru dit committeescandocumentundcrll-ingflnanciJ b. easilgrdopt;on ofinprond u..k pro..-
&o to mlidctc ernings rcpons and neet dcnrandsfor .. inproving a($ ro dara lbr opentidlr :.r,

a. Granm-Lach'BliltlA.r d. all ofthe abovt

b. SdbarcaoxleyA.t 17.Tl - rr ci ' du:. " ppl .,r ,' r modrrl. 'r t lud J '
c. HIPPA systen arc dcsignedto supportthc
d. nore of thea r r' ^r' fi ,.' nunde;,,,. r r{ o , o, n! d
13. A compuredzrd-svsrem is designcdro Jhw
automatcdinancialnponing and dah enty drd produ.es 18. Because it is so.rirical ro deopeadorofan org:
r J ui l c d l ' r^ J n u .i :' , rr" i r ' ' nJr i . i e most cohpaniesrrc able nr inplemcnr an lii:
without nijor difficulq'. True or Falsc?
TPSS help muftimtional corpontions form businesslinks 19. Vhi.h ERP vcndor recendvinrcgnred i$ rf: -
wirh tleir businesspannen, custonen, od obsidiaies. with a turmercompetirorandnolr offcrsFRI \. i :1,
14. Mdr,rrnuldnalionJ companiesrollout standardIS appli tiur specific*itcs, och preonfigrrcds'irh x n: r
.nio$ for all ro ur. Howtvcr, those*andatd applications irdusrry*f ecific pracsses?
ofttn dor\ accountfor ell rhc tliflirencesanorg business
pannersand employtesopci.dng in other paris or ihe
*ond. \hich ofthe followirg is a liegutnt nodification .. SAI'
thdt is naded to randrrd sofrvatel d. I.D. r,rdmrds
a. Softwate rnay need rc be designed*ith locrl
lalguge nrtcr]:ices o emurc dre succesful TESI' ANS\\-|i.'
CHAPfER 9: SF-I.FASSESSMENT
impLnerrarion ofa new IS. (l) b (2) fnre (3) d (4) barch pn,asing (5) 1n,.
b. Custoniation mar be neded ro lnndle dae fields collccrion (7) d (8) odc enrn' (9) TnLe (l0l I
(1 4)d ( l5) t '
(l l ) budser(l 2) b (13)gc,rcnl l edger
c. Usenmry alsohaveto implner r rnanualPmcts.s (17) bcsrpradic$ (18) f.lsc (19) b
n r ,,,.r .d 6 r" " r,rh l r .. rcr. .^ trn, i o,

I(EY TERMS

accouniing systems 428 business ptanning

continuity 410 generatledgersystern432
accounts payabtesystem426 customer retaionshp management nvenrory controlsystem4l'
accounts receivablesystem429 ICRMisystem421 0nLnetfansaclron processrn!
asseiman:gement transaction datacottection408 1,02
process ng sysiem432 orderntrysystem413
audittra t 412 dataediting409 orderprocessngsystemsrl:
batchprocessng system402 datamanipulat on 409 payrott
laurnat43l
bstPractces438 d.ta stofage409 purcnase oroerprocessrngs': :-
budget transacion processingsystem disastrrecovry411 125
128 document production410
 rnI I o, F,o!,\.i ql ndE nr.rprE eR ei urcP L:mnqsyn-am. ch.prr o
I

- dsingtransaction
processing satesconfig!ration
system416 cycle1'07
processinq
transaction
len 121, schedutinq
system423 processing
transaciion systemaudil
. . ng system426 shipmentexecutlonsystem418 412
_ system423 shipmentptanningsysiem417
I

VIEW G}UESTIONS

-{ s*ral chu.terisrics dut disthguish a TPS lioh an 9. \?har is rhe focus ofa disrcr ic@very pLn?
,.11s- 10. ldendfr rbrc fcderal acLsdDt de ausing horc anenrion
rhI bdic mNction prGssing ctivirio areperfomed to be paid to the *cunty md &n inrgrig, ofioformation
.. rllrme.tion pr.Bsing systds?
':nnrguish between a bet.i pbessing syslem and .n 11. What ac the two types of Imection prtressrng rysrem
.,LneprcN'ng sysiem. audia? How re drey different?
..hat specific objectives do orgoizanons hope ro 12. Vhar q,stcns re induded in the ordd ptocsiqs 6mily
. dr ouS h r} e u ,e o f rn n s .u o n p ro .esi ng
" m pt i, h
13. Vhat is the purpue of the shipmenrplannings}stem?
Itrt is rcurce dara automation? Give an *nplc. 14. Vhat systens a.e ;bcludd io rhe purchoing family of
i:ndt fou @mpliarions rhar nulrinarional corpora
n. murt aLldr.s rn planning buildilg. and opcnring 15. Ivhy is the genual ledgerappliedon keyto the goerarion
--cr r ' I P S s - of a(oudng i nfomdon and reponsl
1-nrl is .he diffe.en@ ber*een data ediriDg ud dara 16. Givc an exanple ofhow ftdsactnln pmces;ng s)sremseo
be Bd to gain.ompethive advanr.se.
. :usilcs ontinuity planfoccs on whxt rwo issesl

:SCUSSION QUESTIONS

rm. rhar you arc rhc own( of r snall gtucery stor. 5. \that is the adnntrge of implementing ER? d an
..rnb. rhc imponanceofcaptuirg conplete. accurate ;ntegratdsolution to link multiplc busins prccsscs?
s.tions of customerpu.hdes vh:fue some of rhe challengesand porotial problem?
r compdy is a mdiuh siad *rvice conpany witb 6. You a.e rhe key userofrhc firm's invcnrory-conftol system
' :iu of$500 hillion ps ),r. Y,u'rc ddided thar rhe and havebeenaskedro pdform an lS audit ofrhis systen.
::riz:tion will inplementa CRM sysrehiocaprurand Oudine thc stcpsyou would rakc to complere the audl.
I n informatn,n about all cusromer inre.aLuons. 7. Identiff a linc ofbusines that wo d benefitfron rhe u*
: .'ifykeysystemrequiremenrthatyouwouldliketo re of a salcsconfiguntion systen. Descibe how suche system
: rmenredio this s1,stem. might work for thi conpdy.
.1inethatyouarethenewISman get tot a Lbn""e lO0O You arc in chargeof a conpler overhaulofyou firm's
An internalaudirhd rcvcalcda nunbcrofprob purchring systems. How would you define the
-f.ny.
-. *irhyour firD's cxisringaccou.ringsystcms.Prcpdc rcquirments for thn cJlecd{rnofrystems?VAar fe.turq
: Lioutlinc of a talk 1ou will makc to mior conpany would you wt to include?
rscrs outlining thc rcsr Lsof thc rudit md you txL Identif five or six key elenentr or piecesofinformatron
$rshouldbe includedi n a flrm s buinesscontinuityplan.
rprrc and contr*L thc useofa wdtter naraive to rhe \7h* stepswould you defi ne for lour 6m s disasteracov-
.. .,1d dara flow diagrdr to explain how a sptem or
 Per 3 | scin6s nro,maronsy<em,

PROBLEIM-SOLVING EXERCISES

1. -Assme th$ you de sraning online groery store (fo. csromer, date' md itms oilered The custoner r
'n
nonpcishable itens only) that will allow usrs to "brw*" onains eachcctomels ID nrnber' address,md
vour aisla elecrontally via the Web and make their infomarion.
p*.r'*" *r*;"*. o"...n ordo is omplete, the items ltt l. u* I daohat ruagemot svstemro build a :
(- ro tuppon theonlineg
f pulled fom a woehou, packed, ad shipped @6acoon po.sing
'ysrem
the conplcte datab* dei'
ov.;isht. Usins a s.aphid prcgram, dmw a diasram that smre oPeEtion EDrs
il" air"-"t *y' you will interact with your cu- irm your databm nanagement oftmte md cteae ;
't'o* cntry rten to cfficiendv cutoher
romers.Uea word prressingprogrm to d*elop a list of 'apture
kcy faca you *oulJ lke ro taptue about ath cmmner build an order, md ship and bill fothe ord*'
od about eachonuct with a custoner
, ff":T:Hl":H"iJ[;T'f;:*-'*"-"" " llrun*'m;ldingdqdipii'ns:
storc hu three nain dat$aes: grcery iten, otla, md b. Enrq thre cutomrs into
curomer. The grcery item datzb*e (ntaim infornation c. Enta the dra naesary ro repre*nr t*o ci
ebour ah ircm in The onler datab*e id.nrifics ordeN to No dLtleRnrcuaomrrr.
"rocl.
bsic inlomarion rbour erh order pl..d. indudjng

TEAM ACTIVITIES

l. Assum thar your team hx fomed a corouhing firm to Your rcm msnbe.s sbould ineryiew a buiness
perforn m cternzl audit ofa firm's accounting inbrma- about the onprnyt businas contiftlity Plar'
tion systems.D*lop a lisl of at lea5rl0 qudions you of disastcs hc the compmy plmed forl D*lop
would ask aspm ofyour audir' What sP.cific inputs and dut def.rib6 ud eralmtcs rhis conpay s
ourputs from wiour ststem muld wmr to se?\4sit
aompany md performrheaudit b*d'.ouon thce questions
c role play de semrio ifa live visit i. inPossible

WEB EXERCISES

l. In 2004, Oracle Corporatiod atiemp.d to acqure Usins the Intenei, idend$ wenl compariesd:
P$pleSoft to gain a l,rger shareofthe ERP systsn markel inplemened m ERP q,steh in the last lro ye{r
Do resrch on the Web m learn the cunt status of the dre implemenodonsa t.e.. prrial suc(es o::
acquisition od docnent some of the remnr why rhe vhat is your bsis for mking this clsifietion?
popo*d acquisition wd $ @n$ovesial. Dqelop ,
one-page reporr or send u e-mail mesge to )bur
instructor about what you found.
 I,REER EXER,CISES

tirLLydrught r be cosr-ellectivcfor ontv v*y tarye orginizuion. Ide ila l11oor rhr.c hsLs thr rhe ilnance
:,ranies,CRM rsrems aic norv bcing implemened in and rccountingpersonnclnccd ro pdfitrm m ensur. rh.r
r " J . , r , 1, r * ro re d r.c .o r. rJ rr,,.. ..,t- bodr thse goalsaG ncr.
im s fimn.e and rccouDriigpcsonrei plava Jual de 2. ER? sofs{arevendorsnecdbusnrss)athsamlvslsrhir
: dre implenrntatn,n of such a svsrcn: (t) drr), must undcnurd brrh inbrmrrior slnehs
. . r g' , , 1 | r h .t o r h r i n rc rn " n r r r[.r' .i .,n prcccs*s.Male: lkr ofsir or morespecilicquli6carions
{etus, and (2) rhr* rnus also .nsure thar rhe rccd.d ro be r strcns businc$snetu rnaly$.
"r*-,,
' , . , h. lef d. o ,h . fi ,,r.e

DEO QUESTIONS

: rhe videoclip Arny's VnuJ wondand ansrr $ck 7. \{rhar rrcls dcs cBayolltr buyen and seller ro
helpasure them thartheyte doinghushesss'irh
.. this .eport indicates,e-corrmerccrnnsrcdonscrn be
\ . 1r n. . uJ ' r l, i ,, rl --a ' ( .' re r) o r Br ..r i ,
' ..
,h, appedrsto be rhe sordenrule for scLlcrs or .Brv?

SE STUDIES

One makessensefor the companynot formal Led to f t the . polnt

CrossBtueShietdCRMWinsBIGCustomers ot v ew N ot w anti ngto mal e the same m sl ake. O lnlian
decded l o nstaLtan ent fety new i nffast.!ct!feto rn t eg. at e
. - r h. 0{ r nlian,s e no . v c e p fe s l d e n a t n d C IOo f B l Lre h s W eb and catt .enter opefatons and to p.o! de t Lm et y.
!: r . d B t Lr eS h et d l BC BS Io ll v l n i e s o t a
, p p fo a ched ..!do.od .oropd o d
$8
: ins ur nergood sg .n t G e n faM t tts i r .n a tte mptto tem to move mi ttons of btaesof data sto.edrf back- end
: 0us , nes sh , 1 o !n dth e fe a t!fe th a i m o s t i n te fested dal abasestotheW ebffoi tendmassrgnq.nd.eform at t ng
,. : . M LLswr s t h e p i o m s e o f : n e w s t.te o i th e a the dl aso that cons!mersco!td ufde.staadi t
. dr F V ..r. o e .0 H eaLthns!.ai ce s an ndust[y dea[y s! ted to onr ne
"
: : d G ene. atM t ts th a t h e w o l td l o o n b e l n s ta l l j ng. custome. sel f seryi ce W hal pefson w o!tdnt fo . qo t he
pfovrdo.s cumber50me tol l i .ee nLrmbefw l h tonqwa t s of
: _ heaLt b.
h nel t 5 o n tn e 5 !b s c fi b e .s w o L rlbdea btaLo hotd, n favo.of a W eb b.sed sol utoflthat attow sher 21. / 7
_eat lhpt ansla to re dto th e i r n d v d L ra tfe e das n dw al sccessto att k nds of heal thcare answ e.s?Ounj ranf gur es
'Lo : .uo 6 .oo^i 6 r.r.. .,p
:: Lc ut at et hei. o w n c o n trb L ri i o n sl o th e r c o l e.age o o o o
-: : nr nlof m at ono n p re s .rp to n d r!q s a rd o th e r l rrl system.W eal thaveto h:ve l h s cdpabt ty that: notwhat s
oo6oo iD. 9 p ,.
go ng to d Iferenti ateus, 0!nl i ansays t s how youer ecLt e
". "d ,"1
: _ . la m s 0nc et h e p .o m i s ew a s m a d e.i d th eG enerat thesefuncti onshow yoLrbr nq the c!stomer on boa. dihat
: : . or nt wor 0un j i a nh a dto f g L rfeo u i h o wto d e tver. makesatLthe d fl efence."
_: r ns Lr r : n. e. o mp aens h a l ea tte mp te ta d s e t!p sl ch -odo eol d
'g
: ; ! s t e. ns but f a te d O L rn l a nb e ti e v e sth c re 6 Eonso .gement stfategyto overcomethe p.obtemsthat a. ose
I lRl. 4p. ole. t s. ! n i n top ro b te mss th ;1 th e yd o n 'tcon- w hen mo! ng raw dal a from b8ck-endsystemstc t he Web
_: ! ndef t y i. ! dr ffc !tt e s o f tfa n s fe rrn g d a tath a tof g f.ontend i theydi dnt come!p w th a.ohesi veptanf o. r iav
' n9 databackandforl h theyrskedhal i ngc!stomer st ooking
i ::r ic nes y s t em a n d n o n e ro fm to a n o th e rs y s l e mn a
i :_ tform.Clstome r s end! pv e! ! ngdalr i! f o. m t h a t at i nfofmaton i hal w as o!t of date.w a5 nac.Lrrateo ,r var ed
 BL 5 r !!. r ' .f n r .n :r r :n ,r

. c f os . t heW e ba n d.a tt c .n l c r c h .n i e ts WhendcaLi q w rth B ecl l se 0Lrnl ans team took thc t m e t o de. : :
l0Unr t t o. fe ..rd s . a l te n to l to d e l atl 5 .f !c .t. systeml .onrl l i e !fo!nd !p f!t!.e .dd I onsor m od :
0i. c 0 !.1 d i .fd h : s t!1 1ro re d o !t tn e d.ta 5s!c. a..l w on t.eq! re mLr.he:f.ft H e !ses an rllom ot ! e . :
Celet ope da p .c to ty p eo f tn e n e ( W e b ri te. they i nvLcd t.des.rbetl resysLeniW ehavethechas5soI w^. _
. ! . r om ef 5 t. l .!l L n a fo .!s !.o !p D !r n qtho.e n t !ttr ats. oLrrn!-A stments t.onrye.r t0 !ear I my t . ansni. 5 ,
. " l. b" Lomol e from a thfec speedto. fi vespeed. dor '
.d 6 q .o.p redes!n the ,l rote .dl
t he enq ne e rs .h a .g e dth e a r.a n g e rn c fio t !!tt now nmen!s
t o bet t ef.e fte c lh o wty p.3 1.!:l o rn .fs mol e arc!nd : q,L. o!esti ons
D i scussi on
o pdda o ood " " dooo I W hy do you fi nk Genef.tM l LsfoL r idt he lde; :
B LLr e let s c !:to mc i s o b l ai e !p ta i i ti o n s ol the r beneiLs.
.l st.nrer sel f serv.e so appe.tng r vhende. I :
. dt . Lr L. t e.o rt.l b !tl o n s l o th e r h e a tti r.o !.r.ge ..d .heck heatthns!rdf.e p.o! der?
t hc . ded u d b te : a n d o !t o f p o .k e t e rp e nscsonL.e C l s 2 W i .a\ | d 0l i l a. bi ame fo. the i: r l! r e. :
lom er sc .n n o w!l s o !s c l h e \' !e bs te tc o.dcr pfei cri pt.ns .ompanesw l i oanemptedtoi mptem . nl5 r t ; ': ,
b! m aL, e s tm a te th . c o s rs .t p re s ..p tons.nd med.al D oyo! a9.ce?W hy of w hyi ott
pf oc ed! re . o fd e f n .p l D ..rd s a n d i i nd p.n .i pat nq

n o t is qi fcant E C B S Thi nki ng0usti ons

C ri ti caL
T hef e w .rd sfrc mth e p ,o l e c tr,e re
or M f . c s o t. h .s n o to n ty n rc L Ge n e ra tltt'sl expectatonsb!t 3 W hy ai d how mqht daLr be .to f ed df r ! _:
at s c m r f r q e d t. b e a t n :t o n rt p fo ! a e f! A etn:. I qna..nd emFt.j ,ec!sethanl o..!sLomer!se'How{. :
H! m anir c !t o f s e l e .a t l e ry ta r!e .c c o !nts s!.h as 3M. d!1, bet..n5L.l edfor .!sl ome.5 to !nder st anl
No. t hwls t A rti .e s .a n d T a rg c l OL rn a ln saysh s Lompanys 4 W frydo v.! th i k 0Lnj l .n dec dedt. st a. t f . . -
m em ber s h i p q .e w b y 1 C p e rc e i t o f 2 0 0 .!00n.v,'membeE . w hci .dd ng a new W ob ba5ed5yst em t\ {- :
t af qc t ybe .a L rs e o f l s o .tfc .l s l o me r s e tt sefv.e 5!5tem p.obl em5d d th s approl chal oi d?At what . os
E v ennr o refe m.rl a b i e . BC g S o fl ' l i n e s o taexpe.crr.edthat
! r owlh n m c mb e f5 h p a t ? t m e w n e n s e l e.atnaton;L i sLr. SoURCESlMefed th Leviison Pa^'lteeCFtl ClAMaFzne r'.
C fo r i stai .e. tcst 10 M..ra ran/archrdas|503/.rn nltl BLueCro35and BLueS_ :
er s t Ds tm ttrc fs o f me mb e .s !i a
nesoti web sie a..essed May 23 ?AAL,Mbtre..js.r.
pef . lit o l ts ri e mb e .s h c d u e I p a ft t. . bol cl red
m pt em e n t:L o i o f a n e w .!s to m r 5 tr s e tu.e syS l crn. aFMxPE.o/, Odober13 2003

Caae T\vo . c!.tcmerphoncsrnd a 1l!httrom[rl]_:

f eqLrests
I P "" "
toSpeedCustomerg
LuxuryJetServiceDevetopsTPS \' 6 d
do opod b or o
onTheirWay i eededbythe ow f.' o. other.tents an dt hen c. . : :
p " " .popo
M os l of !s a re :w ..e h o w te c h n c to l yhas l ranstormed
c om m erc a ta . t.a v e ta n d l l i e p fo c e s so t l r.veL 0t.nn.g o aoo q o. q p:o.
F ey / efot !s . h .w e l e .. h a !. th ef ra n c ra treansLobookpf S entent canpe.fo.rnti e rask n near. . t t m e
lat et et lfa n s p o fta t.. L ty o rh a d l h e n o re ytch rea pf !ate
to enabte.!stomef scrvi ce.ep.eseni a!tes Lom . '
t et r owh.k y c !o ff to s o m e frr o frL .c :to n 5entl nt.l etw .!td
be t he. omp a n y l . .a tt bc t.avel efsftqhl fequ.ementsw l th a . cf . l1 i! . r : :
S ent0 .t l e t rs a p o n e e ri n l .e p f v a tel el m.mbersi rp Itei .ombne.!ston' r:rl tqi _,tstoraxmr z. pf ot h_: :
_:
b3s eds e .v c .n d L rs trytp fo v d e s .L )e i tsw tl r.ttthebenel rt. t.!ty ha. b!s ness v:t!c and offe.s mm edat e
ot olv i nq . fL c aot l a r.r3 tt w l th n o i e o f th e :sso..t.d costs i rvcs| ment sa d TotqaE rdoq!s,S eft e nt s ! cc t . :
. . d c . mm tm c n l s S e i l i e n ts p fo q fa mus-as3 nal onw rde
rl d te d a rc r3 ftfto w ib y p r!.l e p tots senl rent 0pt ml ze. i s a 1f.nsi r.to. pfo.essnq 5! :
.' tlet
eelof
nem sabte tye i j o y th e .o n v e ne o c c o i . :.Te an.r ...!.e
e fs connecrs 10 ml tt pt. l Gl eL ndl st r y lt ght .
l -"o r,d q da L e .d' "1
ex e. Lt! e -.L .s sr f.ra ft w th a !!a frn te e d l 0 no!f respofse
t m e aiy w h e .e i n !h e L l n l te dS ta te s S e4tent atso ol l e.s v on A dm n s1f . 10, , I
datafredfrom the Fede.atA at
oi dem .n d c h a rl e . l l !l rt:. .tto w ,i g .nyone to book . i nosdatab.ee!and p.odl ces. cotor . oded G ir ' :
f oLr ndtpf tt g h l w l h a 5 i g te i h o n e c :rtL man:qementchart The ch:.t show swh . h lt c: ,
Untke c o m m c cr ;l . d n e :. w h L .ho tt . a.d .oi trot the r
's " o" !!ara.tee5 l ts .ti ents a 1i ,rcho!f hr r nar o! nd
"q' ftqhi .
C entfy n9 3. .v. Labte
n br d! e b e tw e e nl ri r!e te rsa n d p .L !Ete l .t ow ner5to secL.a
s aleaid t!x !.l o !s tr.!e { ...o mmo d a l o i s. B Lrlbookng su.l - C ommercaLa rt.e5 !5e massve slst em st . r :
a f t r ghtis m!c h m o rec o mp l e rth s i .o m m e.c attruvetW her batcb p' occssi g to .o.d!ct sched!Leopt m i. : :
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NOTES

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. Gooddecision-makingand probtem-sotv- r Delne the stagesofdcisionmakiog
ing skitts are the key to devetopingeffec- , Discussrheimpo.tanceo I irnDremnts|onan.
tive information and decision suF^^+ monrtonngIn prootemsorving
systems.

. The managementintormation system r ExplBinthe usesbJ[,1lssanddes.ribe ihei. rf

IMl5lmustprovidetherightinlormation to pursand outputs.
the rightpersonin the rightfashionat the . Dis.uss informaiionsystemsrn ihe lunc-tion.
righttime. dreasol busnesso qdnral :ons

Decisionsupport sysiems lDSSsl are ! List and dis.uis important .hara.teristics .'
usedwhentheprobtemsareunstruclured. OSS5that givethem ihe potentiaI to be effectlle
randgemenlsuP P orll ool 5
, tden,rty
and 0..,(r,oFthe bor' . co+ponFn. .
a DSS.

. ;;;,,,"; ;";,;; ";;".;;;; "; - --;-;;;;;;;;i;;;;;;t;;"s;;.

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actedst'cs it troma oss
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alt aDoroachof . DSSin situationssuch "
the cheracLerislics
of s!ch a sy5tem.
assroupandexecutive decisionmakins.
 nrormationand
Decaonsuppofrsy5'em. I claet r lo iEs

BMATION SYSTEMS IN THE GLOBAL ECONOIWY

f,IKU-MASAMIINE SAKE BR,EWING CO., LTD, JA?AN
L.ient Com!anyProtitsfrom State-of-the-ArtBusinessIntell.igence
System

Ee Kano family began brewing sake in the smau toEn of Mikage, Kobe, Japan,
a 1659- The sake vri.Eethat theybwed, named rrtu-n4a6azme tlanstated a.s
d./sarthemum sake--became a staple in Japan- Over the centurie it ba.s
fbyed all impoftant role in Japaneso culture and rcligior. ID ta??, Kiku-
Ussanune bcamo a global commodity wb6n the company began exporting to
hgla.nd. Todey, Kil<u-Ma88raune sJ.e is expofted to nany countries, dd until
lt ently it eDjoyed a monopoly positiotr in the 33.1<e
inarket.
In the mid-199os, U.S- sales fo! Kiku-Mas^mue sry,rccketEd when sushi
b.arne the Latst dining fage. With su8hi bala opening neady e!rywherc, the
once deEcriH ea'moonligtrt stepd in spring rain" edoyd uprecdent-
-ke sales. Tbe compaDy took advantsg of its competitive positiotr and began
.d
{ducating U.S. corsumels tbrough E}e seminarE in l,os Argeres ard New York
C1ty. The attntion abawn to sake and its leadhg producer, Kiku-Ma.sa.nune, did
rot go unnoticd by some ambitious eDtrpreneus.
Competition in the sake industry incraed both rithin Japm and around
:be world. Also, the Japanese wer begimi]rg to bvor other alcohotc bverags
npoftd fmm the West. With competition ftom an estimatd 1,?oO Jepalrese
sBe brwedes aJld a dwindling clied baa, Kiku-Masamune wa losing busines
btb at home and abrcd. The company knew that it courd no longr Iery sorery
(n tradition and quarity. It needed to lear! mor about the maxket {,Dd its cu,s-
tomer. But Kiku-Masanue had one big adva.ntag over newcomel!: its eape-
r-ac. The key to using its expertise lay in the miUions of rcortls it had
oUecied over its long buaines8 bistory.
The company's paper-b.sed rccord stor waa huge, with 1.9 EiUion recods
br liquol vendoB and SOO,OOorcord8 for iDdividual expeuss, both of which
ter inoeaing by lOo,OOOrcclrtls each yeax. KiLu-MasamuDe was in dire need
d e electmdic system that could ma.trag the8 rcords end pmvide up-to-the-
rtuute porft on the coDdition of the compery, its suppliers, aEd customerE.
rs Kiji FuLuda, EJ'Etemamaragr in the compaqys accounting department ob
cres, Ofcoufte, ifwe'd been prepafed to spnd aI our time trying to uearth
Fucial atata, we conld havs continued hdefrnitely with our paper-baed opere-
tioD. But what if somebodJ' nded to look at a document submittd sevenl
FaE ago? We Eimply didn't have the tools to meet ttrae kinals of deinaDds."
Kiku-Maemune conhacted with a U.S. syEteB developer to design aJl inJoF
r)ztion add deciaior support sFtem customized for the companys needs.
?efore implementing th sJ'BteD, it was like we weI onry seeing pieces of tbo
lozre but never the big picture. Now we'r able to identi& vrhere changes arc
Deded in ou cortm4t8 and alriU do{I to the info.mation lF need to use oul
sles re8oulcs mat etrectivery," sal.8 Yoshihiko Handa, Eares and iDafketing
dtctor at Kiku-Masa,mune.
The new sJ.stem produces schduled rports snnu"alty, quarterly, monthly,
reekly, ard daily that pNide information on kry indicators such as prfor-
mance by rcta,iler atrd pmfrts by poduct and customer. Kiku-Masarnune is able
hlt a I Bsinessrnrormarion
sysrems

to use tbis inJomation to determine which of its customers rcqui$ attntid

and to :.pand its cudtomer base. Th new sJ'Etem also plovidos the compaqr
witb idormatiotr to better manag its ma,nufactuing plocs. KiLu-MasamuE
can provide customels with lurt in time" deUvery of a,ke. which saves batt
Kiku-MasamEe aitd its custorrrs the e:T|ens of toring larg invetrtories.
flre system ha been succe$tur in plovidbg Kiku-Masenure with a strcDg
competitive ad!.a.ntag in the sake market. ths company is vrorking to tBir al
5oo+ employees on the Dew informatior ard deciEion Eupport EJ/atem. The utti-
mate goal ja to a.m all employees with iDJormation to maJre the right decisioa
quickly ard efYctively, rcsulting in mor ploflta,ble atrd efrcient opelati(tl.

BuaiDess intellience (BI) Borution6 such as the one desig1led for KiL|r-
Masa.muDe a.I in increaing dema,rd. In spit of a rcent tough conomic cE
mate, the BI market experienced strcng gowth. Research compary
estimates that ttre BI market will rach $?.5 bi[ion in 2006. Business
eence development projech show conEiatetrtly high retulals oD inv$tmnt
a.re incleasingly rccognized aa key fol blrsiness success.
BI sy8toms arc one of ma,Ay typ! of infornation aIrd deci.sion support
tems that ar implemeDted to pmvid up-to-the*ecord iDformation for
msking at a,Ule!ls within a,bll.sine8s. InfomBtion a.rd dciEion support
support dcbions iD aU tursiioDsl units within ar olgnization: financia.l,
ufacturing, marketiDg, human resourcea, ard others.
Kiku-Maanune u8ea it8 D6w infomation ard desiEior Eupport sy3teD
plice it3 prcmium eel<e aatutely, to guide decision making, atrd to help
Ea,leaoppotunitie8- Efiective iDJormation gaihering ard infomation
arc clearly at the certer of the compan/s newfouIld cIm amid the storm

As youroadthi5chapter,comiderthe tollowing:
. How cn managmen' inFomarions'srem gujde a compmy ro .chid. I ompd;ri
advantagewithin d indusry?
. \ihat che.reristics ofu infornation dd decision supporr srsrd make it r"lualtd

Ar seenin the opnins visnerre, infornation and dcisionsuppon are the lifeblood of
olganiarions. Thanlc ro infomation and d@isionsuppon system, managersand
can obtain usefirl information in real dm. As we sawin Chapter 9, the TPS qorurc a
of dara. Vhen rhis data is filtercd and nanipulaied, ir m provide powrfirl suppon
nanagen and employees. The uldoate goal of mmagement infonnadotr md daii
 nr.-ni roi rrdrer s.i sL.pro.'
sl srcmsI cupter r o

.rpport s),$rds n ro help rnamgersad execurives at aUlcvelsnake bdts decisionsdd

F .Jlvinpoftdt problems.'fhc result.d b increaedr6,erucs,redu.edcosrs,and rhe ie
.lizationofcoryo.aregoals.\(c beginbv inrcstigaringdecision
mal<ingdd p.oblen solving.

I
I DECISION
MAKING
ANDPRO BTEM
SO LVI NG
:
:\ drvorganizationneedseffecrivedccisio!naking.In mosrcses,srraregic planningandrhc
.d.l]so.ls ofthe orsaDizrdonsci rhe colBe tu decisionmaking.helpingemployees ard
-r\n,es unitsach;se rheirobjccrivesandgdals.often, inormationsystensalsoassisrwith
,rrgic pldning and p roblen solving.cooddecis;onanalysis, for exanple,canconrribute
a,llions or evrn h;ll;otr oidollaB to hige chehicalo, photographicconpany s pro6rs.

D e ci sio nM a k i ngas a C omponnot f P r o b L e mS o lv in g

. busines, one df lhe hishestcomplimentsyou can reciveis ro be re.ognizedb, your
-:l]eaguesand peen asa'ieal problemsolve!."lroblem solvingis a criticalacriviryfoi any
:-jinessoaniador. Once a problemhu beenidentified,ihe probleh{olving proces be-
:rs rvith decisionmaking.A well known hodel developedby Herbeft Sihon dividesrhe
dision-nakinsphase ofthe probleh{olvins proce$into rhreestages: intelligerce,design, decision-making phase
::.1choice.This nodel waslarerincorporarcdby ceorge Huberinto an expmdednodel of The I rsl part ol p.oblem sotving
:: entireproblem+olvingproce$ GeeFigurc 10.1). h c t u d i n qt h . e es t a g e s:i n te l l i g e n ce

@
How DecisionMaking Relatei
lo ProbtemSotviog
Thethfee srages otdecsion
makn9 i nl l l i gence
d esign
andchoi ceafeau9me. led by
mpl emental iand on mont orn9
to resull n probtem sotvi.g.

. hetirsr stagein rheproblen solvingproce$is rhein.ellisen e strge.During rhissrase, intetligence

siage
.: :nliatproblemsoroppo.runiiiesareidentilidand defined.Informationis garheredlhar T h en r s ts t a g eo f d e cs i o n m a kn g , n
w h i c hp o l e n t i apt r o b l em so r o p p o r
--r::5 to the causeand scopeofthe probleh. Durins rhe inrellisene srage,resourceand
t ! n i l e s a r e d e n t l i e da n dd e f n e d .
r. .:onnental constraintsareinvestigrted.Fo. example,explorinsrhe posibilitiesofship-
::; ropical tiuit lrom a farn in Hawaii ro sroresin Michisan would be dodedutus $e
::. iigencestage.Thc perishabiliqrof rhe fnrir and rhe muimum pricethar consumersin
. -ris.D de willins ro per for rhe fruir are problcn coturrainrs.Arpe.B oflhe problem
.::onmenr rhar must be consideredin rhis caseinclude federaland $are reeularions
=:iing the shipmcntoffood products.
 Pet 3 i 8 6 tu * il.fn a r o f lF l.m s

de6i9n stage ln rhe desisnsrage,ahemarivesolurionsro ihe problemaredeveloped. rr addition.*

Th esecon dst ageof decs ion ' e r,i hi l ,l vot rhe.erLe,rdrre. n drl LJted. In ou, ,ropi crtfrui r ,umpt e, r he aj. nr : -
ma k n9 , n wh c h alt f nat v e
rrrh oo\ or .hi pmrn,. i r..udi ng rhe .rJn,porJ,i ont;e. Jnd ,.,,. sa . iF, l .a
so lutio nsto lhe pf obt emar e
would be considered.During this stage,rhc problemsolvermight dererninethat- ,shipr: h
h v l fl gh(,o ( J,to,ni r Jr d In, n b' rru.k ro V .t-i gan : nor re" vb t ebec: : w r r - . r

The lst stageof rhe decision-h.kinsphase.the choie stage,requiressetectinga cc:E

Theth rd slageol decs on m ak n9, ot acdon.In our nopial fruit ddple, rhe Hawaiianfarn night selectthe nethod oi:.--c,-
wh ch requiresselecirnga courseof
ping by air to Michigu asirs solur;on.Thc choicesrageworld then concludewith setec,r.
ofrhe acruelan cader. As we will seelarer,va.iousfaclorsinfluencechoicq the aoDarei,
e a f r., or,l ' o,^,ng, ror J.,i Tpl eai , Ini gh,n,.." ppear.
Problen solvingincludesnd goesbeyonddecisionrnaking-Ir alsoinchdesthe imti
A pro ce sslhatgoesbey o. ddec ison mentationstage,rvhenrhesolutionis pur into ffeci Forennple, ifrhe Hawaiianfarer
makin9to ifc t udet he m pt em enla
decisionis to ship lhe rropicalfruir ro Mi.higan s air freight uing a spe.ifi. a;r i..EE
conpanv, lnplehenrado! involvesinbrming rhe farning staffof rhe ncw activiq, gec:E
imptementation 5tage d1e&uit ro th a;pon, and actuailyshippingthe productto Michigar.
A sta ge ofp robt ehs ot v ingnwh c h The final sraseof de problem{olving p.oce$ is the noritoring stage.rn this *e:
a solu tionis p ut nloef lec t .
dccisionmakersqaluate the ;hplemcntationro dererninewherherrhe rnticipared!..e
monitoringstage wcrea.hievd.ndro modib.the proc.s in lish! ofn inforharion.Monitoring qn in\!.E
F na tsla geo i t he pr obt m - s olv
n9 fe c d b "|.' ,r,l ,d J.rmcr' r.Fu $Jmpl ..rl i e,rhenFr,hi pmerr,,.ti rrr.rh eHr ur r unr , r -
Pro ce ssIn whic hdec is of m ak er s
e v6 L!a te
th i m plem enlalon
mishr lern rharrheflisht ofthe chosenairfreishrfirmrourinelyhaks asropoverinphr-,!
tuircn4 wherelhe plancsi* on the rurway fora nunbcr ofhourswhilc loxdins addtrirEl
.rrs o . l f,h' . uni ore,(.n .r. ruJ i n rempr? urernd I umi urryj dkr" e t l JRc; . , h( F_r
^n
,h c i r re, mi g\r hi rc ro r(rcl ur hi ..o' uri onro rr.l udea req ,i . ri ei ehrf i L h, r do u
,r.l - , ,roporcr.or o.rhrp. hc w oJJ . on.rder,. h,ntsrIn i rui , pJJ, g ng.
rn " J <e

P r og r a m m eVe
d r su sNo np r o gr am m e dDe cisi ons
In the cho;cesrase,v.riousfactos influen.ethe deisio! makeis selecdonofa soturion.a\-
pro9rammed
decision su.i factor k wherherthe decisiorca be programmed.prognmmed deisions are r*
Dcsionmad eus nga f ule, usinga tule, prccedur.,or quanriradvenethod. Ior example,to savthat invenrorysh::d
pro ce d!reo r quantlal v e m et hod.
be orderdwhcn invenbrl- lsels drop m 100 unirs is ro adhercro a rule. I,rosran:{
d a .,r. r' e er.r ,o comru,ea/cu,i ng r." d.i orJl i nro,n" .i on .ren,. lr F . i; , f l( r
epmple, to progem a computerro ordernor invnrorywhen ioventorvlevelsfor a cea
i ,e m r er.h .00 uni r. o, l e(d. Mo.r or p,o.r..e.ru,oh" ' ed throughr r m . r , or : =
' h,
cessing sysremssh&e rhis .ha.acrcrisricthe relarionships bemeensysremelenenrsarcr:J
byrules,proedures,or nunerial relarionships- Managementinformdrionsysttus ar. *,
usedro reachprogrmhed decisionsby prcvidnE repons on problens that are routine a!
in which rhc relarionships ue well definedGrrucruedproblent.

0 rde ringmor einv ent or y when

nventorylevelsdrop to specified
tevels san exampleol a

ISou rceCo
: Ld es yot Sy hbot
 nh_natoi ard J.. i .i 5L.pp.'i ;E hms cbl i er lo
I

Nonprogruned decisions,however,deal with unusualo. exceptionalsi adons ln nonprogrammed

deGisi.n
neny cases,rhesedecisionsaredifiiculr to qudtify. Deternining the appropriatctraining D e c i so n t h a l d e a l sw th u .u su a lo r
r,ogran 6r a new enployee,dccidingwherherto start a nw rype of producrline, ard
reighing rhe benefiaand drawbacksofinsrallinga new pollution control sysen arc cxam'
.les. Eachofthesedecisions.ontainsmanl uniquecheractcristicfor which the application
rfrules or proceduresn not so obvious.1oday, decisionsuppoltsystedsre usedro solvea
.rriety of nonprogramneddecisions,in which the problen is nor rDutineand rulesand
:;lrtionshipsarenot well defined(unstructuredor ill-structuredproblems)

Ap p r o a ch e s
0 pt im iz ati o nS,a t i s t i c i n ga,n dH eu r istic
o geneal.conpurer;rd decisionsupporrsvsrems can eitheroprimirc or saisfi.e An opti- optimization
model
nrizationmodelwilltindthe bestsolution,uually the onc rhnwill beshelp theorganizarion A processto I nd the best sotut on
u s u a l l yt h e o i e t h a !w l l b e sth e tp
reet ns gorls. For example,an optimizarion model crn find rhe aPPnlPrhrenu'rbcr of
t h o r g a nz a t o n m e e t tsq o a i s.
:roducrsthrt ar organiz:ti<,n shouldprodue to meet a profirgoal,givenceftain.ondirions
rid ssunpdons. Optihiaion modelsuril;e ptoblen constraints.Alinn on rhc number
raavdlablesork hous in a maoufrctuing iacility is an exdPle of a problert constrainr.
ione sp.eadsheer proCrons,suchasExcel,haveopdmizingfeaturesGeeF;gure10 2) Arr
::pliancenanufacrurer,for exmple, canuseanoptinization progran o help it redua the
:.mc and <xt ofmanufactufingapplirnc.sand increa\eprofits by millions ofdollas The
:.hedulingAppoirrnents at Tmde Evenrs(SdfE) soliwarepackaseis an oPdhiatio' pro-
:nm that schcdules $poinmenrs bc$een buyds and sellersat tradeshor* anctneedrgs
hc oprihizedon softwarc aho 3llows d.cision makds to erplore various diffcent altena-
:rcs.'Ihe softrvare hasbeenusedr the Ausraliar Tourisn Exchange,rhe large* tavel fair
: drc sourhernhenkphcrc.' Schindler,the wodd's largestesc.lnor @nPan,v.used!n
:rrimization rcchniqueto pLannaintenance p-gram.: One inrPortant decisio! lhat
. , nJ l , r dm , r y o r\rr..' T p r:e .l a .e i ' h o s mu " h p re.cnri ' enu' n' .n.ncerooc-form
preventivcnaintenancecan savca companyfrom naking costlyenergencyrepaits,
-ood
.hich in Schindlcr'sese involvessendingmaintenrncereamsand etluipmentro ofiice
rrildinss and rerailsroresro epalr out-oisewiceescalators. However.too ndch prrycnrive
rirrenadcrwastes valuablere$ur.es.Usinga quudtaive oprinizadonProgran,Schindler
-,:s rble to sve rbout $1 million annuallyin rolal mai

@
S o m es p r e a d s h e eptr o 9 r a m s, su ch
as Excet,havoptim 2 nq routines
T h i s l i g u f es h o w sS o tve .,w hch ca n
f n d a n o p t m a t s o l u ti o n9 ve .
 Ptrlr I r

A satisfi.insnodelis ot rharwnl ild r good bur not necessrilvthe hesr prol,..

Amo de Lrh alwt t lindaqood bur {,Lurion.S.tisfi.i.g is usuaLly $ed bc.iusr ho<lelurgrhepn)bien properlrto gcr., opr.
n0 t n0 ce ssafty llr e bes r - pf obt em
decision\\ruld be roo difll.uh, conplei. or cosrt'. srtisficingnonrllv doesnot looh ::
fo$ibl. solu nrs bur ody ar rhosclilelr to givc good resuhs.Consi.Ler a dccisjono \. ,
! locarlo! lor r new plan,.To fitrd rhe optimal (bcn) L,cation,,rouwould harc to con.,:,
ill ciricsh rh Unircd Stxr$ or rhc sodd. A sarisfi.nrgatf.orch *ould be ro corsid{.
tnr or ter.ities rh.r right sris6.rhe omfanls reguirmenrs. Lih;ing rhc op,jon" r .
nor rcsultin the besrdc.ision,but it will likell rcsultin a good dccnbn, wnLou sperr ,
tIc ' n n el ndel l i l r' rroi nysti garcel l ci ti es.S ari sfi ci l gi sagoodel ter nat ivem oddnr gnr : . :
bccaus tr n $n,erincs too erpensi'eo analyzccvrrv alien.rjv. to gerrhe bcsrn,lurjL-
Heuristics,oficn kfsred ro rs 'rules of ,huhb"-commonlr acceprcr{guirlehn.,
Co mmon ty a .c epled9u det nesor proccduresrhar r*r1ly find a good vnurior rre veN oftcn !se.Lin dccjsio! hrk .:
p foced ure th
s at us ualt y lnd a qood
h.ursri. rhar bascballrerm mamgersuseis ro pti.e brners nor likehro gct on brse:: :
rop oldr lineup,ibllokd br rhc powerhitrcrswho'tl drivc rhem in to scorc.An erar :
ofa heurisricusedh businc$is ords 6ur lronths rupply olinvenror for r panL:
i'cn whenihe invcntoN leveldrops 'o
b 20 unirsor fs,errcvcnthough ihjs hcfti$i. mr: -
m!,ih izroralnrrent(,a cosrs,i' nav bea !c{.good .ule of rhunb n, avoidsrockotrssr -
Loomuch ercss inventon. t r.nd Micro, . prov;de,ofrnti"nus s,ftwarc,hrs Jeelop;: .
antispmrproductrhat r basedor heurirics.r'thc sofnvde exrmiresenails ro tnd ri .,
nro$ likelr fu be span.
tr addit n ro usnrgproblen-sollnrghodels, dccisionmakes alsouseinfomario. .
rems ro ihprcve rhe eficiencv ard qualiF of rhcir decisions One such srsrc.r . .
intouarion slsten. discmed nexr.
'nanagement

AN OV ERVI EW
O FM ANAG EM ENT
I NFO RM A T I O N
SYSTEMS

Maragenent informarionsv$rhs (MtSt cxn oftenstueconpaniesand orherorganizr:

a compritireadranragcby providingthe righ! infornadon ro lhe light peoptein rhc : .
firnar and at the rishr rime.The U.S. nilirar coalirionjn r..q, for cxanpie,used. j::.
agemenrintormarionq'stemro preciselylocare enemytroopsard rheir resources.aThe \
usedgloballosirionins svsrens(cPSt, sareuiremappingand suneillance,and fteque:
updxtd irfornarion oblainedfrom ftoops in rhe field ro ser and disptar informrti.. :,
.!eh)' r.oopsaDdU.S. lroopsand equipmenr.

M a na g e m e nInt fo r m a tio Syste

n m sin p e r sp cti ve
The prima,Tpurposeofan MIS r fu help an oigrnizarionachielei$ goatsbv prol,: :
manage.swilhhighr into the rcgulrropenrionsofrhe organi?:rionsorharrhercancon:::
organize.and plan nore effecrivcl,rrnd efiicicnrly.One important role of rhe MtS :.
provideth righr nrfornation ro rhe right peror h the righr tashionr rhe dghr rih.
shoft,a. MIS providesharases wirh infomarion, tpicalty in repo.rs,rharsuppoits.::.
ti v e d ecki onrnal i ngandprovi desfeedbacl < ondri l voperari ors.t igur et 0. 3sho{. st he- ,
oi lr{ISswirhnr the ilorv of.n organizarions infi,.marion.Note thar busnrcsstansacr
can enter rhc organizatlonrlrough rldirioml hethods or via dre Inrernetor an exr:-,
connecdngcustome*and suppliersro rhe firm's transacrion processing${rerns.Th u..
NIISSspans.Ll lclcls of managcnent.Thar is, rhevproviderppon to and arc uscdb, .:
plorers rhroughour re organizarion.
 nrDfmaronand
Lre.siDnsuppod
st,"-. I o"pt"" to

r put st o a M a n a g e m e n
I nt f o r m a tio Syste
n m @
Sources of Maf,ageriat
.iown in Figure10.3,d.ra rhar enrersan MIS otiginata from both internaland external
. ,-:es.includingthe conpanls srpply chain,first discussed in Chapter2. The mosi sig
:rm internatdatasources T h e M S s j u s l o n eo l ma n yso u r ce s
foru MIS arerheorgan;atio. !vi.iousTPSSdd ERPsystems
o l n 6 n a 9 e r a t n f o r m ati o nD e csi o n
: =lated &tabases.As discssedin Chaprcr5, @npaniesalsousedatawarehouses md
supportsyslems,exe.utivesupport
:: maru o sore valuableblsinss infornarion. Busines intelligence,alsodiscused in sysiems,and exPertsystemsatso
::,er 5, can be usedto rurn a databm into usctulinformationthroughourthe organia' a s s i s ti n d e c i so n m a ki fq
Orhd internal d.ta comesfron specific tuncrional areo throughout the firn.
:irernal sourcs ofdata cu includecusromers, competiton,md stockholden,
suppliers,
. ,; daa is not alreadycapturedby the TPS, o wellasothersour.es,su.h asthe Intemet.
:Jirion, tudy compmieshaveimplcmcnredcxtmers ro liokw;th seleredsupplie.smd
o. r . inesp, nn e n r,' e r" h rn g ed rr, rn d i n i o rrnrri on.
lhe MIS usesrhe daraobtainedftom thse sourcesud proe$es ir into infornarion
': usrblcbymanager,primarilyin the forn ofpredererninedreports.Irorq.mple, ather
, imply obraininga chonologicallist ofsalesrctivity overthe por week,a nationalsales
:.:cr rnighrobr:in her orgoiatidn's weeklysalesd.ra in a formotthat allowsher to *e
... : r r ir y by r egio n ,b y l o c a l s a l e s re p re s e n ta ti ve.byproducr,andw eni nompari sonw i th
, . *s sales.Providence \rashingt,n lnsurmceCompuv, for *ample, is usingRepon'
::.m Cogoosio reducetle nurnbcrofpapcrreportsand the asso.iated.osts.5 A.cording
: Lcvelle,CIO of Providen.eVshingron, "Ourintenrion wa to replacePaPrrePom
. o lltemer-b*d cpordds proctss."The ncw reponings1stemcreatesan qcutive
. rorrd'that shom curent Jata, graphs,ard tablesro help nnnag*s male bettu
 P.!t s I Bw ** r"r".-di". sFh-'

lnformationSystem
0utputsof a Management
The ourpur of nost nanagement information sysrem is a collarion of repors thar c
diskibuted to mamgero. Kodak, for auple, ue ar MIS to sod imponant salesinfoma
tion to its salesreps.6According Io Jmes Sanford, renior nanager ofsates conmuniotic
ard stntegr, "Like a lot of ompuie, Koda-kwc good ar olledng data but not very gci
at shring md updating dnt data." Mmagement repons en ome from uarious congm'
databare tlrough data nining, firt intrcduced in Chaprer 5. Dara nining allows a .onpe
to sili throogh a v*t mount of daa stored in datrbases, data warehouq, and data nm e
produe a nriety of cports, including scheduled rcpor$, key-indietor rpons, dehand
rcporrl, q@ption rpons, dd drill-down repons (see Figure 10.4).

@
ReportsGenrated
byan MIS
The fivelypesol reporlsare
la) scheduted,lbl key-indicator,
lcl demand,ldl exceplion,and
P12.53 c3r321 oah2lo6 r.4 Pr23. $,2r.
o412rn 2rs 032r. 45,660
lSource:GeorgeW Reynolds, 03/i3/06 r2 P.mz 41,221
lnlarhatioh Systens lor Managers, oah?tn 2t rta12 t2trt
P12{56 cx!23 00/13/06 im
ThirdEditio n.5 t.P aut ,M N: W es t

Nl12lo6 P1231 ,12,3s6

p2tr$ dx)453 ul1?loa ',6
?33 P2311 t24,300
wt11to. 1tr P23a a16,aoo
 irormaronandD.. .ioi suppodsr."-' I co"p""-

ry
by an M15
ReportsGenrated
Thetive typesol reportsare
lal scheduLed,lbl key indicator,
lcl demand.ldl exceplion,and

lsource: GeorqeW Rynotds,

lnfornatioh Systens for Managers,
Third Edition 51.Paut,MN, West

;(heduted Reportg
rheduled repons arc producd pcriodielly, or on a sched e' sucb o dailv. wcckln or
ReportproducedperiodicaLty, or on
.nthly. l,or umplc, a productionmanagercould usea weekly$'mmarv repon thar list5
tye e kl y,o r
a s c h e d u l e , s u c h a sd a iw
,,1 payrellcostsro monit"r md conrrollaborand job costsA rnanuf:ctuing rcport gen-
rrd one a day ro nonitorthe productionofa ncw irem isanorheraample ofa scleduhd
.:o.r. OthdschcduledreP(,nscanhelPhdrs.6 contol customercredit.the pcrformnc
iJes rep.e*ntativcs,inventorylcvcls,and noc Boeh.ingerlngclheih a llge German
:rg cornpanywith ovcr $7 billn,n il rcvenues md thousandiofenplq'ees id 60 @untries'
r varicry of repons to .tlow it to rcspond rapidly to changing rurker conditions Ac-
: -s insto rhc @mpanr'schicf li nan.ialomcet (CFo), "t want to be told whereI standand
.rre wr are heading.I likc ro be alic to seenesativctre.d., counre.th.- frst as
-d -
r $ihte."'l-hecohpuy $es Cognos.Inc.'s lmpronptu MIS to d*clop scheduledreports
- .osls for i.s va.iousoperari{,ns. Manaserscd drill down imo rnore lqels ofdctail to
- lividual rmactions ifthey want.i Xcl Encrgy has developedan onhre rcponing svstem
: i6 cstoncs in Colorado ro help them conuol their elccrriciry bills 3t he progrm' c.llcd
rSman. :llows qrtomer to analpe rieir crcqy use "This is on instdrcc where knowl
:r truly doescqual power." saysttbbie Mukhe.Fe, produd Ponfolio ndagtr r X'el'
.. sch.d"ledrcpons,11,,*cusromeFto del.nnine the encrgreffrciencyofrheirhomesud
-1or appliances.lt dv, showsthem how thcn enr$/ usccomPa.eswirh other hones in

A key-indiator .pon summarizesrhc proious day's critical actirities and is tlpiollv tey-indicatorrport
S u m m a r y o f t h ep r e vi o u E
d a ys
. itable at thc bcginningofeach workday Thcsereporlscan summri2c invenrorylevels,
iticat activihes;typicattyavaitable
:-rducrion ecliviry,sles volmc, and the likc Key-ihd;carorrePot\ ft uscdbv man2ge6 ar the beqinningot eachworkday.
o! siSnifior aspecsofthe busines.
--J *ccurive to takequick, conccriveaciiod
 PFr s I B6h*" nrormarion
sysrems

DemandRoports
demandreport Demand reponr rc doeloped to give ..nain infornation upon requst. In other word.
Reporldevetopedto givecertain th6e repons d produced on dmnd. For dmple, n execurivemy *mt to lcrow 6r
informalionat someone'srequest
production srars ofa pfftiolu iten< demnd repon en be generatedm prcvide Sr
rqustedinformrion. Suppliqs dd cs.on6 d also ue dodd repor.s. FedEx, t6
&mple, prcvides denud rpor$ on its Web sire to allow irs cutomers to tnck palo*q
frch lhrirsourcc ro Lheirfinal desrinarion.Srudots in lda.hoand ot}q srate o eo re 6.
Rrc-My.rrofessor Intemersile ro ser 6rings of holry membe6."The Luret r;b Coc
pmn a bar and pub chain in England wirh over 630 ouders,usesdemand repons to generr
imponant sale datawhen requsted.toThe conpany expc1lro saveabout 1500,000 0r.6 r
fiveyer pqiod. Other xmpls of demmd repo.$ include repo.rs requsted by qecutiE
roshowthehouisworftdbyap ticllar employe, total salesrc &te for a prcduct, ad soe
ExceptionReports
EIeFion tpons {e repom dFr ar. autonati@ y produ..d whn a sitMrion is unu!,
Reporlautomaticattyproduced or requi.e nanagemenraction. For @ple, a lndager night seta panneto that genel"E
when a situanonis unusualor
a rpon ofall invenrory items wirh fver than the equirdent of frve dars ofsales on hri
requiresmanagementaction.
This unbual situ,rion requiresprompr roion ro avoid Mnins our oisidk on rhe nc
Th qeption repon goated by this parametermuld contain only iremj rrith fflr rl-
6ve drlr ofqlq in invenrory.Deuoir-bxed findciat sdicf) providerComeri 66 6
ception rcpons to usemble a list ofcu"oner inquiries rhat hav ben opo e period ofrir
wirhout sorne proges or closure.u The compuy wmrs to improv i$ cusromr se .ie
A@rding to th senior vice presidnrofrhe compoy, "\reI be abtero s whot doine rd
*ii. rd reward !ho* folk. And w.U be able *e whos nd.ngaged
'o rL sd-b+
them." Ex@prion reporrs de also used o hdp ffght tenorism.r, The Marchmaker SFE
scans.irline palsengr lisrs od displays a aception repon ofpassengersthat coutd bt a
th@r, s authorties @ Enove tle suspcctedpasnger before rle plaD. rakesofr Tb
tsren u6 devrlopd in Englad as pan ofia Defene Evaluation Re*{ch Agncy.
As wirh key-indi@tor rcpo.ts, x@prion repors ar most otien used to monitor op<a
imporur ro s orsuiarioni su(es. In generai.when m d(eflion repon is produc..-.
nu.g.. or execudverakesacnon P.!.m.rss, ot trig$ patz4 for an aeprion repon shc{
be set ar6ily. Trigger poina dnr u set too low may rlult in roo mmy e(ceplion r.po.-
trigger poina dnt ae too high @uld mean rhat problems requiring ection are d.do.&a
For qalnpl, if e nanager nuts a repon tfi.t @ntain,sa[ prcj@ts okr budset by $l@ r
nore, the sysrem may retiim almot every conpay projc.. The $100 trigger poid.
probably too low. A rrigger poinr of$10,000 mishr be more appropriate.
Dritt-DowrRportg
dritl-down report Drill-dovm repons provide increuingly det3iled daraabout a sirudon. Thioush the e d
Reportprovidinginff easingty drildoM reporu.mriys(5areableto reedaraar r high te,elfrs kuch e! sJesf;r the e,rr
detaileddala aboura siruation
company), thn rt a mo.e de.ailedlwel (sucha rhe salesfor one deDanmentofrhe conoroc_
rnd rhena very droiled lwel{\uch s sale forone sJe5*p'o*",;".1.
DevelopingEffectiveReports
Mmasemcni infornadon slslen reponi m hdp moasr doelop bener plms, makehto
decisions,ud obtain grearer@ntrol ovr rhe operationsofrhe fim, b in ph.tic., tfie nF
ofrepons co overlry. For qmple, a managercan denod d exeprionrepo.t or serrr+a
poinrs fd iterns conraired in a key-indiro. repon h addition, somesoftw"re pek g6 c-
be ued to ptodue, gather, and disribute rcpons fron ditrercnt omputer systems.ici
suideline, should be foloved in dGigning od daeloping repor$ to yield rhe besi rs.&
Table l0.l qplains rheseguidelind.
 r ri i trr oi : i d:p. s.i suppNIsl l i .ms I chapter l o

@
Guidetinesfor Deve(opinqMl5

producingontYrePorts

PrcduceaLtreportsrna outdatedreporisareot little of io vaLue.

C harac t er i s t ioc fsa M a n a g e m e nInt fo r m a tio Syste

n m
::treduled,key'indicator,denand, excePtion,and drill-dorv" reponshaveaLlhelpednan-
nore timely decisions.v4ren the guidelines lbr developing
":r: and execudvesnake bet!e!,
,::crive reponsa.efoLlowed, orsanizations canincre*e revenues and lowercosa ln general'
'.1:Ssperforn the followingfunctions:
For exmple' scheduled repons tor
' horidz rcpotts tuith fred and 'tanddd fonari
invenrorvcondol may containthe samerypes ofinformarionpLacedinthe sanelootions
on the repons.Diflerent managesmay userhe samerepon for difterenrpuryoses.
. Prahc harlnpl ant sof-co?t t.Po/t! SoneMts rcporls are Prinred on PaPerand are
considered hard-copyreports.Most outpur softcopy,usinsvisualdisPlaFon computer
screens. Soft copv ourput is typicallyfotmattedin a reponlikelashion ln otherwords,
a nanagernighr be abLeto call an MIS reporruP di.ecdyon the compurerscreen,but
rhe repon would sdll appearin the $andardhard{opyfbrmat.
MlS tepons usePrinarily inrernal sources
' L)'eihte/,al data rtore.l ih the conP'tef ryrtem
\ore \' l l \' ur A rer ]J' our.e' ' r
' r dau' r " r " r e -o n ta ' n e Jn .o mP u rtr,d d rru b r' e'
tlaraaboutconperitors,rhe nakcrpLace,and so on. The Inrernetis a frequerdv used
sourcefor externdldara.
. A au .nd u$ to dtuela?their otu" catam rcPa,n l\\hough analysrsod Ptogrinnes
maybe involvedtu dwelopingand;dplemcnringconplex MlS rePoftsthar requitedata
iron neny sources, end usenareidceasingrydwelopirg rheir own simPleProgramsto
queryadatabase and producebasicrepons.l!is capabiliry,hoFever,car resultin several
od user dweloping the sare or sinilar rePors, which can increaserhe btdl rime
cxpendedandrequic noresrorage,conparedwith havingananalvsds'eloPont reporr

. Rauirc LsetryL$B for re?oa datoped bl ytttns 1owarl when IS personnel develop
rncl implementMIS reporrs,they cvpicallvrtquire othe* to mbmit a iorhJl rcquestIo
rhe lS department.Ifa mmager,for example,nana a productionrepon to be usedbv
 r*'" | ,1 r ,n :L o , 3 !sL .,i.
",' "...

or her deparrnent,a fornal rcquestforthe repon is olie"

reponsrequnenuch les formaliq. -.1";.:

ASPECT5
FUNCTIO NAL O FTHEM I S
N.{.$ orgdizadoN arc sructured alongfrurcrionallineso, a'ea'.This functionrl srucr..'
is usurllyapparerrfron an organizationc.hart,which q-picallyshowsvice presiden*unr.-
theptesident.Someofthctraditioml functionrlareasarelinane, manufactuting,marketi::
human resdurces. ud other spccialird infornarion qrlems.'l'he MIS can be dnir.-
along thosefunctionJ Lines,as well, to producerepora nilored to indnidnal functr-.
Gre Figfte 10.5).

m
@
TheM Sisin inte 9r at ed c ot t econ
t
offun ctlo n6 tnio rm aton s y s lem s
ea chs!p po ftingp ar tc ut ar
 r 1!,,nrfr lEi!,f:n,ri r ! ', '. I o '. p " . ro
",

Fio a n ci aM
l anagementIntorma t io nS y s t e m s
,.finmcial MIS pro'idesfinancialinformarionnor odv for *e.utns bur alsotufi brords l i n n n c i a LM I S
-r ofpeoplcwho needto nake henerdecisiooson a daih bdis. financial MlSs arc us.d ro A n n t o r m a lo n s y s t e m th a tp r o vd e s
::crrnlincrcportsofftrnsactn,ns.The 200-,vear-old N.w York Stock lxchargc is ilvcni f n a . c a l n l o r m a t l onto a l l l i n a n cr a t
m a n a q e f sw i t h i na n or g a n i za ti o n
:r:ing a ne* sysem fir iis eLecrroricrcporn offiatling.rr rhe new sysrenshoulJ .u cosr
.rJ be n.rc elllcienr. Other fimnciJ MIss attempt ro derecrsroch"n.rLd fnud and
,rsc.1r'IhcFinancialServices Aurhoriq-tuErglandk spendingat!)urtl millior ro idcnLiq,
: ,.k-nurker abusr)nd fnud wirh a newsi{icrn .dll.d S&dhnc rnd Auron.r.d B$nres
:.:porring E,ginr (SABRE).The s)srcrnshould be fulty operarn,nalbv 2006. A..ord;ns
or SABRE spokesFrson, 'SAUltI s a simph dmbre, and we usc a r(nber of
-:cdct.rriJrd dd Uexihlereponsro cxrracrinformtion fnnn the slslem."Ilosr finmcial
'llss pcforn the followingfuncrions:
. lntegrareffnancialand opefudon"l ina.marion frcm mulrblc sof.es. in.lLdins rhe
lnrerner,inro a singleslsteh
' |fovidc c.sv ac..s to &ta foL both flnancialand nonfinan.irl usrs, olien ihrougb usc
oir corporarcintranetto aces corporarcWcb pagcsoffinrn.ial &ta and iDfbnn.rlo!
' Lhkc financjrldrta jmmediarelyavallabLc ro sholdr anLysistunarcund rinc
' tlfablc ani\sis offinancial dataalongmukiplc dimcnsions tine. ueography, product,

. \ , t f e I i. , o ..,t.,,,J. . r. fi r .r. i , .r ri , .
-r
. \ 1o. ,. o, r d.o n ' ,J rh r u ..., rJ r-r,
" ' .1 ..\e ,
: :trre 10.6 showswpi.al inputs, frn.tion spe.i|. subsvsrens. rnd ourputsofa financial @
l:\, includingprolit ard Loss, ruditins. anJ $es and managcrncnt
ofliurds. Overyiewof a FlnanciaLl',115
 r.* a | ** nIm;, o, ifrei,!
"..

F lnanc iat
ins rt uti o n us s e
nfofmationsystems to shorten
iufnar oundt m efo rl o a na p p ro v a l s .
K er hB r o c k y /Ph o to
ls our c e, s cDl

Profit/LossandCostSyslems
Two specialird financialfuncrionalrysremsarep.ofir/lossandcosrsvsrems, which orgr:
revenueand costdarafor rhe.ompany. Rnenue aDdexpense dara6rrarious depmmr::-
is capruredby the TPS and becomesa primary inrernalsourceof financialinfornatioi
the MIS. -.
Mmy departnents within an organizarionareprofit @ntero,which neas that they ta
0 ep e.tme niwith lnan or ganz at ion roral expenses and net pronrs.An iNesment division ofa larseinsuraice or credirc-
tfratt.a ckstota tx pens es
andnet .onpanv b an exampleofa pronr cenrer. other depanhenls ma)' be raetrue centers.Fllr
aredivlsionswnhin $e companyrhat primarily$ack salesor revenues, sucha a narker:g
o , ' a .e .d epanment.\ti l l orherdepannertsra1 berost cenrerr.
w hi chre divi, ionq l
Divsionwth n a c om pany t hat "i
a @mpany rhar do nor direcrly generarereren$, $ch as mmufacturing or research:::
dwelopnent. Theseunitsincu costswith lirdeorno direcrrevenues. Phdnaceurical.o:-
panies,for *ample, are usingsuperconpureFwirh over 100 processors io hetp a..eleE
Divsionwlh n a c om pany t hardoes d.us research and dwelopmenr.Theseconpan;eshopeth suchhish-rechcos cenrer\
not d reclty geie.ate revenle "n
discovernewor improveddrugs.Daraonprolir, revenue,andco$ cenreBissa$ered(mG:'
rhroughrhe TPS bursonerimesthroughotherchannelsd well),sunmarized,and repo.a
by the profir/]os and costsubsysrems ofrhe financjalMlS.
Auditing
auditing Auditing involvesuallzing rhe finan.iaL.ondition of an organiarion and determL:+
Ana lyzing lhe fna nc at c ond I on of whetherlinancialserementsandreponsproducd by the fiqancialMIS areaccuraie. Be.:-
an o rga nu ato na nddt ef mn ng flnan.ial natehen$, such d incone strtenents and balancesheers,are usedby so trJ
whe lh flin an ca t slat em ent sand
rportsproducedby the linancial peopledd orgdiadons (invesros,bankes, irsurance.ompanies,fedenl md stare.:'-
ernmentagencles, cotuperitore,and custonen). soundauditins proceduresare impof,-
Auditing co revealporential fiaud, such ascredit cdd fiaud. ft can also revealfalseor ::+
leadinsinformador. lraudul.lr dd inprcper a@ounlinsfor healdcarepiovider H.:
sou$, for esnpLq nav anount to r much as $3 billion.r' The companyoperares arrr
1,700clinicsxnd hospitak,and ils accouniingpracdcesand setehenrs a.e no{ bein: E
bt rhr (e.u :ri e.rnd I C ommi * i on.
' e .ri C J re d ' cl -rge
intematauditing Internal auditing is perforned btr itrdividuals {irhin rh. organization. Fof dampF a
Aldl nq p erlo fmedby nd v duat s financedepannent of a corpohtnrn mal use a ream of emplo,vees ro perforn an :rn
wlthinlh e ofg anzat on.
l vpically,an inrffnal audir is condu.ted!o seeho{ well $e orsaniado! is meeting:ir-
lishedconpeny goahand objecrnfs for cnmple, ensuringthat no more than tive
"*
ofinvenory is on hand,all rnvel repora arecompletedwithin one wekofrerurnnrr :,-
externataudiring a rrip, and similarmeasures. Exte.nalaudiringis pcrforncd by an ontsidr group,such:.a
Audtin 9 p erio rmedby an oLt s id rccountingor.onsuhing firm suchasPriccwarerholsecoopers. Delonre& Touche,.: :E
ofthe other major. incrnati{nEl sccounrhs filns. The purposeofan en*nal audi: .r,
 Inrormaiionand
DecsonsuppodsrrensI c'rqpt r 10

,mvjde d unbialed picrure ofrhe financiat @ndi.ion ofan orgmization md unover prob_
rms.ln $me 6es, rhe finacial picture from m *ternat auditing firn may nm jways
rmpletdy renlr the perfomce of rhe coinpany. C.itics p;nt to rhe nnron ba*nptcy
isco of rhe ely 2000s, which resuked in ndy employec md invemn losing huge ums
ra money, ai jusr one emple of an drernal audit nor showins .h true pi;ru; of rhe

lJsesandl'{anagement of Funds
vorler imponanrnDctionofrhe ffnucialMIS is m sslstwith tundsusage
andnmage_
comFniesrhardonot mage ad u.se tunds etreaively
oftenhd Lwq Dmfi$;r
'enr.
i-e banknpKy. Some(ompsies Kty on rerurnon in,e.lmenr c2joti,ions, inLrcdu(edin
-l-,prer2. ro de'emine when to irver in
informarionsysremrod reinoloey. . Accoidins
'' c,rleton l.iorina.chaimomu sd CEO of Hsterr.t&kard, -Ct05 wi sDe"d
r informarionrechnolog only to reisrROt.' -".;
To help wirh tunds eg and nmagemenr, mne banks de brcking a new compuerized
:rvmeat slstem called Snaighr-Thrcugh Prcssing. The new sysremhas rhe poiential to
-ar paymoa in a dry in:red ofsevemlda)s or mor.Ourpua frcm Lfietundsusageud
aagement subqsro, when onbind with tiose oforhei subsyrremsofrhe ffnmciaj MIS.
a locate seriou csh flw problems and help orgmi,arions increaseprcfits.
lnrernai.hs of tund\ hdude purchains addirional invenrorl. updaringptmK od
1uiprcnt, hiring n* employer, acquiring other onpanies, buying nq compuro s1{_
:is, in@arins marketins and adveirising, puichaing nw natciatr or tmd, invetingin
:o products, md increasingresearchmd development. External usesoftunds ue opiilv
-.$,men, relaLed. comp{iei ofreninven d.s fiuds in,uc} o.rernat,*enue ee;;rarob
! bbk r(counr". locls. bondr. bilts.no'es.turure,.opliotu.,d foreisncutrmt.

l,lanutacturing
Management
InlormationSystems
n !lor. thd any orher tuncrional area,mmufacturing h* beenrevotutionized by advancesin
:-hnology. As a result, many manufacruring openrions have been drmaricalv inoroved
I '-, ,he Lsr.deede.Al$, wir} rhe emphris on g,erer quatiryud produc,iviry,h;insan
:i.ient and eff{rive mDUfacturing proces is beconins 4en noc oiticat. The u; of
:..nputeriad systeinsis.mphasized at atl levelsof nanufacruring_frcn the shop floor ro
:: executivesuite- The useof tie Intrnet hd atsostreamlined all aspecrsof rnuufacruring.
rgure 10.7 givs d ovefli* ofsome ofthe manufactuiing MIS itrpurs, subsystems,and

The rn@ufacrurins MIS subslsrem dd oupu$ moniror dd confiol the Row of na_
rrials, producrs, and srvies rhroush rhe orguiarion. As mw naterials are convened to
:rished
soods, rhe rnanufaffurins MIS moniroB the proce$ ar atnosr qery srage.Europem
rrplane manufacturer Anbul for emple, is using a manufaauring MIS to mnho; and
:utol its supplien and par to reduce oss.'7 NN technolog could make this prees
-: rer.Uring 'peialird .ompurerchip, rd rrnl radior rmsmitrea..omprnie, ca monjror
and prcducts .hrough th ntire manufacturiry pres. prcrer & Gamble,
-rerials
,l]efte, wal-Man, od Ta.ser havetunded researchinto this nff lfutrfacturins MIS. C{
- rufr rure^, which (oivrr ra" (erl, pta,i.. and orhe, n,reriajs in,o a finish;d automo.
i-e. also monitor iheh nuufacturins pro.esses.Auto rnmufrctuers add thousdds of
r lu ofrelue m the mw natrials rhey use in dsemblins a er. rfrhe mdufaauring MrS
!a lers.hem provide addirional seflic, such d csroinizd paint @loB, on dy of their
r'Jel'. ha\ addedturrher vatuefor c6rom.n. In doins \o. ,le MrS hetprprcvide Lhe
'r
,: i pan/ rhe edgihar an diferentiate it fron competitos. The succds of d orsuizarion
: d"pend on ,he muuFac,d,ns tuncrion. Somecommon infomarion subsnems rd
,.rputs ued i! mdufacruring ar discssed oqr.
 D e s i g n and E ngi neeri ng
@ During the earlystagcsolproduct dcvclopmcnt.cngnrccringdcparrncnrsarc nrvol\.:
Ovrviewof a Manulaclurins mmy *pects ofdcsign. Thc sizcud shapcofparts, thc way cLcctricrlcomponentsrr. .
Mt5 tachcdto equipnent,the plaernent ofcornols on a producr,and the order in which : r
arc rscmbled inro the finishedproduct are decisionsnradewith the help of desigc-.,
cngineernrg depanments.lncreasingly. involvingcustomemin thedesigr .
companiesare -
engineering <,mpuerassised desisn(CAD) fa.ilitatesthis r(.'
pn,cess.'3Iov,me cases,
CAD an model how an airplanewing or tuselagewill rcspondo wn,ur <,nditi<n' - ,
stresses while in use.AutomotiveconrpaniesuseCAD ro help designnew carsand t:--,-
and ro savemillions ofdolla6. In one cde, a companyuseda sophistieredCAD s.. .:
cquippedwnh powderedmetalsand luerwelding to designand manufacturemetalp:-
'I he uniqueprocess makesmetalpansfrcm powderedmeul insteadofcudng the par* : -

'Lhe dar: from de;gn and engineeringonalsobe uredo idenrilyprcblemswith er:.: ':
producrsand helpdflelop nsproducts. Forqample, ttoeingusesa CAD slsrenrIo.le,. -
acomplctcdigitJ blucprintofan r;craft bcforcit cvcr bcginsirs manufactu rgpro.,.
nock ups rre built rnd rcstcd,thc digitrl blucprint is comtantlyroiscd to rcflectthe - r
.lrent dcsign.UsingsuchtcchrologyhclpsBocingtcdrcc its manul'acturing costsrn; :.
rimc ro dcsigna ns aircraft.Cornputcraideddesign(CAl)), which enablesarchtecs r .
cnginccn ro build prcjcca disitally,hasaddeda rbufth dimension-tim+in the tor:
schcduhrgsofware. lhe new,1-D CAL) toolsarc especially usetulin the design:nd : '
structio! of conpld projccts,allownrg uscr to hrk 3-D building conpoDenr\ ! :
computergene'ared w",t.chedules for uvings;n rime and cm.r'!
 hnormarion
andne.s or supporr
syrems I ct pt4r lo

C o m p u t e ra i d e dd e s i gnl C AD l i s
u s e di n t h e d e v e t o p me n ta ndde si q n

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HasterProduction
Scheduting
andInventoryControI
'-[cduling productionud conrolling inventoryarecriricalfor any manufacturingcom,
: ry. l he overallobjccdveof nastd prcducrionschedulinsis ro provid. deuihd plansfor
. rh shon tcm ard long nns schedulinsof manuhcruringfa.ilides GeeFisure 10.8).
'.1Ncr prodrction schedul;ngsolivarc paclagcsindndc forcasring te.hn;queslhar dereF
- L.e.urent end tuture demandfor producrsdd sefri.s. After.urenr demandhasbccn
::ulatedand fututedenand hasbeenesrinarcd,rhcm$er produ. rn-sheduliogpackagc
::rcrnines the bestway b L\e the manufacrurnrgfacilirydd .ll its rel,trd equipmeir.'I'hc
.:.ult of Lheproces is a ddailed plan rhar rcvcils a schedulefor every;em ihar will bc

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$ importat key to the nmufacturing processis inventory conffol. Great *rides have
, .n made in developing cosr-effecdvcinvcnrory .ontrol proghhs and $ftware packascs
::: allow autonatic reordering.forecsting, generariooof shop documcnLsmd repons,
: :rrminationof manuhcrurinscosrs,aMlysisofbudgetedcost'vdsus acrualcosrs, and dr.
r,,:lopnent ofmaset manufacrudnsschedulcs, rcsour.ercqdrenenrs, dd plans.A tuF
rrc company,for cnmple, usesan appmch, cdled \imple, quick,andallordrble(sQA)"
.icp inventorylevclsod cosrslow. On.es order is.rceived,ir is bfokendown imo rhe
'.rnrory parts thar re neded ro succesfrrllyconpictc drc order on tine. Automorive
rpaniesolien useF-edEx, UPS l,gisti.s, or other sh;ppingcompaniesro help spccdrhc
:. rtry ofparts to factoriesand finnhd a6 rc dealeshipsro savchurdrcds ofnillions of
 Pet B | 8,."".. nrorma,
oi sys,.ms

Many Ghniques e usedro minimia inventory dsr5. Mo$ dercrnine how mu.h r,.
orderq(3ntltyIE001
Gconomic when ro order inventory. One nerhod ofdcrermining how huch iovenroiy ro order is cll..
Theq ua ntityrhast ho! ld be rhe @nonic ordi qlfutitl' (EOQ). This qudtit/ tu..lolarcd ro ninimiz the robl r-
reorde.edto m nimizerorat
venrory @srs. The "\?ten to order?" quction is b*ed on invenrory usge over dm.
1'ypielln rhe question is anserd in rerms of a M.der poidt (ROP), which is a .ri!-
rord.r pointIR0PI invenrory qumtiry loel. Vhen rhe inv.nrory lsel for i pairiculd iten Alls ro ihe turd3
A cr licat inventoryqua.lily tevet. point, or citical level, the slsrem genenres a report s{} thar o order is imedierely pl,.:.
for the EoQ of the produci. Anorher inventory tehn;que ued when the dehmd for .a
materiatrquiremenls
iten is dependenr on rhe denud for dothe. is alld mare.ial rquimdts plonio.
ptanningIMRPI
A set ol invenlory-controt
(MRl). The bsic soalofMR? is ro deterninwhnlinishedproducts,suchs auromob,;3
techniquesthat hetp coofdinale or airplanes, de needed.nd rhen ro woik backwdd to drernine dcadlind dd .esu:
thousandsol inve.lory lems when nceded,such d enginq ud dres, ro @nplete the final producr on schcdde. A ommu
the de man dofo ne it em s depn carions conpany cd also use MRP to pld h uhaurins for rhc fluctuating, seaso::
dent on the demandfor:nolher
denand for communierioff prodtrcrs. Manufacturins tt$ure pldning (MRPII) rer-
m5h!trcturifi g rcsource ro an inregnred, compuy-wide systed b6ed on nrwork rheduling drat enable people ::
pt.nninglMRPlll run rheir businds wirh a high levelofcuroner senie Dd prod!.tivit/, while lowerins .(*
An in leq rate d,co m pany ' wde and inventories. MR?II is broaderin scoperh.fl MRPi rhus,rhelattd ha\ beendobbed'li:r
systembasedon nelwork schdul MRP." MRI'll placesa heavyemphais oo planning,which helpscompdis ensurcrhar=r
n g th al en ab lespeoplelor unlhen righr producr is in rhe rishr placeat rhe risht dme. MR?ll ofren requiresdehand forecri!
businesswitha high level ot
to help deErmine whar finished products and inventory pans are neededto sadsl, cusro-.3
customerserviceand prod!clivity.

ju5l-ln-tlmelJlTl inventory Jut-in+ime 0IT) inventory dd moufacruriry is an approachthat mainrains invcnrtn

.pPro.ch ar rhe lowesi levels without sadilicing rhe availability of finished prcducts virh rhn ::-
Aphlosophy of nv.rory prcach, inventory ud narcials de deliveredjusi before the/ de ued in . producr. A r.-
man ag eme ntin whicinv
h ent or y and inventory sprem would arnnge for a er windshield ro be delivered to rhe ssenbly linc oa.
mater ats are detiverdjust belor
a fw nomers bcfore ir is secukd ro rhe auronobile, rarher thd havins ir sir in $e rr
thyare usedin manufacturinga
ufacruring faciliry while the ois other conporenrs are being.lsenbled. Afthoush JIT >
mny advmuges, ir alo rendersffrms more wherable io pro.e\s disruprions.
ProcessControI
Moager en use a nmber of t<hdolosies ro @nrrol ,nd stftnline rhe manufacrurx
p ro c e s s.
Ior * ampl e, ompuren on drreal yconrrolmuufrcrui ng equi pmenrar . n3 , -
colnputar-as5bted tems called @mputer-dsisted rrmdacturing (CAM). CAM sysremscm onrol dnLa
n!nuf&turlng lCAlrl nichines, alsembly lines, and more. Some operate quiedl are ey to progran, and hz
A system
thetdirectly
conrrols self'diagnosdc routine to resrfor dimcddes with rhe cornpurer s)aremor rhe mandAdu.=
ma n0 lact!rngeq uipm ent .
equipment. Toyora, rhe Japanse autonaker, is launching a nuufacturing systemro al.r
rhe conpany to build ,lnost my qpe ofvehide in my ofits plaats.,oThe nw CAM s.-:*
is faster rnd les *pensive. According ro one.onpany spokespeEon,"The ns line B:
sents50 percenr le$ invsrnent rhm the one it replacesand lets u add a ditrerent @ .r
to ihe line er 70 percenr low! @stl dFn bdore."

Computer-assisied manufact!ring
systemsconl.ot comPle!processes
on the assemblylineand provide
userswrth rnslantaccessto

lso!rce: @ LesterLelkowlzl
c0RBs.l
 frorm3roi aid !e. s or supportsy.t.s I cb3lid 10

Compurer-intesrated manufactuins (CIM) usescohputen ro link the ompooa of 60mPUler-integratd

I manufaluring
,.. p..,t".ti.r p..-.. irt. u effectivesysttn ClM s goal is to ie togerher all *pecrs of
U s i n gc o m p u l r s l ol i nk th
: :.'Jucrn'n, including order ptocessnrg, Prdducr design,manufa'turins' ;nsPe'tionand componentsoI the Productron
: :1iw control,and shippirg ClM systems Jso hctest efiiciencl bv coordinatingrhe aG processinto an etfectivesystem.
lr r.c ofvariou prcductior units ln sone aret, CIM is uscdrir evenbroadettunctions'
:.. example,ii canbe usedro intesreteall organizarional subsvsems, notjusr rhePtoducrion
..rens.ln autonobilemanufacruring, designengine.rs can harc financiJ managerevaluate
..ir ideasbeforencw conponntsaJebuili io see whether thev are econonicallv viable'
irins nor odlYiime bu! alsononey
f nmufactu.ing systen (FMs) is an approach thr allows manuhcturing h ttexibtemanufacturing5ystm
ifl*ible
. ic . r o upidll , . d e trc i c rtrl,. h s g ,r to - mrL l n g ' ne orodu.' o Morher In Lhemi ddl e IFMsI
An approachthal allows
odu. , ionr r n . ro t * d n p re rh e o ru d u c ri o n pro,e* cr' nbe' hrngedtom' keJdri l ercnl
"n manuiaclurng fac t ties to rapidty
or t o ' wir c hm a ' .B c a n g mi re ri i l ' R ' L ' i ngJnfMs rheIme" ndo' tto' h" nge and etflcienttychangelrom making
4
- -,. , c r ir g job .
'm
be
' u b .rrn r
i e l l re d r.e d .o d.omprni e' .Jn reN au(\r) to mrrker o n ep f o d u c lt o m a k r nga n o th e r
' : f a. r ur
::eds and conpetition.
FMS is nomally impleoenredusingcompurerslntems,roboriq' and oder aurodaied
:"nufacuring equipmot New producrspecifications are fed ;nto t'\e computersvsten'
I , C' heom p, r c ir h e n {l Jrs.rnt.man l " urmo' ' e' on'
. nr . io' er r m o e ,.r u -,1.e< aen .rh
l Vre raro.*bnr .hdar."
rg e 'mi Fi ' r F on tr' e' se moul rcrufl ngrrne
i r irsorherexisiingminivanmodels
oua(itycontrotendTesting
; irh increced presure fton consunes ald a seneralconcernfor producrivirvand high
n :relitv, todar s nanufacturingorganiadons afe Placingmore enPhsis on qualitv 'on-
A p f o c e s sl h a t e n s u r e sth a l th e
F ml. a orccs that crsuresthar the finishedptoduct ne*s thc cusloners need5 lor a
tr :-.nrinrcu mmufacturingproces,connol chartsareusedto measureweight,volume'ten-
f n i s h e dp r o d u c tm e etsth e

* srature, or sinilar attributes(seeligure 10.9).Then, uPPerandlower conrrolcbartlinirs

*nbiished. Ifthese limits rre *ceeded, the manufacturingequiphent is inspectedtor
'.
:osible defecrsot potentialprobiem.

w
lndustriatControtchart
T h l sc h a r ti s u s e dl o mo nto r
p r o d u c ql u a t t yL na n n d u sl r l a t
chem cal applic6tion.Prod!cl
vafiancesexcedin9cerrain
toLerances causelhose produclsIo

Vhen the manufrcnuingoperationis not continuous,umpling en allow the produc-o

acccPror rle( onc ut mor ProductsA'cepnnce sanpling n
fI' doel opmenrol rhe
- " ot or ir er ' a. . i m p l e a ' n u r.a .J o o tF o rr' .o m p ler,' rrcl are' so
:. . h" r r lim i ,.:n d rh e ' p ..i fi . r..e p ' rc ' arpl :ng ptrr' crn be i i rrl v
" ' r ol ' ompl "
p ,o g m m h
' re b ,e n u - d ro generte rher'
- . . , r \ c onu" l ' o a s J re
v r ' *h. , , h. n a n u t" .tri i n e o o e r,ri o ni ..o n r: ruou' or d" crere rh' re' u r' fromqual i q
: .nt,ol are anallzedcloselyto identilv opponunitiesfor inprovemens Teamsuing -the
:aal qualirynmagenen! (TQM) o. continuousinprovenent prces (w ChaPld 2) often
rJp this datato inceue the qualiw ofthe productor elininate problemsin rhe nmu-
-::ruring prccess. The resultcan reducecoss or incrase sales
 Psts I Bcre$ nr.rmd onsysr.n3

Infomation generatedlion quality-conrrolpros|ans canhelp workerslMat piobleE

in nanufacturing equipment. Qu:1ity-control repons en alsobe usedto designbetter prc+
ucts.Virh the indeced emphasison quality,workes shouldconiinueto reb'on rhe repoG
rnd ourputslion this imponant aPpli.ation

M ar k e t in gM a n a g e m e nInt fo r m a tio Syste

n ms
marketingM15 A nuketing MIS supporrsmanager;l a.tivities in produc developnert, distribudon. pdc
system
Inlormation tharsupports ing dccisions,pronotional effecdvnes,md saiesforeca.sting. Acil, tur qamPle' i! !
manageriatact vil s in product markering autonaiion rool ro marage sates contacrs,client e-mail systems,and group *<
development,distf bution pricing
meetings.:lMarkeringftncdons areincredinglybeingperformed the Internet Anu-b<
on
decison s,a ndpro m ohonat
of companies are developing lnternet marketplacesro advenise and sell products. Ttr
mount spenton online advenisingis worth bitions ofdollar annually.Softwre canm*
surehow mm1'custonen seethe advenisins.' Aaording ro a senio.danagerofCD\. !
direct marketer ofhardwre and softwareproducs, "A satishedcutoner is one who seesrc
asmeeting*pectations.A loyalcustoner,on the otherhand,wmts to dobuinesswnh t*
againand will reconmend you ro othen." CD\{r usesa softmre product called Smanlor:}'
to aalyze customerloyalty.Readrhe Infornation Slstems@\rork'special-interet feare
to seehow one golf equipnent manufacturerusesa narketingMlS
Cusroner relationshipmanageneni(CRM) prcsrams,availableiom sone ERP r+
dots,help a conpany nmage all aspects ofcustoner encounrers.:r After inslallinsa CRv
ra
systcn, U.S. steel was able ro inoease its cth flow by millions of dollan CRM solir:
ca help a companycollecrcustoner data,conrrct customes,educatecustometson tr
products,md seilproducrsro cusroner through an iotenet siie.An airline,for elm;t
can usea CRM systen to notiE custones .bou! flight .hanges.Orhet aidins have&'
benefited from CRM and use\feb siresto allow custoners to look uP Possiblewait rit:
@ Ycr. nor all CRM sysrems and mrketing siteson the Internetaresu@e$ful Custoniz.i,r
and ongoingmaintenanceofa CRM systencm alsobe *pemive ligure 10.I0 sho*s ir
overviewol e MarketingMIS and outputsofa typicalnukering MIS.
inputs,subsystens,
-TaytorMade"
Informationand DecigionSupport Sevefatdepa.tmentswithn Tayto.Madeinctudingope.at
em lons,lnance,sates.marketing.and T.lsethenewsystemtoaccess
lnlo.mato. on.lstomers inventoryandsatesbyprodlct 'WeLrse
::-e peopte,beingan ambassado. fof the best-setting
gotf
thesystemtobl rl dthe.eportsthatdfveouf bl snessl tusedt obe
r -rnlfactlrer woltd be a d.eam lob. T.tsvetngto att the
that ou. sates nfo.maton was somewhatnvsbteto us bui now
::rntry .L!bs.ptayngone rolnd of gotl afte. anothe.wth q-re'
rom fo. d
: :; wh te theytry out yolf ctlbs and .et. n9 to the ctrb-
Cotta.d.lSdi.eciorThenewsystemis lsed to access. anake and
i 'r. d ninsand morc gotfchal misht soundlke heavenon
qo. ) d . Tr o , a l o , share nformatlon from ts slpply chan system.t s alsolsed to
'""i'\ 'o r < qb"or oLq a
accessorde.bookings, satesto dateandclstomerbly ngtrends
r::.5 tor Taytod.lademakes of the nwber one drive.on
:.: louf spend60 percentof the; t me taking nventoryn The systemi5 avaitabte to emptoyees ovefthe cofporatenet
work of the Web. Na matterwhefetheyare n the wortd,sales
: :ca and neadyatl ihe rest of their time trcvetingto visrt
assocatscan log on instantty ar,daccessnformation by reqlan,
teffiiory or fepfesentatveA satesrepresentatve miqhtneedto
know how teft h.nded gou clLrbsafe setlng on the WestCoast
:i?bte amount of ume shufftng papers and ente.ing
_ r an antiqlated nformatonsystem They maintaned versls the Eastorwhethera ha.shwnle.lnc.easedsntesof gotf
jackets The bgqest advantage wtl be to vslatty and activeLy
::-: rf eachcontactand clstomerso that theycoutd.eview re,
6 -d agea pa omere, d4d e oror, b.. e.s.
" ord p .!lc5 : q \ . or ) . d' do o6 po -d
'o Coltard.The systemwtl hetpus in that we wont be stockpi[ng
: -:- !s ts to determinewhatproductsio bing alongon the
lnventoryth.ee monthsn advance. Yo! areactvetyqettingslgnals
' . lrlnd.eds of cLrstomers io manage the amoLrntof
fromthesatesforceonwhatthedemandtrutys.
-:: rn Decame unmanage.0'e
TaytofMade
': :'Mades nranagement s newsystemhasinspiredthe companyto invest
teamwas stftrqgingto keep!p
in othef infomationsystems t ha5 recenttynstatteda new
-: laLaas wett lt had a gfoupof odef managemeni sys-
customeffetalionsh p management ststemthai hasattowedli ta
:':t.amme.s, who prodLrced busrnessreportsfo. man-
--: g.o!p was constsntty autamatemuchof ts cLrstomef sen,ce,reducets stafi and mp
bured underb.cktoggedrcport
roveclsromer satsfactionBy mplementingnew and effectve
,:-: i/anagerswe.eafraidto requestreportsbecalseoi the
inlormatlon anddecs on supportsystems, IaytorMade hasexlen
: ::: n-iineatttudecLeartyt wast me ior an ls ovefhalrL.
_: ded its reputationof hgh qlatty beyondits productsnto every
:'Madeh red a systemsdevetopment tear. to createan
-:: r. manaqement systemto providethe satesassociaies
-:_r!e.s wth theinfomationtheyfeqlircdto makelnform-
:p:::ns Schedltedkey-ndcatorreportspfovldemportant DiscussionOuestions
-: :1 fo. gLridlngsates srraregies Managercrn the I How has TaytorMadencreasedthe elficencyof ts sales
:: r.ng d vs on.etyon exceptonreportslo tetthemkraw
:' .:.s ol golfctubsarc runnng tow n the wareholseThe 2. Howhaveinformatonsystemsncfeased Tayto.N4ades
abtty
::e lses demandreportsto fnd olt who ther best to ga n a compettveadvantaqe
n lhe gotfequipment
ma.ket?
':-:_:..e and on what areasof the market they should
, Taylo.Made emptoyees a.e abteto access.epo.tskom C ri ti catThi nki ng0uesti ons
..
-
rL o ,s\ o o. . a i. . wob bas 6d . et s e l L e
3. Howdo youth nk the handheldporlerwetdedbyTaytorMade
o woir r l- o _or r hp o c e
satesassociatesatlectsthe I tevetof setf esleemand job
;::-:itsystem programmersto futfiltrepo.t.eq!esls
'.::. TaylorMade saLes travetequipped
associetes withmuch
4 How do you thnk the nJo.malonsystem has sifected
-:_ loLf cl!bs.TheifhandhetdPCsp.ovdeihem with the
rebnonshlpsbet"leenthe customerand satesassocrate now
nventorynformaton.Theycancatlupchadsthat
that the associatecan fetd any quesiionwlth the plsh of a
-:s:nd
: :. the clstomer'spLrchases fo. the yea.and can vew
:_::-s fecentshipments.ando.de.sin transt Theya.etlLly
!r.r :. snswefany qLreston that may comeup The hand-
50URCE5, KANAHonoredwilhrR Migrzlnd2004SefriceLeadef Awardfor
:-::!!ipped wth baf codescanne.saswetLThescanners \\ eh Sdllsetu ce, RLd nEss llie, March2, 2004;Buslness0bjects
CustomeB
ii::1y rducethe amountof trne the .eps spendtaking inih.SporLghtWebere.ccessedApti\26 2Al4,M.businessabtec6 con/
. o F ";ng i. F"o] da- a 0- , e < . a r bd Le n , o cu*on**pothghlt.ylomade asa Kana Rol Successstore5 web ste,
ac.es5edApnt26,200! ffigh,acor;IaylorMadewebsite,access.dApriL
to ihe homeoffices dalabase
: rltomaticaltuptoaded 26 2AAL M hlDrnadegotf..on
 Pds | 86re$ n fo r m a r .i syskm s

Subsysiems for rhe ndketing MtS indude ha*ring research, product developme.:
pronorion and adveftishs,dd p.oducrpricing. Thesesubsystehsand rheir outpursh.::
n d rk n i n s nrn" se.. dd de.ur;\$ i nLR /.evl e,. redJcem" rteri ns$pcnf . . , r J ds. : .
plansfor future producrsdrd servi@s!o ncer the chansinsneedsofcurones.
MarketingResearch
survq's, quesrionneires,pilor srudies.aid inrcriews ee popularmarkedngresearclttoo,r
Xerox, for exmple, usesrhe Newleads softwareproducr ro locarepotentiat customen fro:
confefeDces ard tradeshows.nAccord;ngro a Xeroxrepresentarive, "\{4renthe shors or<
allyou'vegor lefr areyour leads."The new softlrue helpsXe.ox lurn curiorsvisnorsro rhij
tladeshos inro realcutotues.
The puryose of md<eting researchis ro conducr a foimal study of rhe n&ket and.-,
romerprefarences. Marketingrcsearch cd idenrii, prospccs(potenrialfururecustomer:r
uells rhe featurcsrhat curenr cusronersreallywanr in a goodor sedce Guchs e6\-:-
useplsric resealable painr ans or vuilla,flavoredcola).Suchaftibures as$yle, @lor, s:
appedance,md genenl6r n be investisared $rough narkeringreseach.Somemarkec3
researcheA ereusingneuloscieniissro precikly mesure bnin acdviryfrom cusrom.!ra
rionsto variousproducrsand producradvenning.,6Brain acrivity,herured in t2 ares !
$en fed imr a PC for deiaileddalvsn.

Mafketing datayields
research
valuabLe
rfiormalonfor the
d-.vetopment
andhafketinsol new

l5o!rce:o Davd Yorns'Wollf/

The abilityro forec*tdenand is madeposible by marketingresearch andsophistied

soitware.Someautonotivecohpanies,for etdplq ue markeringresea.ch and sofnr*
predi.i rhe denand for carp s. Demandfore.astsfor produds and seNicrsarealsociail',
to nake su.e lhar Ew narerials dd suppliesare prope.l), inanaged.
The Interner is chmging $e wa). rhar nuy conpdis thinL abour marketing res.rr!.
Conventionalnethodsof collectinqdaraolien costnillions ofdollas. ForafEcrion oli
co$, .onpa.ies can pur up Internerinformarion*rve.s and launch discussionerous
rop;csrharrhen cusromes.areabout.Theseinformationsnesnst bewell desisrcdor
woni be visircd,bur a liequentlyvisitedsne can providefeedbacLwo.rh a fotrun.
pmies lhat areviewed* ciedible,nor ju$ clsd, enormousadvmrages. Presenr
indligent ;nreracrion,not jus adve.risnrg, 'in
de ihe kels rhatunlockconnercial opporrur
online.Sooepeople,however,considerlniernetnarkedns resedchto be e dukanco.

Sone ompanies use narketiog researchro adven'se their products and sewics. !
exanple,compdies.an hire peopleio interactwhh orhes in chatoohs, coltecrrhe;; I
erences,
md recommendthe conpany'sproducrsand senices.Peoplevisitingthe char: T
may not know that they *e comnunicadng wnh paid advertning agen$ for rhe
Sruderrshavebeenhiredro coliecrdaraandna*et credircardsto otherstuderrson
cdpuses- This approach is alled tuhh narbenngby ame.
 Inrormst'onand
De.isonsupporrsystems I cbrpror ro

Product DeYetoomenl
Produd dselopmenr involvc rk onveBion ofhw tuterials ;nto finished soodr dd F.
ricesdd lcu6 p.imdily on rhe phlsical anribtrres ofthe proder. Many frcros, induding
clant opacit/, Iabor ski s, nginering facro6, dd naterie! ar ;mpoftanr in producl de-
d@isions.Itr nmy q*s, a compurer prcglm analla' rhesevariou factos dd
'elopnen.
<lects the appropriatenix oflabo., tuteriaft, plant and quipmen! and enginering designs.
\l.ke-or-buy decisionsd ako b rhde w;d, rhe Asisrme ofcomputer prcgnrns.
Promotion and Adverti5ing
,Jne of dre nost inponant tunctions of my mketing effon is prohoriotr od advrrising.
lmduct suc6s is a d;6. tuncrion ofrhe q/ps ofadvenisins dd Ml6 prohorion done. The
iiz of the pronotion budger and the allmtion of turds dong vriods (jmpaisns are im,
rft t fectors in planning rhe empaigtr thar wi be launchdl-verlthing from phcing
!s during the Super Bowl to offering couponsin a grcery stor. Telwision @venge, ntm
:rper ads,pronotional brochurs md literature, dd raining p.ognms for salespople eft
ry rl1 components of rhesempaigm. Beaue of the dme and schedulins savingsthy oFer,
:ompurer prcs'"s kr up rhe origin.l budst md noniror qpendirurs md the ov&ll
:tlecrivenes of nrious pronoiional <mpaigm. Cohputer also help onsunen sdea dr
sr producs and *oie. ChoieSrrem, for mple, produ.es sliw..e rhar helps pople
:ind dd vis entenainhen. oprions onlirc.,7 AOL the oolhe Intemet cornpany, ues
oliware llon ChoiceStrorn in its MyBestBea forue dnt sndr pople -hail alens abour
-jejr prdrrd meftainnenr choic6. Promorion md advenising an also b plaed on en
rmed CDs for playing on CD players or personal ompure6.'z3 Pop singer Rechel Faftis,
':r emple, anachedher nini CDs ro rhe lidr of cup6ar novie rhearen dd fiops dlat tll
:nnmed disks will pronote her msic oeer when people rerun home md mple ho

Richres md rech m inponart nqura ofeffeaive adverrisirg. ia es refe6 to rh

aounr and l*l of detail dnr an orgdiarion m give its *isting and potenrial cstome6.
r. conpany that is able to slwe nefingful information about its products ud seri6 wirh
s primry cutomem hc a high dgreeofrihnes, in its adve.rtins. \rirh rhe advenr of
tadbad tnarner omatiom, rich nedia ad\'.tising is beoming more and nore popu-
t.t Rich ncdiz aAettisrtg rcquhs br@dband @nnerioN ro ddiver advdced audio ud
':Jeo effets, including anon chaactes mping acos the scen, high'qrulity stereo
:u;c ad sound, and excluive vidos ofproduca od pople. r%zrl rders to the number
; people rhar an orguiarion is able to contact thrcugh advenising. A buins rhar ln
*cesfirlly advatise its prcducts dd seNie. .o hillions of people ha r high mout of
:rch. In the pat, mme orgmizatioos could nor aFord ro dwelop a&ertising prcgms with
rrh richnss md reach. Viti information system md rh Iftrnl howaer, .ompanis
ilay m achievehigh loels of ri.hness and rach in rheir advenising prcs'us.
In(:'6ingly, @npdi6 de sing the Intern$ to delire. banner md popup rds. A /azza
s is adverising thar appm u sign or boner on r Web p,ge. When you virir the Wb pag,
nu seethe banner ad. Apo2 -q ad, on the o*\er hand, zltom*ially appa$ (pops up) d a
rymte window when you visit a \reb site. Unlike a buner ad, you nusr close*ery pop,
r: ad window, evenifyou visit another Veb sire or qir from rh Inr.rnet. Becaureyou hart
r closeeh pop-up ad window, my popte comider dlen a duisancand a bis warc of
3e. In rhe erly 2000s, Intemet advenising tooft a plunge.3oIn 2000, for mple, @m-
:aies spent about $8 billion on Internet advenising. In 2002, @npanis speff abour $6
ilion. Today, lnternet advenising is again on the rise. According to the peidenr of rhe
:ernet Advrtising Burou, "As with a lot of things rclated to the Inrcrne! w aI gor ahad
fousdE in the begimin& Now it's showtime.'
+oductPricing
l:oducr pricing is ooth.r inponant md complex narketing tunctiod. Rtail prie, whole-
:le price, od pric disounts nst be set. A najor factor in detfrining p.icing policy is
h ; malysisofthe demmd cwe, which attenpa to determine tll relationship btwq prie
=d oles. Mct conpoies ry to devdop pricing policiei that will maximize total sale rs-
=u+uurlly a tunction of prie ddti.it/. If the produd is wry pric snskive e reduction
. price en genehte a sutBtdtial idcrede in sales,F{ich can reult in higher raenue. A
 P.at 3 | Busitrcss onsystems
nrormar

produd rhtt is relatively iNosnive ro pri@ d substmrialy inc.a* i$ Pricewirhout a la+.

reducrion in demd. Gnputer prcgrahs d help dcrermine pri@ eir$icity dd wriow
pricing policia, such * supply and denod curc for pricing analysi! (se Figure 10.I I J.
T'"ically, r Mkering sautive o alter prie on rhe omputer system,which anal1a
pri6 changesdd their impaa on total rsenu6. The Fpid feedbacknow posible throush
computer communiqtions o*works enablesmnagers to detemine the culs ofp;cing
decisionsmuch nore quickty than in tlt pat. This abiliry faciliBter noie .sressive pricins
stntegics, which cd be quictly adjured m meet mker needs.One critiol pricing dccisie
is when to mark down prcducr pri@s. Usins soPhistioted software, a onpmy o reduc
drt nmbcr md ahout of price cua, wh;ch h* helped increaseprofftability.

@ I
f ypicatSupptyandDemsnd
Curvefor Pri.:ngAnatysis
|l
I
I
t
I
t
t
t
t
I
@9Fffiffiffi co.l lcr Unh

Salesanalpis is dso inponant ro idddq' producrs, sla persomel, and customeo dr

conriburc to profits dd ihose rhat do not. Se'eral repons on be gene.atedto help makdq
magers nake good sla d@isions Ge FisuJe 10.12). The sale-by-ptoduct repon lis J
najor products and their sale fu a period ofdne, such x a nonth. This repon shows*{ni
prcduas ae doing vell md r'tlich needimprovenent or should be dhcaded altogether'TE
salesby+alespersonrepon lisa mul sale for ach salepuon for erch *eek or nonth. Tli
rcpon en also be subdivided by product to show which produas are heing mld by ai
salepeson. The vlc-by-osromr rpon is a t@l thar @ be usedro identifr high- dd b

InformationSystems
HumanResourceManagement
humanresourceMIS A hm qoue MIS, also <zlledthe pe*ncIMIS, is @ncmdwith adiYitis relatd I
Aninlormation thatis
sysrem employe md potential employes of rhe organization. Bequs th peconnel firctioo G
concernedwith activitiesrtatedto lats ro aI orhr tunctional *eu in the buines, ttre hum coure MIS playt a valui*
employeesand potentiatemPtoyees
rol in ensuing organiational su<:s. Sone of the activities pcrformd by this inpoil-
of an o.ganization,atso catteda
MIS indude wortfora analysismd plamins, hnina, raining, job md task asignment' :d
nmy other pesonnel'related isue. Ar ctrective humar rourc MIS allows a conpm a
keep pcsomel ots at a mininun, whilc *wing the required busirs prces needcd
achioe orporate goals. Figm I0.13 shos $me ofthe inpus, subrysrems,ard outpo
the hmu coura MIS.
 r.,... I chalr.r 10

@
Report5 Generated lo Help
M a . k e t i n g M a n a g r s M a ke
Good De(isions
L a l I h 5 5 a l e s b y p r o du .tfe p o r t
t 5 1 sa t Lm a l o fp f o d u ctsa .d th e I
5 a t sl o f t h e p e f o d f f om a u q u r tr o
0 e c e m b e rL b l I h i 5 5 . Le s- b y-
5 a t e s p e f s orne p o r rI ; t r to r slsa te s
l o r c . . h s a t e s p e r s oInor th e sa m e
t m e p e r o d .L c J T h r s s.tebs y
. u s t o m e .r e p o r ll i s t s5 a te sf o r e a .h
. u s t o m e f f o . l h ep e r o d L i ke :tt M l 5
r e p o r t st,o l a l sa r e p r o vr d e d
a u r o m . t . J t t yb yr h c s yste mto sh o w

n l o r m a lo n t h e y f e d tom a keq o o d

@
overviewot a HumanResou.ce
Mts
Per s I Bdsns5 rnrormar."
srrams

Hunan resourcesubsystems and ourputsrmge &om the dererhinarionofhuman ri,

source needs ad hiring throush rerhement and ourptacenent. Most medium and hr:t
organizarioro hareompqtet systems to assistwith hund resourceplmning,
hiing, trainir:
andskiUsinvenrcryins,dd@seand sataryadhinisrrarion.Ourpu6 ofrh;huna; rcs*.=
MIS includereports$ch a hunan resoureplmningrepofts,jobappticarion reviewprofits
skils invenrory reportl, dd salarysurveys.
HumanResource
Ptanning
One oflhe fist a.spcrs of d), humd resourceMtS is deterninirs personneland hm-
n e d ' .T h cove,l purpo,eol rhi . V l r,ub,l .rem I ro p., rhe ri ghr.umbe, , . d t lu.
enplq,ees in ihe r;ghr jobs when rheyareneeded.Effecrivehunan resourcepldnine reauj.-*
d rfi n i n s th turuenumberorenptol ee,needed,ndrn,:.inB p rtre.r,J,;.dppj; r p. , _E
fd rh*ejobs. Fd @mpaniesinvolvedwirh laigeproj-", *"t * .-,.
Iarge b ldes, hunan resoftce p)ans can be generateddirectty from -;ti,..y ".",--."
data on curenr r-,:

ihar a onstrucrion conpuy obnins a connan from a

. .Supp6e sroup of ;nveso.! r:
build a 250uit apannenr conplex. Forecsdng prosrums dd projechanaser:r
softwan packagescd be used to dwelop reporrs rhai a.*.$" *t ,t p..pi" *.a-"a
when rhey de nededdurins rhe endrecon$ruclion projec!.A typ;at ;uprr -. woutd br - :
hlnan resurce neds dd plamingrepoft, which misht spaify that ren emptoyasrri_ r
neded in Augusr !o pour concete slabs,and eishr cdpenreB and four painier {L x
neededin oclober. Alternadvely,a facrorynishr use thh repon ro lisr rotal numba: r
employeesneeded,broken down a@ording ro skilt t*el, such rs hjshty rechnical, rechi a
senirechnical,and so on.
PersonneISetectionandRecruiting
Ifthe human resourcepld r*eals lher addirionai pesonnet de required, rhe nexi to!-.:
stepBrrcruftingmdreleciingperonnel_This subsrremperturnsoneofthenostinpo.a
dd dirical tunctionsofmyorganization,especially in seniceorsmiarions, whereenDtc,E
can rte (omprnI. ,u.a.,. C onpani e,.eeki ng* " ..prq* . or,- * " . "- p_, =
i e ri n :
to schdulerecruirins efTor.sand irips and to tesrpore"iial .-tl.r"r' ,kill.. som. .*
, o mp ,n re ,.l orexspl e. s..ompureri zedre\,1gLodere,ni nr r pe\on. prog%m m -;.in!Lik
a n da D U rner. LuFr| er\on.l orexspte.re{. porenri Jpenornetforromprni e,b y . im u . : r 1
actualwork situdons.rt For a call cenrerposirion.for exmple, Fu6rpeson wilt usea:_
ulated call center to tesr people applying for jobs. The resdng hetps companies in-a
employeeproducrMqr while reducins turnover.
Mdagemnr infornarion systemscm also bc used to help ranl and seled Dot.::rt
employee.For everyapplicrt. Lhe.y,rem un ralyze ud pr n. Lherc..rtu of inr" ro
re,F.and rcmp, ny visiF. fhis rcpon,.a!ted.a tabappti @nup.ofrt!..r
recruiring ieamsin fiml selcrion.Soinesoftwareprosrms can oen anallze rhis ^si.t,o}je
dan rc
idnriry job applianis mo$ likely to sray wirh rhe conpany and perforn acco.d::r-qs

Many cohpanies now rlle rhe Inrerner ro screen for job applicanrs. App)icanr r
ternplate ro ioad rheir resume onro lhe Inrerner sire. HR r!.; -:
resume.and ;dentiryrpplicrnF rheyde inrere'redin in,eN,sin;.
-an;;*, "an -"e,,
Traihlng
andskittsInventory I
So mei o b ..,L(ha prognmnrng.equi pmenr repri ,.od rsprepdi ,don. equi r evea. F- ; E I
tra,nmgtor newemployer. Orher iobsmay reqrrregenerJre.ning rbour rheorg,nia..El I
c'xruJe,onenDuon. dre.( (kndard.. and xpedJions of rt-e orqrniarion. Todr\ --ar
organtr.Lion{condu., rheir oq trin,ns. wirh the srrrce of informrion sr.r;-. d {
re(5nology.\ell-pacedrr;n,ng invohe. compureriad rurorial).videoproqnm\, rj I,
ROM boolG,nd m{eri*. Dsrame leaning. snse rruiningod ct".e;ae an,l,( .L :6
rn e i n re rn er.Iarro,v.abl ertrernaU ve' omore
a
tudi ri orulrrai ni ngJndtearni ngappr o! 5 I
This i*t md irs supporringnateial, for exmplq can be Ned ii, a disi;i;;,t-
F
\Vhn trainingis conplere,enployeesoftentakc.onpurer-scorecres$ro ewruar.r@
F
mtu re ry
o f ,rdl t\dd ne$ m.reri ,j .f\ere,Lr< orrh\ere.r.r.eu,ua ygi ,entort - eer r . : =i
supervisorin a raining or skiils invenrory repoft. In sone cues. skills inventory repo=
 i r . n i ; r o nr r d r e i 5 . i s u r p c , L s r r " . . o,.et" to
I

rsedfor joh placenenr.for instmc. if a parricularposnion in rhe conpany needsro be

:;lled,ndagers highr $ish ro hire indnally beforctheyrecrun.The skillsirventot, repor
^ouLdhelp theh evaluar.- currentenploveesto dercnninetheir porenrialfor rhe positbn.
fu.h reports.anako be parr ofenplovr saluar;onsand help dddnine Eiscsor bonuss.
:hcsc typesoftes$, however,nust be validand reliable,oavoidtuislakesin job pta.eheir

Scheduting
andJobPtacement
i:hedulingpsrpleandjobs canbe .ehtn el)-srfaish6Nard or extremelycornplex. Forsome
. -rJll sNi.ecohpanies,schedulingand job placemcnrarebded on which crsrones walk
::rough thedoor.Derermininsrhebestschedule ior flisha andairlinepilors,placnrgnilitary
:.ruirs into jol,s, and detemining Bhat duck drivels and cquipmrnt should be usedto
:rsporr materialsaoossrhecouncy nornally requiresophnricared conpurerprograns.In
cases,va.bus schedules and job phcemenrfepofisaregenerated. tnpto,veeschedules
-.r
:-: developedfor eachenployee,showinshn or her job asigdhenrsoverdre nextweekor
-!nrh. Job placcmn$re often dercrmhcdbasedon skillsinvenroryrcpor$, which sho$
iich enploveemighr be ber suiredro a pad.lhr job.
egeandsataryAdminislration
.i,orherhunan resourceMIS subsvsrcninvolvesderermining rvagcs,srlarirs,and bencfits.
Jrding medicalpaymerrs,savingsplans.and reriremenr{ourts. Vhge dara,suchas
lNry xleragesfo. posirions,can be oken nom rhe corporaredxtaba\eand maipulrted
the hutuan resourceMIS ro prdvide$ase informarionDd iepo.rs ro hisher levds of
-:nasmenl Thesercporrs..alledtukry cnbe usedro (,mpare salarics
with budse!
'"/!Er,
: rN, drc co! of$lariesve6ussalcs,and rhr wasesrequ;ed ibr xnr onedepdrhen r or officc.
.rgc and salarvadninistrationalsoertailsdesigningretiremenrprograrnsfor emplovees.

l ut plac em ent
:rployees leavea companr for a number ofreasons.Sone volunra;lv leavcro work for
rher compaDyor retirear age65. Orhes arclaid otr* a <,mpany reduccsits workforce
re fired for poor perforhanceor happropriatebehavior.Ourplace,ncnrsenicesa. of-
.::d br man;,compaies r<,help enplovccsrute rhe thnsirion. o,?r/..ns,'can includc
il!
- rounselingdd raining, job ald cxcutivsdch, reri,emerraDdfindncialplanning,rnd
rricrvofs.verm.e packages and oprions.Theoutplacemenr MIS nrdudes$livare ro hclp
.:rloveesmakc rhe trunsidonro rhen livcsaftertheir asrcciariolwith the conpany ends.
rpu rerizcdtrainingp.ograms,rerircrncntrnd finaocialplanningprograms,andp rograms
r.lp .nallzc variousseve.lncepackages re olien u*d- Some conpaniesusr cohpurerized
. rrnent prograns to help crnployees gain the mosl from ilrir reftenent accounrsand
:::ons.S.dttishLife, forex.nple, usesthe \Yorks4yousofnvareproduc o helpcnploltes
--lge rheir n$uranceneedsand benefirs,indrding ttitemenr programs.JrIn addirion,
:r sophisticatcd
sofnvareprkases and sericcs crn help hployeesfnd lew johs.Em-
,,Den! s ear c hf irm s ,o rh e a d h u n re N .a rc u s e d rohcl pi tdoffmpl ol eesrescxr.hnN j ob
::ortunities, rvritelctrerswirh atrachedrsunesro prospective companies,.nd negotiare
:, . eoplolment conrracs.

It her Mana g e m e nI nt t o r m a t i o Syste

n ms
riii& ^lditior to finance,nanufacruring,markcting,and huhan resou.ceMlSs, sone com-
-:i.s haveorherfunctionaldanagemenrnrtornationsysrens.Forerample,nostsuccesstul
-rplnies ha\r well-ds,elopedaccounringfuncrionsand a supporringaccountingMIS.
- .r. lnanycompanicsnake useofgeog.aphicirfoimarion systemsfor presertingdatain a
J!
,icountingMlSs
..ne cases,accoun rg worlc cLoselrsirh nnincial nanagement.An @ounring MIS .ccounling Ml5
r:-:.rms a number of inportmt activiries,providing aggregate infornation on accouns A n i l o . m a t o n s y s t e mth a tp r o vd e s
-. :ble, accounrsreceivable.
palroll, and mlnr orherapplications. The organizations TPS a 9 9 r g a t en t o r m a t i o n
o n a cco u n ts
p a y a b t ea c c o L f l sr e c eva b L e
.:-:rres accounrinsdara,which is alsousedbr nosr orhcr functionalinformarionsysens.
p a y r o t ta n d m a n y o t h e r
rone snallerconpanieshire oursidaccourrjnstunN ro.skt $etu i'nh rhen account-
r: rnctn,ns. Theseoursideconpaniesproducereportsfor rhe firn ujing.aw accounting
 Part s I aEres rro,mat.i s)r:r.ms

data.ln addition,many excellenrintegnted accountingprogram areavailablefor pemona

computersin snall conrpanies. Dependingon the ne& of rh. smallorsdizadon and iL.
personnels conputer expe.ience, usingtheseconpute.iredaccounringsystenscanbea ven
cost-effcctiveapproach to nanaging information.
Geographic
Information
Systems
geographicinformation
syetem Inceasingll., hanagers wanr ro seedata p.esenred in graphical forn. A geographic infor
tGtst hation s'stem (GIS) is a conputer s)rren capabl.ofssenbling, srodng,nanipulating,mc
Aco mp!te f syste mc apableol displayiry geographically referencdhfornation. that is, dara idenriAed according b ir
asse mbtn g,slori.g ,m anipuLat r ng,
locadon.A GIS enablesuseNro pair mapsor nap ourlineswnh nbular darato derrib{
an dd isp tayn g g eo gr aphic
in forma lro.i.e,d at a dent lied upectsofa paniculr geographicfegion.For ennple, salesmanagers may want to plot toa
accofdng to its tocation salesfor eachcounty in the statesthq' sere. Using a GIS, they can specify rhar eachcou6
be shadedro indicarerhe relativeahoun! of saleFno shadingor lish! shadinsrepresenl
no or lirde sales,and deepershedinsrepresen$nore sa1es. \firile many sofrwareproduc
haveseendectiningrevenus, rhe useof cls sofiwde is increasiog bv more rhm l0 perce:
pe' yea.on average.rr sdem & Avdt, a $2.3 billion realesiateinveslmen!firn, usesa c:.i
from Iinvironnental SystensResearchInsrirutero incre*e profits and plan for potenu
disdtes at rheshoppingcenrs ir ownsand ndages.saAc@rdingroDavid Beitz,geog.aP.r
and marketinginfornation qrrems managerfor the onpany, "The cosris renendou i
you build a shoppingcenter$hewhde and a najor tenantleaves. You'resoing ro losea.r

we saw etulierin this chaplerrhar mdagemenr informarionsysrems(MIS, prosr

useful$mnary repor$ ro help solvcsrrucruredand semhrucured business problens.Dr,
cisionsupponsysrems (DSS' offer the potenriaL
ro a$is.in solvingborh sehisttucrured::i
!nsffuctued problens.

AN OVER VI EW
O FDECI SI OSUPPO
N RT
SYSTE M S
ADss isan organird collecdonofpeople,procedures, sofNaie,daBbass, ud device5 Lld
to supportproblemspecificdecis;onnaking and problen solving.The focusofaDS5 r o
decision-makingeffectiveneswhen facedwith unstmcturedor senistructuredbusir
problens.As wilh a TPs dd d MIS, a DSSshould be designed,developed,drd us.,: u
help an organizationachieveits goalsatrd objecdves.Decisionsuppor sysrnson:er
porendal ro seneratehigher profits, lower cosrs,and berrer proddcs and servies. tior e\E--
o.san;idons ue DSSsto improvepatientqre and reducecosts.rJ
ple, healthctue Drso
supponssremscanalsomoniror.ndinprove petiedrcare. Onediaberes\reb sitederelord
a DSSro providecuston;ed rerhenr plansandrcporrs.r6The\rebsneusespowertullt$
softwareand grid conpudng. whde rhe idle capaciryof a nerwork of.onpurers is harn
Decisior supportsystems, althoughsknedsomshar ioward rhe top levelsof na.rr- -id
nenr, are uscd ar all levels.To sone exten! mdayi manageBat ali leveisare facd widr
srructured,nonroutineproblems,bur rhe quanriryed mgnnde ofthesedecisionsinc'-
asa ndager riseshighe. ;n ah orgmiarion. Many orgdizadons @ntaiDa rangled\.. d
.ohplex rules,p.ocedures,and deckions.Dsss lre usedro bring more srructurcro ljE
pioblns ro aid rh drcnion-naking proces.In addition,becaueofrhe inherenrfiens-ir
of decisionsuppor sysrems,manager ar .ll levelsare able ro use DSSS!o dsi$ n, rc
reladvelyroutine,programm$le decision in lieu of nore forhalized hanasemerr i:-G
mation slarehs. t)SSs are also used in nonprofit organizadons.Comell Universio is
exanple,useda DsS ro nonitor the joumah and nnspapers n purchases for its libr-- tr
The DSs showedthat abour2 percenrofnsjournal subscripdonswere cosiingthe unne*
20 percentof its periodi.dlshudser.l he DSSallowedrhe universityto drop sohe jol-4
thatwerent beingusedand ro pressure academic
publishingconpaniesto reducethen prra.
 n:_nt. rn'r Drr s rr !LFprr:ivsr.m: I ch.ltr 10

C harac t er i s t ioc fsa D e c i s i o S

n u p p o rSyste
t m
j.cisionsupporisrsrcnshdvemanr .hara.rerisrics
rhar allow rhcn to be e*iftire nanage-
x,t sut'pon tools.OfcouBe, not Jl DSSSwork the sane sonc .re lnaLLin srye and
rer only sone of thcsc chuacterntics.ln general,a DSS on pcftrn the fillowirs

' IInn.I. krye dnos"^ af data fton dilliftn' eurc6. For instancc, advxn.ed dnabase
mnagenent systemsand dararvarchonscs hrve alloqed decisim nakes ro s.rrch for
inlornation with a DSS,evenwhcn somcdararesidesin ditl:r darabscson dilTeknr
.ompfteisy$rms or nNorks.Odrersourccsofdau hal b ac.essedvia rhc Lrr.rrcr or
ovo a coipofuteinrraner.Using rhe Inreocr, an oil giant can use a decisionsupporr
srscn to savehundrds of millionsofdollab .mually bv .oordinatinsa la.sermouDr
ofdrillirg dd exploariondaraflom aLoundthc globe.
, Pnn;.re relDt nn,l prey"tdro, Jbr;bilitr. MrtuBers .n gd rhe infomirion rhey rvdt,
preserrednr a 6rmrt that suitsrheir needs.Furrhermorc,ou+ur can be dnrla)-edon
conputcrscrcensorprinted. dependinron rheneedsand d.*.s ofthe ptublemsolves.
, olfu bo'hkfl"al ad sdph;Lnl o;entdtian. t adA,rs DsSscan prod(.e t*r, bbles, line
drawiDgs, piccharts,(endlines, md more.lly using rhcnprclired oriendtnrn,manage.s
.an use a DSS ro get a beri. undeNrandingof. siruario! rnd to .onvey rhis
urdcrrarding to oth*.
, ttppolt d/;I notu" rndlJ',i. A Danager crn gct mor. levels of ddail wheD needed bv
dri nrg down rlrough datr. for *ample, a managercanget morc dcLaiLed informarion
ror r projcct riovng thr ov*ll pbjecr .osr or drilling dowr end scting the co$ lir
rachphase,acrivuv,and osk.
' trrlnu can?kx, la?httr .d d,r4\h dnd e)tupatnar Ltins dd,d,cd rafituoe parhrg6.
\liflcrnrg rcscarchsurveys,for exanple, can be an.lrred in a v&ierr of was using
programsthat arepen ofa DSS.Minr oi rhe anairric.lprogrun$associxtdsirh a DSS
rre acmrlly sand-:Joneprosrans,and rhe DSS bringsrhcm together.
' ;,ptatr opt;ni.d'ion, n'JicitlT td h."lttit dptraarlas. Bv supponing all tvpcs of
Jecision-making approachcs, a DSSgivesthe decisnnmake.a grcardealofflelibilnv in
:o,rpurer suppon tbr dccisior mrkirg. Ior exmple, what if ana\Bis, rhc proce$ of
iuking hpotherical chingcsto probLn datarnd obsrvnrg the impacron rhc rcsults, T h ep r o . e s so , m a k n g h yp o
::n be usedb conlrol inverrorj. Glvcn thc dcmnd for pioduds, suchasauromobilcs, t h e l c a L c h a n q e1sop r ob te h
d a l aa n do b s e r yn q t h e m p a ct
:ic.onrturer can deremrinedlc ncc.ssrrvplrs and onpoien$, including cngincs.
rtrnsmissn,dj, windows,and so on. \fiLh what ifrnalvsis.a nanagercan nakc changcs
:o problemdara(rhcnunberofautonobilesneededfrrrhe nexl monrh).nd imnedirtelv
..c ifie impaft or ihc prr$ requinments.
\fntt;titutia decit;onnaki"g allors mrnrgcn ro ukr a nunl,rr of;hportinr goak nno
- rDr. A car manufacrurcr, for eunpL. mav want o nraxinizeprofirs.whilc kcepingr1l
:irnrs openfor thc nct few nonths dnd avoidinga laborsrrike.Mukicrir.ria decision
approaches Jlorv managersto seeksevralg{ralsat the samerime.
-ng
Goal-seeking analysisis the procesofdererminingrheproblemdararcquiredfor a g,eb gort-seeking
anatysis
,.,ir. for cxanplc, a financiJ nanagernraybe consideringan invcsrn.nr lvirh a ceftain T h ep . o . e s so f d t e r mi nn g th e
.tlJv nel incone. and the manigernighrhavergo.l io carnarcnun of9 prrcenron rhe probtemdata rcqu rd fof a g ven
:ntuent. GoJ seek;ngallowsrhe maragerro dcrcrnin.wh.r monthll net iftome (trob-
- Jra) is neededto yielda rdum or9pe,lenr (problen rcsul). sorF spieddsheds canbe
-.: o perfonn gorl sekinsanalysis (see Fisure r0.1,i).
sinlJadon js Lheabilirv ofthe DSS io duplicrrerhe fearurcsofr rcal syren. In nosr
... . pr obabilit y o ru n c e rta i n q a re i n v o i v e d .fo rcnnp].,rh.mmberofi epai rsandrhe T h a b t t y o f l h e 0 S St o d u p tca te
. o repiir kI.onrponenrsof a maruhcmrnrg Inc can bc.al.ulrted tu ddermine rhe t h e l e a t u r so l a f e a L syste m
-r.r on the numberofproduca rhat can bc prodrced erdr day.Engineexcan userhis
. o dtermineshich conponentsrccd to bc rccngnreered to in.reasethe meanrine
-. c niailur es and F h i c h c o n p o n c rts n c c d ro h rvcrnampl esuppl l ofsparepanstoreducc
rern tim to repair.Drug conparics .r. usingsimrlaredtriJs o reducerhe needi'or
:u fatrnif rs and reducerhc rnnc ird.ons ofbriqing r ne$ drug b nri.ker. Dtrrg
raniesare hoping rhar rhis usc of simuhrion will help theh idntiA succe$ti,ldruss
 r ut s I e ,s n e s rr.fm
e a to fs fre n s

earlierin d*elopment. Corporareexecutilesard militarv commandersoften useconpc=

simulationsro allow rhem to q- d;lielen! snaresiesin dillerenrsirurions.r3Corporare=.
ecutives,for example,car trl differenrnarkedds decisjonsundervariousmuker conditio:
Milnai'.onnanders ofren$e conputer wai ganesro iine'tune their nilitary srraregisr
dillerentwarfre conditions.The ledsal Resere Bank usessinularion to help it orga::
and structurework tems.r' Toyora used 3-D simularion to design plants around
world.aoThe simuladonwas6ed to ihprove rcboticwork procesesand avoidhavingrore -
collideon the hcrory Roor.

@
., r i P z t - r d a i 4l i ,r .A, :
Wlh a spre ad sh eel pr ogr ama,
man ag ercan e nre fa goal,andt he
sp rea dshe et
w lt d eler m inet he
inp urne ed edtoa ch iev et he goat .
I*' l
-rrtf,

C apabilit ie so t a De c is io nS u p p o r tS y s t e m
Developers of decisionsupportsystensstriveto makethen moreflexiblerhanmanager-,:j
informationsysemsand to gtucthem ihe potentialto asnt decisionruke6 in a urier. !
situations.Table 10.2listsa few DSSapplications. DSSscm asistwith atlor nos proi'a-
dving ph*es, decnion frequen.ies.and dillerent degree of problen stu.tur. li=
approaches on also help at all levelsof the de.ision-malingptocess.In this sectio. *
invesrisaretheseDSS.apabilities.A singleDSSmay provideonly a feu,ofthesecepabra
dependingon its usesand scope.
Supporttor Probtem-Sotving
Phases
The objecriveofnost decisioosupponsysrems is to usisr decisionmaker with rhe p:-ao
ofproblem solving.As pr*iou+discu$ed, thesephases includeinrelligence,design,c::e
implementation,and noniioring. A specificDSS might srppon onlv one or a ft" p:a
During rhe inplemenrationphre ofa DSS, the stateofcalifornia ordered19 dn,s:E
pmies ro distribtrteabour$150million ofscarcedrussro abour150 Californiahospira,d
clinics.arA DSSwdr developedro disuibuteabout90 pdcent ofthe drugsreqfted 5. lb
cour decision.This epproachw* abLeto disfibute more than 125 differentdruss: 0
drug caregotiesu req*ed by la*.. By supponing all types of decision-naking appro;.-,
a DSS givesthe decis;onmakera g.eatdeal offle*ibil;ry in getling cotuputersuppo. i
decision-making acdvnies. ii

!
l

n
 o " D" o ooo " I cup'.,
'o

,tnol.:1

Cinercy
Corporation The etectricutiLitydevelopeda DSSto reducetead
time and effoft requiredto nrakedecisionsin purchasingcoat.

u.s.Armi ll dveLoped a D55 tohe{p rccrut, Fain, and edu!le

enliEledfo"!es.The DSs usfE a sr'mulationth.t in.lrporates
wral-'I feallJreE.

NationatAudLr
bon Society ptanl:praNttoaraLyze
rta*a"pli osi."rtil rnergv the
impact " energy
ol U.S. poticyon
theenvironment.

Vircnla The stateofVirqiniadevetopedthe Transpo.lationEv.cuation

DecisionSupporiSyste.r ITEDSSItodeterminethe bestwayto
evacuateDeoolein caseol a nucteardisasterat its n!ctear

3!pportfor 0ifferent0ecision
Frequenaies
::riods cad rangeon a continuumftrn one'of'a-kindro repetirndecis;o.s.One-of-a' @
:.1 decishnsare typicallyhandledby an ad hoc DSS.An ad hoc DSS n concemedwirh SetectedDSSAootications
: lrions or decisionsrhar cone up onLya fo rines durins rhe life ofrhe organizadon;in
::ll busineses,theynay happcnonly once.For *ample, a companynighr be facedwith ad hoc 055
. ::Lnion on whetherro build a new manulicturins facilityin arother arer of the counfy. A D S Sconcerned
w l h sit ualonsor
::r.tnive decisionsare addressed by an insritutionalDSS.An insti rional DSS handles decl sonstharcomeupont ya f ew
t mesduri ng
theLl feoft he
,arionsor decisiorsrhar occurnore than orce, usuallyseveralrimesa vearor more.An
',:,uional DSS is usedrepeatedlyand refinedover the years.Exmples of insdrutional
ilj include sysiens rhat suppon ponfolio and invesrmentdecisjonsand production instilutionat 0SS
A D S Sl hathandtessLt uat
onsor
-::duling. Thesedecisionsmay requiredecisionsupportrunerous rimesduring the par.
: ::nmple, DSSsareusedto solvecomputerrelatedproblemsthatcanoccurmultipletimes deci sonsthatoccurmor et han
once, usual l ysevefI mes
al ayearor
.,:rghout rhe day.a'? \rith this approach,rhe DSS moniton conpurer systenssecondby mofe.A n nslturi onaDSS
l is used
.-rnd for problemsand takesacrionto prevenrproblems,suchu slowdownsand crashes, repeatedty andfel nedover t he
.: ro recoverfrom them when they occur.One IBM ensineerbelievestha! $is .ppro&h,
: 4 autononncompfiag,isthekeyto thefutureofcomputing.Betweenthesetwo extemes
r: Jecisionsndagers male s*eml tines, but not regulrly o rcutirely.
:JDDo for 0ifferentProbtem
Structures
:6cu$ed previoul)', decisionscan rangefrom highly srrucrureda,rd programned to
-,ructured and nonprogrammed.Highly 'ttuctuted problems are straightfomard, hightystrucluredprobtms
.::ringknown toctsand relationships. Semisaucturedor unstructuredprcblems,on the Pfobtemsthata.estraghllorward
and fqu fe known facts and
::: hand, arenore conplex. The lelarionshipsmong the piecesofdas are not always
:::. the daramay be in avarieryoffornats,and it h oftendimcult to manipulareor obrain.
l ' :ldition, the decisionmakermay not know the informarionrequirenentsof rhedecision
: :tr'ance.For .xample,a DSS hasbecn usedto suppon sophisticated and unstructured unstruclurdprobtems
.,rnenranalysisand nake substaorial p.ofitsfo' r'ade.sand invesror.arSohe DSS$ad- Morecomplexproblems
nwhch
t h e r e l a t i o n s h i pasm o ngth e p i e ce s
': :ofrnare is progranned ro placebuy and sell order auromaricallywithout a trader
o f d a l aa f e n o la t w a y sc te a f th e d a l a
-:.rallrerrerins a rrade,bued on paramerenserby the rnde'. m a yb e i . a v a r i e l yo l l o r m a ts a n d
f orVariousDecision-Making
;.rpport Levetg t h e d a t a s o l t nd i f l c u l tl o
:: non supportsrstens.d prx,ide hdp for nanagen at diflerenrlevelswithin rhe orge-
:.: on. Operarionalmatugerscan get assntance
x,irh daily end rourinedr.isbn hahing.
..: oldecnion nalescanbe supponedwithanalvsistoolstoensurcptuperplanningand
 Pali 3 | 86re$ nrormaronsy+ems

antrol. At the stntegiclevel.DSSscan help nanaselsby providinsanallis for longre-

decisnrnsrequiringboih internalrnd arcnal infornarion GeeFisure I0.15).

@ ' St.alegic m.nagers

------.\ involvedwfthbng-terf,
0e.ision-Makinq
Levet oper.tronat -___\ decisions
Stfategc manage.sare invotved m.nag.rs invotvedwith -__-.\-
with lon q-t fmd c aionswh c h ar e
olten madeinffquentty.
High
operalionatmanagrsare nvolved
with decisionsihatare mide more 0ecisionFr.q!encY

A C o mp a r isoont 0 5 5 a n dM ls
A DSS ditren lion an MIs in nmero$ wa)r, inchLdnrgthc rypeofproblens solved.
@ suppongivento users,thedecisionenphasisand.pproach,md the rype,speed,ourput.a-
ol DSS5andMlss
ComEarison dwelopnent ofthe systen uscd.Table 10.3listsbriefdescriptiomofthee ditrecncs.

ADsseipporls smauq.oupe,
ifdividuals, and ,!i Mls supports prihadly the o8anila{Loi. In :r
i ih. tho.rrun,uec
lhe.ilire orq.nizarion. Ehonrun,use6 havele$ ontotoeran Mls
typi.,Lkhar more.dtrcl overa DsS.
."1.
:

A ossemphaszssbd!.Ider tmsaid only.

An MiSueuauymphasize6inromaron

.',:,,a,,,
.,'a,.4.w,^
The@mp!rerequipmdth3l pr*ides d.cisid An MiS,lsirq piined p.ds rhrttuybe
3!ppoJ1G cuaLlt onlinsldLftclly.o^ne.tedlo delteredro ronaqeFonce arcek, mayf,o1
lhe.omput r:Ftemlandr.tared10 E.lline
hrryjdinginrcdare.esuhsl. Comput.rterminals
aid dirptay scre-s re eEhpl*-tfisd ddvi.es
Fn9@jde imediala i .tmdDn and arowE
&quesror..

D55eldd3 aeusElly 6crceieenr.d, iirh rh An M s, hNer typGrly's orPntedrorard

aliliryrosererdepodson. Pnnter

O FA DECI SI OSUPPO
COMPO NENTS N RT
5Y5 T E M
At the corc ofa DSS are a daubse md a model base.In addition,a typical DSS cor*
diatogue manager a dialoguenuager, which allowsdecisn,nn:ken to easilyaccesand mmipularethe:5I.
User inlerfacethat allows decisron and to usc conmon buiness termsand phr*es. Finally, aaes to the Inremet, nen ;,r.
ma ke rsloe asilya c c esand
s and orhcr conpurerbued systehsperhils the DSS ro ric into other powerfulsysteru *
ma nip !tatelh e D5 5andt o us e
chding thc TPS or functionrpecificsubsystens.
Internersofrwareagern, for examplea'
 'o r o o0" I crDpior lo

be used in deeting powertul decision Iigure 10.16

modelofa DSS.

W
Modetof a DSS
Conceptuat
D S S c o m p o n e nilns c t u d ea m o d e t
bas;database:extr.at database
a c c s sai c c e s st o l h e l nte r n e ta n d
corporateintr:net, nelwo.ks,and
other comP!rersystems;and a

TheDatabase
i1lc databmernmagenenr spten allows nanages md de.ision make$ to prforn 4a,:/l-
ae ana!& ot rne cr'npuy's vast ston of data in darabmes,&ta warehouses'and dan
o:ns, discused in Chapter 5 A datatbiucn DSS primarilv perfoms qualiGrive en'\sis
=ed on the companyt databdes Daa-dJiven DSSSt.p into vdt srofts of infornation
:ooained in the corponte daebase,reaiwing informaiionon inaentory,sals' Pesodner'
:ro,1uction,finmce, accounting,dd othet *eas. Data ninins and businessintellisedce'
,:.oduced in Chapter 5, are often used in a data-drivenDSS Airline conpanies,for
anple, usea data-dri"en oSS rc help it identify custonen for round-rrip flighs berween
dior ciris. The dara-driven DSS or be used to sea.ch a data warehoue io contact
=ousan& ofcusroner who might be intetestedin an inexpensive flisht A cdino canusea
:rtr'driver DSS to searchlarge databasesto g* detailed infomadon on Pairons li can tell
row nuch erch spendsa day on gubling, md nore. TUI, a travel compuv in Europe, ue
: Jata'driven DSS to nake bater decisions to help reduce costsand increaseefrciencv'a
r.cording to the compmls financial d;ector' "\re will nake signiient cost sdinss k will
.b. r, ; b...-e .mcient and P.olide us with one vesion of rhe trud "
A datab*e managementsy*en qn also connect to cxternal databoe to give managen
-...
rd decision makea *en nore infornation and de*ion suppot Lnemal databasescm
=tllde the Internet. librties, govertrnent databues, and nore The combination ofinternal
nJ external databae acces iar give key decisio" nakere a bener undertanding of the
smDany dd its environment.
 Palta I BGre$ nrdrmar
onsrstems

T h eM o d e tBa se
The model base allows nanagers and decision makers ro pe{on q'akntuti,e dnab,i, r.
Pert of a 0SSthat providesdecison borh inremal and qrernal dau. A na.lzl.di,e" DSS primdiiy performs narhemaric"l ri
makersaccesstoa varielyol
quntimtive ana}6is. The nodel basegives dec;sionnake6 a.cess!o a vtuiery of nodeL :
mo de lsan dass sts t hem n dec ison
that they can explore differen! scenariosand seerhen effects.Uldnarelv, it csisrs rhem ,-
' h e d e .i .i on.m,ki ngprc(es l or esmpl e. B rter. rt-e,-g. d,us.o.p:ny. h"d . o . ho*-
whetherto resedcha genethat .ould disposecerBin peopleto ashma.arThe compr-
daeloped a DSS model rharsavedrhe compdy six honths ir analysistine. Ar the chc::
srage,Bayer decided to explore which senesnight caue asrhna. Accordins ro $e head :r
rheresear.hand dnelopmenr depanmenrofa conpeling conpany, "This is roolurionr
You can .hanseseneswirh rhe sr.okeofa keypad.\fle've nder had rhe roolslike ther. ::
look at rhe complexityofdisease."In rhesportsworld, AC Milan, r roorbattGoGt le<r
chanpion, ues a model-driven Dss io leduce injfties by 90 percert.a6Thc soli.rarc noc+
help playes derernine rhcir diets, naining sctred e, and menmt aftnude. Accordirs ro lr
.o J rh . ,k epriJr rrhl ere..hdgedLh.,, ni nd. Jborr rh. p,ogl m on.e i t in p i \
|r
-,, - e ptr\
rhcy khe plalersl .ealizedrharit would makerhem no.e heahhyad protonsrheir
modetmanagement
soltware -
careers.they becane much more accepting." Model ndasemetrr softMre (MMS) is ol:5
Softwarethatcoordlratesthe useol usedro.oordinarerheuseofnodels in a DSS,indudinsGnancial,statisticalanallsis,gra;:
ic"]. and prcjecr-nanagenenthodels. Dependinson rhe needsof rhe dchionnakcr, .::
or more ofrhsnodels cen be usedGeeTabte 10.4).

Ptuvide.summ;y sristi.s.idi; pnj,qcrlons, stalisti;fpr.sra;, s'rchSiss or5{s

hypornesi.r.sling,.ndnord

Hbndls..d4bo;dih6c6lar!e ptujecrsr.Lst Ptujct hariageftnt sott{ae, such ai Prolecr

usedto ldedtifyditiGt.dtivitle.andtasksihar
ould del.y orlerpirdte an .ntire pmjecr tf tbey
arc not dnpleted in alinely and .osr+lleci've

T h eD i ato g u M
e anager
@ The dialogue nanager allows uds ro inrcnci with rhe DSS ro obrain infornetion. ft 4.n
DSSsoft n u s f nanc ial,
wnh all specrs ofconnunierions betweenthe uer and rhe hardwae and software
s tatistica i. g rap hic at ,and
consd$re rhe Dss. In a praaicalsense,ro mosi DSSuse6,rhedialoguenanagd is rhe Dll -
prole cr ma na g m enrm oder s
Upperloel dccisionmalets arcoftenles intere$edinvhere rheinlbrnatn n camefiom
howirws sarheredthan thtt rhe informtion is borh undesrdrdabteand accesible. '

GROUP
S UPPO RT
SYSTEM S
The DSSapproadrhd resdtedin befterdccisionnaking for all ldels ofindividual L--
However, many DSS appror.hes and Echniques are nor suitablefor a sroup decision hai:n
en*onmenr. Aldough not all worker and manageBre involvednr comnitree neets
and group decision-nakingsessions,
somctactical-and suaregic,lfleindDgen .an \p-.
morethanh.lfrheir de.ision-makiDgrnnein a groupserdng.Suchmangersneeda$;r:-E
 I ch.pr,r 1r

\virh group decision m.kins. A srcup suppon system (GSS), also eued a soup groupsupportsystem{GSS}
'tz.isiot Solrwara p p tc a t i o n t h aco
l n ssl so i
,upport sysrena"d ,onputditu! .ouabolatiue tuorhry\rrz. comists of nost of the elements
^ most etements n a DSS ptls
n a DSS,plus softwareto provideeffectivesupporiin srouPdecisionmakins seitinssGee
softwareto provldeeffective
: isure10.t 7). Lowe& PaJtner\roddwide, a globaladvenisingcompmv, usesa GSSelled s u p p o r ti n 9 r o u Pd e c i so n m a ki n g
:taming technolagtro & epens in nany divcrse uea to make imporrdt adverrising a\sa called gtoup suppart systen ar
re.nions.!7 The compa.y electoniolly links account execudvesfrom Hong Kong, Ensland, comp uter ized colla banttve work
:.dia, rhe Unired St res,and otho are* wnh *perff in var;ousindustriesto help craii
:Jrcftising prognns. A@rding to a.onpany executive, "\0e re dis.overing resourceswe
T iLdntknow aisted."

d
@
of a GSS
Conliguration
AGssco.lains
mostoitheeLements
t io!nd in a DSs,pLussolrwafeto
!
l a c t i l a t eq r o u pm e m b e f

|B

>

qH H -@
II
I

Croup supponsystensareusedin mostindustries.tuchitects re increasinglyuingGSSs

r helpthen colhboratewith orherarchitects and builden to developthe bestplus and m
-l :npete for conracrs.ManufacturingcompmiesuseGSSSto link raw maierialsupPliecto
I' own companl s1xtems.Engineers cm use Mathord Enrerprise, another GSS.aNThe
-itr
*rnvare allowsenginees to create,shte, and .euseol.ulations. Srudentsat CarngieMellon
, xiversiryhavebuilt d dperimenral GSSmeetingroon, calledthe Barn, that allowsin-
mcive collaboration. The needng roon hu projectors.nicroPhones,sPeake6,and other
:- icesattachedro the walls and ceiling to facilitate grouP decnion nakins.{'

De cisio M
Char ac t er i s t ioc tsa G S ST h a tE n h a n ce n a kin g
:: .: oftensaidthat wo headsarebetrerthanone.\ften ii comesro decisionmaking,aGsst
aiqur .Iaracreristic havethe poienrialro resultin betier decisions.Dwelopen of these
=tcms try to build on the advanngesofindividual supponsystenswhile addingnn ap-
r:-,rche uniqucto groupdecisionnaking. ForexamPle,someGSSscanallowthe echange
jiinfo.nadon dd expertheamongpeoplervithoutd;rectfac-to-faceilreraction The fol
.*irysecdons describe somecha!&teri$icsthdt caninprove and enhancedecisionmaking.
 Pst 3 | Elsn .s iT d ,m a to i sysr Pm s

S p e c i a l D esi gn
Th CSSapproachrcknowledses rharspecialpro.edures,
d*ices, and app.oachesareneed..
in sroup decnion-makirsserinss.Theseproceduresmust fosrerc.eadvelh;nkins, effecrrr
@mmunicarions,and good group decision-nakingtechniques.
Easeof Use
Like an individualDSS,a CSSmust be etvto lern md use.S),stems
that arecomplq o:
hard to opente w;ll seldombe used.Many grcupshavc1es tolermce thm do individp
decisionnakers for poorly dqelopd sysrems.
Ftexibitily
"Iwo or rnore decision makes working on the sah p.obleh may have differenr decisic:,
nakingsrylcsmdpreferences. Eachnanagernakesdecisions in a uniqueway,inparrbecau<
of different experiencesand cognitive swles. An effecrive GSS not only has to suppon e
difTerenrrpproachesthat nanager use to make decisjonsbur also nusr find a means::
inregraterheirdifferentpenpe.tivesidro a comhon vis of rhe taskat hand.
Decision-Making
Support
delphiapproach A CSS can suppon ditrerenr decision-makins approeches.induding the delphi apprcre
A d ecsio n makn9appr oac h in in which groupdecisionmaker aregeographically dispersed
rhroughoutrhe countryor u
wh ch gro upde cs ionm ak er s ar e world. This approach encouragesdiversiiy anong group mrnbers od fosterscrearivin r:
ge oq rap hicatty
d is per s edi
ih s
ap pfo ache ncou f aqesdiv er s ily
original dinling in decisionmaking.Another approach,calledbninstoming, in $n::
amo ng9 fou pme m ber sandf os t er s menben offer ideas"off rhe top of their heads,"fosten deativiq' and free rhinkins. Tt
a ndo .iginat t hnk ing n group onsensu approach forccsmenber in the goup to .ea.h a unanihous dcision.TE
-ea tivly Shuftle Projed LnsineeringOf}ic ar rhe KennedySpaceCenter has u*d the conrr*
brainstorming rankingorganizational-supportsyslcn (CRoSs) to evaiuaespaceprojecsin a groupfir-
Decsion mak ng approachthal 1'hegroupconsensus approachanallzesrhebenefrBofvrious projecsand theirp.obabiliG
ofte nco nsistsofm em ber s of f ern9 ofsuccss. CROSSis usedro waluarcand pioririze advancedspaceprojects.5o
de as olfth e to poilhe r heads . \(ith the nominal grcup technique,eachdecisiornaker cd pariicipaie;this te.hnj*
groupconsensu5
approach encouragesfidback from irdividual group nembcn, and rhe final decision is made b\ \-.
Decaion-mak
n9approach
thar rn g . m i l " r to a .1Ler l or el e.tng prbl i . ofl i .rrl ,.
'
fofcesmemb ersin t he gf ouplo
fa cha u na nimo us
dec s ion
Anonymous
Input
ManyGSSSallowanonynousinput, wherethe persongii.g lhe inpur is nor known ro or=
grouPtechnique
nominaL groupmembeis.Ior example,someorganizetbnsusea GSSto help rank the performr,:
Decs on mak nq app. oac ht hat ofmenagers.Anonynolsinpuullowsthegroupdecisionmakersro concenrrare on rhem<-
en co u..9 esfe dbacf ion k indv id of the input witlout consideringwho gaveit. In orherwor&, input given by a top-lcJ
ua l q fou pmemb er sandihe f inat
manageris givenrhe sane considerations input fron employees or orhernembersof:
de cison s mad eb y v ot in9, s im lar t o
rh e wa yp ub lco flic ialsar e et eded. group.Sone sudieshaveshownthat groupsuing monynous input can nake bear d::-
sionsand havr superiorresultscohpded wnh s.oups that do not useano.ymousinfr
Anonynous input, howoer, cm rsult in flam g, wherean unknown reammemberp-s
insuhso. qen obscennies on rhe GSS.
Reduction of Negative Group Behavior
One key characrerisricofanyGSS is the ability to suppresor eliminategroupbehavior:
is counterproductivc or harnful to eflecrivc dc&ion maling. In somegroup serrnrgr.d.E
irurindividuats cantakeoverrhediscu$ion,which @npr*enrorhe.member ofrhesdr
from presentingcreatiuealtermtives.In othercses,oneor two grcup menbersen siderz:.
or subventhe group into a.easthar arenonproductileand do norhclp solvethe probler.
hard. Orher rines, nembets of a group nay assumethey havenade rhe rishr decnr-
wirhout exanining akemalives-a phenonenon cmetJgarpthi*. If sroup sessions a
poorly phnned and execured,rhe resulrcan be o tremendou wa{e of tine. Todel. nr
cSS desisnesarc developingsoftwareand hadware lstens to reducethesetypesofpe
lems.Procedurcs for effecrivelyplanning and maoaginggroup neetings.d beincorporr-c
into the GSSapproach. A trainedmeetinghcilitator;s oftenemployedto helpleadthegro-r
decisionmking processand to avoidgroupthink.
ParatteICommunication
\rirh rradition.l groupmeerings,peoplemu* taketurnsaddressing
variousissues.
Onc F-
son nornally ralksar a rime.\ri$ a GSS.eveiygroup nember cm addres issuesor na
comnenrs ar rhe sane tihe bv enrerinsthem into a PC or workstarion.Theseconm<*
 nl.rnatoi3rd0e.r onsutp'dsli?rs I Chalter ro

rnd issuesaredisplayedon everygroup membeis PC or workntion inmediatelv' Parallel

:onmunication en speedneering timesand r$ult in bete. decisions.
RecordKeePing
Automated
\losr GSSscan keep detailedrecordsof a neeting auromarically.Eachcommenrthar is
:nreredinto r group nenbers PC or rvorksrationcan be anonvnouslvrecordedln sone
for tulure reviewandanalFis lnaddition,
-*s,literallyhund.eds ofconmens canbestored
rost CSSpackages haveautonaricvodng and rmking fearuresAfter grotp menber vote,
:re GSSrecordseach vote and makesthe appropriate tankings

GSSSoltware
soliware, often calLedgroupuare or auhgruuT saJiwal., heips wilh ioint work grotrp
-lss 5'
rheduling, connunication, r"d nanagement One populrr package,btu Ior.1, ai
..pnue, siore,naoip ate,and distributememosand codnunications ihar are developed
:uring g.oupprcjecb.It an alsoinco4orareknowledgenanageno! dndsedin Chepter
srandudizeon mesagirg and collabora-
' inro ih" r-oru' Nu.", p".kage Sone compoies
. .n soli*re, suchas Lotus Nores Microsofis NerMeelidgproduct suPporrsapPlication
::rnrg in multiparr,vcalls.ExchangefronMicnxoftis anothu enmph ofgroupware This
,: allowsuser r,, set uP elec$onicbullednbo.rds' scheduLe group meetings'and use
-ure
. Tail in a groupsetdng. NerDocuments Enrefprisecanbe used for \Veb cnlabontior' The
.:rupwue is intended for legal,
accomting, and rerl-csrate businesscs. A BreakoutSessbn
:.*u'. .ll t*o p.opl" to take a copy of a document to a sh*ed foLder for joint roision
'*, and the ahilirv to downlord and work
:rJwork. The softwat also permits digital signatures
:r shareddocumenrson handheld computer. other GSS software packges include CoL-
:rrr Shat, openMind, md Teamware. Allofthese roolscan aidingroup decision naking
I n additionto srand'alone products,GSSsoftwareis incrcsinglv beingincorporared inro
:r rring softwarepackages. Today, some tnnsaction procesingand enrerplise resource plan'
..ng packagoinclude ollaboration softwrrc Some ERP Produce$ (ee Chapter9), fbr
..r-ple, havedeveloped g.oupwarem hciiitareolhboration aod to rllow uers to integrate
i-,.licarionsfron orher lendors inro the ERP systen of prograhs Todq" groupwarelan
:=nct wnh wnelas dwices. Research InMorion, the makerofBlackberrysoliware'offen
conmunicerions,acce$ ro gtouP infornariod' meetingschedulcs, and mherserices
-nbile and serers sz In addirion to grouprvate'GSSs
::r canbe directlytied to groupwarcsofr*ue
.: r oftoois discussed Previously, including:
"umber
. E nailand insran!nesacinc (IM)
. Videoconferencing
. croup schedulinc
. Projecttuenasemenr
. Docunehr shtuing

GSSsoftwareattowsworkteamsto
6ndreachbelt er
col tabofate
decisons-evenif theYworkacross
? or ont r r e
I l ow n,n anotherre gr on

{sourceO MarkR char dt Pholo

E di t.l
n

t,
 Put3 | B[r.$ sr'nems
]nrormai,on

G55ALternatives
Group supporrqrrems can trke on a numberofnetwo* configuraions,dependingon the
needsof rhe group, the decisionro bc $,pporred,and the geosaph;clocriion of srouP
nembers.The frcquencyofGSS me ud the locarbn ofthe decisionmaken are two im'
portan!factos GeeFigureI0.1i1).

@
GSS ALlernatives
Th ed eciso n roo mm aybe lhe bes t
iof gfoupm m ber swho
alte rna live
:r tocate dph ysc at t yc los e t
tog eth era ndwh o needt o m ak e
as a 9r oup.By
in ireq ue ntd ecis ions
th e sameto ke n,g r ouPm em beE
wh oa resitua ted ald s t antt oc alons
a ndwh olre qu n t lym ak edec s ions !ocrlion of 9roupmemn.rr
lo ge the rmayr qur r ea w de af ea
decLslon nerworkto accomplish
Room
TheDecision
The decision roon is ideal for situations in which decision maken te loqted in the sant
bu;ldingorgeographic uea md the decisionnaker re occasional userofthe CSSapproach
In rhesec*es, one or nore decisiorroomsor fa.iliiies can be set Lh.
up ro accommodate
A r oomt hals up p o rts d e c rs
on GSSapproach.Croups,sucha naketing reserch teams, producdon mamgenentgtoupr
hak ing, w lh r hed e c i so nm k e rs
in financialcontrol teams,or quality-onrol connittees, an use the decisio! rooms$he.
t hes am ebuldin gc o m bn l n q
needed.The dechionroom alternariveconbines hcero-faceverbalinteracrionwith rec!
I ac et o- lac veerb a nt te ra c ti o n w th
r ec hnot o9ymt oa k el h em e e n n g nology-aided fornalarion ro makethe meerins more eiTectivemd etrcient Decision rooni
e de ffce n t
m or eelt ec t ivan however, en be expensive to ser up and operare A q'pical decision room is shown rr
F ;g u re1 0 .19.

@
TheGsSDcision
Room
Forgroup whoareinth
membe.s
s6 melo ca tionthe, dec s on r oom s
6. o pl ma lGSsa t ler nt iv eThls
approachcan use both face-to i:c
a ndco mpu tefm edat ed
commu nicar on . By ls ing
ne tworkedcomp ! ler s and
comp !terd evic ess,uc has pf ojc t
s ee nsafd p r nt er s ,t he m t ing ;
lea d rca np oseques tonst o t he
group, nstanttycotLecltheir
ie ed ba ck,a rd w r t ht he hlpof t he
;
governingsoftwa.etoadedon the
conlrol station processth 5
fe ed ba ckin tomeannqr ut
in forma lron to ai din t hedec is ion-

TheLocatAreaDecisionNetwork
The iocal aea decision network en be urd when group membe.s de locdred jD .he sdl
buildingor geograph ic areaandundercondi.ionsh wh ichgroupdecjsjo!nakjrg isliequent.
h rhese cses, the rechnolog/ and equiphent for th GSSapproachis Placeddirectiviri.
rLeoflicesofrhegroupmernbcn. ria a localareanetwork(LA.\
Usuallythisn acconplished
 Ioado'dl dD ".so c"ooo-( " ch4pi d ro
l

TheTeteconf
erencingAtternative
Ieleconferencing is usedwhen the decision frequercy is low and the loiion ofgroup rnem-
bersis distmt. These dirtant and occdioMl group meeringscm ric rogether nulriple cSS
decision'naking rooms acros the counuy or aromd the world. Using Long-distanc on-
municationstechnology, thesedecisionroom ae eicctronically connectedin releconferene
ud videoconferences.This alcrnarive cm offer a high degreeofnexibility. The CSSdecision
:ooms can be used locaily in r sroup seiting of globdly when decision naks N located
:hrcughout the world. GSS decision roons are often connectedthrough the Inrernet.
TheWideAreaDecisionNetwork
The wide tueadecision netmrk is ued when the decision frequency is high and the loqrion
of sroup nenbers is disrmr. In rhis case,rhe decision nake6 require &equenr or consrmr
rse ofrhe GSSapprorch. Decision na]<emlocatedthroughour the countrr or rhe world nur
r linked elecrroni@lly lhroueh a wide rs netwok (wAl9. The group hciliramr md aI
:roup member are geographielly dispesed. In sone c*es, the nodel baseand darabce are
:1sogeographicauydispereed.Thk CSS alternative allows people to work io vntuat wo*-
groups,where reamsofpeople located around rhe world can work on common problens. Teamsof peopldLocatedaf oundthe
)'he Inrernet is increasingly being used to srpport wide areadecision treffiorls. As dis- world working on common

-rsed in Chapter 7 rnd 8, a nmber oftechnologies, includjns vidoconferncing, instdt

:dsaging, chat rooms,and teleconnutins, can be uredro ssisr rhe cSS preess.In addi-
:on, many specializedwide area dcisioi oerworla nake ue of the Internet for group
::rision naking md problen solving.

EXECUTIVE
SUPPORT
SYSTEMS
iccause ropJoel *ecutives often requirc specializedsupport when making struregic dec;
lns, nmy compmies haved*eloped systensto assistexecurivedecisionmaking. This type
:i sysrem,catled an qecutive suppon sl.ten (FSS), is a specialired DSS rhat includes all executive
support5y5tem
-idwd, software,dara,prmedures, ard people usedto usisr seniorlryel secutives wnhin IESSI
:. orgeiation. In some cases,ar ESS,also called m execuriveinfomarion slsrem (EIS), Specialzed 055 that inctudes:tt
hardware,soflware, data,
rJpports decision naking of nenber of rhe board of directore, who are responsible to
procedures and peoPleusedto
r*kholder. These topJevel decision'nakinS strara a.e shown in Figure 10.20. Se the a5sislseniotrtevtexecutiveswithn
-:&ical and societalIssues"feaure ro lind our how theserop execurives arebecomingin,
.:lved in securityfor valuableinformationqsrems.
An ESScd also be used by individuals at rniddle loels in the organizetional sirucrure.
)nce targetedat the topJevel executive decision nakes, ESSSare now nekered eand
-<d bv enployeesat orher l*els iD rh orsaniarion. In ihe rradiiional vis, ESSSgiye top
*ccutives a neans of urckins cridql succ$ aacros. Today, all levels ofih orgmiadon
:-are infornadon frcm the sme daeb*es. Howoer, for our discusion. we will *sume
:-iss renain in the upper-managenenr lvels, whe.e rhey highlighi inportant .orpore
!:de5, indicete new direcdons the company nay rake,and help decutives moniior the con'
CEos "Cattedto Action' RegardingInform.tion 0fg.i i zatons a. easkedt . ! : :
o.ex.eedthesec{ rrtyql i del i as
_:
Security ontherWebsl:e5thattheylntendto usethetooLsdevetoped 'r!
C.|pc.ateGovcmanceTaskFo.ceLoassessthei.Pe.tornlan.:: :
TheU.S g.vernments plsh ig CEostotrke responsibittylo.Lhe ofd fectorsS o Debelele1f :
.eportthe.esl l tsto ther boa.ds
nnllons cnil.at intomat,o. nf.astructlre. i thiseiaof ncrcased
there is not wdespfeadloLlntrry suppo.toi the task r.r:::
c y bo. at t ac k 5 a n to
d .m a to i s e .!rty b .e n c h e s,i i i s* sentrtti rat fecomme.dationslhe governmenlmay need to 6ppty.c:::
o o q o .o o g' 6
nceni i vesO.sonS di ndtea membefof the Feder . lT: : :
Amlt YoEn D.ectof ol the Natonat Cybef SecLr.ltyDivislon _.
Commiison.:tated that il the lask lorce reportfaitsto ger
Anatyssand nffastflrct!rcPrcteclion
nformation the
LAlPJwthro
Ld' C E 0sand
atte.ti onof fecto.s, haveiodoubt t hals.
bo3rdso{d
. D"p" o o u E d d d4 ro -
"td o sortof feqllat onw tlbe
not Passed
cytie.andnfornratonsec! Lyconce.n5,the P vatesecto.witt
its ownsec!.ty, blt hetpp.oteclthehomeland.s
o.ty st.englhen
cri ti catThi nki ng0uesti ons
ls noied in a reporl t tted /n/ormrtion S-.cu.ityGaveman.eA 1 H ow m qht ofganzati onssec!re sefEl ve nf or m a::
a , 4. . o .0 o o " l e o r- from.ybef..m nats?C onsdef thesecu.it yconcer . ! : :
" g o .p o
s toooftent.eated3s: techntrallssleandpassed:tong lo theC O possl btesot!t onsfegardngdat. stofedn dst . baseq: _:
o h " d " Bu o ro '. e d" atsothe mpo.tantl nfo.maton that l s tr anst er . ed: :
' oe. " oo p d ^ a
so mpo.tantthat top exe.ltles and boardsof dre.t.rs must netw o.k:andofl ei pr nted nfeP orts
becomenvotvedandmakesec!.tyan itegratpartolcoreblsness 2. H ow .o!td the gove.nment qet 100perce. t. ooper a::
opefatonsTheraporiwasalthoredbytheCorporate Golernance ffom pnvE tecofpofatons? s such a go al at la n. bi
T as k F or c eo t hfe N a ti o fa l C y b e rSe c u .l y P.rtneE hi p.ThitedsC E o .tt. ned w i tt t qu.ranteenal i onslsec!. it ytWhyof
task forceis fesponslbie for dentfyingcybe6ec!.ty mles and
.esponsibitt eswth n lhe.ofpo.atemanaqement sttu.Ju.e
Typlcalexecltve sLppoftsystemsProvde top levetmanagefs WhatWoutdYouDo?
wih gene.atcorporateinfo.mslionand h gh_tevetr"rd catoEthal
As CEOof BostofChem.at.youhavebeencatledon lo aLrdrt\:
as s s it hem in s tEte g i c p l a n nSL n grc h s y s te msatLow e' F.rrtvesto lnformatronsyslems ideonryareas at se.u.ty concems ;_:
observe1rcndsin co.po.Etesl.tsti.s and ddtl downfo. a nro.e w th remedes. The i .taL aldt r nd. E: : :
addfessthe concems
rhat mLrchof yo!| infomation infiastructu.e s outdated:_:
Brt s.me slggest that CEOSats. be.omemofe nvot@dn !nabteto provdsecurtythat measu.es up to todays sl.nrlar::
towertevet S operalions For exampte ndlstry observe.s An overnautwtl cost lens of tholsands oi dottarsEnd req: _:
.ccomrnend th.t ihe nal an s..t c:tirrff.str!.t!.e be p.otectedbv _:
slgnfcant downiimefor the company nerthe.of wirch
fofminqcybe6ec!nty.oLesand rcsponsbttes withinco.po.aie .an altord nsho.t. t s mpossible fory.u to complyf.
company
exe.utvemanagemnt structLrfesAGo rsk managemenlano p.dro b.
"",eo- "dd -
qald b' oo " a" bFno
- Howevef, you!ndeGtandthe rmportrnceof ccmptying,
espe..
devetoped. rnd foMatuihrnkngexec!tYesa.c instt!trnglnd!stry in d:nge.olscirem cats
s ice yo!f compafydeats
p"- aao o'
execulive.a.e u.qed to fLr5e seclfny pmctces ntoeleryaspectoi
Sdevelopment and rsage 3 C on5de. fg that i he.e afe no c!..ent t at t s llove. r :
Pa.tofthseffoft nvolvesdevetop ngbestp.acticesand met..s comptrnce w outd t be be.t to s mpty gnor et he 1: : '
that br ng acco!ntrb tity to three key eternents of a cybersec!.tv tofce recommendat on?W hatotheropl o ns m r ghtt t . '
system: people prccesses.:nd technotogyThe Lrnde.tvlng
ph tosophys that wllholt cooperaLon from ndividuatconrpanies dc tor buS|es5es slcr r r :
4 W hat mi ghl the gove.nment
ando.ganiz.tons. ii s mposs ble to sec!.e the U 5 sinlo|matoi yo!.s thaL afe !nabte to compty d!c t o nnan: :
inlGEtrLrctLrfe Wtt p v.te corpo.aton3 coopeEte? Thefes a
s!nificant amo!nt 01 cor.ptian.e atready, sd task for.e
c oc har m ! nA rth u fC o !!e tL o .C E0 a n d p i e s dRe S
nlA S
of e.!.i l ync SO!RCEs, CorporareGoveriaiceTa3r For.e ot lrro Nal oiat CvberSer!r'
Paftnershp Reteases Industy Ffamewo*,' Entlst APt| 12, 2aa
t
t s har d o lm a gn e th a l :n yC E 0 .o !l dn o l
ta k e th5a5 a s gnl fcant
oatr Vertor 'CEO. Urqed tD Take Conkoi :
Cy6e'se.r ty Canputetuo.tn Apt 1 12, zaAL ww canputetu.dd ..
To coaxcompanesto comply,the Depa.heit oi Hometand Naiional Cyber Se.urity Parlnerchp INCSPI W.b sle, a..-"ssed Aj
25 2AA4 wtu.efberpartnech)p atg
c o mpanesl
S e. ! r it ys es t a b l s h i n q a n a w a .d s p ro g ..ml of hatmeet
 o oooDd o ooo . *o " "
l
'o

Boardof
@ I
TheLayersot Executive
0ecisionMaking

t
Pres;dent I'

t
Funcliona{area
vi<epre5idents

Functiona(
area
managers

Executive
SupportSystemsin Perspective
.-: ISS is a specialrypeofDss. dd,like a DSS,an Ess is desisnedro supporrhigherlwel
r:sbn making in rhe organi,ation. The rwo systemsare, however, ditrereni in inporrur
.i, s. DSSs provide a vdiery of nodeling and ln.lysis tools to nable uses io thoroughly
:lze problem*that is, they allow usen to azoar quetions. ESSspresenrstructured
('rrnation ebout aspecrs ofthe orgdiadon rhar decrtives considerinponant. In orher
.: : . ihey allow qecudves ro ast the righr quesrions.
I \e lollowrngaregcnereichJa.rerisrib of I S5\:
. Tdiloredto i i dul secqtn r ESSSlre q.pi@lly railoled ro individual qecurive$ DSSS
rre not iailo.ed ro pardcular user!.An ESSis m interactive, han&,on rool ihat allows an
exe.utiv ro fbcus, filter, dd orgiqize dara dd infornet;on.
. Eai"rro rua A topJevel *ecutive's m6r critical resourceen be his or hei dne. Thus, an
ESSmust be easyro ledn and useand nor overly complex.
. Htue dil doua abiliti5. An EsS.llo{s execurivesro drill down inro rhe compdv ro
o l n m inf howt ' n, ind ,' J R d p ,o d J c e d D ri i n gd o w r , o" . o q(uri !e rc g;r mqe
detailed informadon if needed.
.vppo,ttheneedfotdtemdldata.-thedar^rcedediomakeeffecdverop-levelde.iions
is oftn exrernal infomadon fron competirors, rhe fedenl governmenr, Inde
ssociarions and journals, @nsukmts, and so on. Ar effecriveESs is eble ro qrract data
deful to ihe de.isionmakerfron a wide E.iery ofsources,in ludins rhe Inrernetand
otherelecnonicpublishingsourcessuchas legalmd public businss iqfomadon fron
Lexis/Nexis.
. Cn help uith itrdt;oN that h@ed high desrft af""catui"r. Thete is a|,ish degleeof
un.eltainq/ wirh nosr executive decisions. Hddling these unknown siruaiiom uiDs
modelingod orherESSprocedures helpsrop levelnanages mesure rhemount ofrisk

. Ha"e dfvtuft o ektdtion. Execotivedecisionsarefuture orienred, neaning thar decisions

Nill have a broad impacr for yers or decades.The ilfornation sou.6 ro supporr
 P.ft 3 | Bcre* onsvslems
nrormar

future-oriented decision naking are $uatly infornal from orgmizing golfpartnen to

rying rogether nenbers of social ciubs or civic orgdiarions
t Are tinked uith ualxe-addedbuines ptocesa. Like other information s)siems, execunn
suppon system are linked with er<ecutivedecision making about ralue-added busioes
processes- lor instance,*ecutive suppons1stenscd be usedbv errental companit*
ro araryze rren6.

Su p p o rSyste
C a p a b ititieosf Exe cu tivE t ms
The responsibilitygivenro topJoel *ecutives and decisionmakes brinssuniqueprobletu
and pressuresro theirjobs.Followingisadiscusionofsomeofthe cheracreristics ofqecuti'c
decision making that a.e stpponed through rhe ESSapprorch. As vou will note' nosr
"i
thesedecisionsare relaredto u organization's overall profitability md direcrion Ar etrecti':
ESS should have the capability to suppon executive decisions wirh comPonents such
-
srntegic pLanningand orgeizing, crkis manasement' md no.e
supportfor Definingan ove.attvision
One ofrhe key rclesofseniorexecutives is to Providea b.oedvisionfor the entireo'gania
tion. This vkion indudes the orgdiaiion\ tuejor product lines and sewices,the tvp* oi
businesses it suppom todayand in the future, md its ovenidinggoals.
Supportfor StrategicPtanning
stratgicPtanning ESSSalso supporr snategic planing. Saategic planning involves determining long-terc
Dererminng tong-tefm objectives objectivs bt ana\zins the strengths and weakneses of rhe orsnization, predicting tutur
by an alyzn q th e strngt hsand trends, ud projecting the development of no produc lines h also involves Plannins rh'
weaknessesof the organzat on,
acquisnion ofnv equipment, ana\zing nerger posibilities, and making difticult decision
pred cling tuture trends,and
pfoteclingthe developmentof new concerning do*nsizing and d,e saleof asers ifrequned by unfrvorable economic condidox
5upportfor Strategic0rganizing.ndStaffing
TopJwel erecurives are concerned with organizadonal structure. For qadPle' decisioE
conerning the creation of n* depannena or do*nsizing the labor fore aie nade bv rop
levd nanagea. Ovenli direction fot srarhng drcisions md effective ommuniorion sic
labor unions *e dso major dcision a.easfor roPlvel execudves.ESSscm be enploved *
help malp rhe inpact ofsta$ng decisiom, potendal Pay raises,changesin enPlovee be'
effs, and nw work rules.
Supportfor StraiegicControt
tuoiher +e of e*ecutive de&ion relaresto stEiesic connol. which involves nonitor;+
and mmagins the ovemll opention of the organizrrion Goal seekingcan be done for e':
maior uea to deternine what performance these arec need to achieve to reach cotpoer
opeaations. Effecti"e ESSapproachesen help top-level mmagen make the nost of tlrc:
e \i n i n s re 'ource'and@ ntrolal l ope, n ofrhe orgrni zati on
Supportfor CrisisManagement
Evenwith ca.etulamtegicplanning,acrhiscm oeur. Major disasten,includinshudsne
rornadoes,noods,eanhqukes,fires,andterrorisracdvities, cm totallvshutdownnajotpc
ofthe orgaoiadon. Handling these energencies is anotha respomibilirv for top-l*cl ex-'
ud"es.lo na"y c*es, st.ategicenergency plans can he pur inro Placewirh the help of!
ESS.Thesecontingencyplans help organiations reover quickly ifan energencvor cn-*

Decision making is a vital pan ofnanaging businessesstrategicallv lS svstemssuch I

i n l o rmrri o nud deci ' i on' uppon.group' uppon andqecuri ' e rupponsl q em ' helpc*
ployeesby tapping *isring databdes and Providing rhem wnh d({t, {ont infornsl;oa
rl. ;-"*i"g l"t"g.tl.r of all busines informadon systems-fron TPSs to MlSs c
DSSs<an help organizations monito. thir conpetitive environdenr and male beft-'
informed decisions.organizations cm also rlsespecial;ed busines infornalion svstcr
discused in the n*t chaprer, to achieve their goals
 nr.rnt.r ; . n.. : ri trtp.fr ar.rar:

MAR,Y

sipl Principle
andproblem-sotving
lecision-making skittsare Themanagement informationsystem(MlSlmuEtpro-
.ey to devetopingftective information and deci- vide the right informationto the right personin the
i!pport system5. righl fashionat the right time.

: i: i z aton need se ffe c vt ed e cs ro nma k i i ga n dp fob A management

nto:mation
systens an integfaled.oltec
. o t o. eac h t 5 o b l e c ti v easn dg o a L sP. ro b te ms o { vn9 tron ot people pro.edu.es d.t.b.ses, ..d de! ce. thnt pro
: h de. s on m a k rn q .Aw e tt-k n o wmo n d e td e v e l oped v d e s m a n a q e i s a i d i e c s o n m a l i e r s r l h i f l o r m a l o . l o h e tp
- : i_l S m on dlv d e sth e d e . s i o n m a k ,i g p h a s eoJthe ach eveorg..z:to..tgoats A n M S c a . h e l p a i o r q . . z . to .
: rDtvn g pro ce s s nt o t h. ee s t 3ges : nlet lge n c e , a c h e v e l l s q o - l s b y p . 3 ! d i n ! m a n a q e r s w t h i n s q h t fto th e
' _v _
r: : : o. op po .t!nl nes a. e dent f ed and def lned I n r o . controt o.!an ze and pLanmore ej fecti vetyand efl . ent t y.
r g ath efe dth at f et at es t o t he c a! 5e and s c ope o t t h e The prmary {j l ferencebeMeeni h. repo.tsgene.: t dby
, : : _ lon st.a n ts on t he pos s ibt es ot lt lon and t he p r o b - .1" o
" d o.q6
d...do
' av . La v5.e po.
. o- , r ' o . .r. g o ..d . - rh a d . g a q o . .r s!pport manaqerat dec5 on maki i ! at the hl ghefLevet ofs
. : : r r t ons t o t he p ro b l e n a
-rfe d e v e to p eadn d e x p Lofed.
r : r ihe f easblt i tya n d i m p tc a i ;o n so f th e s ea tl e rna D atathale.ters theN lS ci q natesf.cm both nternaland
exte.nalsol rces.The most s gn f cant ,nternaisoLr . . esof
datal or the M S afe theofqai zaton s varoLrsIP S s nd ERP
. : nat lat et he m p te m e n taotn o f th es o tu to n to d ete.- oar * 1- .) o p- ovoe
mportantl nputd.ta for the Ml S .E xi ernatsau..es
ol d at aior
.: : - e pr oc es sin I q h to f n e l r n fo fma to n te a fn e dd ! r ng rheMl s nctudeextfanets, c!stome.ssLrpoL ers,cornget iior s
-: : " ler r ar an s r a g e .
!r- 9 V l"
"
i. t he nt et t r g e n cdee, s i g na, n dc h o l c es te p so l d ec di sl . bui edl o ma.ag.s.Theserepo.tsi nctLrde sch edLr t ed
: . ns p. obt emso tvn g a ts o n c L L rd emp s l e m e n tatl on feports ke! nd cato. .eports dem:nd roorts,ercepton
: _1or ng. nr pt e m e n ta t' opnta c e sth e s o tL rt o n nto ,epo sddd do " po S Fed,6d.por' < .%po
.'rsf adec s ionhas b e e n m p te m e n te dl t s mo n tofed d!.ed per od c:tty o. on a sched!tesl ch rs da ty w e ekt yor
r,onl hty.A key nd,cat.rreport s a specattypeol sch edLr led
..: ; onsc an be pr o l l fa mme d o f n o n p fo g ra mmed P fo .eport D emandreportea.e devetoped to pro! de cef t an
. dpo-.p..
dec - o, s " e c d e -,n 9 " -e .p ' o .e d -re o " io " o. t a6
: : v e m et hod. 0 fd e n
r q m o fe fv e n i o .y w h e nth e tevel aLrtomat catty pfod!i ed w hei a s;tLrati on l s un!s Lr atof
'0..'of- d p ,o q o .d req!i res n' rai agen' rntact on D ' tt dow i .epo.ts p. ovde
: A nonp. ogr a m m edde .rs l o nd e a tsw i th u n !s ! E i or
: , ' aL s t uatons . D e te .mn n g th e b e s t tra i nn g pro M:nagement nfo_mai i onsystemshal e a n!mbe. of
,- : - a newem pr o y esea n e x a mp Loer a n 0 n p .o q rcmmeo common characte.stcs nctudng pi od!.ng sched! t ed
de eoo .6po .ood g e
" d." " .ddi tdo^
:: ; ons c an us e o p t m z a to r, s a t s l c rn g o f h e l fst c portsw th nxedend standardformai s;p.oducLng ha. d copy
::: ies . O pt n z ato n fn d s th e b e s ts o tu to n O p trmza- and soft-copy.eFo.ts !si ng ntern:t d.ta stored n o r gan
L Lo a r o b o .o
.". o,o uLa. o :^ 1 ng zati onatcomputer zeddatabE sesr and havi ng.epoftsdevel
: I r ' en p. oduc o
t n a n d ma te ri a tc o n s tr:l n ts w h en a opedand!mptemented by l 5 persorneto. end !sers.
.- s t oo c or pt e x fo r o p t m z a to n s a ts fi cn g i s o ften Mosi M S s rre o.grn zcd.tong the ILrnclonattnes of an
:r i s f icng i nds a g o o d b L rtn o t n e c e s s a rty th ebest, ofganzal l on.Typcal f!i ct onzt m.negement nfo . m alloi
. Ldo i .- o o .o o lr systemsncl !def .anc a1 manufactur ng marketi i g.hum an
: c et ne o. p. oce d u .e!s e d to f n d a g o o dd e cs o n s , qr am s F :.f
vq "-
 Ers ress fldrn,3t or iy5tems

. . 4pas ed o f n p !ts , p fo c e s sn q s L rb s y sfems, an0 0!Ip!1E . D S S S pfovdes!ppoassi stanceth r oLr ghat t phases:
T he pf ir na t,s o !.c e s o f i n p l t 1 0 tu i c t o n a tMl S si n. Lr.l ethe p.cbtemsol vn9 process. D fferentdeci son f . equnce: :
c of pc r at e s ra te q c p ta n ,
d a t. k o m th e E R P system andTP S , feq!i re D S Ss!ppo.t.A n ad hocD S Saddf esses ! n qLr e -
n{ or m ati c n f.o ms !p p L y c h a n a n d b !s n e s stransactons rnd quei t decrsron si t!at o.s; an i nsttut ona l DSShandt e: :-
ex t ef nat 5 0 !fc e s n c L u dn q th e n te rn e ta n d extfanetE The t ne dec5rons H qhty5tr!ct!red pfobte m s,sem st f ! :
o .b l - o i l v 5 .o d *'a p.obtems, andunstruct!fedpfobtemsca nlr es! ppor r . r :
? . , a. P . " Forl
t hatas s5t i n ma n a g e a f t d e c: o n ma k i n ! D S S .A D S Scan atso s!ppoft d f{eren tm anager at :
a ,o a a" oq- " ro . a o ro oo.dd Lnct!di ngstrategi c.tacti caL, and opera t onaLm . naq: _:
I lf ar c al n l o fm s tl o nto a l L l i a n c a tma n a ge.s w i h n an o.qa' commondatabase l s oftenthe ti nkthat t es t oget her . : l
n z at on, . c to d L n qth e c h e r l n a n c ra to ff c er l C F0l .S Lrbsvs_ panys TP S M 5. and D S S .
t em : ar e p rc ft/to s sa n dr:o l t s y s te msa, !di i i ng,.nd Lce :nd Thecomponents of a D S Sa.e the da t abase. m ode : :
m anagem e notr t!n d s . daLog!emanage.andal i nktoexte.nat dat ab. sas, t t :
a a "o' net the corpo.atei ntfanel ,ext.snetsnet wof ks,an. :
.lFD
-..!v 5 d 6 systemsThe databasecan !se datawa. eholses: _: :
pe. r d - D.o dF
s uppt yc h. n a n db !s n e s sl r.n s a .ti o n sT h esystemsi nvoLved ma.ts A data dr venD S Spnmaf l y perl or m sq! at r i; t \ . : '
' . ppo b o u ys5basedonthecompany' sdatabas Daia
es d. ! Fnt : : .
. nd r ns pe c t,nogf ra w ma te ra ta n ds u p p L i esnvenl oryt..ck_ ri o vasl sto.es oi nl orrnatoi contaned n t he . c_: :
r g of . J W m a \e n a tsu /c fk l n p .o c s sa, n d fi ni shedgoods; dai abaseretri evng nl ormatl onon i nl ent or y.sat es.. : .
' 6,poou!ro,1 o,r
" - o
o' - r d ag6 6n o dqdr o 0a 4- o!
"dp"
-b o
t r nes q! i p me n t :n d m a c l rn e .y n s p ectronand ma ni e mnnq s oftenusedi n a data_d.venDSS ] he n o. : :
nanc e.ai d o .d e r p .o c e s s ,fqT h e s u b s y stems i nvotveda.e contal nsthe modetsused by the decs on m ake. : : '
desqn an d e n q n e e ri n 9 i
. ra s te r p .c d !d r0n ng
schedLrl an0 fnancat. sLatr5ti cat. qraphrcat,and p . olectm ane: :
nr ent o. yc o n tfo t.p fo .e s s c o .tro t a fd q i r:tty coi t.ot and modetsA modeLd.ven D S Spf ma.l l yper lof m sm ; 1_:
cal o. q!3nt tatl veanatyss i vl odetn-r anagem ent !:
_:
A m ! .k e ti n q M L 5s u p p o rtsi .a a g e fa t actvri es n Ine l l vl MS l i soften!sedtocoordri atethe! seoim odeLs
a.6. o p o o !. d 6 .o ,o -e o b ,o .o . ode oa Thedl :LogLre manage.prol l des a d atoguem anaqem . _
pr om ot lo n ael ffe c tv e n e s sa, n d s a te sfo r e.astng S Lrbs\/s- Itytc assi st I communcat ons betw eent he syst emr _:
lem s n. t u d em.fk e t n q f.s e a r.h ,p i o d L rct devetopmenl pro_
, user A .cesEto othe.comp!tef l rasedsyst er nspFr -
-::
m ot loi an da d v e rts i n g a n d p .o d !.1 p f c nq. D S Sto t e i ntootherpow erf!l systemsnct ud, nqt h:
A hLr m a fne s o L rrcl 'e4S s c o n c e rn ew d i thactvl ti esretated Iuncton specti c sLrbsystems
t o em pt o y e eosl L h eo .g a n rz a t o n S u b s y s te' ns n.tudehum.n
r es o! r . e p ta n nn g ,p e rs o n fl este l e .to n a n d .e.r! nng.Irarn-
j ob
Priuciple
ng and s k L L s n v e n to ri e se , c h e d !tn g a i d pl acement.
waqeands a ta ry a d m n s tfa t o n . a n d o i rtp l a.emenl supportsystems,auchas group5
speciatized
A na. co u n tn g M S p e .fo rn i sa n ! m b e fot l mpo.tantactv' systemslGsssl and executivesupport
, o vd n g a g g re g a ten r0 fm a t.n o n accounl spayaote
Lies pf of a DSSin sit
lESSsl,usetheoverattapproach
rb e P" o l ." d " .0 " e suchas group andexecutivedecisionmeking.
-oo' ao
T he or ga nz a ti o ns ER Ps y s t mo r T P Sc a pl ufesaccoui tl ng
A g.o!p sl ppo.t systeml GS S l atso
, ca t t ed: . om r :
daia,wh c h i s .l s o L rs e d b ym o s to th e .l !n cl i on.ti nfo.maton
s y s lem s Ge o g ra pch to .m:tl o ns y s te m sprovl dereg onat
n callabotattvework systen consists most 011heE :
of
dat ain g. ap h c a ti o rm . s softw s.eto provde efl ectve suppo. t :
l n a D S S pLl
decsan maki i gsettfqs.GS S saretypcaLt yasyt ol: :
!se and can ol fe. speci fc of qenefatdeclEionm a( - :
Prturciple po.t. GSS soltware, at5o calted groL'prc.e is .:::
Decision areusedwhenthe
supportsystemslDSS5I desgndto hetpgeneratetsts o1decison alt er n. l . : :
probtem5 ate unstructured. perl ormdata anatysi s. Thesep.ckageslet peopLe : '
l oi ntdocuments andfi Lesovefa netw o r k
A decs an s !p p o rts y s te mID SS Is a n o .q .n zedcottector 0r Theffeq!encyol GS Suseai d the l o . at on ol t he r : :
peoplep fc .e d !.-.s ,s o ftw a red, a l a b a s e s, and devcesw o m.kers w tt nfL!encethe GS Sattefna live chosenT_:
ng t o s u p p o .tma n a g e af t d e c l s i o nm a k rnqD S Scha..ctef s on roomatte.nst!e s!ppodsuse.s a nqLe
Ln sr t..:: :'
r . t c s inc tu d eth e .b l ty to h a n d tel a fg e amoLrnts or data meet nl requenttyLocala.ea netw od( ecan be ! s. :
oo- o- pro 6 oL- 6 oo do groLrp membersa.e Locatedn thessme geogf apr rr..-:l
f epor tan d p fe 5 e n ta ti olnte x l b L ttys;!p p a rtdr' tt dow nanal v !sers meet.eg!Lari y.l el oconJerencng s used whe. :: :
s s pe. f o rmc o mp te xs ta ts tl .a l a n a ty ss; ofl er tei t!at and f.eq!encys towandthc l oc.t on ol gro!p r nem bef E
s : :
sal sf. ng and
g. ! ph c a t o . e n ta to n s ;s !p p o .t o p ti mi 2 a tron, A w de afea netw o.k 5 usedw henLhedecis on 1. e. :
he! . ls lica p p .o a .h e sa; n d p e rfo rmw h a t_11 s muta| onsand hi ghandthe tocaton ol gro!p membe r ss dlst ant
! oal- s ee kn g a n a ty s rE
 o r.o " ooq I cup." to

lr.cut ve supportsystems{ESSslare speciatired

de.r- 1naddi l l on the E S Spedorms sophi stcatedd8l a a nat ysig,
;!pportsystems designedto meettheneedsof senor offers. hl qhdeg.eeof speci atzaton nd p.ovi desftexibit it y
:9ement.Theyse.ve to indjcateissuesol importanceto and comprchensivecommuncat ons abiLitiesAn ESSatso
:'Janz at lon,ndic a ten e w d i re .tl o n sth e c o mp .nyni ay supportsi ndi vi duatdecl si on-maki .qstyl es.S ome oJ t he
s n i to .th e c o mp a n y sp ro gfess.
.3nd het pex ec uti v emo ma or dec. o- md. no areo. ' .l .d be < ,ppo1" o lh ouq
; 3re typicaltyeasyto use ofler awide rangeol computer :n FSSa.e providingan overaltvison strsteqicptanningand
" e .. dr o h"-dte d v ar e y o n. e n"t dno "\ t e| a. d d . a . organ z n9. strategiccontrol,and crisis manageftent.

PTER 1o: SELF-ASSESSMENT TEST

dision-hakins and problen<lving skills are rhe Ley 9. Arother name lor rhe MIS is rhe personnelMIS
i-eloping effectiv information md decision suppoit becaueir is concernedwirh activitiestelatedro employees
and potentialcnployeesof rhe oganization.
lhc firet stageof rhc dccision making processis: Dekior suppoft slrrems (DSss) de usd when the poblems
a. iniriarionsragc
b. intelligere stage 10. The focusofa decisionsupportsvsremn on decision-nak-
ins cffccrilenesswhrn faced wirh unstructured or
scrnisfftrctured bus;ness
prcblems.'tNe or Salsc?
I l The processof dereminins rhe problcn dararequnedfor
I'obleh solvingis one of rhe stagesof dccisionmakng.
a give! resrlt is dlled malris.
12. Vhatconponent ofadecisn,nsupportsprenrallormdeci-
. h fin.l stageofproblem solvinsis
sioo maken ro ersily rccessdd nanipuhte rhe DSSand
\ d. , inn iav rn ,o r).h o u l db e o rd e re ds h e n i nvcn
' h, r to useconmon buinesstermsand phrases?
lry levelsdtop to 500 units is an exanplc of
a. rhe knowledgebue
i. qvnchronousdecision
b. rhe modelbase
b. cynchrorousdecision
c. dre dirloguenanager
c. nonprogranneddecision
o. oc dpefl sysrenr
d. progrmned dccision
Specialired support systems, such a group support systems
,ltn) nodel will find the bestsolution,usuallythe
(GSSS)dd executiw ,uppon rystens {ESSs),u* the ovetall
rne rharwill besrhelp rhe orsaniadon neer iis soaLs.
approach of a DSS in situtions such as gtoup ard *ecutive
.\ sadsficing nodcl k onc rhar will 6nd a good prootem
iolution. btrt noi necessrilythe best problem mlutior.
13. h a CSS,rvhatapprordror tcchniqucuscsvoting to nake
rhc fin.l decisionin a groupsettingi
T'i< mdagement inforhation srsten (MIS) nut ptovide
o. righr information to tlle tight pereon in the iight f*hion a. group consens$
b. groupthink
- c. nominal group rechnique
V'1ut sumnariresthe previousday'scrirlcalactivitie and
d. delphi
is typically availableat thc beginning of eachworkdryi
14. A rype of softwarerhar helps with joint work sroup
a. key-;nd;catotrepon
schedulins,conmunication, md nanagement is elled
b. de-a"d repon
c. qcePtion rPon
I 5. The localareadecisionnerworkisrhe idealGSSahernative
d. &taba* repon
for situationsin which decnionmaketsate locaredin the
r oftunds is a suhsystenof
The usesand management samebuildingor geog'aphicareaand the decisionnaken
a. the markeiingMIS areoccasional user of the GSSapproach.True o. Falsel
b. the financial MIS 16. A(n) supporisthe actionsofmenben ofthe board
the ndufacturing MIS ofdnecton, who arc responsible to stockholden.
c.
d- the auditing MIS
 P ut r I n, mil

Rs
Ci,rt'tt n to,sl.t.t a.srLSSVlNlrf,Sl ANslvl
( l ,)r. \l J . ' l a' gr' i ,P $" r( $' rk8' ul ' ol sJr r ''
, l, L' ( / r J . c L J rro n i ri rg r:d ' ro fi mi ' rr' " rt6' l tr'
1 " Ir' rc l l ' 8 r' l ' e(!rnB (l rr) qtrui ,\c InformJri " nry{ cn i E l s)
. - r ' ' r ' ' " ' h J m rl r' o u ' ,.

KEY TERMS
JLexibtemanuiacturrng system
acco!ntrngMIS479 modetmanagement software
ad hocDSS483 IFMS)471
geographic informationsYstem lr,1N4Sl486
aud(ing466 (G1sl480 stage456
monitofing
brainstorminq488 n.m nata.ouptechnrque 4bb
goaL-seekrng anatysis481
choicestage456 approacn ^^
4uu nonoroq;mmed 457
declsions
compLrte-as5istedmanutactLrnng oroup.onsensus modet457
optimiz-arion
(caMl470 ;foup supporisysiemIGSSl487 problemsolving456
manutactunng heufistics 458
computer-integraied 483
hi0hLv structured ProbLems 456
lClMl471 MIS 476 decisions
proqrammed
hr-manresource
imptementation stag456
DSS483
lnsiit!tionai rorderpointIR0P]470
Phase455
decision-making stage455 revenue center466
deLphiaPProach488 inteLLigence 458
auditing466 modeL
satlsficing
internat
demandreport462 inveniory scheduied rePort461
iusrln-tlme UlTl or unstr!ctufe:
designstaqe456 .^, 470 semistruct!rd
manager ada apProach
diatoque probLms483
driLtdownfePort462 hey ndicatorrePo.t46| 48'l
manulacturinq resourceP|annrng slmulatlon
economic orderquanttY{E001470 Ptannng494
strateqic
exceptionrePort462 lMRPlll4T0 491
marketing MIS472 vlrt!aaworkqrouPs
executlvesupportsvstem{ESSl49l what-ifanatysls481
466
aLrditinq
exlernat materiatrequifementsPtannlng
MIS465
financial lMRPl470

REVIEW SUESTIONS
aE
a siiuat;on $hen tr 12. Descibe the ditrerence berween a structuJed
1. lvhat n a satisttcing nodel? Describe Li"**.a p."lt.. give an *alnple of ech
shouid be u.sed -d lThat are its chdac!
moder' 11. Deine dzrition *pponryjtfl
2. G ne a n c x mp l e o f r o p ti m i z i (i o n ia. o...iS.,r'" ain**" berweena daa-drivenanda
i r*'r',.,* rl"a'oi'epon'produad b; rnMIs?
'1"1,'1. be rollowedin developingrePor6 drivenDSs.
a. Wl{ guidelin6 dd
'hould 15. vhat is the differencebetweenwhat-ifdalvsis
for manasementrn[ormrion ry*emst
bvr finmc;l MI5)
i. ri4", ,."ir." r"*,1.^ perrnrmed de'nion'dPPor' 'vr'd
MIs 16.Wr'" ir. *...*p-*" "fr
r,. De. nbe rhe luncriont ol " mrnuLcturints decision support svsta
N4ls? whauren' ourPur'? 1 7 .Describe four nodels ued in
l G,' r,".- (CSs r
", "*'rr.e 18.irate the objectiveofa group suppon rysrm
8 List Dd dscribe sone orher rypesoFMISs' that disdnguishii froma
solving? ia"*iq'
9. Vhar *e rhe sr:ge'ofProblem 'r'*" "r'"*ct-i,ii*
19.ldnri6'hrcegroupdecrsion-maling rpptoa're'
mJ insandProb'
ib. v+'", l,r'. alrr";."* ue*eendeci'ion suppored
"vil, bYa CSS.
,o rhrft;
J," *"-,1'. 'upPo.')!em?Iden{iry
I 1. \I4rat is a geognphic inforrnation sitten? danenlal usesfor such a rystem'
 InrormaoqandDe.sonsupporigy5remsI cbaptdr 10

ISCUSSION SUESTIONS

ielecr an irnponant problen you had to solv during rh. 10. You haveben hned to dwelop a DSSfor a a compmy
*r rwo years.Describehow ,ou usedth dediion'naking suchs Ford or cM. Describehow you would useboth
lnd problemrolving srepsdiscused in rhis chapterto solve data-drivenandmodel-drivenDSSs.
I L lmadneJ'a( youa,r rheCFO lor a reni(e organialion.
g'har is rhe relationship berweenan organization's enter- Youareconcerned with tlle integrityof thenrn's ffnancial
a.iseresourceplandng and uaisaction processings''stens data.Vhat stepsnight you taketo ascenainrheer.tentof
{d irs managementinfornation systems?\X/hat is the p.i-
:rary role ofmanagernent infornation trtems) I2. whr( tunflion"do drcnion(uppofl.)sremseppofl in
How atr nuagmenr infortnation slstems be ued to buinessorganiadons?How doesa DSSdiffer fiom aTPS
4pon the objectivesofthe buinas organization? andan MIS?
Dercribe a findcial MIS for a Fdr, 1000 mmufacturcr 13. How is decisionmakingin a goup envnonmentdillerenr
a food products. \?hat arethe primary inptrts dd outpuis? fron individud decisionnaking, md why ae information
ull,t de the subsystms? sysremsdnr asist in the grcup enviroment different?
How can e sfong findcial MIS provide srrategicbenefis \(ihar ae theadmragesanddisadvotagcsof makingdeci-

Wry ir audiLlngso imponanr in a finucial VIS? Gi'e u 14. You havebeenhird to d*elop group suppon softwae.
=ample ofan audit that failed to disclosethe true natue Deroibe the featuresyouwould includein your nq cSS
orrle Gnucial posnion ofa 6rm. V}rat nx the result?
s'hat is rhe differene in rcle played by m inrcrnal audit- shouldnot be limited to the qe@tiresof
I 5. The lrle of ESSS
:g sroup and aa q.etnal audidng gtoup? the company.Do you agreeo( disagrce? Wly?
\ou havrbeenhi,ed(odwelopa management iniorrnarion 16. Insgine that you arethe vice presidentof rnanufacturing
,'.rem mda dei'ion supponsprem for a muufacruring fot Fott ft IO0Om nnhcturingcompany.Describetle
ompanl Describe whar information 1ou would hclude
^ ud opabilitia ofyour idealESS.
features
a printed repors and what information you would provide
iing a screen-bded decision suppon system.
Pick a company and rscdch is huma resoue manage-
ant info.mation systm.Descibe how its qrtem works.
T'hat inprovenenrs could be mde to irs humu resource
\{I S ?

OBLEM-SOLVING EXEIICISES

lou have been uked to relect GSS softwe to help your Openting Rsulr,(in niltion$
anpany make better decisiom ro marker r nw product. 62,921,177
Jsing the lnrernet, fiad and investigarerhree gpes ofsoft- OperatingExpeisesI ictudinglaxesl 2,483,647
ae that your onpmy could ua for ollaborative deci- 110,/+90
naking. Ue your word processorto docribe what you 0ther Incomeand Expenses 13,197
'ion md the advantagesand disadvantagesof eachGSS
nund IncomebeforeInterestand other Charges 153,947
Interestandol herC hrges 262,81'5
191,142
l$ iew rhe rumm'riad consolidrtcd.taremenrofincome
AverageCornmonShares0utslanding 147,426
or rhe nmufacruring compmy whose data is shown here. 1.30
Lse graphic.ssoftware to prepare a set of bar chans that
rhowsthe data for tHs yearconpared *ith the &ra for last Ifyou were a finocial analyst tn&ing this company, what
detailed data might yor need to perform a mor conplete
anafsis?Write a briefnemo summarizing you daia needs.
r This yar opendng reyenuesincreasedby 3.5 percent,
while openting expensesinoeasd 2.5 perent. J. tu rhe headbuler lor r mrlor opemaker , hrh. you are
:. Orher incone and expenses decre3.edro $13,000. comtdtly being arked by manufacturers and disribuiors
.. lnteresrand otherchargesincreuedto $265,000. to sdk theh new products. Over 50 new uns are
 Pa"rs J s*.65 r"r"..' m syn"-,

intoduced each wcck. Mmy tines rhese ptuducrs {e invcntory.Your analysis shouldindude inpurs!c!
launchedwirh nadonaiadvenisingcmpaigns and special maredweeklysalesin unirs,shelfspaceatlocatcd::
promotionalallowaicesro retailes.To add nspirlducrs, an i tenrl me+ urcdi n unrr.r.r" r,t.o; ps unir .ai
rhe mounr of sheifspaccallocaredro disdns produc6 pricepcr unit. \ our m:lris rho d caj<ut:rerorr
must be reducedor items nust be eliminated altogether. profir by jtem and rhen sorr the rows in descendin:
Develop a marlcring MIS rhar you co ue to estinare the b6ed on t{nal annlal prctr.
chxnge in piofi$ from adding or deleting u irem fron

TEAM ACTIVITIES

l
Have you team membcrsselec rwo indur$js. Using ody haw lour rcao decibe how to prevenrrhir
.nelnremcr,hryercurean wo* rogoherromJrrasruup bcfiavior lTlat GSSsoftng* ti"*.* *"Ua"y-
deis'on ro dsdop r I'$ ofrh l0 berr(ompsie) in erch to prclienr.heag.tivegroupbeiavioryo.rrrfd ot
idurry. you. reh may be *iced ro prepm a reporton 3. Irnagincrhat you.nd /our r.arn h.ve dccid.d to
)urd(irion end ho" dirIKUi k w$ ro 6e onjy,he lnKr.
ne( rcr cofirmumauon,
2. Havelourr.s mrke, groupdecisionabourhowrcrcrw
the mosr frustracing aspecr of college or univesiE life.
Appoinr oni or rwo m.mbe6 of the telm to disrupr rne
neeting with negarivegoup behavion Ai.f th. nr{ug, be usfulto itr useJs.

WEB EXERCISES

1 Mosr conpaniesq.pielly hav a Dumbd of funct;onal ). Usethe lrrerner ro dplo.e rwo or hore soft.rre:
MISS, such es linance. F d the sirc of rwo tirarc com_ dEi canbeued ro nake groupdecisions ecier.
panies,suchasa bank o. a brokerascconpany. Cohpare your findingsin a repon.
thesesites.V/hi.h one do vou preftr? How coulo mesesrtes 3. Soliwue, such s rhe Exel sprcadrheet,is ofri
be improved? (Hinr; Ifyou a.e havn t.ouble, try yahoot find an optimal solutionro muimize prolia or
I t . \ ould h Ie r' i .ri n g l o r 8 u ' i re $ J n d L .orumi on i b osts. SearchrheInterneruing Yahoo!,Coogle,o:
hone pa$. Frotu rhere)du can go to Companiesand rhen sarch engine ro find o$er soliware pacLag$ -r:
Finance.There will be severalnenu choicesfrom tnere.T optiniarion fiarures.Wrirea repondestibingox
You nay be askedto developa repor or sendan e-nail of the optinization soliwae packages.Vhat m s
ncssage!o your instuctor abourwhat you found. rhe fcaiures of rhe package?

CAREER EXERCISES

l. Whar dcisions .re critiql for $r..e$ i! a creer rhar;nte. 2. H ou nhfn do you rhi nk)ou w i be i nr ohcd{ -
ests 1ou? \XGar specific q,pes of reports coutd help you decisionnaking for your.areerofchoice?How cc
hake beitr dedsions on lhe job? cive rhree specific ware be used to help you ream ntke betrer
rVlar specific groupwarewould you like ro !k on
 d " I chsp@r ro

DEO QUESTIONS

r: - :r tbe videodip Arnls Vnual World ard nrwer these de.isbns in rhe field. Dcscribcrhe new systehpresenred
in this video ard horv it is being usedto rain soldiersro
quickly n*c corect decisions.
\e "wr on ieror" hes ushdd u\ inro a Ds lonr of
How mighr this nethod ofusing vinual simula-
-ie rvhereindividurl yndiers rarherrhan generalsand
rionsro rraindecisionhakersbe appliedto more
: roon lcadenarcoftenresponsiblef<xmakingimportanr
q";cal busin.$ ielaredde.isionsupportsysrems.

SE STUDIES

A ppti cati on.SENECA assi stsK rafti i gel ti ngmore ou t of it s

sensorydai athan evefbi o.e.
ry SystemsProvideBettet-TastingProduats ' S E N E C Ahas a dal abaseof nl ormati onthar rn cr uoes
Xraft
everyi hng you mi ght be i ntefestedi n, n terms ol sensor y
: . ou ev erwonde.e dw h a t m a k e s0 fe o c o o k i e ss o deLL tests, says Beth Knapp tead systems devetoperat K.aft
D ata si ofed i n S E N E C As col teci edth.oughany of t hr e
-:'T he c r unc hof t h e c o o k i eb a L a n c ep5e .l e c tl yw rlhi he
:.m is of i ic ng.T h e b i i te rs w e edt a .k c h o c o l a te
fta v orl s d ve.se testingmethodsempioyedby Kralt:
:-: by the sweet creamy center in pedect harmony For . D i sc.m nati ontesl i ngcompares tw o or morepro duct s.
-.: ,!ho enjoyext.emes.the cook e can be iwisted apari . D escrptvetesti ngemptoysp.ofessi onal senso r ypan-
:r lg t he Lcng t o be s c .a p e d o rfa ncdo n s !m e db y ts e tffor etrststo evol uate
al t aspectsof a productfrom tex t ur et o
:. ::ry rush fotto',ledby a mitd cook e chaser.For some,
1 :: m aybet he per ie c tfo o dp ro d !c t. . C ons!mftesti ngmeasufesthe personatrespon ses
and
.r"c s responsibteJorthisheaventycontectlon?
Hows t opi ni onsof the generatpubtc
. :"efy0reoyoueatis asequattydticious
asthelastone K rafts S E N E C A appti cati on
l akesthe cottected da t af r om
: oneyou ate severatyearsaqo?As you miqht have al Lofthese tesi sandmakesi t avabbLel oranatysiand s r e! se
. . d. i o - dr ' 0" d d d e .i 5 o n s -p p o rl < ).," m s p ' ay.
.oLe The systembui tdsmodets,h stori s..nd t.endsba sedon
:-E r nt he pr od!c ti o no f th s p e d e c ic o o ke , a s w e tLas
consumefi esi i ngand thenevatustes p.oductchange sbased
: :.e other Kraft producisthat you enloy.
on d scri mi n.ti onanddescrpt vetsti ngR epo.tsaregef er -
. -: f t pr oduc eshun d re d so f p o p !ti r fo o dp ro d u c ts, s!ch
al edto;nformK .aftsenor managers of products thata r ewet t
:-:.s J et l 0, P os t b re a k fa s tc e re .ts R i,tz c ra c k e .sT.omb
recei vedor pe.hapsl atLngol i of favor.The systemat so
h . . . . . a- d C. er P o -p o F - l a d . .o d -F J . . d raw
attow sthemto d. tLdow ni ntothe i nformatan to di sc over t he
. !. od! c t s c ov erlh e I!tt ra n g eo f fl a v o .s te x i u .e s,and q!at i l esoftheprod!ctthatmaybe
_ r ex per ienc es responsi bl Be ase dont hr s
K r. o l lb ra n d sh o tdth e to pp o s i ti o nrn2l of
i nfo.matl on, K ral t i s abteto caprtatrze on the qua| tiest hat
: t oplood c at ego ri eisn th e U n te d St.te sa n d 2 Tol the peopLfind most Javo.abte
,: . oLr nt r cy at ego ri e sn te rn a i i o n a l ty . SENECAisa powerlLr Ltoot that provdes Kraftwlth lns ght
, -rf l des igns: nd t e s tsi i s fo o ds e n s .ti o n sn a ta rgetab
ntoLtsp.oducttnedevel opment. K rafti rtsoemptoys second
a
:. r nG t envew, llln o i sT h ep ro d !c id e v e l o p e rs a n dsen i nformai i onsysteml o gu de ts m.nLrfaci !ri ng proce ss. The
':.hnoLogis t s t ha i w o rk i h ehre a v ei o o dd e v e to p menl and processvariaton reduciionIPVRIsystenrensuresconsistent
:: -:1 on downt o a s ci e n c eT. oe n s u rec o fs i s te nfL t a v orand ftavo.andappeafafcefor everyK raftprodocl -toma kesur e
::ra nc e, K r af tt es t s ts fo o d sth .o u g h o u th t e ma fui ac
that everyR i tzcfackefi astesas goodas the tast. V ar iat lon
.: pr oc es sand as s i g n sn !me ri c a tm e a s L r.e m nts that
ff, qer r reducl l onal so createsh gher averagequaLi ty,' sayKnapp, s
' o o . " ' o ^ " . r' d o a b . e s o t erch w h L T" " -,happor.u.oma..,ardmo." cppd .o ip
:: -d Conc eptihat s mo s ip e o p tee x p re s sw rh w o rd ssuch
Krafl s PVRappticationboosts producton attowingthe
s :i et r l. " s weet . " c ru n c h y ,a n d " c fe a m y a re a s s gned
companyto pfoducemo.e satabtecooki es cracke r s and
:: :e def init iorand s n !rm e fi c a ts c a l e toss ta n d a rd l zperod-
ol her food i tems per hour The P V Rappti catonev at uat es
- e . haf ac t ef is t i.s everymanutactur ng procedu.e, f.om rec;pei nst.uct Lons to
o f a n 0 fe o c o o k i ea, n d a tto th e rKral t
cookredo!gh shapesandsi zes.R epodsdentfy stepsin t he
:: -.1 5 a. e s t or edas a s e r e s o f n !rmb e rs a n da ttri b u tesi n prodLrct on pfccessthat createexcessvarLstron and het ps
i : he s en. o l
"nd
t,p a , ^ " l d ro i ' F.l i o-
execulvesl mproveprocesses torthosea.eas
^.
 gurness nrormaton 5y5tem5

W hats m o .e th e PV Rs y s te mh a sb e e n d eptayed overtl re 2 Oncea w i nni ngprodl ct has been de sgned wh

.t - n g -n . ." n l o mass pfoducel heprod!ctconElst ent r \ .
i mportant
" l .e
adv ait ageoifl Ac c o tu l n g to Kn a p p .th e P VR processw tthetp
.e . a n d e o e c o ,5
r ed! c t ionha sth e p o te n i i ato
l g e n e ra tes i g ni fcani cosi sav Criticat
Thinking 0uestions
ings f or eac hfa c l ty i m p l e me n l i n gth e s ep r ocedures she ) d r ede/erop-e r" d^" n.I" ,r.r q"e od.
at K .aftbe appti edto someathefl ndi r slrat pr odL: 'l
Ut t im at e tyth. e S EN EC A a a d P VRa p p ti catons w tLhetp
eq!al success? P .ovde an exampLe and f ar ionaLe
p ro d !c tsf o r Kraft customers.
ens ! r ec ois l s te n th i g h -q u s ti ty
" T om ak et h o d e a tc o o k l erl h a s to h a v e g o odshetrLfeand 4 C oLrLdsomeprodLrctsbenef tffti ml ncof sislencee- :
ducti on?N amesome A nyfoodl i ems?Why?
an ex c eller'fta rt v o r s a y s K e i thE b e rh a fd ta si al sl i c an al
K r af t . A nd f y o Lkr e e pi i c ta s e rto th e d e a t th enthe prodrct
SoURCE5,SAS Su..ess Sro.es Web ste, a..e55ed Aprit 26 201-
t hat r eac he sc !s to me .Ew tt b e e v e nb e i te r ' sas rcn/surces4kraft htnl Krart web sire, a.ce5sed ApriL 7:

Dis.ussion0uestions
1 W hy s it L rs e fu tfofo r o dma n !fa c tu re rsto fepresenlthe
allr b! t e s o i l o o dp ro d u c i s ta s te c o to r te xture,arorna
us inqan u m e rc s y s te m ?

CaseTwo nc and I D E dw afds& C o Thl scottecton of syst e- :

softw arep.ovi desW e.ne.5 managementteam wlt ht r : '
TheupsandDowns
of theLadderIndustry
mat on t needsto red .ectthe companyth . ought o! : _ :
W ef nef Co, th e w o fl d s ta fg e stat d d e fm a n u f act!re.hashad ods W ernerusedthe systemto mptementcost. ed, :
I t s s har eolL rp s a n d d o w T
n sh e d o w n s o c c ! fredi n l ate2003 to decde w h ch producion ti nesto takeof l- t ne,an: : :
when W ef ne fte a rn e dth a t i ts b i g g e s lc u s tomerthe H ome man!factu.ng and d st. but on .esponsi b t iies am o_:
Depotwas , s r to w e r p r c e d taddfsuppt
t o o kn g o v rs e afo Iti es D urn! i he l l onreD epoiphaseout,
pfoduct ion p. _
er s . Dav idC o n n W e .n e rs d l .e c to ro l c o rporatel ogi sti cs andb!rsnessmanagers
at Werner
werealsoabtet: --
e, oL. r - ed. ra -w .4 a n r a L b d .9 .r- rr " o.e= " aq.o- sysiemto prevent
anyservcedisruplions
to Wer.e-: :
-
p. n es on: f e wo .d e rsth a th a dn o ty e tb e e nf tLedbutdecded
W erners busl nesssal ayand cooLhandt ingo{ t _: -
Havnq t h e fl rg p !tl e d o u t rrc m u n d e ri t, W e.ne.needed D epotphaseoutmp.essedol herci n the i nd ust r yan: : :
t o r eac tq! rc k l yto ra mpd o w np ro d u col n .T h anksto i ts pro a- mpold era
S 'o . t / " r e l r e l o me D e l :
duc t ionpt an n i n ga n d re p o rln q s y s l e m,W e fnefw aEabteto '
out,W ernerskucka stfategc al Lancew th Lo\ r ye s i- : -
t Lr r na bads tu a to n n to n e wo p p o rtL rn l ti e" W s ethouqhitad- D eD ai sb ooesLcomoerro. Lo^e s feetsrhatit ca : :
der s wer e s :fe fro m tc o m p et o n c o m i n gfroml over the Ifom adve s ng Wernersmaden the USA,h E- :
oc ean s : id B i tt R i p p i n v, c e p re s i d e not f sLrppty chai n .t on "Whethergett
reputat ngastepLrpon.househoL::
W er ner f w e d d n t h a v eth l s s tl ff ti n fo rm.ton systemsli,r of ra s nqthefoofonaj obE i i eLow esi scommt t edr :
wout dhav eb e e na mo red ff c u l t ti n re . r!e l _g\e,r q-at / p od-c.sfo o-' crsro-e s si
Reac ng t to u n e x p e c te dta rq es w i n g s n demand s no R andol ph,Lo' ,,re
svi cepfesdentof merchandlsng . . :
s m : t t t : s k f o r a c o m p a n yw th re v e n !e so f $538mi tl l onper 50yars vedesqnof top quEtityctimbing:':
of nnovat
y e8r .A Lt olth etn k s n th es !p p tyc h an a rea l fected. To cover rLe quat e: _r '
a^d rsco- n r-e-r_osafer/a-ee,acrtr
d D" e- hal . h.c t c .^,a. r. <f.m a.<
"^d "<
nf or m at ion
.n d d e c i s i o n
s !p p o rts y s te rn sWerners
. prodLrc-
t on and d s t rl b u to n p ta n n i n gs y s te m s b .sed on demand
t a n dd s trl b !rtl o np ta n n l n g
f or ec asng a p p ti c atonsdevetoped i ortune." Ths al tancew l t al so enhancet he vaLr . -
b) B - S m r r .^ d A q q o c i a re ns B._ l e . D e n-srl /a E Once W e-e.b arda" d,.s.u^be- oneposri o- . r r p : -
pr oc es s ed,d e n ra n dd a tal s e rtfa c te dffo m t he apptcati ons p oducl s nd-st r. ' e atcos-ppa.I _q l l .e I eb i .
^'
and im por t e di n to M i c ro s o ft
Ac c e s sa n d Ex .e tsp.eadsheei s e" p oresand orr.. l e' ro' < r-..- e, e, p': r . - r
G. H e ner, W erners presi dentand ch ef exec! t 'vE: -
Us ng E x c e t.W e rn e . s a b l e to c fe a tew hat-I scena.os Meanw hi te,theW ernerm:nagementteamis b! sy. : _:
andc al. ut at ep ro d !c to ns c h e d u te T s .h ep .o ducti onpl ansare syst emlo s: : _
ts prod!cton 3nddi strbl ti on pLanni ng
t hen f ed nt o ts ma n u fa c t!.n g e x e c uot n system w h .h best sl pport the new nc.ease n demand.Pe. r : : :
c ! r . ent t y nc tu d e sa ml x o f a p p ti c a ti o ndse v e toped
by Mapcs shoutdi nvestn someaddti onatprod!cti ont ines.
 io aoJoD c o .oD o | chpi or ro
-

tli:irssion Questions 4 H ow m ghi W ernefhandl etsw orkl orceLrnderth edur ess

of a massi vedrop n demand?H owm ght an nto.m at lon
-o w did W e. ne. s p ro d !c ti o na n d d i s trb u tro np L a nnnq
:-'s t emas s r stthe c 0 m p s n y w h epnro d u c n o n e d e dt o be systemassst thecompanyn f ndi ngal tefnatl ves
to t ayr ng

i .rhait y pesof what -i l s c e n :ro sd o y o u th n k We rn e.ran

'r cet er m inehowt o re a c tto th e d ro pi n d e m a n d ? S0URCES: Marc L. Songn . 'Ladder MakerUsesSupptyChainTooGto Ct mb
Olr ol aa\es Hale, ConpoteMrld Apr l5,2AA4 w conputewortd cDnl
Werner Co Web sire a.cessed Aprit 27 2444, M we..e.laddet com,
'Lowe's atrd Wer^ar Ladder Anno!nce SlEtegic aLtiancd. p,9 re6',@
: catThinkin90uestions
De.en6et 24,2443, M.le,is nerts can
d fo p p e db y50
'd e m andf or W er n e ira d d e rs!n e x p e c te d ty
:.rc eni. howwolt d t .ffe c t e a c ho t th e t n k s i n ts vatue
:'a n? lRef er t oF ig !re2 .2 .1

Three S anoma Mag6zi nesB eLgi !m chose B usness0bject s

soi tw areto bu Ld ts sotuton.Tl e sof t '
busi nessi ntetti gence
omaMaqazines FottowsXeyPerformanae
w a.e :ppt catl onsthat are nct!dedi n the sot!ti onar e Lhe
iaatorsto Sucress foi towng:
:i :r.a Nlagaz lnes r a n k s a s th e fo u rth ta fq e s tE !ro pean . s pptcaton Fo!ndati onand B !slness-
B us ness0bl eciA
-:::: ne pubt is her , a p p fo x i ma te2ty3 0ma g a zn e spub-
wlth 0oa.. A rd.j r d n.eg dao a^.o:"edd
'rFof
,!_ :r n t en c ount nes t s th e ma rk e tL e a d eifn c o n sumer tytc appl cal i onsto assessthe marketmore acc u. aiet y
-:::z nes lnF nt and,Be l g i u m,th e C ,e cRhe p u b tcH L rnqary d o qJF" - .ro.(a' o
; -e Nelher landsll s n e i s a te sto ta te d 1 0 2 8 ,4m i tl a n i n
: : :n d t em pLoyab s o u t3 ,9 0 0p e o p teSa . n o mal .4 a gazi nes . D ata ntegfato.to t.ansi e. cor por at e
B usl nessobj ects
!, ::rquar t ef edr nA m s i e .d a m dal a sourcesto dai a ma.ts and ope.steS anoma[ 4aqa
r:.o m a M aqaz ine sBe tg rL rm d i vs o n fo u n d ts e tffacng
-r ro! qh c om pett io n .l t s e t a b o u tI n d n g 3 m o ree ffici eni Togethef atl ow edS anoma[l aqaz]ne5 Bet .
, theseappti catrons
, :_ f o. r epo. t lng8n d a n a l y ss to l e a d1 o fa s te r b etter gi !m to ceni raLze cofporctedataandrun hrghl evet 3nat yt
"oo " rqro -L S. - hF. am p" . . ob' i" , .
c.t f!ncl onsthatmakeuseof key fl d catorsto tetmanager s
pr odu c l o n
-: : s n q an d rea de f s at es , eac h had t E own knowthe stateof the companyat anyg venmomenl
: ands et ofs olt wa re a p p tc a ti o nSi s n c e th e tw o s ystems A tl of the uni ts w thl n the organi zati on are tnd ng t he
' -.d f f om s epar at ed a ta s o !rc e s .m a n a q e m e nlto und t B !s fessobtect5.eporti ngcapabLti es ext.emetyvat ! abLe
_ : i: . f not im pos si b teto, t.a c k a n d !n d e .s i a n d n fo .ma-
Theadve.ti si nq depari mentusesB Lrsi nessobl ect A nsat yncs
, :.t weendepar t me n ts a n d a c ro s s th e e n tre o .g dnzaton. ro or a-c.-d _ goooa-5t-oo" "
'.:s G lber t ,s enio .s y Ete msd e sq n e f a t S a n o m aM aqa -" e '"l. "
L o d ,6 4 .F ro
thendri ttdo!/ni ntoa gtobatti stof K P s fo. mofe nfor m aiion
r'lgu d" b "d i r sa . Wa <
and moredetated feports10 nc.easi ngLy.ei rne tl rer anat y_
.: :5 c om nq andgo n g n s L l dre c ta n s ,a n do u .3 !-p e rson o dd.a
. .
a. !te.
- :': n. d t o handt et h e rna tLT . h s n o t o n l yc re a te db ottLe competti veenvfanmentandc. tl catc!stomeracco!nt sand
' : !! llh T and f r us t.a l i o fo
n f e v e ry o n eb u l t a ts ol ed l o act accordi ngl y.Mafketrngcan anatyzel he pedo.m anceot
:: :i g dls c . epanc e s a nadn o v e fa tll a c k o f c o n i d e n cen the companys nragazLnes. pr ci i q stfategyand ma. ketng
r. :ood ng pr oc es s .A fl i n fo rm a o t n s y s te mth a t p ro vdes .ampai gns. Theycai at5omoni tofatLof thesei nd cato|5ove.
-:::-rat e inlo. m aton i s mo re d a n g e fo u th s a n n o n i o.rna a pefi odol ti m to makecomparsonsfi om oneyeart o t he
' : / s lm al a tt. An d one t hat ei. pLoy ees don i t r u s t s nextandtakeI ve' yearaverages
The humanreso!rcedepartment !ses B usi ness0blect s
^ a n.g Fmp ^ , . d". r anon o v dg" B" o ^
' " l w ofkfofceA natytcs mod!tel l ohetpm anage
H Rl ntetti gence
!. r, t to corre ct the p . obt em by as k r ng t s ex ec Lr t r le sa n d staff p.of tes,compl etedtfa ni ngprograms,and cos t s The
.; :ts whai ex ac t t yit n e e d e d3 n n fo rm a tl o n a n d d e crsi on fnance managementdepaftment!ses B !s nes5 0bt ect s
'..::r.t s y s t emt o pr o v i d ei n o rd e rto g e l th e b .o a d e .,bro' Fi nanceIntetti gence LR even!eC ycLeA naLyti cs mod! r lelt o
[ -_: v ew of t he b!s i n e s sth a t th e y d e s i re d . S a noma anaty2eexpenses bycostcenter.as w el Las moni tofpaym ent
::.i t o def inet s t s o f k e y p e .fo rn ' ra n cned c a i o rs l K P l sl peri ods.unpal db tts,cashgenerated. b!dgetEatl oca t ed,
and
; ... ! t dhet pm anaq e rs s e e a n d a s s e s s c h a n g e s overt me,
-::-s r andt he ec ono m l c Lm a te .to re s e ee v e n tsm a k eand Today.use.s an:tyzi ngtherr bLrsness.ctvi ty have a
, : . ae. is ionsbas edo n a c c u .a tem e tr c s a n d a n a i yzethe cahefentpl ctu.eol the companyand a si ngteve.son ol t he
-:::i of ac t ons , ex p tan s G i L b e .t i sw orki ngl fom i he samebase,w th thesam e
i .Lrth.E veryone
oor ono..r q \d.anem . nob.:,ess
 B r , _ .!s r r r fm :r ii:tr i..r !

Dis c ! 5s ionQ u e s ti o n s 4 H ow h.ve oformati oIsystems,sLrch.s t he one : :

L W hE t . oted o k e yp e rfo .ma i .e n d .i i l o rs l K P sj pl .! i n rhe S anoma Maqazi nesB etg!m afi ede d t he r : r :
dr c is ionm a k i q p ro .e s s ?H o wd c th e ya s sst mafage.s ndusl .yn te.msot.ompet tl on.w ofkfo. cccom : : :
if t : m ing i fo fm j t o n o l e rL ..d ? ei d ei Tecti veness?
2 W hat adv i rn l .g ed d S a n o m . [4 a q e z ,n eE . eLg!nr !a n
wh- A .t c c n t.a tz e dt5 d a ta:o !..e 3 i d s :ai d.rd zed tr. s o u R c E s iB u s n e s 5o b l e . l s 'c u s t o m e r 5n r h e sp o tL q h i ,!.: I
a..es5ed AprL 26, 2a0/,, M.brsinessab/ects.ah/rLstane.: :: :
sananz.5A Sanana Magaznes Web ste, a.ce3sed AprL : I
ww sanonanaga2thes.n
Cr it ic atT hink i n g0 1 1 e s ti o n s
3 Howd d S a n o m aMd q i zn e s Be l g!m b e n elt from adoor
r g. nof f th e s e Lsf o t!to n .a th e rth i rn d evetop
ng tsow f
nt or m ato n s y s L e m
t.o m s c ra rc h ?

NOTES

Soufceslof the openingvignette 'Srke Produ.erPfovder OtdWortd o 05 o Dd

TasteandNew WorLdCompelt vc Edqd'A,sfersrbrr.lJS,..ess5r, Rustness
W..k, MatEh1,2AA4A.22
^oo

,!J s.cessedApf L 25, 2AA4,ww breness.blects.anktstDneE/ oD " ,dd," r B.o qD oi ,o P,

r oo,o, -d
spo tltoh lktkrna. anut ]cep: Kk u M us am ur . W ebr r e , a . . e s 5 e d A p r i t ..., cbnstru.nan\lanagehe,l voL 248, No 7,p 29
25,200\,||trw kikunas.na..dl B!5 nessobl..rs Busnes5rnletLi Eo r" -o.o. ,ooJAod o
g-Ance 'o p
web paq0,a..e5sedApt)r.25 2AAI w||vbosn.rs.bte.ts.an/
 nrormationand
oecsionsupportsy.t".. I cb"pt t 10

tu, Xut,et aL.,"Modetstor lhprovingTeamProduclivilyat the Fed Thohas,Daniel,"SoftwarcmprovesAC Milans Game, cdmp,r-
eratReserve Bank, /rrc./ad6 March2003,p.25. ing,Janrary29 2044,p.6.
Brown,Stuart,'ToyotasG(o$l BodyShop,' F,rl,,e February9, Melymuka,Kalhteen swarminqTechnoloqyHelpsWidelyDis-
20 04p.1
, 20 8. persed E\perrs," canpLteNod4 .ruty 28, 2003.p.35.
swamnathan, J., "oecsion Supportlor Attocatng Scarce0ru9s," Strassbery, Dan,"SofnrareFaclitatessharingof EnqineerngCaF
hlenaces, l arcn 2403,p. 1. cuGlions, Frt, March6,2003,p.17.
_Autonomic
0nmes,5eth, Compuung-MajorVendors arc Apptying Anthes,Gary,"Sma.tRooms,-adhputerw. d, AWur\ 4,2aA3,p.
DecsionSupportTechn questoSeeice CentricComput ng, /,tel 29.
ligent Enterp.ise,Novemhet 15,2002,p. 14. 50. r a v . _ 4 l.a o t o , ! H U 5 5r o r I v a r u a r n aq n de n o r r T r q A dva r c.d -
Ian, Kopin,'Technology Transtormsoptons Traders, Ire l,ya.4 TechnologyProjecrs6r NASA," /,bnac6, May June2003,p. /+0
St.eetJournal,Aptil31,2AB,p. C1t. 5 1 . schurrz,Keith,LotusNotesand Dami^o6 Ne||Architect, J.nuary
Nash,Emma,"TravlF rm UsesBlloalstoConpe\e, Conputins, 1 , 2 0 0 3p, . 4 0 .
Dornan,Andy,-MobiteE Ma t, NetworkMag.zine,Fe6rtary 't,
Barett, Amy, Feedin9thePipeline, BusinessWeek,May 12,2003, 2003,p.34.
 Arti fk i a l i n te l L i g e n c es y s te m s i orm a L r el r f e t h . t e . / t , r e / i , q . r . e.i d 5 t.r :
b .o .d a n d d i v e rs es e t o f s y s temsthar can r r r eo j l e . t ! e . i d- .er!i e, tt.o, ,rt t f ! . . t i . r t n r - a L t
re p l i c a teh u m a nd e c i s i o nma ki ngfor cr- 9 .n r ;
l a i n ty p e so f w e tf d e fi n e dp ro bl ems.
tnf.har3ct.-sii.l o t r r t e t a e n i b ..i !.,
-:i_
. f a . . m ! ! . e i a . i r e r r o r f i r i n . e I t n at!r . n r :
a r l l . a L f t a t L l e . c e s l , i l c r . e f . r f , . i . f .f r tr .::

c e n i r i i . e . i i r t o r . o n r c . . e n r l o t r i re .r i t. :
iIeL g.n.e r ftd aid p-.! ie cie
- .i i r m p t- a-

Expert
systems canenabte a novice
toper, L s t 'h c . f : f n . t . r i 5 t 1]!rrd tir!. . o m r i J..n r .
tormatthe levetof an experrburmlsr be
deveLoped
andmaintained verycarefulty.
d e n t \ a t e : s t t r f e e 1 a . : 0 . 5 t D . . fs d e r
e ! a l ! a t n q t h c i e i e i o p m : . t c I r n e l p e r l str st:r .
0!iirr! aId b.
- - 'i t e r D t a n t h e : r e a s l.r i .N .
.r nq.n.x!.r1slstrm
d e _ t : y l h e b e n . l t s a 5 . . . a t e d v r t r th .o!:c :

V i rl u a t re a l i tys y s te msh a v eth e potenti aL D efneth. te.m ,1rl rl rernf ai C cro! de r t r : . :

t o re s h a p eth e i n te rfa c eb tw eenpeopte er:npres or v rtLr.t.eatl l .ppi .n1..:
a n d i n l o rm a l l o nte c h n o L o g yb y offer ng
n e w w a y s t0 c o m m u n c a te n formati on,
v i s u a ti 2 ep ro c e s s e s a, n d e x p ress i deas

Sp e c l a L i z esdy s te ms c a n h e tp organi za- D s.!ss exi mrtes .t :pe..tz.d sfr r . m i ii .

l i o n s a n dj n d i v i d u a ts
a c h i e v eth e i r 9oats. i rqan zar.rat:.C ri i ! i r. rse
 specaL,edBusnes5irorm3roisynens I Crt.pt"" rt

INFORMATION SYSTEMS IN THE GLOBAL ECONOMY

AMAZON.COM, UNITED STATES
imazonLeverages
ArtificiatIntettigence
AgainstFraud

:he amouni of inJormation storcd in md flowing through many of today's in

;rrmation systems has become so massive that kesping up with it is beyond
: trmar capacity. Because computers are idea.lly suited for quickly handling targe
rrounts of data, many companies are d$igning computer programs to auto-
:aie th managment and inierprctation of data. For these pmgrams to b6 mosr
;:Tective, they need to be able to ihink ard interprct trends in the data a.sa hu
ran being would but much, much faster.
The ability of a computer to Bimulate human inrettignce is rcfend to as
4titicial intelligence, or ,41 AI i3 a va,st area of computs science with nany
srbcategories. On area in which AI is pqying ofr ie in ftaud detection. Credit
:ard flaud is a serious conceln for Internet retailers_ The monlanous transac-
rons occlrrring on the Internet a.re drawing crimina.ls of aI ra,aks, from one-time
:ackerc to orgadzed crime, which tsts the maxket's bounda.ries. Since most
rnline trarsactions are pa,id for with credit ca,rds, detecting a.nd preventing
:.edit card lraud has become a plioriiy for retaileru, which bear the brunt of ihe

For larye rctailers such as Amazon.com, losses to crcdit ca.rd ftaud ar6
suhtantial. Amazon-com ha 35 miuion customers who eccss its prcducts
:Tough flve Web sites aalapted fo! different countries and targuagsl
aw.atnazon.com. www.anazon.b, www.amaaon.co.uk www.amazon.d4 and
aw. nazon.co.jp. Amazon tuned to SAS Ifttitute to devlop the founaLation
:or its state-ofthe-art fraud-detection sysiem.
F?aud-deteciion tecbniques ar not tJ,T,ically publicizd-the less popla
'$ow about them, the more effectivo they are. Even Amazotr wonl
tuIly disclose
:be detaik of iis 3l system. Tl}e compaiy is happy to disctose, however. th ef-
:?ctiveness of its new AI lYauddetection system. Acolding to Jaya Kolhatkar,
.{l11azon.com's dirctor of fiaud detection, the new ststsm g"eatiy rcduced th
:asee of ftaud at Amazon. In the firEt six months of the systm,s use, flaud lates

The systm developed for Amazon we8 classic Al techniqu$, such as decision
::ees and neura.l netwolks, to analtze eaph transa.tion. The neuEl networks
Fork within ihe sFtem to analyze patterns in the data ro ..tean', v/hich patterns
tcaud much the sane way that human being learn. The system
-pr6seni
Forks on multiple levels. On portion of the systom anatyzes trarNartions a.sthey
:ccur, wbile the credit card nmber is b6ing apprcved. ADother subsystem
rrunches alata in Amazon's huge transaction darabase, looking for traudulent
afiivitie3 in pa.st trg,nsartioft.
"Frau&ters gnem.Uy follow similar pattrns of behavior," ssys Kolhatkar.
-That makes it easier to detect firaud bcause you car look for corresponding
patterns in transaction and cuetomer alata." For example, Amazon knows that
:'raucltels tend to purchase goods-such as elecir.onics-that they ca. dispose
rf easily. Also, th6y do not ship the goods to the sarne addrgss that is used for
eilling, so an order not shipped to the billing address might b6 an indica.tion of
: fraudulent transaction. They a.lso iend to use the fa.stest possible shipping
 P.fts I B*** sFb.'
",",-di""

method. Of coulse, use ofthese featules does not mean that fraud ha deftnitts
occulld, but combined with otber indicato$. they would be pointers to foUo-

Amazon s fraud-detection system a,nab,zes the behaviora,l pattorns of ftau+

sters ard builils predictiv scores th.t indicate the likelihood of ftaudulent
behavior. "We ruD these Bcores against the custome. databaae," Bays Kolhatk
'.!ve then use SAS to prioritize the results. Obviously, we have to investigat --r
case ofpotential fraud very thorougbry beforc beginning lga] action, so we p+
oritize the rcsults of running the fraud scores aDd beein vrith th6 highr!

tuIabzing bxAe anounts of data to turn up usezu arrd valuabte infor:mrt-

ion such as fta.udulent crdit card purrha.ses, is just one of the msJ1y appric.-
tions ofAL 4l systms ar6 taking over many human tasks that people find eitba
tedious. alangerous. or too big to handle. In short. AI is becoming a valuabE
xtercion of buman intellie[ce.
As youreadthis chapter,considerthe fottowing:
. How de AI systems empowering businessesto a$aingoalspreviously
una$aina6le?
. wlat are rhe srength and liniBtions of AI slrrems,and how do lhey rlarcm &
strnsths
andweaknesses ofhumanbeings?

At a Dartnourh College coifrence in 1956, John Mccanhy proposed ihe uk of ihe rtl
artif iciat inleltigenc{All aniffcial irtelligoe (AI) ro describeconputers with rhe ability to nimic or dupliore &
TheabiLly ol computeEto mimicor tuncriom of the humn brain. Mmy AI pioneers aiiended rhis firr conferener a fry p+'
dupt ic att hef
e u n c ti o n sl hoefh u ma n dicted dnt conputers wouid be * iman" x people by dre 1960s.The predi.tion hd
yet beenrerfted, but the benefitsof anificial intelligencein businessand researcha
seentoday,andresearch continues.
Like other *pecs ofm infornation systen, the overall goal of the speciaiizedsls..r
discused in this chapter is to help individuals md orgmiadons achise their gods. In or
oses, thee speciatizedsy*em can help o orgmiation a.hieve a tong{erm, sirategi. ra
vmtage. In this chaprer, we explore dtifi.i,l intelligenc dd mny other special;
information systems,induding expen s'ftens, roborics, vision s/stens, natural lmg"?:
p.ocessing,leaining s/stens, neural networks, genetic algorithms, intelligenr agene, viad
realicy,and ocher systens. Sinc nany ofthes special'purposeq'stems are expensiveto dF
velop and use,orgadzations needto nake surethat the costsarewotth the effon by i
pron$, reducing cosrs,or achieving ar ;rnponarr organizational goal.
 strlem3 | chrltd 11

A N OVERVIEW
OFARTI FI CI AL
I NTELLI G ENCE
!.icnc ficrion loveh md popub movieshavefearuredsenrios ofcompurersysrensand
:rtelligentnachinestaking ove.th world. SteveDHawking,who is the Lueian professor
,fmathematia at CambridgeUnivers;tyin &e UK (aposniononceheldby Ieac Nelron)
id atthor ofA Bief Hi'tory,/r,za said,"In coilrastwnh ou.in.ellecr,compuresdouble
:heir performdce every 18 nonths. so the ddger is real ihat they could d*elop intelligence
ad tale over the world." Conputer systemssuch asH dl ln the .lass], noie 2001 : A S?dac
o4$q/ and thosein the movie ,4.1 are futuristic glinpse ofwhat might be. 'rhese acoua
ae ficrional, but in rhem we ke rhe real applicadon ofmany computer qrtems that ue the
rotion ofAL Thesc q*tcms help to nakc nedical diagnoscs,cxplore for natul resources,
lcterminc whar is wrong with mechanical devies, and dsi$ in designing and doeloping
rther computer systems.ln this chapter, we explore rhe exciring applicarions of dtificiJ
ratelligence.experrsysrems,vntual rcality, and somespccializedsystensto seewhat the future

S ci ence
fcrl o.movi esg iveusa
gl i mps
ol thetutu.e,burm any
practcatappti cati ono f sadif cial
i ntettgnceexi stroday,am ong
thmmedcaldi agnost icsand
developmenr orcomputer syslem
l5o!rc:TheKobatColtction/
Ambtn/Dreamworks/Slantey
Kubrck^VB/David
Jamesl

Arti ficia tIn teIti genc ei n P ers pec t iv e

rnificial inteligen@ sysrm include the people, procedures.hardwm, software.data, md artificiatinttligence
syslems
inowlcdgc neededto derelop conputer systens and nachines thrt denomaate character Peopte, procedures,
hardware,
soft
ric ofinielligenc. Researcher,scientists,
md expertsonhow hmm beingsthink areolien ware. dala,and knowledgeneeded
lo dvelopcomputersysremsand
rvolved in developing thee sy*ens. mach nes that demonstralethe
characleristicsoi intelt !ence.
TheNat ureo f I n t e t t i g e n c e
:ron rhe eadyAl pioneering sta$, the reserch enphasn h$ 5en on developidg machines
"rh
inrligent behavior. But nachine intelligence is hdd to a.hieve. A.cordins to Sreve intelligentbehavior
Grand, who developeda rohot olled Lucy md was given an a*ard for his work in arilicial T h e a b i tl y t o l e a r nf r o m e xp e r i e n c
a n d a p p t yk n o w t e d gaecq u i r e dfr o m
rrelligence,"True nachine intelligence,let alonc consciousness, is a very long way otr"'
experrence,handtecomPlex
\ino, a robot liom Honda, is making progres but hr a long way ro go. Acording to situalions,sotvepfobtemswhen
:londat head ofthe Europan Rcsearchlnsdrure, "Arimo is a mnelous walking machine, mportanl nfofmal on s miss ng,
; masterpiee ofengineerirg, but the next stageis ro emble ir to d*elop rhe ability to think determ newhat is lmportant,react
quicktyand correcttytoa new situ
ation,understandvisuat mages,
processand manipulatesymbols,
b e c r e a tv e a n d i m a g i n a tve ,a nudse
 Pdt3 | !c mr ir ' , m at . ns r r r t nE

'lhc r,t,g 7cr attehprs

ro drerminewherhcrtLe responses trcn e .ompurer wiri
inrclligdr behdior areindistinguishabh fiom rcsponsesfroha humanbe;s. N; ompur.:
haspdkd rhc Tftins't csr,developcd byAlan Turing, aBrnishma$cnrici;. The r.;bn.:
Prik otlqs mde1' ind . gold nedal fo. anyonedfleloping a cornpurerrhat can passrtr.
Tnttns t 6r (se utuu.hebn Di'). Someof rlt specifi.ch@creristi.sofnrrclisnr bchavr,:
includethe abiliry ro do rhe follo Ds:
. Lau
lian d?ttve Md atplr thehnoahdseac,tuid fon etVctbare. Being$te to tctr:
trom pan situationsand eventsr a keyconponenrofintc igembehaviorand n a narurl
abili$ ofhuhans, who lean by rial and cror. This abiliry,howevd, mu$ be afeful:
pmgramntd into a omputer svstem.Iodrv, researchers are developingsystemsd::
haverlis rbiliry. for instance,compurerizedArches s.ii**".- l.-; r. i-;-*,.h,t.
playinghunan conpetirors.rIn onemarch,Garv Kaspro, ompered againsiap-son:
comptrer wnh AI softwc delelopedin Israel,catledDeepJ6ior.i fhn marchin 20i j
was a 3-3 rie, bur Kaspafovpicked up somerhingrhe machinewould havno ntr{.:
in-9700,000. ln thn chaprc., wc explde rhe dciring applicadonsof anji.::
inrelligenceand look ar what the tuue iea y might hotd.r

comp !terst ke 0 ee pJ unlof ar ( em pr

lo tearntrom pasl chessmoves
Whrteits predecessor,DeepBlue,
was a powerruLsupercompuler,
De epJun o r run son s t andaf d
co mpu terh ard waf e.lt s t ogic
systemcatculatesaround2 to 3
mrttrofco mbn atio nsper s ec ond.
lSou rceREUTERS/
: Chip
Eas t

Handle .otupbsitudtiou. Hunan beingsre often involved in complexsiruarions.\tr :

l e " d e -,rr.e.d m.utr po i r\r. oe.i \i on.regadi rg rerror,r. .onni ., g,.bJl ecor o
c o n dron\. hunger.Jnd pover ry.l n J bu.rne* .eIi nS .r" pJdet r,nagen rn d e, e. r : . =
" re fr.rd w i ,\ .onpht n.rker..hrten8ns.,,m| e,i ,o,,. i nutrr,e go\ f - nt r : j
"
regrlarions,and r denandingworkfore. Evenhuhan expersmakenistates in dedj-
tri ,h rh e,e.Iua,i or..D fl cl opi rg.orourer* qcm,rh4.JnhMo eperpte^ng, ir J"r .
requirescdeful planningrnd elaboratecompurerprogramning.Trying ro unlock :i
m)rleriesofDNA and the hunan genone is a conplex process.6 ,Artiffciatinrelliger:
an be usedto makeconplex research decisions.Aaordins ro Eric Lander.djrecro::
,h e l ai i ,ue r V Il and H an:rd. .ompuren oo< ed D \{ .e quen. . . :
9 rd: ",
d rc i d e drhe nel e.p,' i nen, rhJ neededr,. be done ro.to.e g:p. i n r heg. no-
" ^
Tht onpuler krew whar experinenrsro orderup, withour huna inpur.', -
Sol,eptobh% tuhd ;apotrdn infomdtion h nisting -the e$en.e of d;cisjon hakine I
dealins {irh un.e.rainry. Quire often, decisionsmusr be nade evo *h.. wc i..,
informationor haveimccurareinformation,because obraininecomDteteiiformario: -
ro o .o . rl f or mto-i bl e. fodr\. ct ,v.r.m, .rn mJe , "'. ut ! , ,
.o mti ' i ' on.. JnJ del i .i on.sen w hen rtorn J,i or i , mi " i rg. -p;n" nr
Det.tni,e uhdt h ih?.rt,t r Knownrg what is rNly inponanr is the mark ofa qo:
d c (i .i o nm D eLel opi l 8p ,,grJm.rnJ rpproJ h- ,o r o. \,,mf I.r . vnr m \ - . -
' l cr.
In -.h n * rordcn(i D Inpon.n i norrJr,r,. ror..npterat.
 speciaL?ed
Busndssntofmaronsyslems I chletd 11

. R.d$ qrnkq d"d ot ctlt to a uu sitldtkt. A, sn,Il &iid, for eempte, can look over a
leqe or a drop-otr and know nor to venrur ioo close. The chiid quicklv and
(orr.Ldy ro a nN CompuLrb. on rhe orher hmd. do no, 'eactl
havelhis;bitiry
'iruadon.
without complex programing.
. U nfa"d inag$. Interpredng visual inages can be extremely di6cutt. evenfor
"iM/
sophistic*ed compurers.Moving through a roon ofchairs, rables,md other objecrj c,n
be trivial for people bur *rrenely conplex for machines,robors, and cornpurer. Such
nachines Equire an extension of understmding visud imases, called a pcrepriE
rystem. Having a perceptivesysto allom a machine to approximie rhe way a hunan A sy5temlh6i approximatesthe
seer,hean, ad feels objects. Military robors, for ennplq use cuers and perceprive w a y a h u m a ns e e s ,h a r s,a n d
s}sres io conducr reconnaissancemissions to detecr enemy weapons and soidiers.T
De,eLringand drnrolng rhen un ,ave tive.. A(cordins io Cot. B;( Jeiie. -t doni
have dy problems writing ro iRobor, saying I'm sorry your robor died, an we get
M o, her ?T ha, \ ,l o r e ri i rrl e rre ro
r w ri ,eJ ' a n .onel ,oe Facher
or morher. fhemJi rarv
Jnd rheiRobo,onpan) re no elea.iqsinform, rion ,bouI rhe PrcBoUobor.sbur from
50 to 100 robotsde beingusedin lraq.
. Procesand naaipulate ryzrali People see,manipulate, ard proces synbols wery day.
Visu,l inages provide a consmr srrem of inforrnatioD ro our bnins. By contrajL
.ompurer have difficuiI h,odlins .ymbolic proc-ing ed ,eaoning. AjLhoush
compurers exel ar numeriel calcularions, rhe/ een't as good at dealing with symbols
dd three-dimeNional ob,eca. Recenr developrnenrsin nachine,vision haldware md
software,howaer, alow some@mpurersro proc$ md ndipulate synbols on a limired

. Be .rcan,c and ibagi"a',,e Throushout history, some pople have rumed difiiculr
situations into adwnragesby being Gadve and in,gimtive- For instme, when shipped
r lot of der e. in emi n !i $ i ,h h o l e ,i h L h rm i d d l e. en,.p' i .i ns enrrpre.eurdr;i l ed
ro market dese nE minrs d Lifesaversirotead of 'returning n
rhem ro rhe muufacturer.
Ice crem coneswere invenied ar the Sr. Louis World's Fair when m imaeinarive store
ownerdecidedto wrp icec,en wnh . efile ftoh hi, sri forDonrbitio. Devetopins
nv md *citing producrs md servicesfron d exisdns (pelhapsnegitive) siruadon is a
hum,n chraaerisric. Fs conputers have rhe abilicy to be truly imaginariv or crearive
in this way, al$ough sofrftre has been d*eloped to enable r omputer ro write short

. Ue htu*nc'. For sone decisions, people se heurhdq (rules of rhumb arisins f.on
dpeience) o! sen glesses.In serching for a job, we nay decide ro Enk rhe companies
Jr .onsideringa(oding Loprofin per emplo"ee.I odry. someompurer sy.tem.,
"e
given .he righr progrms, obrain good solutions rhat useapproxiharions insreadofr.ying
to search for an optimd Flution, which would be technically difficuk or too time-

This lis. of $airs only paftially defifts intelligen@. Unlike ihe terninolosy ued in vir-
aally 4ery other field of IS rekdch, in which the objeaives cm b cte&lv defind, rhe rerm
,plg.,ii, r tomidabte,rumbtins bto.k one ofLhf prcblem\;n dificial in,eiiiEen.ei5
rlivios ar a working deffnirion ofreal intelligen@ agaiNt which to ompare the performance
raan arrificialinrellign@sysren.

TheDif f er e n cBe e t w e e n
N a t u r aan
l dAr tificiaIn
l te u ig e n ce
Since6e nn a'tifckl )nftA;sczcewas defined in the 1950s, *pera have disagreedabout
se difference beween natural and anincial inreligence. Can @mpuies be piosnmmed
:o have @nmon sehse?ProfoDd ditrerencesdisr, bur riey are declining in nunbr (ke
- able11.1).one ofrhe driving forcesbehindAI resenchis an artenpr ro undersrud how
iman beingsa.trally re6on md rhink. h is belised rhathe abiliry ro oeare machinesrhar
a reaon will be po$ible only once we rruly udentand our own proceses for doing so.
 Pdt 3 ElsiBr ir.fmai on :yst.ms
|

H i gh

@ T h eM ajo rBr a n ch e os f Ar tificia tIn te ltig e n ce

AI n a broadfieldthar includesscveralspecialtyareu' suchd 4Pen svsrems' robodcs'\ i:::'
A Comparison of Naturat procesing,learnidg sysrems,and ncuralnetworlc Geeligtrre1l l
systcns,naturalLanguge
andArtificialIntettigence edvancesin one qn occur sinuluneouslv with or lcsul: :
Many of rheseareu *e rclated

@
A conceptuatModetof Artificiat
lnlelligence

llx
t!r!
-T-'fE

&
 spe.atzedBusnessInlormatonsy"r.. I cb.!i3r11

ExperiSystems
!r qpen stsrem cosists ofhard*re and softwarethat storesknowledge ad make infer-
aces,similarto thoseofahunm expert.Becrue of theirmnybusinessapplicetions. expert Hardwareand soliwareihat stores
;rems are discussedin more deeil in rhe next sserul sectioro ofrhe chrprer. knowtedgeand makesinferences,
srm lar to a humanexpert.

Robotica
tobotie involve dweloping mechoical or conputer d*ices that (n paim ers, make
:Fchion wlds, and perform otler rdks that require a hish dsreofpre.ision or are tedious Mechenicalor computerdevices
r hzardous for humm beings.The NASA shuttle crsh ofrhe early 2000s, for ddple, h6 that pedorm tasks requiin9 high
ed somepeople to reomnend using robots instead ofhunan beings io explok spacemd degreeof prec sion or that are
lediousof hazardoustor h!mans
rform s.ienriffc rsdch., sone robors, such s the ER-l, n be ued for entenein-
cnr.ro Placing a laprop omputer on rop, arraching a me, and insraling rhe necesarl.
.liware allows the ER-l ro maneuwr dound obFcs. Virh u opiion.l gipper arm, ihe
$ot can pick up smll obiectl. Researcheshope ihat Lu.),, a robor oransurd, wiil some
:ar be able ro help scientbts derermine how rhe bnin works." Paro, a hap seal robot, ho
:ttn used as a rherapeudc r@1.'2 tuording to Takanore Shibara, d engineer for Japa's
\aional Imtitute ofAdvanced Indusirial Scien od TechDology, "we know .har per rher
Fr helpsphpicalln psychologicaly, and $cially, md Paro doesthe sme thing for people
are unable io ore lor a liv per." Contenporar), roboriG combines both high,preck;on
-ho
rchine epabilities and sophisricared conrrolling softwe. The conrrolling software in
obots is whar is nost inponmr in rerns ofAI. The processorin an advmed indusEial
obor roday works at about 10 million insEucdom per scond(MIPS)-no smarref rhm rn
--sct. To achieveanlthirg evenapproacling hunan inrellignce, the mbot processornusr
.hieve 100 killion operarionsper second.
Mdy applicarions of robotics exisr, and iesech inro these unique devicesconrinues.
\luuhclurer ue robots to dsenble dd pain. p.oducrs. weldins robots haveenabledfi.m
m oanufactute rop-quality producs md rcdua labor osrs while shoitenins deliver)- rim
F dlen cusiomers.Sone .obo6, suchs Honda s Asino nentioned earlier, qn shale hands.
rn.e, and sen reply to sinpl quesriotr. The technolos. ued in a roboCsless nal, pbyide
oprovemenrs in nobiliry fo. people with disabilides. One robor ussrechnolo$, that is
r.red on the whisken ofa rar ro allow rhe roboi to navigatetlrcugh closespaes.'3 Known
s -whislerbor" rhe robot ses whislcrlike senso6 ro derrmine the closene$, size, md
sture of obj&ts it touchs. Other robors have been lsed to lay fiber{pric cable or to en-
=nain disabled childrn while they recire needed rhrapy and dercbe. A sursicrl rcbor
lfed da Vinci performed a gall bladder opemrion on , 16,yed-old parient in Denver,
iolorado.iaThe surgicalrobor reducesscas.doesni inroduce bacreriarhar sne doctors
ruld, and cm be nore precise rhm a physician. h cd atso be easierand more comfor-
rble fo! docroB to operale uing a robor rhd rheir own handr. Sohe sursiel robors csr
src than $1 nillion md have multiple surgi.al ams and sophistieted vision systens.r5
lr. Makimoto, chid of technology ar Sony Corporation, has predi.ted thar ;n 50 yeas,
rbot soccerplayerswill be able ro beat ihe ber huhan scer reans.'6 "Sone rhink it\ a
::z1, ide butobot enginers are very seriom about thn!" sals Dr. Makimoro.
ln military appliaiions, robots ue noving beyond novie plors to beone real weapons.
ne U.S. Nary is developing a robot that h* the appetuce of a ldge lobsrr with eight
!-ss. The Mderaater .obot ho senson that en hea md snell. The Nary hopes thar the
obot will be operationalby 2010 to lo@renins .trd orher undewater objects.The Air
Forceis ddeloping a shar. rcboric j.r fishrr. often .Aled,btuanaed nnbat ail
"ehicb'
:'C.4%r, rheserobotic war nachines, such asrhe X,45A, wi be ahleto idenriry and dsnoy
rrgers wirhout hlman pilots. UCAVS sendpicrurs and informaiion to a .enhal @mnard
=.rer and cu be diiecred ro sfike nilitary targers.These ns machinesdiend the cunenr
?rdaror md Global Hawk technologiesthe military ued in Afshanisran afrei ihe Septenber

Although rcbois are esential componenrsoftodals autonared nanufaciuring dd nil-

arl slstem, turure robots will find wider appliedons in 6uk, resraunna, hones, doctor'
 Pdi s I Bci"*. nrormar
onsystems

omces, od haadou worling environment such as nuclear srations. Miroroborics, also

.alled nbrc-dacio-n .hanical (MEMS) $at ale the size of a srah of saft. ar als
beinsdnloped. MEMS cs be 'r".nr
s.d in ejr bags.a penon s blood ro m;ni(or rhe body,.(tl
phone\.refrigera(o^.rd more.A robor m6L nor oniy exe.urerdtc p,ostrmed b) rle
user bui also be abl ro inrsct wirh i$ enviionmenl

Robotscanbeusedin sil!aiionsthat
are ha2afdo!sor inaccessibleto
h!mans, Th Roverwas a remore-
contfottedrobot usedby NASAto
exptorethe s!rface ot Mars,
lSource:Courtsyof NASA.I

V i s i o nS yst6 m s
Another nea ofAl inlolves vnion sys.ems. ion srstems include hardw*e and software
Th hardwareand softwa.ethat rhar permn compurers .o @pture, store, and mipulae visual images and picrures. The
Permncompurerstocepture,srore, U.S. Jutic Depannent ues vision systens to perform fingerprint aralysis,wirh alnosr the
6nd ma nip uta te
vis!allm agesand
sme levelofpr<ision al human expens.The speedwirh which ihe systen cm sedch throud
a h u g e d :rab* eoffi ngerpri nbhabroushrqunk rsol uuon,omuy rons-,tud jngm y er is.
Vision systemsrre also effecrive,t ident'6,ing people basedon faciai features.rn yei dotter
application, a California wire bonle mmufacturer uses a computerired vision s!.stem m
in\pecr$ ine borlte. for fl1w'., The visionrptem uv." ,he boJe produ.e, bolh ;ime dd
money. The conpany producesabour 2 h;llion wine botdes per day.
v n i o n ,r\em an be ufd i n ani ui .ri on w i rh robo,.to si vethoe mr.hi n e \ ; ghr . . A
sophisiicated robor .nd vision softwre are ued to atach the rer windsaeen on Japa
s'Tpe cm.rr The vision rysren guides robors ro correcdy and accuratelyinsrall the wind-
,hield, on fie luur) u^. frcrory roboa rpicJlt performmechrnicJlrakr wirh tintr or no
visual srinuli. Robodc vision dtends rh capability of rheses1rteins,allowing rhe robor ro
make decisions basedon visuel inpul. cenerdh rcbots wirh vision s)srem cd rccosniz
bla.k and whire and soDe grayshadesbur do not havegood olor or thre-dimetuionat vision.
Orher systemsconcenrare on only a fw key Gaturesh m inage, isnoring ihe rcsL h na)
.akeye{s beforea lobor of other compurer systen cm "see"in tull @lor and dJawconcluions
fron whai n se,, rhe wy rhat humatr beings do. Even wirh reenr breakrhroughsin vision
sysiems,compurcs cmnot seeand understandvisual imagesrhe way human beings can.r,

NaturaL
l a n g u a gPr
e o ce ssin g
naturattanguageprocessing Ar discussedin Chapter 4, latu.al languagc proesing ailows a omputer to undentmd
Processingrhat
attowsrhe and reacr ro slaremenrsand commandr made in a "narurat" languge, such d English.
computerlo !ndeBtend and react
Restor.tion Hddwde, for eenple. h$ dweloped a Web sire rhar usesnarurat tdguag.
to st6lehents andcommendsmade
in a nal!ral" language,su.h as procsing to allow its cusromer to quiclly find what rhey want on ils sire.,oThe natural
Engtish. lansuaseprcesing slsrem coffecs spe[ins nist les, convertsabbreviarionsinto words and
 sperJLzed
ausnesrnronrrronsyn.n,s | *'pt* tt

-rmmands.and allowspeopleto askqtresrionsin Enslish.ln additionro makingir euier for

-rirone6. RestorutionHardware hr seenar increasein rortrues as a resuhofthe useof
ruml languge procesing.
Therearethreelevelsofvoice recognition:comnand (recognitionofdozensto hundreds
:: \rordt, disc.ere(recosnirionofdictatedspeechwith prusesbetweenword$, rndcontin
:ous (recogririonof naruralspeech).Iorexmple. a mtuol luguage procesnrgsystemcan
:rrieve imponanr infornation without making tie uer tlpc in connands or searchfor kcy
.'ords.Vith natu..l lang*ge procesing,use6 speakinto a nicrophonc connecredto a
.npure. and ha'. rhe computer conven the electrical impulses gencratedfrom rhe voicc
.ro rextlileso.prognn comnands.with sone sinple naturalluguage processors. you say
i inro a microphoneand type the sane word on the keyboardto min the sysem to
'!ord
'.rognize rhe spoke" wo.ds. The conpud then natches the sound with the typed word.
I nh nore advancednatural languageprocessors,recording and wping words is not neces
ro. Upsrat Narural Mrchine is naking ns Jara code for verbalAI rvailableto other
:onpanies.fhe compaoyhopesthar everyonewill benefitfrom naking the conputercode

DragonSystemsNaturalty Speak
i ng7 E ss.l i ats
usescont inuous
voi cere.o9nI on,orna t ur alspeech,
aLtowing lhe userto speakto the
computeral a normapacet wllr out
pausi n9betw een w ords. The
spoke.
wordsareranscribedimmedatety
ontothecompul ers cr een.
C oLdesy
l sou.ce, ofScanSofI nc.
t, l

Brokeragsedces are a perfect 6t for voicetcognition technology to replacethe cisting

'pressI ro buy or sella stock"touchpadtelephonenenu system.Peoplebuying md seLling
;rock usea vocabularytoo varied for easyacces through menus md touchpadsbur still small
:noqh for sofrwre ro proce$ in real tine. Sneral brokerages-indding Ch*les schwab
& Co., Fideliry Investnenis, DlJdnect, and TD Vaterhouse Group-ofler voicerecogn;
rion seNices.Thesesysiemsue mtural languagevoicerecogniion to let customersac.es
rerirement accounrs,check balanes, and ger stock quotes. E"entually, the technolory will
rllow ranecdons to be nade usingvoiceconmandsoverthe phoneand allo* custones to
useseach engine and to have rheir quesrionsanswercdth."ugh the brokerage firn\ cali
cenrer.One of the big advmtagesofvoice recognilionis rhar the nunber ofcalls roted to
dre curoher senice depannent drops considerublyonce new vo;e featuresue added. That
is desirable ro broke.ag* becauseir helps them statr their ell centers correcrly<ven in
rolariienarkers.Vhile a t1p;calperon usesa vocabularyofabout 20,000words or lbwer,
somevoie-recognitioo so6warehasa buift-in rccabularyof 85,000words.Sone companies
claim that speech-recognnionsoftwareis so good that sone cusroners forget they are talking
to a compurerand staa discmsingthe weatheror sportssores. AccordantHealth Senices
 Psti I F : r es ! r r , , m , . ' s / ! em ;

10 allow insurance.usromersto sk queltionsusins

ses nalural languagtprocessing
company\ \Ubsitc.rrConpu rcn converrquesrions,srch * '\{h,r d;d l gcr a bill ftor
doctor?"into answers

L e a r n in gSyste m s
Anotherpart ot'AI dcalswithlearningrystens,a combinatnrnofsoliv*e md hrdwarc:::
A comb nationof soltwarand rllow , conpuer to changehow it tuncrionsor r.actsro siruadonsbrscdon fetdbrc':
hardwafethat attowsthe comPUter rccei".'. For eranple,so-. computerized Smes harclea'ning ab nies If rhecohprtcr 'r ''
to ch an geho w( iunc t lons or r c ac ls notwin a exme,it rememb*s nor to mke the sanenoles und'r rhesmc conditionsrS:
to situa to ns b as edon f eedbac kit or th' mrlrs ofa'dons or decisionsAr a r'
Learni.gsyrcns *quircs feedback
'oftware
inun, the fccdba.knccds to indicatewherhcr the rerlts arc desnable(wnuing a grmc
undcsirable (losinga gane). The ftcdbackis tben ued to aherrvhatthe svstemwill d':

N e u r a INe two r ks
An ilcreasinglyimPortanraspectof AI involvesneurul nevorks A neunl network '
Aco mpu tersy s t em t halc an ..,"p,,,.. ,y.i"- *,,.". o! simularcrhetun.tioring ofa humm boh Thesrt:-
".likc
s m!tate thefu nc t ionng oi a ,r mm.i'jy paallel prccesorsin an archltccturethat is basedon the hunar bain s r '
.
sr'"cture. In additbn, neurulnetworksoli*rrc can be usedto sinulate a r'
"*shlike
nerworkusingstmdrrd computcn.Neuralrctwotkscanprrcs nanv pieccsoidanrrr::'
,nd ler- to rccog"lzepaaetns A chemicdcompanv,fo *rnple, on ue neurl rco' :
rftware to anrllve: hrgc a-""nt ofdat.to cont,"lchenical rtrcros Fuiir l'abdxl"
usedneuralnetworls to inprore moror cootdinationand moveneni nr iL! robo* " i '
ncu,rl nerwo.k rhe n,bor a snroothwalk and dlows it to gcr up ifir fills '
",ftwarc sives
"Ethicalmd Societal lssues" fcature explainsvet arother possibleapplicarionofncural :'
wo*s-prcdicring hnman behaliot
Someofthe specificfeaturcsofneutJ rerworksirclude the followingr
. Thc abilitr ro retrievcirfornatior evenifsome ofdrc neunl nodestail
. f*r mod;fi.arionofsroreddaa asr resuftofnq informnion
. Thc ability to discoverrehn,oshipsand rends in lxrgcdatabscs
. The rbility to solvecomplexproblcmsfrr which alLthc inlornarion is nor Presenl
Neural rctworls cxcel* patic.n ..oglition for exanpl', reurar ncmork co'rfli'
-
can be usedto readbrnk checkbar < esdespk snearsor poorqurliq printnrg P:c'
recognnn,ncan be uscdto help pr*ent rcrrorismbr anallzingand tuatchingim'ges h
.,1 ;" ,.,- fo.u' i rron r, pl eorl .a" on' r Mrnl ' I' rore' r" I nI
', rn' l ' n l r r r d V"
v ' ,x .' .-' e,,-" c* ,' i .) i en.r" Jc' ..r n " rol ..,.ri r " " :J
is usej to protea nore than 450 million credit cardaccourts The Counter FraudSo '
r1 .
in Enela"i uses.."rJ net" ork softsarcto derca fraud. sinccrhe late I 990s'thc Cour '
Irauis*"icc h"' srvcde"ou'ahnronevto build thrce nv hospitals,conduct l2'000 h"-
rrn ,o Lrrr' orper. r rl ' ,onrrl -i prepl J.(,r.n ' r,rdl ' * Jrovoeoh,J0 1_r ''1r . ' 'J
n o re 1' . otreJ.- i n.' * ' ,d -00 p. enr -,rl hcl oedhv rl c rrurJ n' \nr \ " er r '
hospiiah neu.al nct"orks to dererdinc a Paderr'slikellhoodof conuacirg canat
"se rvith softwarethat ntclur'
other diseues.The speedofgenonic Ler*ch can be increased
neur:rlnetworkfeatures.SandiaLaborattries has devcloped a ncural nttwotk svstcmto 5
'
and tactic 15
soldiersin a militrryconlli.r re.l'dne adviceon soateg'
 ogicattylnspiredAtgorithmsFight Terrori9t5and nterestcai be modeledby .omb ningcommonsensewth vi
de Busine5Ee5 denceobservedn lhe reatwo.ld
'someofLhecorealgorthmswe arev/orknq wth havebeen
::! pt e m . y be c o tl a b o fa tnwgth n te ttg e nma
t c h lnes
t.
d L 4b..n :g
afoundfo.centurs, say.R onK otbdi rcctorof technoto gyat 5an
.1/,d
' Fran.sco-basedAliononry Inc a lrm that makes advanced
:ll to fore.astpredctabLe natuEtelents:!.h aswe.ther
knowtedqe mEnagemenl soft'raie lis
pattern-ecoqnitona.d
thetechnotogyha. fe.enttybeen tLrmed
j Lrslnowthatw ere l fdi ng the p.actcat.ppl cal rons fof t hem .
-"q!rkeslrrryea.s
1f g hum anbeha v roSfc i e n t5 t5 c o Lurl seCs l c h te c h nol ogy
K.tb erptans We.e abLelo prod!.e an atqorLirnr ltut eayshere
:. LhefLrt!reofhumanitybLrsnessescan lse tt0.nnc pate
afe the pattemE that exsl, here a.e the impo.lant palterns thal
to
" ; c lt h. i. c om pe t .s a n d c !El o m e fs g iodv e .n m enl .nd
,a
exlst.he.earethe palt.rnsthal contextualtys!ftu!nd lh.a
data, and
:aementcan!5e t io catchtlreb.d glys were abLe 10 build assocatve
as new dataenle.s the stfeam,
..rthmanyk!ty revoUtonary technotoq es.llnd.! lo. th s
retauonsh pstotea.nmoreasmafedata sdl qested i rythe . lst em
: . s c om nghom th e u s g o v e .n me ntht,ro l g hth e D e n. ii Cupe.tino Ca[Iornla, and
GEnt Evans.CE0olAlrVslon
, -l\n.ed Resear.hP.olectsAgencyIDARPAI-thessme biotogicatty rspired
anexpeftincognt vemachfe ifteLlqenceard
;i:on thil p.odr.ed tlre nte.neLResearchin ilr5 nat!
.tqo.lhms.beUevesthEt hek.owswherethel!t!fcolth s reiea.ch
:..c-e technotoqys lakrngptaceas p3rt ol a $5,i mltion " N ow w e.ernl egf.Lfgcogntvemachi ner nleLLLge. . e, n
sLeadng
n knoM as 0eno. I Thegorto{ the prolect: lo .mptoy
l heformofvdeow i thavatrrs 3 D d gLtatrende.i nqso l. eaLpeopt e.
: nteLtgence to antl.Pate1lture lerrofst th.eats.Re
that.an5eeandt.a.kY ou.
:,. hopeto makc t possbtefo. hlmais andcomplteE to neN
Ths rsjLrstthek nd ol tatktfiatm.kes p.vacyadvocates
' ilet lr e. n r c . lt m e to :n tc p :te a i d p re e mpte t ro.sl
ous.Theyfeafthat thegove.nment andbLrs nesleswlltqo too taf rn
. : accordnqlo ollciaLpfogEmdoclmcnts. on the p.Ecy ghls of
'i.no.ll lvearelnterestedn cotlaboraton cotlecln! sooal iformator .nd nlfnqe
betweerpeopte
lndividu:Ls GenoaI maybe shetvedbecalse of t5 cent.rt role n
:.ltrnes. sad TonrArmoLrf, Genoa p.ogmmmanageral prog|am.
the conl.oveEralTer.orism nlornratron Aurare.ess
:- We lmaqne softwa.eagentswo.kin!wLh hlmans and
sectorreseafcheE saylm.nys
P .l vate hal gnfl cant adl a nccs. f e
I lfcreft sortsof:oliwa.eagentsatso cottabo.ilngamong 'l po.b""od". o oodl ,ood Ivd," o o "
andae.osprcemanufaclurcrs have!sed.!d,meniaryo ecesolths
:. halt engeles n q e ttn g .o mp L rteto rs m m c L h eh !m:n
technotogyto savem ltionsof dotlaEbytcve.agnq devetopflrenlrt
, ab trtyLoredu.e compiexly Wh Le compute.s a.e good.t
experiiseacmss flncllonaLare.s. saysKolb Were no tongef
J olt fuLe5basedaLgoilhms,suchas ihosereq! fed tor
_: .tre55theya.enl so goodal mofe .ompLexde. pherng lookin!fo.lnfonnalionnformator s tookinglof!s hesays.

:,r fndnq a word hiddenn a pictLrrc. Resea.cheE hopeto

th.t th.olgh the lse of boLog catly lospi.ed atqonlhms CriticatThinking Ouestions
. r.
: .. r v t om ak c c onrp l te rs m onre l e ttg e n ta n d l fe i k e l stotook 1 W hy s tthat compl l e.smry beabtetodo a btter lobat
_! eystems.nd mtate them, sals MeLanre Mitchett.En p.edcLng h{rmanbeha!or thrn humanberngs?
. : r:eprofessor.LO.egon Heatth& ScefceUiiversltysSchool 2 W hatpre,:a!ti onsw o!td
bew sel ther deveLopnqs yslem s
: r..e & Englncai.gi PorlLand. behavor to pfeact t!t!.e event sl
thal sl !dy hLrman
.r ! f . l net o. k s . r a o n e{ o rmo f b o to q c a l llyn s p re datgo'
' . T heym r m lct he n e !.o n sl i th e h l ma i b .a n 1 o d cntty WhetWoutdYouDo?
::. patternsn dJtaandto prodlceverys.rphrstrcated iea.nng.
Your.ompany hsimptemanled b otogicatty atgofthmsto
rnspi.ed
'ar fom ol biotoqcattyrcp.ed algorithmsgenetc atgo-
prclcctlrendsin salesfo.your prod!ci tnes TheA programhas
; 3 nspredbyevotllion.Hefe,a .om plter proqfamevolves prcdLrctswitL
lndicatedlhal thepoputa.tyofonoofyo!rbest-setting
oc P ob" _ " 1
beginto ded nernthe f rst quarle.ol nextyea..
. ]t5o, rc53rcheEa.e begiinng to prod!.e sccurty app
'' r h"-
H owm ghti l r s predrcto. rnttuence
3 yo!r l reatmenlol r he
prod!d I ne and yo!r bLrsness?
:.lalc s ec t or r es e a .c h e rs a re .tl d y i n g " .o g n l v e amptrfi e.s.
i W haim ghtyo! doto chi rnqe l hefut!fe thalw a5fr edr ct ed
- _ cir enablesofiuarelo modetclrent stlrton5 andpredct
by t\e ntettgentmachne?

: :.tons to s!ppo.l cogntvemachne i.tetLgence.assocatrve

SOURCES, DaiVerton 'U5inqCompulos lo 0uiih nkTeftorets, Canputer
. isp fed algo.thmsand Bayeslairrte.ence
rry biotoqicatty wr./d, seprember 1,2na3 w.onputeTaAd .at; Alvson web ste,
. i.ks, wh ch arebasedoni] bEnchof mathemati..lprobabltty ac.essedMay3l 200n
. t' ihat sJy5L,nce.tanty .bo!L the wo.ld and out.ome. ot
 P6t 3 | B!s no* hid,matiDnsysbms

dtailed trcnds Lege

Neurul nets work panicularlv weil wher it comc to mallzing
p,*' l.nr," u'e neunl neuork. ro figure ur bNd on cc
,.r'.-*r 'taffing-neds
""a rhat require"preciseanrJvsisdown ro rhe halFhour' Increarngr'
r,*n.- a u*
--*
i^i".*'.* n,i* a *,,j *'' i. rap ,1.. *'isre oo thickaronr or.drumd
c.tfl rre nadf ler oFm
m ri < e ' e .<o i mrti ad cu* omerursrnd brvi nghabi s C omP dcr
-learn patrerns sd bebJvoF rd PrdL' $hlr
N..,eenr,. neuel inrelligen.eagenn thaL
be to trrck the habia of insurmce cu'
*iG"""* **. r.. **pl.'\""gsnr. "'"d automobilepoliq l'hq on rho
"" wv an
,..",' i"l im' rno
"nnr' "ill"nu tr)'
rueeer ro u ""Jo' in'mnce agenr$hrr change'mrght be made;n the polic] to Pe^dade
it l he rechnologv cu r ru'k individuJ ues I e'
-#r-., 'l$
,"1
'. '."*
o'**-*' rharr-hevdon r h+e ro inPur rberme infomrdon dch t'm'
'r'.i'.rri* 'o erchri mer hevr 'cesr
th e yl o go n rhei rpu' chsi nghi rorvandorh* d:n rrl l be rc' rl ed
'er
i.ir.* i' **",1"esrork software progrd rhat can run on a standard PC The
" p'.a.dons wnh NeuroSheu predictor ard make classificariom with
'.n,'*. "#-"r." which usese geneo(
N."-slaL CU"ln.i rm.oliware packge alsocontainsGeneHunter'
Jeorrhm to eer the be'r re.uh from Lheneurul nerworksv{em
-"
il.. u* neuruine*otk. ro dallt hundredsof milliotu
'otr*re m onn
,n:d;n' urenc ac.ounsrnvohi ngrri l l i on ofdol hsro un ot o
U",''"*'"-tr,ron
-t
" rU " n l . " re., monq rrn" l es T" da)
l a u d e , i re ,r d orhertu' pi ci ous P ni dl v$dr6ul tol (he 5ePt m br
rr&r" < k i Jl ranJenoi sr0.000ormorexto* U s bordeFmu' rberepon edt or her edr R

0 t h e rAr tificia In Ap PL ica iio n s

t te tL ig e n ce
to thce iust disclsd a
A few oiher.riiGcial inelligence appliotions oisr in addiiion
in whrh r numberoi
geneticatgorithm eeneri.aleorirbm r rn appioachro 'ol'ing l'rge '"mplo problem'
An appro.chlo soL!ng targe, i *,,1.^ rhrngemd eohe unri l d' e be' ronr emerse' r heeppr or 'n
compLexProblemsin whLcha i' l^.J.'i'i" ,r,.."- -.i*olution
el ' iha' require'r I I vaiJrion md { 2 ' n'rurdl rle' rion r}e
n!mbr of ftaledoperarions " " * ," a
fi,r i. to chaneeor
"r qrv a numbetofcomPering ro rhe P'oblem r hr' 'rn I
'olurion'
or modelschanqeand evotve 'teo pr"gom 'egmenn.m'o a
aoo. Uv.t'""eine ih" p,',' oi: progmmor combiningdifferent
un littheb esto nee m er c es o'
o ," * , -1.i .;.t i " g ,he ool uri on oF' peci e"i n w h(h rhegenri 'mrrr uP d P|Jnt
"* over time The secondstep is to select onlv.the best noders or
,i*""' .t'-ti"
"^r-i - conti'ue ro wohe lrogrms or Prcgrumrgnob^th{ rre mr r\ Sood
aleornhm'.*hich
the hFe' r' I nwhr oonr \
,i o th e ' s m d;.* ded.' i mi l arronaturJ' el erri onor" ' uni vrl ol
,rr. i*, ,*.'".'";*,.a conrrnueto evol'e rhF Pro'essol \ JriJrion rnd rururaltle'tion
,o n ri n u e ' uri l rhegenet' cal gori rhml i el d' rheber posi bl esl uti on(otheo[B] m rpr cor m
ro herPsere(
For erample,'ome rnvermenr l'rrm' u'e generi Jls4ririm( 'h'*'i-'':'*:'
red in compurcr'cien'e and mdhemr16 utner(
bonds.CenericalgoriLhm.are aLo
shi ch oden to J(ept l or mN mu' n pr or r ' r ns
a l e o ri rh ms canhel p.ompal i e'd* ermrne
,h,, wirr in're*e prcn+ and take fur advmrrge
;"";::; ;.i"..;r-;' 'ere.' ihe o,JeF
.l [.l .p ,i r. p,i a..,;.n i a,i l ni esGeneri al r gori rhm' :rea]:oberngu* dt o m 'l<ebenet
3
d e ri s i o n'i ; dsel opi ngi npun ro neuralneoorL'
---o.
r""rt*r, L."^, c lcd x ntertis'd rcbd or @nsi'b ot Progrrm' rnd '
intettigentagenl "o
Programs6nd a knowl.d9eoase k.*hdq. b; "r
Pe,form *pe'rfic usk rou pesd ' Prcc's or andher Prcs.m
"f)
lsed to prtorma sPecilcrasktor Lke a soon,asent
^J.*ho,edche' for rnebes endonementdeal' lorloP dhrere rnreu'genr
'n
a pr oc e sos ra
a per s on, , n o th e r n"a rheber pir' $e be{ *hedule or the be'r 'olut ronro d Problrm
*.",.i""
programiatsocalledirrelrierr "J'.i* '. un rhrogh he douns of dr u uhile
Tn" * J s,' ,nrel l i geirgenr
t ' @ ch
" ' .* ,.'
.heknoJledee bue rclno - rhe'e:rcho' rcommodate' u'er prclerenLe!<thenu'ed ro 'n(n
on on m
.i" ,"'.i"* t *. r"rerner'inrelligen'egenr un \dp peoph find informa'
'*, lnKlligenr a$n' an aL'o Dr c@
imoonot ropicor rhe be<rpri.e for a nru drgnel':men
l or vi ue' or l unk nr r r '
rc m rk e uel :rm.gemens moni rori ncomi nge-mai 'nd\ od'
ine' r nd-'ched ule' of bus *e' u rive' In rhehumJn re\ourcelreld rnrerrr8enr
dinrre meet
io";' ;J;"r'.l;;t;i onrinetrairing.rhe sorrware enrookaheadintnining nateri&
* I he
]J ;;; ;"' ," .i"' t'pr.. *.' rgens 'o find iob
"*, 'nrerr'genr 'sd'dr$ *,'::
rnle omp'nl gender' uo
rotrM re .erh h. r | 2-millioa per'"n databrr bv :i",
been bed b) lne u \'
(o lind the be.r iob crndidare'for 'ompanis lnreUigentasenr hrve
 sce. aLzedB usne55 i tD fma,oi srst:rs | tt
"*1*"

::ny ro route secur;ry.learanceinfornation for soldie$ to rhe @rcci departmentsdd

:dividuals.ro \{hat usedto take dals when done manually now takeshoun.

A n e wh e a f n g a l dw r h a d i f ci a t
intettigencelshownnext to a
f i . q e r n a l tcl o n l a i n sa t i n y m i cr o -
processorthat works th waYllre
b r a i nd o si n d e t e c tn g a n dd sr i n -
g u i s hn g s o ! n d s w h t e li tte r n g o u t

Ve w o r td Ph o to sl
lsource:APAd

SYSTEMS
OFEXPERT
AN OVERVIEW

\ mentiored earLier,an qpen rysrem behavessinilarly to a human *pen in a particular

ricld.CharlesBailey.oneofrhe originalnembenofrhe Libraryand InformetionTehnologv
\sociadon, dseloped one ofthe firt *pert slsternsin rhe mid 1980sto se'rch lhe Un;
versityof Houstont libtary to rerrieverequestedresources dd cilations3' Computerized
erpert sysremshave been developedro diagnoseproblems' predicr turure wents, and solve
e n er eyor oblem ' .l h e i h e rl .o b e e nu .e dro d e <:gnno produ.o ' rd ' v* em' dsel op
e insrmc prcducn,determiret-hebesrue of lumber'md rncreserhe quiirv of
".olvrn
healthcare.Like human erperts,conputerizedexpen I'srem ue heurisrics,or rtles of
rhumb, ro arrire ai conclusionsor make sugsesdons ExPit svsremshavealso been used to
deremine credn [mi$ for aedit erds Soquinich' m argicultural compmv' uses*pert
s'srernsio deternine ihe besi fertilizer m;x to use on ceftain soils m inProv croPs while
minimizine coss.3'zThe researchconduded in AI during rhe Pasttwo decadesis resulting in
e*perr s1srem that e*plore ns busine$ posibilities, increue ovemll profitabilitv' reduce
costs,and providesupedorserice to customers lnd clients.

C redt cardcompan r esoruse

t en
expertsystemstodetermne
-edrt
c l
lsourceO RonFehlns/Masterr
Pui 3 | B,'re- nrorm3l.os!5ens

a n dL im ita tio nos I a n Exp e r tSy stem

C h a r a cte r istics
LrDert $siems have a number of chracreristics, induding the following:
Can uptain theit rcato rg or ngoted zlztisiont.A nluble chuacterhtic of ar exper
or solution w:s reached Fo:
rysren is rhe abiliry ro expla;n how and why a decision
exanple, d qpen systn en explain the reasonhg behind the conclusion to .pProre a
paniculer lou applicarion. The ability ro *plain its redoning pro@ssescan be the holr
valuablefeatureofa computerized experrsysrcm. The uerofrhe experrsvstemrhussa6
acce$to the redoning behindthe onctusion
Can di'?b "ifteUisent" behl,t i Considerins a colecrion ofdata, an exPelt svsremco
ptopose nw ideasor approachesto problen olving A ftw ofrhe appliedons ofexpen
svstemsare a nediql diagnosisbued on a parienis condition,a sussesdonto sPloF
for naturalg* at a paaicularlocation,and providingjob counselingforworken'
Cza dnw concluiou fun conpb rehtionships. ExPerr s)stens cd *aluate @mpre
relationshipsto reachconclusionsand solveproblems. Ior eknple, one proPotd eqer'
svsten would work wirh a flexible manufacturing rysten to deErnine ihe best lse oi
tools. Amther expen systen cad suggesrways io improve quliry-control procedures
Canpraidz potrabh knowbdge one unique opabiliry ofexperr s)stemsis that thev,6
U usa o elture t unan expenisethar misht otheNise be lost A clasic omple ofrh:
is rhe exout srsremcalledDELTA (DiesclElecri. LocomotiveTroubleshooting Aid
*hich was developedto presenethe expeniseof the retiring David Snith' the onr'
engineercompetentto handlemany highly technicalrepairsofsuch nrchines
Cin dealu;th ncetta;nt1. one of an erpen systeni most importanr ferutes is irs abili:
ro deal wirh kno*ledge thar is inconplete or not ompletely accumte The I'sren dcals
with thn problen throughthe me ofprobahiliry,statistic' and hedistics
Even thoush thesechoaaerisric ofexpert sysrcns are inpressive' $ev havelimitatiod

Not u;det aal or te$ed. Eten though succsss ccu, experr systemsre not used m :
largenumber of organizarions. In other words, they have not beenwidelv testedir

Diffuk n ue. sone e*pert rysrems*e difficuh to cnnrol and use. In some cases,thr
msisranc ofconputer posonnel or individualsrF;'ed in the ue of apert svstemsr'
requhed to help the userger the nosr fron theselsreos. Today\ challengeis ro male
*pen sysrense*ier to ue by deckion m:l<en who havelmited compurer ProgrammIns

Limihd to ftlati,eu nanou?roDlrzi Vhetex someexPerisvsrems'd Peltorn comprs

dataanalysis,othen arelinited to sinple problems.Also' manv problemssolvedbv open
systens are not rhat beneficial in businesssettings.Ar *pen svsten desigred to providt
adviceon how to repaira machine,for oanple, is unableto ssist in decisionsabou'
whenor wheiherIo rcPairit.In general,the nanowerthescopeofthe prcblem'the exie:
it is ro implenent an expert sysrcn to solve it.
Cd"hot ,radilr deat oith "nixed' kaouklge Expert systems caomi asilv hddk
knowledge that has a mixed iepresenation. Knowledge en be r?resnted thrcusl:
definedrules,thtoughomParisonwirh sinild cases, and invtious otherwals Ar cpen
system in one application might not be able to dealwirh knowledge that conbines botl:

Posibiliry of enot. Athough some expe.t systemshave linircd abiliiis rc learn fron
e*perience, the primary source of loowledge h a hunan experr' If this howledse iJ
incorrect or incomplete, it will affect the slsten negativelv Other development errcn
involvepoorprogrmmingpracrices.Because qPert systemsaremorecomplexthaoothr
i rro,m.,i on.){em' . theP orenurlforu" h enor' n grertet
Cannt rcfre ix oun hrowrzdge.ExPen sysremsa.e not capableof rcquiring krowledge
direcrly.A progranmernu$Provide instructionsto the svsrenrhatdereminehow rhe
systemis to leatn fron exper;nce.Also, someexpen svstem @nnot refine their o{n
knowledgc-such aselim;natingreduodentor contadictorv rdes.
 s p e c a L z e d a ! s n eisr so r m d . n s y n e m s I cupt""t

Diftub to tuintuifl. Rclaled to the preceding point is tlt Act rhar expen svstem cm
be difficult to updare. Sorne m nor responsiveor adapdve to chansing condnions
Mding ns knowledse and changing conpla relationships may require sophistiated
progrmnlng skills. In ome cases,a spreadsheet used;n conjrnction with d expert
slstem shellen be usedto modify the systen ln orher, upgmding m *pen svstemcan
be roo dillicult for the typical mager or executive.Iuiu.e expen svsteturare likelv to
be enier to nainminod update.
Mdy hau highdzuebpwnt,ort Expdr rysrem an be qpensiveto developwhen sing
raditionat programing luguages md approaches.D*eloPneni cosc @n be greadv
reduced thrcugh rhe ue of softwte for expen systen dwelopment ExPen s)ttem expe* systemshett
Acoltect on ol soitware
s hellrr. . ollec ti o no l o tru rre p a ' l ' l g e ." n d ro ol .u' edro doel op expen' yrem' < rn be packagesand toots usedto
implemored on hosi popularPC platform ro redue develoPment rime and coss
deveroPexpen sysrems.
Raiserzgata ethicztcoaetnr Peoplewho make decisionsand take acrion are legallv dd
erhicallyresponsible for thei! behivior.A persn, for dmple, cm be takento cout and
punishedfor a crime. vho apert sytens rc cd ro make decisioNot helP in the
decision-naking prcess. who is legally and ethically responsible the human e*pens
ued to de"elop the k"wledge on which rhe sysern relies, the *pen svsem developer'
c heu*r . onom e o n e e L e l fo r e x a n p te i fa d o .r" r u\er an sP s ' vvemromJeI
diagnosisand rhe diagnosisis wrong, who is responsible? Theselegaland ethiel issues
have not beenonoletelv esolved.

Whento UseExpertSystems
Sophisricared expen sptems can be difiicult, apensive,and rime-consuningto develop
Tliis is epecially true for large expert systemsimplemented on nainfnmes The foLlowing
is a list of factos thar nornally make expen sysrens wonh the expenditure of dme md
noney. De"elopan exp.n systemif it.d:
r Prcvide a high porcnrial paloffor significmdy reduc dowroide risk
' C, p, ur er nd p re .c rynere p h c e a b h
l eu n rn o p e n i ' e
. solvea problen ihat is not asily oived ming taditional posmming techniques
. Developa s)stemnore consistentrhanhumd exPens
. Pmvide expeni* neededar a nunber oflootions ar the sme tine or in a horile
environment that is dangerousio human health
. Prcvide qpenise n\at is exPensiveor rare
. Developasolution tuter than hunao operrs can
. Provide expenie needed for tnining and developnent ro shue the wisdon md
expoiene of hum apera wirh a largenrrmberofpeople

of ExpertSYstem5
Components
An expen rystem consis$ of a collection of inregrated and relaled @nPonen$, including a
knowledge bac, an infrence engine, an explmation facility, a knowlalge baseacquisition
facility, and a userinrerfc. A diagm of a typical *Pen q6rem is shown in lisut I l 2
In this figure, the user inte.a.ts wirh the user inrrface, which interecrswith the inferene
cngine. The inference osine intenca wirh the othe! exPerr svste'n componenrs Thse
.omponenn mur rork rogerherto provideerperi'e
 P@t a I EJ; ress nlo.maroi synchs

@
ComDonentsol an Exort
System

TheKnowtedge
Base
The knowleds bde sroresall ielsdt infornadon, data, .ules, ases, and leladonships u
A componentol :n expd syslem bv lhe cpen sysrem.As seenin Fisure I L3, a knowledge bae is a nalural exrension ol r
lhat stofes att fetevantinlormal on,
daraboe(prerenred h Chapter5) andaninfonation anddecisionsupponsystem(presente
, r elat ions hps
data ,r!le s, casesand
use db yth e e xPe r st y s t em in Chaprer10).As discusedin Chapter!, raw facrscm be ued ro performbsic businN
rtusacdors bur areseldon usedwnhoutnmipularion in decisionnal<ing.As we nove rc
informaiion lnd decision support, data is fiLered and nuipuiared to prcdue a varien oi
reports to help manager make btrr decisions.\ri!h a knowledse bde, we rry io mdesttuc
patterns and relationships in data asa human expen doesin mkins intelligeni decisions.

@
The Retalionshipsamonq Data,
Information, and Xnowtedge

A knowledgebasenusr be developedfor eachunique application. For exanple, a medical

experr systemwill contain facts abour diseasesand symprons. The howledge basecm in
clude generic knowledge fron geneml rheories thar have been esrablishedover time sc
specificknowledge that cones from nore reent expe.iencesand rulesofthumb. Knowledge
b*s, how*er, go fa beyond sinple facts, also storing relationships, rules or frms, and
cdes. For esnple, certain ielecommicarions network problems rnay be rclated or linked,
one problemmay causeanorher.In other cases,tulessuggesr cenainconclusions, bued on
a ki ofgiven faas. In nany instane, these rules are srored as if-then statemen*, such *
R ules
t hais ugge scre rtan "Ifa certain set of nework @ndnions exists, den a ertah nerwork problen diagnosisir
appropriate."Cdes cd alsobe sed. This rcchnique finding insrances,or cues,thr
ne sinilar to the cunenr problemand modifring the solurionsto rheseqses ro accountfor
'nvolves
my differencesbeveen the prdidusly solved @ss srored in the conputer and rhe cunenr
situarionor problem.
Awbltng Hunah E pe^. one challedsein developinsa knowledse baseis ro ssemble
rhe knowledge of muftiple hum.n expelrs.Typically, rhe objective in building a howledge
bue is ro integratethe krowledgeof individualswirh similr expeftise(e.g.,ndy doctoE
may conrribute to a medical diagnosticsknowledge base).A knowledse basethat onteitr
informarion from nunerous expcrts can be exrenely powerful rnd aauete in terns of;s
predictionsand suggestions.Unfortunarcly,hunan expertscan disagreeon importst
 s p e .a t z e dB u sn e s sn r d r m 3 li , soy $ em s I c n p t 't t

daiioffhips and interyrelationsof data,presentinga dilemma{or designesand develops

ofknowledge basesmd expeft systemsin generul.Somehuman exPertsare more experi dnn
orhers; rhen knowledge, qperiede, dd information are beaer developedmd nore accu-
rately representreality. en human *perts disagreeon important Points, ir can be difficult
for apert systens d*elopets to determine which rules $d relatiotuhiPs to pla.e in rhe

Tbe ue ofFwy lagi. Atother .h.llenge for dperr systerndesignersmd de"elopes is

apturhg knowledge and relationships that are nor precise or enct. Compures rypically
vork with numeriel ce.taintr .erilin inpur valueswill alwaysresult in the sameoutput. In
the real world, as you know fron erperiencc, this is nor alwap the ee. To handle this
dilemm, a specialresearchareain computer science,elled fura' logic, h* beendeeloped. f!22y logic
Fuzy logicws firerappliedinJapd in an auron.ric conuol systenfor cains.The ontrol Aspeoat rseafchafea in comp!te.
sciencethar atLowsshadsol gray
l stem allowed erch train to srop within 7 entimters (about 3 inches) of the right spot on and does nol fquire everythinqto
rhe platforn. Fuzzy log;c rlso mde irain rravel snoother ad nore efficient, saving about b e s i m p t b t a c ko r w hi te ,ye s/.0 o r
I0 percent in energy compared with human-conrrolled rnins.
Insteadofthe usurlblack-and'wbite, ye/no, or true/faiseconditionsof rnic,l conputer
decisiors, tuzzy logic allows shade of g.ay, or *hat are known d "tuzzy sets." The .riteria
on whether a subject or siruarion fia into a set are given in percntes or Probibilities. For
example,a weatherforecasternight state,"ifit is very hot with high hum;diq-, the likelihood
of @inis 75 percent."The inprcise temsof "veryhor" and "high hunidity" *e *hat fuzzy
logic nust determine to fornulare the chance of rair. Fuzzy logic rules help computen
cvaluarerhe imperfect or imprecise conditions they encounter md nake "educatedgueses"
basedon the likelihoodor probabiliryof@r.ec.nes of the decision.This ability to estinate
whethera ondnion nts a situationcloselyresemblethe judgment a percn mako when
evaluring situations.
Fuzzylogic is usedin enbedded computer technolog for cmple autofocu enem,
nediel equipnent that nonitor pariena'vhal signsmd males automaric cofections, and
tempenture sensorsattached to furnace conuols. Medical facilities en use tuzzy logic to
detecr lung encer earlier, o$ering the potential ro dnnatically improve surival rateshom

The ue ofRah'. Arule is a conditional statenent that linkr given conditions ro actions
or outcomesAr wc sawearLier, a rule is construcredusingif'then construcs.If ceriaincon- A condi ti onat
starem enr t hatlinks
l o actonsor
9i ve.condi ti ons
ditiom oist, then specific actions ere iaken or @rtain @nclusions ae reached.In an *pen
systemfor a weather foreesting openiion, for dmple the rules codd state dnr if cenain
tempenture paterns oist with a given bmnetlic Prcssureand ertah previous weather
patternsover rhe last 24 hours, then a specific forecmr witl be rnade,including renperarures,
cloud coverage,md the wind-chill hctor. Rules are often conbined with prcbab nies. For
ennple, ifthe weatherhasa particular panern oftrends, then there is a 65 perent probabiliry
$ar ir will hin tomorow. Rules reladng data ro conclusions can be developed for my
kno*ledge base. Mdt dperr systens prsent uses frcm entering contadictory rules.
f;gure 1 1 4 showsthe us of expen rysten rules in helping to deternine whether a person
shouid receivea nongage lom fron a bank. In genenl, 6 the nunber of rdes thar d dPerr
sysrcn knows increases,rhe precision of the experr sysren also increases.
I'he U* dcm. ts nerrioned previously, an expen systemqn use caresin daeloPing
a solutionro acurentproblem orsituetion.This proces involves(1) finding cmesstoredin
rhe knowledge bre that u simil* to the problen or sirution at hmd ud (2) nodifying
the solrtions to the qses to fit or acconmodate the curent problem or situation. Casessored
in rhe knowledgebce en be identified and selecad by comparing the pammetes of the nw
problen wiih rheassstoredin the computersysten.For example,a compuy my beus;ng
an *pen systenro determinethe bestlocationofa nw senicefacility in the stateofNew
Mqico- Labor md rrdsporlatiod costsnay be rhe most impottant factors.The expertsystem
n.y ;dendfy rro praious cues involving the location ofa serice hcility where labor and
ffusponation.osrs werealsoimponadt<ne in the srateofColond" .nd the other in the
stareofNo"da. The experr lstem ll modif the mlurion to theseNo casesto deiermiD
the best loation for a nry f@iliq' in Ns Mdico. The resuhmight be to locatethe new
renice facility in the city ofSanm fe.
 P.d 3 | 86re* rnhmarDn synems

@
MongageAppli.alionfor Loansfrom$100,0001o
Rutesfor a CreditApptication $200.000

lfihere are.o previouscredalprobLemsand

lf nonlhly netincom.is 9reaterthan

4 limesmonthtyloanp.ymentand

lfdownPayment
is t5% ofthelolaLvat!.ot ihe

ll nelassetsof borrow.rar. grerrerlhfi

$25.000and

ll employBenti5greaterth.r threeyearsat

Then a.cept loan .ppLication

EGe che.k orhe.ffedit r!te.

T h eI n fe r e n ce
En g in e
The overall purposeofan inftrene ensire k ro seekinforn,iion md relaiionships liom ttie
Part ol the expertsyslemthal seeks knowledse bse and ro plovide dse6. predicrions, and suggesdonsthe @y a hunan qpeR
infomallon and relationshipslrom would. In orherwor&, rhe inferene engineis the componenrthar deliversthe expenadvice.
th knowledgbaseand pfovdes
answers,pre dcrois , 6f d s ugges
Th procssofreFiqins relwor inbrnarion and relarionshipsfrom rhe knowledgebN
r ion slh ewa yahu m anex per t wout d. is not simple. As you have sen,rh knowledge bse is a collection of face, interpretarionr
and tules. The ;nference engine nust find rhe righr facrs, inrerpretarions, md nles mc
assenble them conecdy. In orher words, rhe infe.ence engine must nake logicil serueoui
i ofthe infornarion conrained in rhe knowledge ba$e,rhe way the human nind doeswhen
sorrinsouraconplexsiruarion. The inferen.eengineha\ a nunber ofwa)r ofac@mplisbing
its tasls, including backward and foward chaining.
backward chaining Brchuatd Chaining Back*wd chainins ;s rhe proce$ ofskriins wirh conclusions md
The processof slarl ng with *orking backwrd to the suppoftins facrs.Ifrhe facrsdo nor supporr rhe onclusion, lnoihc
conctusons and wofking back condusion is selecredand resred.This p'ocess is conrinued unril rhe colrecr conclusion iJ
ward to the supportingi6cts.
idendfied. Consider an *pen s)5ten rhar forecors prcducr mles for nur month. YIS
backwud chaining, we sra.r whh a @nclusion, such u "Srles nexr month will be 25,0u.,
units." Given rhis oncluion, rhe dperr sysien se&chesfor ruls in the tnowledse baseinr
supponthecoDcluion,suchas"IF saleshstnonthwere21.000unitsandsalesfor@mper;ns
producrswere 12,000uirs, THEN srlesnqt nonrh sho d be 25.000 units or srearer.-
The expen systemverifies the rule by checking s.les ldr nonrh for ihe conpdy dd iE
competnoc.Ifrhe hcts arenor true-ir rhisqse, if lrt nonthi saleswerenor 2l.000 uni6
or 12,000unitsfbr cohpetitors-rhe opert systemwould sranwith motherconclusionod
proceeduntil rules,faca, and conclusions march.
torwerdchaining Fomard Cha;ning. Foward chaining sterts with the fa.rs and work foNard ro th.
Theprocess
ofstarring
withrhe conclusions.Considet the eipen systh thr fo.tr6$ tuture salesfor a prcducr. \rirh foN$i
facts andworkinglom:fd lo the chaining, we sran with a fact, su.h s 'The dhand for rhe produft lsr monrh 16 20,0fi'
units." with the fovrd-chaining approach,the *pert systh farchs fo. rule rhar conrdr
a rcferenceto product demnd. For exdple, "IF prdduct dehind is ove. 15,000 unil!
THEN checkthe demad 6r competingproducts."As a r6uft ofthis proce$,rhe qF.
 D d or ooei .c I cu.pt"" t'

systemnight useinformation on the demand for omperitive produca. Next, after sarching
additional rules, the open systen night use infomation on personal income or national
inflation rates.This prcess continues until the expert rysrem on reach a condusion using
rhe data supplied by the userad the rules dnt apply in the knowledge base.
Conparisor of Bacboard and Foruatd Chainhs Fowtrd chainins an reach conclu
sionsad yield nore infornation with fewer querie to the userrhan backwdd chainin& bur
rhis approach requires nore pro.essing add a greater degr* of sophistication. Forvad
chainingis ohen usedby nore apensiveexpensystems. Sone systensalsoue nixed chain-
ing, which is a combinatiooof backwarda.d fom'd cha;n;og.

ThexptanationFacitity
An imponlnt pan ofd expert system is the *ploetion facility. which allows a user or explanalion
lacitity
de.ision maker io understandhow the expen sysren ariived ai ceriain conclusionsor resdts. Componentofan expertsyslemlhat
A nedical *pen system,for emple. my have reacheddre concluion that a patient has a attowsa user or decison maker to
underslandhowthe expert syslem
defective hean valve given ceniin s/nptons sd the resuls of tets on the patient. The a f t v e d a l c e r r a i nc o n cl u so n so r
explanarionfacility allom a doctor ro fi"d out rhe logicor rationaleofthe diagnosisrnade
by tbe expert qstem. The expert slstem, using the explanation facil;ly, c indiare aI rhe
f.1crsand rulesrhar were ured in rerchingthe concluion. Th;s hcilir). allow doctoN ro
dererminewhetherthe expe.tsysteh ;s processidg the dataand infornation conecdyaod
logically.

Thel(nowledgeAcquisitionFacitity
A difrcuh tmk in dweloping an expen system is rhe ptoces of oeating aod updating the
knowledge base.ii In the pst, when nore tnditional progrumming languageswere used,
developinga knowledge brse ws tedious and rime comuming. EacL facr, rclationship, and
rule had to be prcgnnmed into the knowtedge brse. ln mosr cases,an cperienced pro
gnnmer had to aete md rydate the knowledge b*e.
Todan speciafted softwe allows uen od decision nakes to createed modify iheir
o{n knowledsebses throush the knowledseacquisitionfacilig' Ge Figure 11.5). The
overall purposeof the ftno*ledge acquisition fcility is to provide a convenient and ellicienr knowtedge acquisitiont6citity
meansfor capturing and sroring all omponena of the knowledse base.Knowledge acqui' Partol rheexperr
sysrem thar
providesconvenientand eff cient
sition softwre en presentuser a"d deisio" *ith ery'to'use nenus. After lilling
-aken faciliry correcdy storesinfornaion mansol capturingand storingatt
in lhe appropriare art'ibures, the knowledge a.quisition the componeits ol lhe kiowledge
and reladonshipsin rhe knowledgeb,.se,naking the tnowledge b*e eder dd les expemive
ro ser up and mainrain. Knowledge acquisirion can be a manual processor a mixture of
mnual and autonated procdure. Regrdles ofhow rhe knowledge is acquired, n is in-
ponut to validare ud updare rhe koowledge b*e frequendy ro make surc that n is still

@
The knowldgacqLisitiontac lity
actsasa. inlerfacebetweenex!erts
and the knowledsebase

TheUserlnterface
Specialird userinrerface software is enplolcd fo. desisning, cftaiing. updating, md sing
aperr qrrem. The nain purpose ofthe uer inre'face is ro nake the developnent md ue
of m expert systen easierfor usereand decision makers.At one tine. skilled comptter per-
sonnel createdand opented nost expert systenq todar, the user interf..e permits decision
n.kes ro develop and ue rheir own expen system. Becauseexperr q6rens place nore
 PsJ| 3 Busrne55 onsYstems
ntormar
|

ser i!-
emphdis on diNdng ser ecrivities ihan do other qes of stsrems' tdt-oriented
than lhe
terhcs (using nenus, foms, Dd scriPts) mav b more common in exprt svsrems
a user and d'e
eraohical inteJfac ofren ued with DSSS A tvpical user interface betlveen
!'p..t ,y.t"rn f- the appliedon shown in Figure 1I 4 follows
-.dit
EXPERT SYSTEM: Are there my previous dedir prcblemsl
USER:No.
r ,he applant's net incone greater thar four tines the nonthlv loan

I
sX?rnr SvSreV,

USER Yg,
EXPERT SYSTEM: Is ttre down paymeni grealer rhan 15Eoof the ProPerrvvalue?
USER Yes.
EXPERT SYSTEM: Are the net sers of the bonower graEr ihan $25'000?
USER Yes.
the samecompmri
EXPERT SYSTEM: H* the bonower worked more tian thrce vem at
USER Yes.
EXPERT SYSTEM: A@ePt the lod aPPli'ation'

ExpertSystemsDeveloPment
epprcaih ld
Like other compfter ststems,qperr systemsrequire a slsienadc dqeloPnor
lr'O rhi. i;l"d's d"termining rhe requircnents for rhe
i".,.*,r" t'"Jrit"* "PP-""h under investigaion
expen system,identifying one ot nore apera in the tea or discipline
ofthe expertslstem, implemenrins resuhs'ud maintaini'-i
".i""-".i'g 'r'.the 'he
.nd rsiqing --p*i.ts
comPleie lsren

@ D.lermining..quirem.nr!
Stepsin the ExpertSystem
Dovelooment Process

Constructing rperl syst.n compon.nrs

:inrainingrnd rdiowan9sFl.m

Process
TheDevelopment
r h' 5v{em' oh-
5 D rc i hi nq $e requi rcmrnt'l or r erpen' vrem begrnrw i ' h i denri toi ng
:'
,'1. i" p-.'i';,1 *.. r,lot'tu;ng *pen' .m be diPl' ull ln 'ome 're ' r 'omPr'
-a qpens on hand; in otrrer oc, *pera.ourside lhe orydiadon wi! be requir'd'
human
rhe eqd
Dnelooire rhe expen sy'ren comPonenbtequirc<'P<ral 'knl' lmplemenrlng
rcri on,nd m.Li ng rhar rr operates I i n r ended T't e"w
," ,," - i " " i 1" .. o1..i " qi ,;" to ' u*
.yu.-' * p." q' tem houl J L' cpenodi el l ) rfl i ew edand mJinr iinedr o D'&
.o .p * .
r"re rh"r th"v dair..i"s rbe besr supPoft to decision naken and uses
"re
 5rP.aLzeiBu:icli I cuPt"" rr

Muy compdies are only now beginningto use a"d doelop erpet svstcmslixpert
systemdwelopncnt is a team effon, but *perienced p*somel and usr nav be in high
dcnand within an organization.Because developmenrca takemonthsorvcan' dre <xtof
bringing in consultanafor developmentcm be high li is criti@I,rhereftre' ro find !!d
ssenbie the right peopleto dsistwirh developmenr'

P art ic ipa n ti sn D e v e t o p i nagn dUsin gExp e r tSyste m s

lypically, severalpeople are involvcd in developnrgo.d "sing ar *put svsten (see
l igur e 11. 7) .

@
Particip.nte in Experl SYetmg
Dvelotmenla.d lJs

J
\^

i+-
-+
TheDonain E4ett. Becatseofrhe rine and effort involved in the ttk' an expen qrten
b Yd
T h ea r e ao f k n o w t e d q e a d d fe ss
is developedto addressonly a specific areaof howledse. This areaof knowledge is called
the domain. The domin *pen is rhe individual or group that ht the erpenise or knowledge
one is trying to capiurein the expensysten-In most @ses'the domainexpenis a groupoi
T h ei n d i v d u a ot r g r o u p w h oh a sth e
human experts.The donain expert(individualor s.oup) usuallyh* the abiliry !o do the
e x p e d l s eo r k n o w t e d gon e s tfy n g
following: to capt!re n the exprtsYslem.
. Recocnizthe real problem
. l w o rl ' fo r p ro b l e m.o l r i ng
Doelop a ge n e rai me
. Iormulate iheories aboui rhe situarion
. DeveLopdd usecenenl rulesto solvea problen
. tGow when to break the rules or generalprinciples
. Solveproblemssuicklyand efticiendy
. Learn fron experience
. Know whar is and is not importanr in solving a problen
. Explainthe situatioddd solurionsofproblemsto orhen
rhe K"oubdse E ginet dnd lGnuhdge Uers. AknNledge engineet is an individual enginer
knovrtdge
A n n d i vd u a l w h oh asl r a r nn 9 o r
who has truiningor aperiencein the design,developheni'imPlementaiion'and harnte-
e x p e ife n c el n l h e d e s!n , d e ve l o P_
.*"" of ry.r.-, induding trainingor *perience with epen svstenshells The m e n t ,i m p l e m e n l a l i o na,n d m a i n te
"*p"n
lnowtedge user is the iodividuator group that usesmd benefia fron the expen svstem'
- nanceor an expen syslem
Knowledge lsen do nor need anl Prflious taining in compurer or elpert s)stens'

T h e n d i v i d u aol r q r o u p w fr ou se s
TootsandTechniques
ExpertSystemsDevetopment a n d b e n e i t s l r o mt h e e xp e .t
Theoredelly, experrqstem ca be doeloped from my prognmming languageSinccthe
inrroductionof conputer qxtens, progrdning langugeshavebeconceasiettouse,more
powertul, and increasinglyable to hrndle specializedreqriremenrs ln the earlvdavsof*pert
systcm deelopment, naditional high-l*el lmguages. including Pascrl, |ORTRAN, and
COBOL, wereusedGeeFigure11 8) LISPrru one ofrhe firstspeciallanguages devcloped
and usedfor anificial intelligenc aPpli.aiions. IROLOG' a Fo.e recenr lansuage'wd also
developed for AI applicatiods. Since rhe I 990s, howwer. other exp*t svsten products (such
 Pdts I E!s iF . ir cfm a io r syir p m s

asshent havebecomeavtlable rhat removerte burdenofprogramming,allowingnonpro,

sanhes ro dselop and beneir fron rhe useof erpsr srsrems.

@
Soilwareiorexpe sysrehs deve-
topmenthas evolved9realtystfce
19 80ffom
, $:d llon at pr ogr am m r ng
l:ngLagesto expftsyslmshells

E"?.'t E tm St.lts a".t Ptuduc. As discused, an expen systeh shell is a @Iecrion.:

.o l N ' ,c tr.k ,ge.rnurool , ,cJ,odr.i gn.dfl ei op' nttenr.rr ,nd m,i rrai n
npe n, r . r en
tro , n \n c m \h,l qi .r ,or borhper.,nctcompurer. and m,rnrnrn. ).(e% . \ o- , , h. . .
'
are inexpensive, .osdng lessthan $500. In addidon, oiT-rhe-shelf cxDensvsrenshelk ;,.
r% i l ,L h ,h fure.ompl c,e rnd rerJv,orLr. theuer.nre,.,herpnr;pri .,,eJrJor t "r
eres,and rhe cxpertsysrenprdddsoftpur ro rhe p.obien orsnuadon.
@ A numberof dpe.r systen shellsand produfts re aeilable ro anatyr LAN nework
PopllarEpert SystemShetk mo n ro , ri , q,rrl i rl r omnen Ll bui i di ng..and l nrtw e oi i
" nJ dri i rg ol .f rr ioi, . A r . "
erpen systenshelkarcsunmarizcdin Table I1.2.

As s i sts:rorl dl dg.soperdri orsl rdi sm,.B t,srcorpdry,Lresrrroh elpi.

l h l - a60orl ol gasto no-e l han20m U i oncommerci tsrd
d donFsnc(ust om er s

A n a t yzes
haz.rdo!smatefi ats
ntruckshi pmenrs,

Fet os d e r c h r n e o r o p e r r v v d l L e s i o e v e t o p sb y o n e o f r l e t a r q e s lr c s , d e l f i d .l i r tc
ano - to s 1 9 c o f p d l l e s .
 spe..Lzedtsusnessirormaronsysrems | rt
"o.o,'

ExpertSystems0eveIopment
Alternatives
Expen sysremscan be developedfron scnrch by uirg an experi systen shell or by purchding
an *isting expert system package.A sraph of rhe seneral @st dd time of devlopneDr
atrernativesis shown in Fture I I .9. k is lsully fdrcr and le$ dpesive io d$elop m expen
systemuing d *isting pack ge or m e*pe,t qrtem shell. Nore that there will be m addi-
tional cosr of developing an existing package or acquirhg a erpert system shell if the
orseiarion doesnot alreadyhavethis rype ofsoftware.

Hi9h
@
somExpertSystem
DvetopmentAtternatives
and
TheirRetativeCostendTihe

High
llm. 1ort.v.lop.rp.n.y.t.h.

In-Eotu# Ddeh?ndt: Ddek?fou S.rzt r. Dseloping an dpen s1sten fron scratch

is uually more cosdy than the other alternarives,bur an organization hasnore control over
the featuresand conponenrs of the systen. Such custoniation elso ha a downsider it can
result in a more complex systen, with higher maintenan@and updating costs.
ItHo*c Doelopmmt: Daelop fon a Shen.As yothave seen,a expen rysren shell
consistsofone or nore sofrwareproduca that usisr in the dwelopnent ofm *pen systen.
In some insidces, the sue shell o be ued to develop nan/ dpen slstens. Developing
an aperr systen frcn a shell cm be les compl* and easierto mainiain thd developing one
fron smtch. However, rhe resulting expert qstem mal deed to be nodified to taibr n io
specinc applicarioil. In addirion, the capabiliries and fearuresofan e"per slsren cm be
nore difficolt to conrol.
Offtlte-Shdf Purchw: UseE kt;ns Ptukdsel UJ'tstn qisrins expen s/sten pack ge
is the leor expensi"ead fasrestapproach, in mot aes. Ar ensting *pen qrtem packrge
is one that has been developedby a software or consulting company for a specific field or
area,suchc the designofa new conputer chip or a weatherforeodns and prediction
systen. The advanragesofudng an disting packascan go beyond dwelopmenr rime and
cosr. These rysremscm also be eary to naintain md updare over dne. A disadvmese of
uing u off-rhe+helfpackase is rhat it nar not be able to sarisfr the unique needsor re-
ounemenrsof an oremiation.
rb"t 3 | 8. 3* , = nhf m r ois y s r en:

A p p tica tio nosf Exp e r tSyste m a

s n dAr titicia tInte[l i genc.
Erpert sysremsand arrificirl intelligenceare bcing usedin a varieryofways. Ior exanrc
expen systenshavc beenusedto help power planr reducepollututs while mainoin':;
profirs.i1They h"ve ako beenusedro determjnerhe b.sr way to dist.ibureveighr in a :=-
ryboarro rcducethe risk ofcapsizingor sinking.r5Orherappliaiions oflhese ssrcn: c

. Cr.dit graflti"g M.l ladn dna/t'^. M^ry l)an]{s employ experr systems to rviR a
indiridual's credit appliodon and credit hi$ory diia ftom crcdit bureausro ma.::
dcnionon whcrhertognnt aloar or approvea tansacrion.Kt MG PeatMas,i.k s
an expens)rremcalledLoan Probero rsi.w its reserves ro dererminewhethd suRi::-
furds havcbc.! serlsid io coverrhc risk ofsome uncollecriblclorns.
. Sta.I piking. Somc cxpert systemsare uscd to fidp i.vesrmen I professionaispick si+

. Crtthikgchea+a"d Efra,lrJ. Sone gatublingcasinosuseexpensyrem softwueto r:::

gamblingchears. The CIA is rest;nsrhesoftwrreto seewhetherncm bc usedtu dr:--
posil,le terofisrswhen they nal<ehotel or airlineresenladors.
. Bdgenng. Auromorivr compa es on use expeft sysremsro hetp budger,plan. :r:
coordnareprorotyperesringprogramsro savehuodredsof nillnms ofdollats.
. Crzcr. Someexpe.rsysrcms areusedforentenainmenr.Forexampte,proverbisan e\r<
sysieh designedro solvesrandtudAhericancroswofd puzzteseivenrhe erid and cib
. th f,n dti aaql nal ca.ataul etaa' l .1n,e\pta,,.g,o* ,l ori .ro,.,,i -on, , , , r , n. ,
decisionm.Iers hasc.eareda dehand for devi.$ to helpmmagerheinformation.tx|<:
s)'stehsan aid this process drough lhe uscofbo$. Busincsses night usea bot to rerF:
i rro rnr.i on i rof l rrsedi rri buredaJrrb-c, or. rat neMort trG .he I n, er nerF\ . r
\rl e m ,cerF hel p mrn.ser nnd .he ri gh, JrLad,d i nfo,mruonw h it e f it , er ns . r
i i re l nr' n,' r.,,,1" . m,sh, i rpede,i mel l de.,.,onmatrrg. the tsui ingon No; lr
SanraIe Ra;lroadusesspeech,recognition rechnologrto help it retriwe and st:
shippingdataauromaric.lly,aslhe "InforinarionSystens@ Vo.k', fea$re discuse!.
. Al a,.l .lpetr rylkm! etubed*d ir products. The antilock braking sFtem on tod-- :
auromob;les is ar eenple of a rudinenraryexpensystem.A processor senses when :
ftesarebeginoinsro skidendreleases the brakesfor a fracrionofa secondro prevenr:
skid. Ar resealchesarealso finding wa)s ro useleural nerworls ad robods in evenc
d e " i ce..5u.ha. roarer,,i l rrm .l o. k, ,ed tetryi .on,.
. Pk t 4out a"d hdnufacr,,;& |LEXPERT is d expen systemthat usesfuzzy losr; :r
perforn plan! layour.The soflwarehelpscompaniesdeterminerhe bestplacemenrr
equipnenr and nmuhcruring Acilities. Expert systemson also be used :
mandacturing.36 Accordingro an industryobse(er, 'A few gianrswill emrge.Th.l
handte !hei. cusromes' full losisrics needsar rhe lowest unir cosr, using a seriesof expe:
systems." Expat systems can also be used to spot defecdve welds durins c
m J nui d.,ur:ng p,o.e,.. rhe erpen ,vrer mri ee. rudog,,pt-;.i mage, : nd, uf oN
which welds could be nawed.
r'{ovinq Dala-and .du r .6 .6 .6 0 ,e,
Freight-Eff icientty a da ..4 dg.
- ? BLr.lngtonNorthefn and Santa F Ralway Co.. mo.e prcted,afdtr3nstatedrntoteN tthat
sal tomat.attyenternt
edot he
::lrenentLyrefefrcdto as BNSF.ope.alesore of the l..gest mai nframed:tabase Thesystems!ppo.tsboth| .do cat t saf dcelt
phonecattsand is managedon PC5by drspatchers rt BNSS
:.roadnetworksn No.thAme.cEwth about32,500rclte m teg
::.e.ng 28 siatesand 2 Canadan p.ovnces The .a trcy moves net!!o.kope.atonscenter
_ r.elrerghlthananyothe..a t systemn thewortd.s Amer.a s BNSF.ecenttyrottedoLrtits ne!! systen-rwh.h t cattsthe
:_ _ rl ] s t gr an
haLr t ing
r at.o a d .t.a n s p o .ts tl ren emra l c o m ponents RadioTetephony InterfaceIRTl. andptarstotake t systemwide by
ofthep.odlclsrvedependonda ty andhalts enolghcoat 2005.Whitthe .ompa.ydecLnesto dsdosethe exactcostof the
: -irny systm,BNSF5 T budgetincfeasedffom $1 5 m tlon n 2003to
l .i ef at e m of et han 1 0 p e .c e n to i th e e l eccitty p rc d u ced
nthe
_iedStateEKeeplng t.ackofthet.eght beng haotedn 190,0011 $274m ttionn 2004
Blt thercsuttngsystemwaswo.1hit BNSFrc s .ecoqnzedby
. _ !hct as plt ledby50 0 0 l o c o mo tv e5sn os ma l tl a s ka n dLrnl i l
: :ntlywasstow.nderor prone SpeechTechnoloynaqazn as winne.ol ts llost hnovatve
Whte BNSFma ntaineda staleof lhe art nfo.mat on sysienr SotlnonsAwa.ds Candd:tes fo. the awaidwe.ejldqedon thei.
:5netwofkope.atonscenteri ForlWarth,Texas,ts methodol "b . e" " .." mpo" ro,-" J - r.
_evng nform.ton from the train cre$s was ant'qlated.As and!t tzespeechn. cfeati ve formatl oranautom:ted sot ut on.
lelf CampbeLt sa)s that the new system mprovesclstomer
rht carswerepicked!p of d.oppedoff thecfewwolld|adolhe
satsfactionbyattowngBNSFto!pdatcitsTranspoilat onS!ppo.t
rnat on to the d spat.hef.whowolrtdthentypelhe informaton
Systemn nearroattme.TheRTattosBNSFtop.ovde.lstomers
r rhe BM m. ntfamesysiem.CfewswoLrtd stJ.t ther daywth
_]en work o.ders and tlrn them n al the end ol the day wth morehequentniofmati andctoserexpected
:rspe6edwrthperodc catLs lo reportca.sd.oppdoffo. p cked
: leff Campbetl.BNSF5 ClO v ewedlh s appro.ch.s oltdated D anN 4i tter,af
.n.tyst.tZetosGro!pl ncnS anF.an cscosays
.adioto datainte.lacesare the i.xl l.ofltie.fo. VRsystemswith
: - - beEomeand ncapabte af meelingthedemands of clstomers
hLrgeg.owthpotent.twiLhinmanyindlst.es. inctudlng ltu.king.
: j ,.l r oadm anageme ftfo rn e a r.etm a te d a ta .BN SF setol l to
::: tn . systemthat coutdprovd0up.to the-momentsh pmeal uti ttes ard fi etdsetucel teetf.ms.
rri rat ion s m t ar t os ys te n rs u sbeydu P Sa n d F e d Er
B\c . dp.o o..d o. p 6 4 . . .6 o qn o. Discussion0uesliong
- nc ..th a t.L to m a tc a tty t!m e d v o i cerado.attsI W hateffecthasspeechrecognti on h:d on the d. ly. ou'
-d ar eby
: dala S ccolld
tlrat ans cbe f t nteqGtedinto the .ompanys.omplter ti ne5of B NS Fcfew sand di spal chefs?
::.ms. AllhoLrgh speechrecognition systemsa.e poputaftor 2. W l raitypeeof retLrrfon i ts nvesl me.tcouLdB NSFear n
, i mat edphones y s t e ms !s n q s p e e c h .e c oto
g n fo fv o c eGd o w th i ts speechfecognI on system?
. : fewappLical on forthe technology-one that prcsented some
i:itenges "Two'way.adiosystemshavetoweffldeltythan the CriticatThinkingQuestions
: rlet nest.adt onatlyLrsedwth iVRlinteractvevoi.e recognI onl.
_
: f d et t y pr obt em w a s c o mp o l nbdyeth d e n o s y e n v a onmentof 3 l ' 4anybus i esses nthetfai spofi atonanddeLi verndLr y s
ti es rety of radi ocomm!n cari cnsto keep d sp at che. s
: r:o m ot v e. ab. s ad R o bKa s s e t, S c a n s o ftss e n i o rp rodl cl
_ o. ot . o..h^ d,.a. . . e
:ra q efr o. neM o. K s p e e c n " .d" ." ." i . " 9i
5..nsoftemptoyed5pecaLnolse fllte.ngsoftwareto'cleanlp .-" .._.dp o " ." .-g bee.
-- signatand sanptednrmeroLrs engneer |ada catlsto ieach f.om speech .ecogni t
on? H ow ?
o q ^ . p i o . d o g ." o - a L q e n - "d
4 W l rat generatcommunc.t on sceni rfi osa.e deal f or
l nte.actve vai cefecogntron systems?W hat s t aba! t
: neni n additDnto speechfecoqnton techrotogyScansoft
thesescenaros l hat makethem deat?
::i l s ed v oc e f ec og to n n s o J tw a re
1 0l e ri t th d e n ttyofthe
: :_roi speakig BNSFd d notwantLor sk an outEdeis hrck nq
r ts pr vatemicfowave
rcdo syslemandfeedngthesyslemf: ts BobBrewn 'ARaitroad
SoURCES: Find5tsVo.e,-Co-puterya.ld
)anuary
26, 2401, w'9 nnputerw..td co4 s.,nsort Spee.h sFIem Deptoy
ment5 Receve lndustry lnnovaloi Awafds,' Arsr.ss ,ttre, May !9, 200,1
an ri c a mn gc a l te .s re c o q n z e d rn dve.f
!n c et hev oc eof ed w.lerb ,extscoh: Scansolt n.. Web sle, accessed lune 2, 2004
w s.ansaf! .ant BNSFs wed 5re accessed)!ne?,2041 M.brsLcon
: systempromptsthe.rewfor inlornratoi usir'rg an inter:ctive
 P'rt B I BEres, ntormar s,,5tems
'r

H a p i MLmd-apdi .al faci l nn..5omeho.pi .at,r..erperi ,rrem\i ode r r r m ir e, pjr ie, .

l < e l r hood ol \on rJl ri ng un.er or orherdi .e4e.. H " .pi r" l s.pharma cie,and . o, ", -
healthcdeproviderscan 6e CaseAlenby MEDecisionro deternine posible hieh-ri:i
o r h g l ' -.o.rD Jri nr..
, MY .IN i . r1 qpen ql em devr.oped r sunro,d Unive; , inr
an.lyzblood infcrions.UpToDaren uorhe! expnsysrehusdro diasnosepaden.:
A nedical exFer sysreh used b/ rhe HarE.d Coninuntq, Heatrh plan allows membc:
o l J l e H Mo medi al di ,gno.e.r i , honreper.onat.ompurrn.F.{ mino p, obt ( r .
' o8o
rh r $ rem gre\ un,.mpl i ,i rrd rreJ' henFrfo, more \e,i o6.onu,ri on, . r hr . y. kr
schedules appoinrnents.Thc sysren ;s hishty accurarc,diagnosing97 percent;f r;.
patienlscoriectly (conparcd wirh rhe docror,78
fqcni a@uacy rarins). To he:.
doctm in rle diagnois of rhoracic p,in, MarheMEDis has dnetoped THORASK. .
!E i e h rf.Mrd. e,5v-,o.u\eproB rm .rqui ri ngont) l . i nou, oi obr . i.
c d .l i n ,.i l i nfo,nari on. l \eprog,,mnei p.rhere* erp,rren.cdrodrri -rcr ujt , her t - . .
n qxnhr
p ri n .i p al.arcgorre. ot . h* r pj n + om eal orhcr.t, doe.w hJ, r ,.u" *p. -
svsrenshoulddo withour rh. needfor cohptiared userinput. The user - .answes
a, *t bsj:
qrsdons abour rhe pdenas histori, and d;ecred physicalfindings,and the proge
i m m e d ;rel )d.pl ry.,l Fr otdi rgn..e. fhed,agno\e\,..pre.mr.Ji ,de. r c", , ; g; r d.
u ' l ,k rl ihood. .oserh.rk,rh,hei r eri maredp,oS ,S ;t;, .. rt" p," g,.,t- pio, , a.
concisededipriors ofrelevaDrdinical condidonsdd their presenralions, s wei asb.i.i
for di agno..i . nd.hc..to, purpo.e.,,1re.ordtrepi ng.do.um enr ", iu
' u g g e .r;or, " pp
and deta analysis.the.e aie options for saving md prrnung cxes.

SeagateTechnotogymptementd
an exPertsystemlo m onit or it s ds k
dnve componenlsmanuiacturi.g
Processesafd hpfove yields.
lSo!rce:REUTERS/ Kin
Cheung/

Heh dz'h! and a'iiitdra. Ctsroner seNicc help desksusedpeft strrem to provide dmet:
and aauAe dsisrance.Kaief lerndent, a largeHMO, usesan *perr slsten m;
re ,pon,eroauromrr.i L,hei pde,ktunc,i on.fhe Ju,omJ,ed hetpd;.k t , ee.uf {r
'oie
ro h rd l f moreompl er ned. w hi .e,r Il provi di ngrore ,i me\ aanrr.c f or , ; , r , - .

Enplorft ?etfoMdtu 4a/&r'a,. An qpcri slsteh dqeloped hy Ausdn Ha)-ne, ca d

Enployee Appraiser, provides nanagers whh *perr advice tbr use in enplor*
p e o man!erevi e$.Jnd LJreer dsel opmenr.
Vi* detection.IBM is ving neual nemork technolog to help c.eare nore advarc.:
soitware for eradicarins onpure! virses, a najoi problen in Anerican businesF!.
IBMI neuralne$ork softwaredeatswith "boor secrot'v;ruses, rhe no$ Drevaient sE.
u \i n g J f o,m o, rni fi .i J i nrel l .gcn.e
rharni mi .. rh. hrmrn bai n,.d eencat i^. o.
l o o k i n grr evm;| e.. l equ,,r.J rIr rumberot ,rri n,ng.dmpte.. h,.h .n , hc ca, .. .
"
atrtivnus soitware are 3 blre virus fragheors.
. Pepdit and naiflte"dhra ACE is m expen sysren ued by AT&T ro analrze tl:
n ri n rrn a ncco.rel rphoneneMo,L\.tttl nrel l i 8enrLl eLrronh\u\e\dd pensr en, .
diagnose naintenanceproblemsrlared ro aerospace equ;pnent.ceneralElecr.icAilcrr:
EngineG.oup usesm dpert sy*em to enhancenainreranceperfornarce levelsar r
sitesod inprove diagnosticaccuracy.
 5pe.a[r.d Bls nessnrormdoi sy.rems I cupt- rr

. Shippins. CAI].GE){ cargo*pen systen is usedby Lufrhatua, a cermm airlinc, ro help

determinethe be* shippingroutes.
. MathenflC. Co\eftory is m apert qrten that exrractsmdkering ioformiion fron a
databak dd automaricdly wrires mtuketing repons.
. lYdreho"ie opinizntion Unired Disrillers usesan qpen sysren ro derermine rhe besr
combinarions ofliquor stock to produce ia blends ofScoftish whiske),.This inforneiion
is rhen supplenented wirh ;nformadon abour rhe locadon of.he 6ks for each blend.
The q'sren optinizesthe selecdonolrequned casks,keepingro a ninimum rhenmbr
of "doo6" (warehose secdond Ooo which rhe casksnst 6e taken and rhe nmber of
eks rhat need ro be moved to cleal rh way. Orher constnints nust be sarisfied,such
d rh curenr working opacit)' of eich wdehoue ud rhe maintenance md resiocking
work that nay be in progress-

Int egr at in E
g x p e r tS y s t e m s
As with the other info.narion sysrens,d expen systen can be inregmredwith other s1,ireDs
in an organiation throu8h a ommon darabase.Ar sperr s),steh tlff ideniifis lere,pe)-ins
custoners who shodd nofiecive addirional qedir nay dnw &ta from the sme darabre
asan invoicing MIS thar produces wekly repons on overdue bills. The sde databdra
by-prcducrofrhe invoicing$msacrionprodsing q{ten mighr alsobe ued bya decision
supporrsysrehto perform"whar if' analysisto de.efuninerhe inpact oflare paynentson
ah flows, rwenus, ud overali profir levels.
In nany orsaniariotr, rhese slarem overlap. A TPS mishr be expanded to provid
naMgenent informadon, which in rurn nay provide some DSS tuncdons, and so on. In
eachprogre$ive phde ofrhh ovedap, rhe infornation srrh a$isrs wirh lhe decision-na!,
ing proces to a grearerer.renr.Of all rheseinfortution systems,qperr s}srem provide rhe
most suppon,proposingdecisionsbsed on specificptoblem datamd r knowledgebue.
Undenmding the capabilitiesmd chracteristics ofexpen systemsis the finr stepin applying
rheseqrrems ro support managerjaldeds;on makins and orsdiaiion.l sods.

VIRTUALREALITY
The rerm inuat realiry w innia y coined by lson Larier, founder of VPL Rserch, in
I 989. Originally, rhe tern tetetted to inneriue irazl /crl,ry in which the user be@ns
tully immered in an aniffcial, rhreedinensional world rhar is conpleEly senerar.d by a
conpurer. Immersive virtual .eaiity may represenr any ilree-dimension.l sening, rel or
abstnct, such a r building, ad arch@losial excavarionsite, the humar anatony, a sculp-
rure, or a crime scene r<onsuucrion. Through inmerion, the user can sain a deeper
undersrandingof the vinual worldi behavior ud turcrionaliry.
A virrual ralit'' system enablesone or more mers ro move and reacr in a omputer virtuelaealitysystm
sim ared environhenr. Vnual realiry simulations reqdre special inre.f.ce devi6 rhat A syslemthal enablesone or more
ransnit the sishts, sounds,and senetions ofthe sinulated wo.ld ro rh user.Thse devi.es u s e r st o m o v e 6 n dr e acli n a co m -
puter-s m!tated envrronmenl.
on also record and send the speechand movemenn of the panicipanrs ro rhe sinulation
progrm, enablins use.s ro senseand manipulate vinual objeds huch 6 rhy would real
obiefts. This natuml sq,le of inreracrion gives rhe pani.ipants th feelios rhar rhey are im
mesed in the simulared wodd. Dainlerchrysler ses vinual reality to help ir simulare dd
desisn facrories.3s
Accoiding ro rhe CIO of Daimlerchrlsler, "\re m piloting a disiBl plur.
As the engineer and designersare doeloping new prcducrs, rhe digital factot is simuladns
production. " The conpany bel;evesthat rhis useofvirrual realiry will reducethe rine ir nkes
ro move from an idea io production by about 30 percenr.
 PaftB I F6Ns ir ! , m ' i, s r * pn.

Interf a c eDe v ic e s
ro seein a virrual world, t,licr rhe ub wiu weir a headhounrd
display(HMD) *irll
$rcens dire.ted at eacheye.'the HMD rlso co rins a posirion
,*.1. i..-,i,*,t.
locxrnDofth useis hc.d and rhe direaior in whj.h rh"
r,_U,g. u,;g.t J;.r",
mtnr, a dmputer soEraresimagcsofrhc vinurt *.orld "*. "
a stighdydiffqft ,;w fitr o.l
' )-o rr-l ,r l -.di ft.,hr' r," rrL,r.eri .,,,oLi rg.rrdu;.ptrr.,hc.,.;_.g..,,,11.U11p
w rr , urr,rrrerl r!.l n$.,i r..rl
-orU ,.er..mr.rt_.tcpr ret-ri \. , \ n, f , c. o r t _Jr,
updar. the vlstralinagery quickty enough(at 1.",t r.,n rime,
a scc".<t)I
.,tp, ,ri ,,gi e,t) andtrom| ,ggrg b.h,rd rh. u.cr . r r o, . n a
c r' e nJ,,Le on,rp,. ttOOV | J I A \ t - s,.-C (.rt.r,.u r^r
:hnr..i\ . \ ic\ . 1^
vrtud enrlronmenrsro overcornerhc olien uncomftnableinrrmivors
ofr head_nourir,.
.lirplav.The UOON{(BlnocutrrOrDi-OrienrarionM-,it",) f.-,
t"t",p_"r_"b.i;;;.::
' { tl c d _ .reco..,,ti . Jntl ryddi ,. \(r(.r.Jnd.,prr.J1.rcn,,," \.,,." ,1 i. , b", , 1, . u
J ,' \h p d ro r tu' ,rri l i nl . | . i he I r, toot. i 1,o,t_ebr. hro,rgn
oo ,ot...,"e. r h. v. , .
wo d, and canguidcthe bo! nr any posirionwidrnr drevirrualenvironmcnt.
Headrachnr
is acomplishcdvia scnsorsin the links ofthe arn thar hdtdsrh
box.

The800M a
, ha dc o u p te dsdp l a y

L 5o! r c :
Cour t esoyt U n i v e rs ry
ot
M c h9. n V ir t uat
R e a trty

Thc Elecfonic VisualizarionLborarory at rhe Universityoflllinois

rt Chicaeoinrrr
ducda idom_ons!ru.redoftargescreens onwhjch thesraphicsarep.ojectedonro;e rb...
wallsa'd rhe floor. 1k CAVE, asrhis room is called,pr_id", rh" iil*i",
i_-_,i; -.4
"f
p ,o e .u n t.' ereoi n" ge.,,n,\e..Jl l .rdfl oo o.J,o.1 .i ^J.ube.\ev(.,tfenor , wc . .
i s rtu e g h r,,recogtr..,.rnerer" l JMtLr,eetv r.de,he( cw .{hc,,l .l ;" Ji; s; . . .
' o n rn u u u \r )' J JJ.r1, .' cre.proi e.Ion ru,hecurrerrr
po.i U or,.rrh. te,drnq, ie". r .
 V i e w i n 9 l h eD e l r ot M d l i e tdTe fm i
nal in an immersiveCAVEsyst,"m.
l S o u r c eC o u r l e s y oU
l n i ve r sr yo l
M c h 9 a i V i r t u a lR e a tty

Usershcarsoundsin rhe virualrorld rhroushearphoics.The informtn,n repored bl,

rheposiriontrackcris rlso usedto updareaud;osignals.When asourd sourcein virtualspace
5 nordirecdyin fronr ofor behindthe user,rhe compurerffansnirssoundsto drive at one
caLa krle earlieror later thf r rhe orher and ro be a lirdc loudcr or sofrerand slishdy

The rzl't intertte, which relaysrhe scnscof rouchdd other physicalsensarionsnr thc
{irual world, is rhc ledt developedand perhapsthe mostchallengnrgto ceate. Cufendy,
rvirhrheue ofa gloveandpositiontacker,rhecomputerlocares rheuscfshandudheasufes
tlngermorenenrs.The nsercanreachino the virrualworld and handlcobjccs:ho{ever, ir
is diflicuh to generatcthesensations thar re fdtwhen apersonrapsa hardsurface,picksup
objecr,or runs a finser lcros r texturedsurfaa. Touch sensarions
alsohaveto be syn
chronizedwith rhe sigha and sounrLs usersexperience.

F orm sot Vi r t u a lR e aL i t y
,Asideiiom immersivcvirru .eJity, which we just discu$ed,v; al realirycan alsoreferto
applietions drat arc rot fully innersivr. suchas mouse-conuollednavigarionthrough a
rhree'dimensional crironnenr on a graphi.snonitor, sre.eoviewingfrom rhc monitorrie
..r r o gla. e. . . , ( r . o p ro j e c ri o n).rp r..rJ ,rh d ..
Sone virtual rcaliry rpplicationsallow viewsof real enrironnents with superinposed
vnnlalobjcc$.Morion tn ke( noniror the movemen$ ofdanceFor arhlcres for subsequrnt
{udies h nnncsive vifttral reality.Telepresence sltrens (e.g.,relemedicnre,
telerobotics)
imnersea viewerin a reelwo.ld tha!is capruredbyvideo cane.asar a distanrio.ation and
Jlow for rhe renote nanipuhdon of rcal objeclsvia robor armsand manipulators.Many
bcli*e that virtual realiw will rcshapethe interfae berweenpeopleand infornatbn te.h-
nologybv offeringnew wa)'sto cohmunicatinformadon,visualik proccsses, and express
 P.,i 3 E,
|

Computer-generared imagetech
n olo gyan ds m0 t at ions us edby
cohpanrslo delermineptant
capacity,manag-a bolttnecks,
and optim ze prod!clion rates.
l5o0rce,Courtesyof Flexsim
SoftwareProducts,Inc.l

VirtuatReatityAppl.ications
Therc {e lire.atly hundreds of applicarions ofvinual reality, wirh nore 6ejng d*eldped
rhe co.stof h*dmre and rcftware declinesdd peopli inaginarions ne opened ro Jre pc-
tential ofvirtud realiry. Here is a sumnarT ofsome ofrie more interering ones.
Medi.ine
Suigons in Fntre prformed rhe firsr succe$tuI clced-chest oromry blpc operadon
Instead ofcutiing opetr rhe parienls chesi dd breaking his bre{rbone, !s is usualy doE
sugeons u*d r vinual r.liry sysremrh enabledrhen to operatettuoueh rhrce tinv haF
incl in(i(ionr beMeenLhepar;enasib.. They iisened rhin ,;b.,,o,unn;t ,o ,-h.op;oo"
areaMd prorec he oth.r body I hen rt-reerrm\ weK in,ercd ih- !h. .b;.. O;
wd for r 3-D cdera; rhe other 'i,.ue.
wo held tiny anificial Mis$ ro which a variery of toolF
.cJ pets.,.,s\o^. needJe-wre rnached. Ihe vinu4t reJirv.l,lrem mimickedLhemovenG
oi Lhesurgcon! shouider. elbos. rd wr i,ll. I he surgrcnqr /r , .ompuer wmk!rrb.
sseral feer frcm the operating table ad noved instrmenrs rhar condolted rhe onesi.5i&
the patienr. The insrurnenrs iside the parient dupliared the modon ofthe surseon'sha,d
'o aamrely t}ar it rru posible ro 's up r coroirry anerya rhin b l hread.I he (u,qo
qJl(hed his progreson r scren rhar enLrgrd rhe eery in J-D ro rhe sireofr grden he
In yet uot}er medicalapplicr!'on ot vinuJ rerliry. re,ea.hen are rqing ro rmt
biornechdical maurenents so rhat they en be stored in a onputer databm. Data 6u -
actuatpatients will be garheredfrom senso$nounred on the fingerrips ofvinuat ftaliry
sl()E
to creaE , darabaxethar wifl be rnade available to exaninins physicians. V/hen a ;oc
examins a new p.rient, a feedback sysremli*ed to the vnrual realiry
sloves will eprr
sensarionsdd comparethem wirh data in rhe database.This approachcoutd allow surgeG
ro go riglr inro Lheoperaringroom wirhout hrling ro obra;n , CA | ,an. rhc .r,,{
rime ddwnh manyiniuries,rhaCsabsoluEtycirical.
Vind,l realiry rchnologl.en alsolink sroke patien$ to rheir physicalrherapise. pario
pur on specialglovesmd orher virrual realitl, dwices at home rhar are liaked ro the phsil
rh e ru p i n i o$.e. Ihe ph1:i .ajdrerapnr.u then,eeuhetherti e pari enri . pe,f or nilE S.
corcr *rcises wiihotrr havins io ravel rc rhe patienCs home or hospiial rooh. UF d
vinual realiu, can cur truvel dm od cosrs.
 s p e : a r : : oB ! 5 i e . s n r . . n . r c 's F r e n s I c o " p t " . tt

Eduaalion
andTinin9
Viriual environnentsare ued in educario!ro bring cxcitingrew resources into rhe clov
Stodentscanstrollanong digiralbookrhelves. leun anatonv on asinulated cadar-er,
'oom.
or panicipatein h;lorial everis Jl vnrually.
Third'gmdesn,denrsarlohn Conon TeyloeSchoolin\(ashingron,North Carohra,can
rakean excitingvinual trip down the Nile for an integrared'cudculumle$o! on an.ient
t.$?t. l his nnencrivc viirurl rerliry conputer lessoninregratessocialstudies,geography,
rrusic,an, science,rnadr,and languagearts.The soliwre usdo dsign rhe leson was3-D
vebsne Buildef (crearedby lhc Vnrus Coipordtion),whi.h allowedthe desisnesio crcrrc
r desenlandscape conplcte rvirh an orsis.cmels. and a pyhmid. sludents@uld vi6{ dr.
lcenesfion all ansles,includingfront and top virws, and could wen enrra pyramiddd
{icw rhesarcophasus holdingthe nunnv in rhe middlofa rcom, wlich conrainedwiods
Egprian ir.ns. On one wali *as a hieroglyphicmessage rhar {as pan of rhe leson. On
anorh.rw.ll wxs rriworl depictinglife in ancientEgypr,and againstanorhcrwerepiecesof
Eg,,ptianlirmiture ud e harp.
Vnrual tcchnologyhasrlso beenappl;edby the milnary.To helpwirh aircraftmrinte-
nancc,a virrual realitysystenhs beendevelopedto simulac an aircmli and give r usera
rnse of rouch,wh e conpurer giaphicssive rhe seNesofsishr and sound.The usersees,
touches.and nanlpularcsthe variouspaLtsofthe virrualancnft during tnining. The Vrtual
.{irceft Maintendc Systemsimuhtesreal-woddnaintenancetasksrhat areroutinelyper'
6rned on the AV8B vefticaiEkeoffand landingancraftusedby thc U.S. Marines.Als,
tlf Pentrgonis singa viftual realiq rraininglab ropreparefor a milirarycrisis.The virtual
rerliq!sysremsinulatesvarn,uswar scenarios.
ReatEstateMarketingandTourism
Virtual realiryhasbccr uscdro incrersereJ esatesJesin sevehlfowe.fulways.Irom \fleb
publishnrgto lapropdisplayto e potentiaibuyet,vittual .eal;q-providesexcellenrdposur.
lbr propctiesrnd rttrcts potrn*l clien6.Clie.$ cn rakeavirtualwalk rhroughpropiries
ud climinarcwrong choiceswithour wastingvaluable!ime. Virrual walkrhroughscan be
nailed on diskcrtesor postedon thr Web asa onveniene for nonlocd clienls.ACD-ROM
contanringall virtual rerlity hones cn alsobe r ro clienLsand orhef asen$.Rcalarrcnds
Rcal Esare Senice oflering homes for sale in orange Counry, California (/o/.
teaktrend:.con/uirtual tostlrh) is jusr onc ofndv rcal.srarefirns offeringthis senice.
Ii anorhcr\Vcbapplicrtion,rlE U.S.governnenrdeateda vinul tour ofrhe Vhite House
{tile rhef.ciliry wasclosedbecause ofsecurityconcerns.The virtual our allowedpeoplero
tc a 360-dcgrccview of roons on the Intdnet.
Entertainment
tlomputer'generared imagetechnolL.gy, or CGl, hu bccnaroundsircedre 1970s.Anmber
of movies used this technolog to bring rcalism ro rh. silvc scrcen, ln fudlng F;,ling
Ncno, Sp ld'Man , Stdl Vas EpkadzII Attdrh of'r? C/,,6, and hany orhe6. A leam
of *tiss rendued the roiling seo and crchilg wavesof1'.dr.t Sr,u almosrendrelyon
computersusingweatherrcports,scicrtific6nmlas. ud rheir ;nagination.Therewasalso
l)-,rr,/ with its realisiicralkingrcptilcs,Lra, l.t's beauriful3 D spacesopes, md the
rxts of conputer generatedcowds and banles in G/zdiator and The Pa*iot. CCl can also
be usedfbr sporrssimularionto enhancethc vicwcr' loowlcdgc and cnjoynent ofr gane.
A virrual realiq' gane, for cnnplc, ould allow people ro expcrinent with decnions related
to urban plandng in a realisdcsening.r'NaturJ ard nd-nade disa$ds rr decisionson
designingbuildingsrnd the surounding ma. other ganeson dnphy a 3-D view ofrhe
ivorld and allowpeopleto interactwirh simrlatedpeopleor avatarsil rlr.-grnc.lo Disncyi
Toomowr luuu.toottoua..,,, is a vntual rerlitr Internetsirefdr .hildrcn.4rsecoid l.ife
(ututu:etuhdl;f.on) peoplero play games,inrercr with avara6,and build srrucftrcs,
^lbws
sucha homes.Manyviftual re.iiry enrerrainmcrrsireschargea nonrhl,vftc.
 Pal13 | B"

OTHER
SPECIALIZED
SVSTEMS
In addirion !o aftificialinrelligen@,expe.rsysrens,md vinual reality,a number ofother
interesdng and exciring spcializedslrrems hayeappeded. Segway,foi eemple. is an etecdic
scoorefthat usessophjsticaredsoftware,sensor, and gy- . ,*rp-i p-pt" .t
mrehouses,omes, downrownsideelks, and orherspa""..{' -o.o" O"igi""Uy a",ign.a to -usl,
n"^
porr poplearounda facroir.o! around rown, more recenrven;onsare be;nerested
bv the
ri l i ,a ,-yro . s,,he ,ns i n,el l i gencand rm,poni ng uou.ded .otdi r,, ,o ,el ; r y. , . (
r if i^i
oeric is conducringanedial rriatfor a smallnicrochip tharcoutdbeembeddedin rhebrain
ofpatleorswirh spinalcord injuriesand wired to a conpurer.aaIn the trial. oatientswill be
d .k c d ,,.,hi nkrb.urmoi ngLi ecuno,onacompure,,,eenshi hrhesy,re m r r ie, , , r eor d
p h ).,ol og.J ,e.pon,e,ro ,hei r$oughr,. ti .uc.e.. . rheJ:p mi ehrbe r ble r o m o, .
'hc
o mp u rc ' ! uhd\ o pcrto,morherraL ro hetpqu,d,i pl egj ..p..l orm-rst, r hey. oudn r

Ar menrioned prsiously, ftulk-fequdrr idanfu';o,

Segw.y,a humantranspofi devic,
fi,rlr, tass rhar conrdn snall chips wirh informarron
usessophisticaledsoftware
snsors,afd gyro motorsto
about producs or packagescm be quickty serned o
$6nsport people n an upright perforn inventory conrrol of race a packageas ir nove!
hom a supplierro a cohpany to its cusrome6.Mdn\
Lompr e\ hr\.6ed R l -l D ,,g,," , . p, ", .
O Re ute r sNewM edia
LSo urce: I nc . / ' .o,* ..,, , .
c0RBrs.) cutomer seNice, and a.hifle a compcritive advantage
DeltaAirlines,to!ehhple, is testingRIID ro rruc.,uE-
gagerhroughairpons.a6 RIID hasgivenrhe compa,,)m
accurucyrarerh.r is greacr than 95 peren! alrhough tult
implementadonofRFID mey nor be possibleinhedr
arelyfor the esh stnpped@hpany. RFID is atsobe,ns
ued by MerrcC roup.a ti ermrn re,Ji te
" ,, hr hor , r nj.
or storesin 28 courries, to rack produns fion ware
hou.r. ro rore..' l e,.o. rn Lngl i ,hreui te r i. . Jt . ou. : nc
R f l D ro.ra.kprodu.u.' 3t h, \eJl te \. dhcrk r , o bJi
rem ues RIID iD rhe Club Searseclion io inc.eascsalo and speedfoodsriesand puchses
o fo rh e r p r odu.r' . Frn' pJ- ru.d sd urherproJl (b w i ,h R ftD r" * , o\* r , **r , .
re ,d e rro r, ng up.rJ.' . A .Lo,di rgro Mi kr Itood. rhe red\ \i .e prei i denr"., t r . elaint ,
' p e c d s u p Ine' .rorhel e..qri rarrhecor.e* i on,.rhemorri nrnri \prt-erei\ r obuv. . \ Je.
" re u o b y :h ou l 8 p(,(en,r r,..uh orrhr R l tD ,rg\. Oru,h r\e tJge d-ubJ*. ; npan,
is add;ng srppoft fo! RIID rechnology ro iis darabde progrms md applications.5o
Anorher ie.hnolosy n beins usedro createinari .onraires" fo;shiDs,railroads.md
r J .L . r N r v.l rg mo qher.onpani e.:re devctopi ng omhuni cari on.,rrer \ hJ. woulc
allowconta;nento broadcast the conrents,locarion,;d @ndidon ofshipmens to shipping
and cargo managen. Budington Nonhe.n ald sanra F" R.jl*"y C.-p*y .ra;l*;
d'o oseg* to geneffe shipnenr ud racking datafor cusroheB.nd hanagen.s, ^"s
Th.
ranroad@mpanl'usedns rad;osysrenro link 14,000milesofmck in 27 srares. T-heq,steh j
nessagesare ro a voice-respotre and spech-recognition sysren rhat is ried to rhe
cohpanls ba.k-nd 'npui
processing systems, which tmcksshipments.
gametheory O n e .p e i al rpph.rri onoi .ompuLerreJnotogi n gmr rheory.Gme rhr or y invot \ F
Useofln lorma to . s y s r em st o u .e o r In ro rmJ' on\)rem\,o dfl etop Lomperi uve.,,rregifor e, peopte. orgrnr zr r ion,or
devetopcompettive stralegies
for people,o.ganizalions,or
even counrrier. Two cohpering b6ine$es in rh sm. muket can use ede rheorv to de_
re rmi n erh ebe.rrnreS r.hi eve hei rgo,l s.Thr mi trrary co,U ,1.ou,e ga m er heo^ o
'o '
deterninethe be$ nilitary srrateglr ro win a confli.t againsrdorhr count.y,and individual
investoncould usegme thcoD,to deremin rhe besrstrategies when comperingagainr
orher invesrorsi. a sovernmenraraion ofbo.ds. C-,.db;"ki,s **k.; s;e ;-"
waspioneered byjohn Nsh, rhe harhenaticim whoseiife ws prcfiled in the b;ok dd fitm
 I co"pt"' "

A BedutifLl MituL'. Gee theory h4 ako been used ro d*elop approacies to dealwirh

Infotuatis, anorhcispe.ialized system,combinestradiional disciplines,srch * science

and mcdicine, with conpure r sysremsand technology. aD ifllnmht tor exnplq con\ines A specializedsyslemlhai combins
bn,losz and compurcr science. Also etled conputatio"dt bioks,, biojnfonati.s h6 been t r a d i t o n a l d i s cp l n e s ,su cha s sc
e n c ea n d m d c i n e , w l h co m p u te r
usedro help mp the hunao senomeard condd.r research on biologicrlorgaoisms.Using
sYslemsand technotogy
sophisticarcd datab*esand aliffcial inrelligence.bioinfomar;cshelpsuDlockthe secrers of
the human gcnome,which @uld senrually prvenr dne6s and savelivcs.sidford Uni-
veniq' has a couse on bioinfom i6 and ofT.s a bioinfo.harics crrificaiion. Medial
inbrmaris conbines thdidonal medicatrcscarchwnh cohpure. sciencc.Jourtuls, such
* Heabbare Infonatits, tepon currenr researchon applying computer sysrens and rech,
nologyto reducehedical e!ro6 and;mproveheahh@re.l he Univesiq, ofEdinbush cven
hsaschooloflnfornarics. The schoolh* couresin rhestrucrure. behavior.andinteractioro
ofnaturalandaiiificial@npurarionalsysems.The progrun conbinesaniffcialinrclligence,
.onputer science, engineering. dd science.
May othet specialird devicesrre sed by compmiesfor a varietr of pu.poses."Sman
dusr"wu dcvclopedat the Un;ve6iry of Caiiforniaar Berkeleywith Pertagontunding.5a
Snan du" involves snall nerworks powercd by batreriesand an operuring systen, called
Tinl'os. The technolosy en b usedro monitor tenperarur, lishr, vibradon, o. wen roxic
.Icmicals.small radiouansceivers cm be placedin oth.produc$,such$.ell phones.'l-he
rddio rnnsceivers allow cell phones and other dev;cs ro connecr ro ihe Interne! cellular
phone senie, and other dqies that use the technologz. The rudio tmsceiver could save
compmieshundredsofthouands ofdollm mnually. M;c.osoftt Sndl Pe6onalObjec6
Tchnolos/(SPOT)allowssmalldevicesto rransnit daraand mesagesoverrhean.55SPoT
r beinsusedin wrisrwatches to ransh;r daradd messages overFM radiobroadc*t bandr.
fhe nw technology,howeve.,.equires. subrcriprionto Mi.rosoli s MSN Direct informa-
rion seryice.Auronotive softwareallows can and arcls ro be connecredro rhe Internet. The
softwarecan track a d.ivels speedand locarion, allow gassradonsto renorely chargefo. tuel
andrelarcdsenices.andmore.Special,purpose barcodeserealsobeinsiDiroducedin e var;ery
ofsettings. For umple, to rnanageofiice spaceetliciently, a compmy giveseach enployre
ard omce x bar code. Insrcadofhavins perndent offices, rhe employeesee dsisnd ofi]ces
and suppties4 needed,add lhe bar codeshetpro nake surerhar an enployees work, ha;t,
dd o$e. naterials aie roured ro rhe righi place. Compadies cm savemillions ofdollars by
reducingofficespacand supplies.Manufaciuringdperimentsarealsobeingdonewhh ink-
jer printersro allowrhen ro "print" 3-D paits.s6Thercchnolosyk beingusedin Iowa Ciry
to print new circu[ boards using a specializedink-jer prinrer. The prinrer spra]r laye6 of
polynersonto circuit boardsro forn trosistors and orherelecrroniccomponenrs.
 PaltB Bu.*{ ntonturrn sYqlen'
I

SUMMARY

Principle
Principle
Expertsystemscanenabtea novi(eto pertormat the
Artificiat intettigencesystems form a broad and and main_
te;el of an expertbut must be devetoped
diverse set of systemsthal can repticatehuman
tainedvery carefuttY.
decisionmaking for cert.in types of wett-defined
probtem5, E xpe.tsvstemscan exptai nthel . feasonl nqof suggesiel
decrsl ons, dl spl ayi ntetLgent behavo' mrn puta t esvm boL
Ihete.n artificialintetlQer.e ls usedto descnbeconrpl1e's kom complerr eLat L'_
th ' l L rn c l rons or rne l nformal i onand draw conci usi ons
wr t h t he ab t t y t o m i ml . o r d u p trc a te po.l abteknow l edgeanddeaLw LtLhn"r r a n
o l b u L d n g A s y s te ms s nor ro sh ps pfovrde
h l man b. a, n f he o b j e c tv e used someafe d l fl cl Ltt o use a_:
n g c o mp L e te b
tv!t to fepl cate I Thevare not yer w deLJ]
.e pt ac ehum andecrso n m a k cannot' eadt vdeat v|
um i ed to fel ati vetvnarrol probtems
,
fo. c ef t an t y pesof w e L L d e fi i e d p ro b te m s
mi xedknow Ledqe presentthe p' ssl bi l i tyl of ero' cai''
lnt elt iqentbc h.v i o .e n c o mp a s sseesv e fa t' h aaf ci erst cs bas. aredffcutttom a! nt ar ia- :
d pptyl ns ref nethei fow nknotl i edqe
n c Ludnq t heab t lt e s l o te a rnt.o m e x p e r n c e a n a costs Thel r!se atsof ar sest eql
h ' n d te s l t!atl ons mayhal e h qh devetopment
knowLed- tqe o new e x p e .l e n c e s i ' o m p L e on r may be
p e c e so f n l o rrn a t andel h cal conce.ns
a nd s olv epr abt emsi o r w h i c h ofrn t egr ar e'l
conssl sol a cottecti on af :
srt!al i on' A n expe.i system
n r ls sngrdet ef m in e.e te v a n tn fo fm a tl o nl n a g rv e n base an nf e'
m a n ' e r' a n d q v e a q!l ck and fel atedcori ponents,nctudng r know tedqe
th ink r ; a t oqc aLa n d .a ti o n a t tac tLtvaknow l edg eacqu: t '_
v l s u a L m a q e sa n d process enceengl ne.an expl anal l on
co m ec rt es pons e i a n!n d d e .s ta n d base an a{e_
ai Lrans fa.i trty.anda userrnte.faceTheknow l edgc '
sym bot sCom p! te rsa re b e tte ' th a nh u m a nb e i n qs :
c a tc L 0
rta ns
t fapotv si oi of adatabase,di scussedi nC hapter5 nt or m ar
andan
fer f inoI nf o. m at i o nm .k i n q a s e re s o l n C haPt er lll t cD'
buthuman anddecs ons!pportsvstemd scussed
a ida; c Lr f at et y . a n d ma k n g c o mp te x c a L c u ta t i ons rutes rndretai ronsh lPs! sedi'r _:
a l a l Lo th e f ' tt' i b!tes of ta!nsatl theretel antdata
b e inqs : f e b; t le. th a n c o m p L rte ts I r henst 'I '
exD e.l svsl cmTher!Lesafeoftei composedof
menl s w h ch E fe l sed i o. drawi g ' oncLl sons Flzzv t '!
A ; 1c al nt etti q e i .el s a b fo ' d { e tdth a t n c l !d essevercL and r et at LonsN !:
al tow sexpe.tsysremsto Incorpo..tel acts
ke \ . o lr or " J 6 O'' basesl hat mav be m pr e' ::
ro "m "d i nto expe.tsystenrkaow l edge
, " m ' , n" L" , l"
s v s te m c o n s i s t5 o r l h F ha' ow a' e
n e! 13tnet wor k sAn e x p e rt processsi he
r-re futes da t a andr et :
s v s te m si h a t b e have as a Thernterenceenq
a nd s of t war e! r s e dl o p ro d !c e baseto provd' ans! ! er :
a L z e dfe i d 0 fa ' e a l e g cre0tr ti onshl pssl o.ed n the know tedqe
h ! m an ex per t t lo !l dri a s p e c andsugqesti onsl ha w ava humaner per two! l
Io D .edi cti ons
anat v s l. Robotl .su s e sme c h ' n l " l a r c o mp u tefdevLces
g h d e g re e o r p ' e c l si or
on are Tw o.ommon methodsfo. pfocessng ncl !de ba'kwa'd":
p er l; f m Las k st ha t .e q u i rea h a co"t -
a Iotuardchal nng B ackw ardchan nq startsw ih
rF dousof haz ard o !sfo r h !m a i s l e ' g s ta c k l n gc artonson l ti fotu af d cha n - ;
h ' fd w a re a n d thai s on l hen sea.chestor factsto support
D at lc t lV is lons vs te m si n c L !d o n t 0 s! pp'_
' o ftw afe startsw th 3 fa.t then searchesfor a conctLrs
oer'' o p' o dp i6 06 lor w: : :
q on o r ' r 4 \"rL a o I l ' 1xedchanl ng s a combn.tl oi of backw a'd'n'l
oop .r..Fa,d ' ' 6
o "' n ha p! ' " oL' I d0do
gL drt o oF
The expl Jnaton l ac ttv of an expe s)rsle
"dom "^o"o"n""Ll"n
o^b dLo userl o Lrnderstand w haLr!tes w ereusedl n ar| l v r ngat a 0e'
q
hr F '
'o 'm
sLon.The ki aw Lcdqe i l ac Ll yhel psl hP! ser add'
acqul slon
a"' o^- om o e o' n " q " 'o ^
.!-o l base TheLcer nt ed: ':
i n i he know i edge
^ d ',r'o r"dndp bas ed on fe edback it updateknow tedqc
L f!nclion E o . eac t s io s it ! alr ons
c hes e qam el' A nFL r r atnciwor( makes I easi efto devei opandusethe cxperls vst enl
rece ves (e .g.,a com p! t e. lz ed n the devel opn' reit of an expe_
t he f unc t i o n i n go t a Thal ndvl d!.i s nvoLved
s a corirp !ae f sy s lem lhat c an s r m ut aie enqnee_
{ : laqnos t Lc ss v s lem l T h ere afe svstemnctudethe domal nexperl ,the kn' w Ledge
lrma n ira ln le q dis e. s e 5 t hF iidiv dL:
appt lc at ons aLs o A qenetic anAi ne l now l el qeusers rhe domai nexpe' t
m an y o the . artlt c al lnlet t r genc e beLng caplLr r e:
t a' s e c om pL e xp 'o btems o. groupthE thasthe expe.tse or know Ledqe
:rg oilth m ls appr oac nt o s ot v r ng Ls r e oeveLop'
':n
opef ai on5 or m od e t s c naage f.. the svstem The know tedqeeng neer
in wh ich a n Lrm befol r et at ed er per i
The appr o" h l s based w hosel ob s Loext...t l he expertse l ' om the d om aln
ar'ide vo Lveu ntitthe bes t one em er qes ' duatw ho benel t s t 'om lh'
f es v r r a n 0 nat The kn;w tedqe!ser i s the ndLV
o n ih e ihe ory of ev ot ut ion whlc h 'rrdn system
' equ
c ons is t ot pr o!r a m s an0 a !sc of the devetoP ed
!ral se iect o n n let t lgentaq. nt s
a s pe' f lc t as k t o r a p e r5on
kn owte dq eb ase us ed t o per lor m
a p rocess o r a not her P. ogr am
 5pE.;L7aiB,! iess nl"m. {r synEn. cu"pt.. tt
I

: . lwr ngis a |s t o f l a c l o .sth a t .o fn rrL tyma k ee xpart

Prlnciple
,_ s wo. t h t he ex p .n dt!.e o t ti me a n d m o n e y :a hrgh
VirtuaIrealitysystemshavethe potentiatto reshape
r t pay of fof s iq i f c a n ttyfe d l c .d d o w n :d e rl sk, the
: . c apt ! f e and p .e s e rv ei rre p h c e a b teh L rma iexpe. the intertace between popte and information
. I d ."op technotogyby offering new ways to communicate
-b intorrnation,visualizeprocesges,
, d 6 odd. . and expressideas
:: r ot t oc aioo5r L th e s a m e lme ,a n d 5 i t!a ti o n sn wh.h creatively.
. : els needediia h o s ti te e n v rro fme n ti h a ti s d Jnge.ou5
, 3n he. llh. T he e rp e ri s y s te m5 0 tu ro n c .n b e o evel A vrrLl at.eatty systemenabtosone or more !5er5 uove
. ; r 5t ef t hin lhes o tu ti o n fro m h u ma ne x p e fts .A n E S atso
..d " * r o-p.e,.i .d.-tt-..,., - ., 'o _t . . "
r : . er pef lis cne e d e dfo r l .a n n q a n d d e v e to p ment l l ysi mutatons.equfe specaLrnteffacc devr.esi nal r . . r sm lt
io
l he s ghl s,so!i d5 andsensatonsof rhes m!l atdwor t dr o
, : t e w, s domand e x p e re n c eo f h !m .n e x p e .tsw rtr a
' im ber ol peop te l he !se. Thesedevi ces canatsorecordandsendthespeech
rrd movemafl softhepartcrpant5 rothesj mutati on p. og. am
. s t epsr nv olv eidn th ed e v e [o p me o n ft a nc x p e .ts y5l em
Th!s uE efs.re .bte to 5enseand mani p!tatev rl Lratobjecis
: r det e. m inr nq f e q L re
r n -re n tsd e n tfy n g e x p e rts,con
m!ch as l heyw ouLdrcatobl ectsTh s naruralstyrco , , r e,
: 1q ex pe. ts y s t e mc o m p 0 n e n tsrmp , l o m e n i i nre g sLrl ts.
ac| on gves the partcrpantsthe l eetng rhar th ey ar e
: r t ain ng af d f e ve w n g th e s y s te m
mmersedn the s mul aLed w ortd
: r . . t s y s t em sc . f b a i mp te me n te d ,. s e v e ra L w ays P .o
V rtLral.e:ti l y can rtso .efe.l o nppti catrons rnarar e not
. : t r r d t ionathig h te v e tta n g u .g e s i i c t!d rn g P asc.l
: iA N, andC0B O L ,w c re !s e dL l SP a i d P R 0 L 0 c d rerw o f!tty i mmersi ve,s!ch as mo!s. cont.oLtedn.vr gar ion
tl rrough. th.ee di mensonaLenvfonmenton a g . . phicE
: lc s s pec if ic atdl ye v e to p efo
d . c fe a ti n qe rp e rts y stems
:. f at c h.A f aeier3 n d te s s e rp e n s i v w e a yto a .q u .e an
sl efeo prol ect0n systemsand ortre.s.S omev r1u.t . ealiy
: s y s t emr st 0 plr fc h .s ea n e x p e s y s te m5 h e l lo r exi sl -
apptcatrons.Ltowv ew sof feat envronnrents w th s!pe. im
:: ( aqe T he s he tl p .o g .a m s a .o tte .ti o no f s o fl w are
po5edv ftual obl ectEV rl ual reatl tyappti calonsare f o! id n
,,. :r es andt oot s! s e d to d e sq n d e v e to pmp L e menrand
' : . er per ts y s iem sA d v a n ta g aosi e x p e .ts y s te mshetts medi ci ne.educati onandtfar ng,.eal estai eandt!u, , 5tdnor,
6o... d4..LoP . dmod d o n ."o
" "
4 o 'h a ...: ,o,dd6.6oo.6, b,,, r adop6. 9

- . . nd end us ef s T l re a p p .o :c hs e te .te dd e p e ndson PriIrciple

. ::ielt s c om pa. e dw i l h .o s t..o rtro l a n d c o mpl erty
Speciatizedsystemgranhetporgahizations
andindi-
. . benelit so1! s n g a n e x p c ris y s te mg a b e y o n dth etyp
viduatsaahievetheir goats.
.. eons f or ! s r nq a c o mp u tc .z e d p .o .e s sn q s o tl l ron
A numberol specal zed systemshaverecenttyappe . f edio
: s y s t em sd s pt a y n te ttq e n t b e h a va . m a i l p rtare assst 0rqanzatonsrnd ndi vdLratsi i new andexcr ingways
. ::., . nlor m at ion an dd ra w c o n c t!so n s p rc v i d p o .tabl e s-a{a. ' o " .. . oo." . ,r . . op. 5
: dge andc ar dea t$ ' l th!n c e rtan l y E x p e .ts y s l e mscan .r' ad oi "
or..ddo o oo.ofd po r pdo
i ::d t o s ot v ep. obte m sn m a n yf e l d s o r d s c p l n e s and pl e thro!qh^de..
w arehol ses.ofl ces,dow ntow ns dew a lksand
: ::s r s t n alt s t ageso f tl rep .o b te ms o tvn g p .o .e s s P asr orFr oo6 0.o1" d-.o." o o
::: es hav es hownl h .t e x p e rts y s te msa raq o o da t s t fal e " n po p" op" ". o. . .
or o d .ar.,o. o,dopng
, " " "o.d
::r t s et t ng. plann i n gd e 5 !n d e c i s i o nm.k n g q ! al ty testdby the mi ti taryfor gathennqntetti gence and t f ans
:. andm on t of ng ,a n dd a g n o ss pofl ng w o!ndedsol drrs to safery.R ado-ffequencyd enr in
: . ea. eanum ber o l a p p t.a ti o n s a { e rp o rt:y s te msand rD r D
" ,o " a. d," , o .e .q L" e
; t nt eL! genc e, n c l l d i n gc .e dt g .a i trn ga n dto a na nat l heo.y nl otvesthe l se of rnformatonsyetemsro devet op
r t c h ng c heals . n dte ro f s ts b !d q e tn 9 g a me s r, ni or compei rtve st.ate! es fo. peopte ofqanzarons an d even
-c o0. ","d e r 6 o .a o ,d d o e r ..r to co!nt.res nfo.matcs combi nestradt onald sc pt ne s s! ch
_ l d ed n pr od! c t s p ta n tta y o u l h , o s p rta ts
a n d m e drcat as soenceand medi cl new th compLrter 5c ence B ot nf or
.. heLpdes k 5an d a s s i s l a fc ee n rp to y epee rl o .m .nce
matl csandmed cat nfo.mati csa.e eN amptes. Thc.ea r ear so
: -:r . n. v f ! s delec to n fe p a i ra n dm . n te n a n c es.h p p ng, d . . b"' oi p" o -p ..D o.e 4 6. o.
: rr en0! s e0p0m rz a rL o n that.an be ptacedi n p.odLrcts
fo. vaf ed uses.
 Pdt 3 I s*.63 di sYstems
nrormar

CHAPTER 11: SELF-ASSESSMENT TEST

Artiffcial inteligence s]stns fotn a broad md diverse set of

qstens that.m replicate human deision making for cerrain d- rhe acquisirionfaciliry
rypes of well-deffned pmblens. I I A disadvantage ofm aPeft sysremis the inabilis ::
1. The field of aniicia] intelligene (AI) rru developedin the needcdar a numberoflocadonsat a:
vide experrise
19s0safter the dod"pncnr of the peronrl conputer' dme or in a hostilc environnent that is dange:u
human heaith.True or lalse?
are rulesofrhunb arisingfrom exPe md usec:
12.what is NOf ued in rhedrvelopment
2.
lence or cvD guesses.
3. Vhat is an imPdrranr a$ribure tor aitificial intelligence? a. tuzzylogic
the abiliryto usesensor b. theuseof ruLes
rhe abiLiryto learn fiom cxPriencc c. rh. useofco*
rhe abiLiryto be cleative d. processing
theuseofnaturallanguage
L h . ,b i l i ry $ r.q u i re , l a rg e,m ounr of errcrnal 13. An imponant part of an erpert rystem :
w h,.\ Jl ow ., b. r or de. i'i"
-.
4. involves mechani@l or comPurer ro undertand how the opert sysren anived ::
dw;cesthar can painr@rs,nake Precisionwelds'andper- concLusions o. resuhs
oi pre.nnn or
r o m or h e rrrl . rh a rre g u i r.a h i g hd e g ree 14. ln ad dperr systen,rhe donlin qpen is rhe inn'-:
aretediousor haardous for human beings group that hu the expeniseor howledgc one is :'
5. Vhar bruch of anficial inrelligenceinvolvesa omputer capturein rhe qpert systeh.True or Falsc?
qrtem that cu simulaterhefuncrio ng ofa ht mrn brain? Vnual reality rystens have the potenrial to teshape6:
,. expeft sysrms frce between people ud infornation tehnologr br
b. neural nenvo c nq Mys to comuoi@te infomation, visualid P
c. naturathnguge Ptocesing od egres i&as creatively.
d. visionsystems 15.A(n) enables one or more .rg
is a conbinetion ofsoftwareand moveand reactin a conputer-simulated environ-a
6. A(n)
rhe computerto chmge how it tunc- 16. Whar rypeofvinual rcaliry is usedto makc humi
hardwrre thrt allows
basedon feedback tt recetves. feel u though rhey *e in a rhree-dimeroionrl rc=
tionsor reac$ ro siturtions
asa building, ar archacological sevaion site, tL:
Expert srstems o enabte a novice to petfom at the lml anatony,a sculpture, or aoime sane reconslru---r
of an *pen bot mut be dqelopd and naintained verT

ofdn exPertsysrcnt?
7. Wla! is a disadvanrase c. immeGive
the imbiliry to solveconplex problems
rhe inabiliry td dcil with uncertdnry Spei.litd systems d helP orgmiations ud
linnedons td rel.tively narrow problems
d. rh r i n rb i l rq ro d ra q .o n .l u .i on' fi o+ ' ompl e'
]. combi ntstodnro nJ di. cr pl: s
* sciencernd nedicine,with comPuterscience
8. A(n) is . @llection of software Pack-
asesand rools used to develop *pen rystem that can be CIiAPTER r 1: SELF ASSISSMENTTEST AN
imple-ented o" nost popular PC platforns to teduce
(1) False (2) Heuristics (3) d (4) Robons
d*elopment time ud costs
(6) learningsysrem(7) c (8) exper sy$em shll :
9. Ar e'fen sysre- heuristiccorsisrsofa ollerion ofsofr-
wareand rook usedto develop*pert systemsto reduce \10' J,l l r I-J.c {1.) J I l r, r\P l nrri " n f *ilis
(t5)viftual realiq-systcn(16) c (17) I"fornati"
dryelopmentdne and costsTrue or Faise?
lo. \(/har storesall clevart informarion'data,rules,co*. od
relationshipsusedby rhe expensystem?

a. dre knowledge btc

b. the data inteftace
 lcup""'

AEY TERMS

tr-: ciatintettigenc(A I 508 gametheory538 knowtedge user527

,,-'ciatintettigence systems509 geneticatgorithms518 tearfrngsystems516
:.:kwardchaining 524 if thenstatemenis522 naturattanguage processng 514
::-ain527 infefenceengine524 neuraLnetwork516
: -3in exped527 informatics539 perceptivesystem511
. : ?.t system513 ntettlgent
agent518 robotlcs513
. :rft systemshett521 ntettigent
behavor 509 r!te 523
, :.anation f.citity525 knowldge acquistionfacitity525 virt!atrealty system533
.ra f dc haining524 knowtedge base522 visionsystems514
'.i :/ togr c523 knowtedge engineer 527

VIEW SUESTIONS

Define rl',eten dltiftidl inte ig."c. 10. whar is tuzi.)-losic?

what is a vision sysrem?Discussrwo applicarions of srh 1] How de rulesuscdin expeitsys.ems?
12. Expea qatem can be buih bsed or rulcsor ose. \flhat
'rftat is natural laguage proessing? \X4ut are the three is the differcrce betweenrhe .wo?
.vcls of voice recognition? t3. Desdibe the rolesof the donain expen, the knowledge
lescribe threcemples of ihe ue of roborics.How.d a engineer,and $c knowledgeuserin experrsystens.
q 14. Y&at are the prinarv benenlsdedved fron rhe use of
n har is a le&ning slatem?Give a practical ennple ofsuch
15. Idenrifyrhreelpproa.hesfor d*eloping rn opur syrem.
dhrt is a neu.at nerwork? DescribeNo appliqrions of 16. Describethreeapplicarionsof cxpeft sy$ens or udficial

\hat is d expe.r q.srem she]l? 17. ldenriE threespecialinrerfacedevicesdevelopedfor usc

- nder what onditions is $e developnentof d expen wnh virrual realnvsFrens.
:. {en likely ro be wo.rh rhe etrorr? 18. Idenriry.nd briefly descri6erhreespccificv;tual realiq,
i.lentify the bsic cohporenn of ar expertsysten and
.l6.ribe rhe role ofeach. 19. Cive dree Mples of otherspecialized
systems.

ISCUSSION QUESTIONS

lbat are the requircrnen* for a cornpurerro cxhibit jury selecdonprocrss.This knoriedgc will be usedasthe
., ur . lc , { l in, elli F1 ..r l ' o " o rrgw i I i , b . b e to ,, w basisforu expertsysrerr to enabicotheretrornevsro have
:jc rhc rcchnologyto designslch conpurers: Do you similar$r..ess.Is rhis$sren agoodcrndidl ror an expefi
ri* we shouldpush o tr1'to acceierarc suchr deveiop- sysrcn?Vfty or why nor?
Vhy or whv not? 5. You havcbcenfted b developan cxpcrrslften turaunts
-:cnr?
.t hat aresomcofthe tesksar wh;ch roborsdc.l? Yrhi.h versirycarcerplacement cenrer.Doclop fiverutesa siudenr
urnantask arc difiicult iir rhem ro masr.r?whdt nelds could uscin sdrcringa careeL.
.,Al arc reqfted to dselop a rrulypcrccprilerobot? 6. \(hat is thr purposeol a knowlcdgeba\e?Iloir is one
:res.ribehow natutullanguage proccssirgcoull be usedin
7. Vhrt ii th relarionslipb.rseen r.latabaseand r kno\ll
.u havebenh;redro caprurcrhcknowledgeofab;llian!
::roney who hasan oursrandingrack recor<1fi,r
*lecring
r! nenbers fa\dabre ro her clicnrsdurins rhe rretrial
 Psri s I B* *s l"r",-arm sFtm3

10. Y/hich inrerfa isthe le*r developed andmost

lmaeine that you are developing the rule for an expen
system to select the stong*t endidates for a -ediol to createin a vinual relity qarem? \{Av do vou thmr
rchool.Vhat rulesor heuristic wouLdvou include?
' I. vhJr .ppl -.i on o" ,,rud terl i o h^ r hc noq
9. at skills does it takc ro be a good knowledge engineeri
\fould knowledgeofthe domain help or hinder the knowr- to generuteincreasedprofits in rhe tuture?
edgeengineerin capturingknowledgetion rhe aom:rn

PROBLEM-SOLVING EXERCISES

You are a seniorvice Presidentofa companvthat nanu- nrket. Developa simpleaPerr systedio prck ien
@1 ,o con\:der.U \i ng y.u, qo,d proces , ngP'ogld
t uw e+ k rr.n e na p p l i a .e .. Yo u re @n' i dcri agL' i ng
rcbos to ,eplaceup to te" ofyour sLilledworkerson the scve" or no'e ruiesthar ould be usedin such:n
r , - . - n o o ' . U ' i rs r ' p re rd ' h e e r'rn al l * rhe ' o' s oi systen. Create frve casesand me tbe rulesvou
. . a, ; ' in s ' ., ," 1,o to ' ' r,i n r a n ds ' e mb e ' om( ofvoul deternine the best stocks to Pick
p, " a" .
';
.-, ' ," i n g ' i n l a h o r 'H or manl l ern 3. Usins a graphicsprogram,diagnm the componens
" ' * -. pay
would it trle to
't "
fo. the robots from the savingsir fewer virtual realiry systen that ould be used ro nrxe
enployees?Asune that the skilled worken nakc $20 pcr etate. Crefully draw and labeleachcomponent i :
.rme grrohi* p,ogrn ro m,te a om prge ourlix
hour, includingbenefits.
prcsenrArion to ! real esrarc companv tntereneo r:
Assune that you havejust won a lotterywofth $100'000'
You have decided ro inv* h.]f the anounr in the srock viriual reatiry sysrem.

TEAM ACTIVITIES

I . \{4th rm or t}ueeofyour cisrnates' dore*srch to idcrti& beinqs when it coma to making obie.tive ded
rhre realeumplesol narunlldguse Proces'ins in se' D*elop sewral points suppolting eirhr side oftlr d
Discus the problernsmlved by each of thee svsterns' 3. W i Lh membesofl ouream rhi nl oFaniderf or :
V4rich ho the gretestpoantial for costsadngs? Wlrat are realiw svsternfor a new, qciting game.Viar tc dc
the orheradvanrager ofeach featurs of the game rhat make it unique and I
rystem?
2. F"rrn a tearnto dibateotler rerns from vour dasson the
following tdpic 'tue *pert ryrem superiorto human

WEB EXERCISES

1_ Usetie lnternetto get informarioneboutthe useofneuaL 3 . I se,heInre,re,ro gd morei n' orm, t : onr h"ut on'
sy$ens dh.u$ed at the end ofchaprcr's;i
specialized
ncmorks.DesctibethreeqtnPles of how this iechnologv
repon abour*hat you forlnd Give ddamPl'or;I
.pe.rdl .purpo-$ nem | nr I' J\grcr' l r om r 'e r r ( n' -
2. This chapterdiscuseds*eral examplesof e*pen sptens'
searchthe lnternet for two qamples of rhe sc of e!p'r!
\\ h th o re h * rh r S e rre n p oren' rJro i n re-e
" s em ' .
profia for the hrn? Explainyour choice.
 s p c . r t n : ct s r s n . e !i r o . n i . f s j . r e m ; I c }, 'p t " " t t

CAR,EEREXERCISES

rhelnterneror a library,exPlorehow qPerr systens 2. Scledand describea special-PurPose sysremorhcrrlranan

-sing erpen sn;cn. that rould bc ihe notr benefi.i.l in )our
a busine$oreer' How can expen systems
-d be uscdin
r urd in a nonprofrtcomPanY? c*ecr ofchoice. Use the Intenet ro find how this spccial'
purposet-sten is acruallr being used

TIDEO QUESTIONS

'I ::h th. video clip Predicting the Futue of AI-Mawin 2. Vhat docsDr. Minsky feelis nccessary lor a com'
, :;ky ard answerrheseqrestiou: purer to be ableto do in order ro achierchuman

:! hat reasonsdocs Dr. Minsky Providetor ihe lengthv

.rount of rime thar it is raking to buiid an intelligent

ASE STUDIES

One the smettofbtack.urrantsw :1tshom the 0tfacomAn ! con

at the bottomot l he screef not fi es!sers oi w hatthevsm et t
TheSweetSmetIot5uccess
BurgundyWines: B V B hastakeni ts producton the foadto dem.n.r - r e aI
a va. ety of trade show s nctudng the C omdexand Apple
:tr eat t y s y s t em ssl rv e to s ml l a te re a t w o .td e x pen-
'::: !y r ep. od! c Lnq t h e d e tats o f a n e n v l .o n me nfo
t f ou' expos S tevenI4eye.R assoww. ho w o.ks for a B ' i l sh wLne
retate..nd tfi edthe 0l facomat a tradeshow U kenedr t t o a
i ::fs es . 0l t hes es e n s e sv i so n a n dto l c h te n dt0 g e tthe
users remoteconl .olai . heshenef
:: rr leniion.Dat ahe l m e ts a n dd a l ag to v e s a tto w VR
B esrdes pfovd nq 3 moresens!alenvrronmenorset tng
:-.tt y ent erv r f t Lr aeLn v rfo n me n atsn dma n p L rL aotebl ecrs
w ne,i heol facomhasbeenused nmafketrngpefi Lr mr rewas
. rD neas f a. asinc t!d l n g3 D s o u n dl n i h e i fw o .td s Few . pa.edw i th. mafketngcarnpaqn1ofN l ani aa ffagran cef r om
'' i .er , hav eendeav o .eldo re _ c re a te s m e tl s T h e F r ench Gi orga A rman l he de! ce w s sa d to havepertecttv r ep'o-
d!ced the i .agrancef.om the famousLi atr:ndesLgn e.
:i --!r oup t heB ur ea un l e rp ro l e s s o n n e td e s V n s rl cB ' !r
S ori e a.ti sti c endeavorsl rava atso l ncorporat edt he
ri : r B lV B l,has beenw o rk n g w i th c o mmu n i c aot n s g ant es w i i h a show
devi ce. A rti stA texS andoverl s to!r ng gaLter
: i : T 6t 6c omt o pr o d !c e l u s ts u c ha te c h n o to g v
--e B Lr r ea!nief p ro fe sos n n e td s Vi n s d e B o u .g ogne enti tl edS ynaesLh a. The show re createsl fe n thF 1950s
Lrsrg vi deo.photos,andarom.s.0ne t fe s zescenes h0! ! 5a
: : ly t r ans Lat edas th e l n te rp ro fe s s i o ncaetO o fth
ff F wnes
w omanat w ork n a ki tchen.Thro!ghoutthe scenethe a! dr
: 'q ! ndy ,w. nt s pe o p l eto b e a b teto e x p e .i e n cth eF
"o ence can smei t ki i chen.romas f.om the 1950s slch 3s
;: i rB ! r g! ndy laf eq o n o tF ra n c e l a s w e L ta s i h e b o uquet
T h e ffL rl ts ol ts
f l s l' bor natu.etgas.a l reshtytt match,fred chi cken appt es and
: r wnes by v s lt ing i ts W e b p a g e
k tchencteani nqP rod!cts
I ::ro d! c edac om pl rte rp e rp h e ra tc a L te d th e 0 l fa com' The l of s!cces s Wlt h
be B IV Bfeetsthst the Otfacom!s desti ned
;:rm c ons is l5of t ! !afo o t-l a l tp ta sct c o tL rmn s th a ican to!. sm n d! st f v
the l ntrestot French vi neyardsand the
p o ' t to p rrm po u t a ' o m a ss l cn as
-::.d nt o a P Cs usB andw ththefl nancal backi ngoi F.anceT6tdcom thep . oduct
I r wer s andI . u t !s n g : c o mbn a t o n o f e s s e ftl a toi Ls 6do d
d. p" ,poe1 - !" ' "- d r '1. oo o
.:r. t s s ev er att an k s "

,r Bdev et aped a We bs t th a t c o !l d l a k e a d v a n tage of fedesqned smaLterso that i l can be ottachedi o th e sde

-::: . t c apabllt y ln : v ft!a t to L r..F o . e x a m p tea. fl e fcti ck' thatw l hn a few year s,t t t
of a con' rpl terB 1V Banti ci pates
"l'4'ny
FfenchtoLrnsms tes w i tt have 0l facomcapabU t\/
:_ t he winem akn q c o n ,a n m a tl o nb e gn s o i _ s creen
aoadnoo o o o'ao" tw l nelpfol essonatsareatsoshowng l ntefest cta m s NeLt v
l^o! " " ^" e ^
he or ' "q "o "
B ta! P card.B V B erpoftmarketl ngmrnager. Theywantt o
-rdd
 B!.r es! i. nd.r 5ft. i.

be a par t. f 5 o m e thn g th a l l h e yh a v efe v e rs ee. av. tabteon Criticat 0uestaons

Thinkinq
t he nr af k et l !s t a 5! s !a tv rtL ra t.e al yt fra sP rov.eda D oost 3 Wh e t a 'c t i i e h a z . f d s o f d e : t n q ! " /t h v r i !a l se n s.f.
t . e c om m e fc eb y a tto w fg c L rs to m.fsto m an pLrl ate 3 D m a t l o n ? C o l L d y o ! m a g n e i r n L r n p te a si r fl I : -
p. . d! . ls oi th e d s p l .y ..tfa c tc ryv rt!a t .e a ttv mv soon pfo
lide a 5 ni la r b o o 5 tto p ro d !c tsl h a t d e p o n d.n the r afoma 4 . Wh . t t y p e s o l d e v c e s l g o g g t e s h e r d p h .n e s .r .
b c n e . e : s a . y I o r d s t o e n t e r . l ! L t y s n i L r L 3 tew d o 1 . ::
Dis c us s io0nu e s ti o n s 5 e . 5 e ! e x p c . e . . e t l Wh . t m g h l b c th e m o :l .'
method lof e.te. ng a v r t l a t w o . t d . . e q ! . n ! 1 ':
I W halp. o d !c l 5d o y o ! th .k .o !td b e n e ft fi om the !se of
dmo!nt o1dcvces?

2 F ow m iq h li r d e ! .e s u .h a s th e 0 tta .o mb eappled to the

S O U R C El aS. :o bG a l f n e yS h o t t Wh L eY o uS ! r f B u f g !u d vWeSbt - :i - D
enler t an me fi n d L rs try ' l Olfef Vduat Tour wrh WineAfomas, llihc Spe.t.to. M., -a r'
w ||inespecbta..a4\6eA$.om Webtte a..essedJune2.2:: '-*
othcan.atuBarcatr nlerprore5sioniet de5Vns de Aourqoqiei:: tr
a . . e . . e d ) ! n e 2 . 2 A A 4 , w w b t v b . r n ; S v n a ebnvAL
h D e :sa n d o ve tr !
- :'
3c..ssedrune2 200nw atexnndarcr.on/petetba.otsh htr

abo!t a pl ants pf.ce5s.onf!!.:ton.nd ls 0pe:

Case Two
Expert SystemProvidesSafety in NuctearPower Thesynem .a. do n m q!l es w l ratusedt o l. ki: : :
Ptants w eeks.N ot onty s t a hugeI me sa!e. bLr lt at 5oil
.ons sten.ythat w .s pfevo!sty tackr9 A . of 5 st . ' .
T E P C0 t o. T o k y oE te .1 c. P o w c r C o rp o ralo. 5 .l ap.i s
s .eachednd.pei dei ttyol w h .t eng ne er s p: o'r:
t 6r ! es t . le c tr. !t tty , s e .vn g mo .e th a n 27 m Lr.i c!s_
anatyss Ih s efabtesTE P C 0l o besL!t t 7e I t 5 sr ii :
lom e. : if t h e T o k y ome tro p o tl a nfe q L o nEvenw i th ts $40
to nee.s,eachol w horntyp.attyfeq! resoneyeafof 3p: : :
bit t ionav era g a e n r!a t.e !e n !e .T EP C 0s b e i ngchattenqed
i tra n nq l o be quatl l edt. .ompl etea P S A
r c f eas eett. e n c ytl rro L rg h o !tl s b u 5 rn e ssA l terstfeari t
The few systemp.ovdes Lrnque .b l t r . aet .
r q m anyo l r1 5b !: n e s cp ro .e ::a s .i d p .ocedLrres TE P C C
capt!re pra.es: eng nee.nq k.ow tedqeLr sln!: L:
begai elat !.t n g me th o d sto re d !c ec o s l sa nd rmp.oveer
n q!es i s connecl abte ooj ectmodetsand . ! t e bas. i
. 0nc y n t h e .e l a b rtrty :n d5 a fe l yo l t5 p o werpLanrc
::dl (och Ml yata,a proj ectmanage.w th TEPCTj :
T E P C0u s e s a te c h f q !e k n o w . .s p robabl ti stisal c etJ7
:
TheresuLls tnatw e cfeated a 5ol !tron thal gf e. ll,
anat y E . lPS A]. w h c h e n a b t.se .g n e e rsl o assessthe prob ,
thet me rnd effo.t l l akestomake mpo. t anr pt a. I r :
a.ross n d! st r ie: _
.nd thaL s broadtyapptcabte
pf obLem sPS A s a p o p !L .r a s s e s s me ntt echi i q!e n the
5aferyanatyss i Ecr l l .aL
i! . t er r p. w e . c h e m.a l . a .d .e ro :p :c e l n d !stf e. P S Ac.e FT F_.i
TE P C OS ystems hass!c.essfuttydept oyed
at ei aid n te .p fe tsfa !L t tre e d l a Era msa, qraph" l m' det n!
a TE P C OnLrctear pow er ptantfac tty. s expand
I t { lE t f atng th r p a th w a y st! th rn a s y s te mw th Log.at con
w th n TE P C Oand E now markel l l
ng t to t he et E. l'
5t . ! . t s s uc na sAN Da i d OR F o l L o rL nl g h e pai hw avsthro!gh
lhe s y E t em .a f d e n tl Jw y e rk n e rs e sa n d p o nts off.l tu.e
A T E PC 0s a l e tye n g i n e em r rg rrtta k ed a vso. eve. w ee| (s
lo wo' k t h ro l g h a l a L rLtfe l e a n a ty .s T h s ted ol s pr..ess 0!esti on5
D i scussi on
i of automa _: : r
s t . ! . k T E P C 0ma n .!e me n la so n eth .1 w .s i deaL 1 W hatfeat!.es.re es:enl .l n ar exp ef tsv: I cn
t ion. T F P C Otu .n e d to Ge i s y m C o .p o raot n to ase5i 1 i n 5 bl efor i l resal el yot soffethng as po t entalt y. : _ : -
delelopliga ' e x p e rL .y s te mto a 5 e i sw t th P5A .s a nr.tea. P ow erP tant?
G ns y mC o rp o raot n . o u l o f B!rLfl q to n $/assachLrsetts 2 W hatcharacterstcsol thc pf..es5o t pr obabLs :
p. ovdess o ftw a rep ro d !r-sa n d s e rvc e s thatei abteorgan_ ai .Lyss C oyo! tf nk tedTE P C 0to be t evet nat
z iitons t D a l to ma te a s p e .tsn t th e . o p e .arons rn.t nal e a!tonratedn .r .xP ertsysl em?
h s t or l. at l yre q ! fe rl th e d l re .l a tte n to n o r h!man cxpe.Is
G eis y m w o rk e d t.q e l h e rw th T EP C Oto dcpl ovasvsl emthev C ri ti catThi nki ng0uesti ons
tac Ltv
f!c te a r p o w erpLant
- iim edF T F re -"w th n th e T E PC 0 3 W n.t otne.l nd!sti es w oL,tdbencfi ft r om a pr o. :
T he. y s lc m.L rto m act a l ty .fe a l e sPS Afa !Ltt.ee mo.l el sthat
es Fl F.ee?Why?
"1 " 4 W hydo ycu Lh.k TE P C 0d-" .ded l o p. . kase a. :
F f om a m o d .t,e i q n e e rsa p p tyF T F .e es bLrLt n expertse
t o q! c k t ya s s e s sth e fi s k . o f !.r o u s tv p e s01probtemE that
w 5e mol e n i .rm5.f.o.npetl tl veadv. . t a! e'
. . n . dle.s e ty mp a c t th e p ta n ts re ta btl v.nd safety
T hf olgl t h 5 a s s e s s m e n.n t. !l n e e .sd . !e .f t ..r oe. s ons
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NOTES
2 8 . S e x t o nR, a n d a tet ,l a t , 'm p f o v i n gD e c s o nE l l e cn ve n e ss't a
Sourceslortheopeningvignetle:'Amazon'om Cattson tAs ror Fraud
can; etawr c a t N e u r a lN e t w o r k 5A, M o d i l e do e n e l c A tq o .l h mAp p
Dete.t.n Ctigate Er PR,May2o,2A03 wtetis-netis p 421
NewTechnotogiestoSafeguard onUnePay Oecison Sciehces Srnn{20a3
ol nternetFfaudls Drivinq
29. TischeLle, Georqe'searchingFor Thal one /'rottr'o'
ne^rs, PR Newswre, December10 2003rAmazoncom Web site
accessedMay 31. 2OO4,ww anazon ran F e b m u r1 y 7 , 2 0 0 3P 5 3
30. overby stephanie The New New Intetliqei'e. t/'
35.
1 Android lews"e'rGt
Sourbut,Elzabelh,'AnAgreeable Febru- - l a n u a rly, 2 0 0 3 ,P
3 l srafl,"Thelmagineer,l/brrry Jouhal Match1s 2043 l t'
32. A n g e l , A nM Ba se d c"v
a a r i ae, r a l . , s o q u i m i cuhs e s a s vste m
2 John,'lnrenew- Ro6oloc fheEnginee.Marcn5 zaaL
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ntegerLinearProgrammnq andExpertsystemst0mpr''=
tomerSedic, /r&rrr.esluty-August 2003p 4'l'
3. Benttey,Ross, ManVersusvac|irc, ComputerWeektvMarch2a
33. t"ndrd, V " / rdne, or.edq" a.q o c ' d V P -ol :
2003,P 2!. ^ '
nvotving anExpertsystem Desiqnedasa LearnlngToot{or
4. Gray,Madison,'No WinnerIn ChessMatch Pitt nq Man Agansl
controtAssessment,DecisbnSciehcesSw ng 2aA3P
Machine,RackyMauntainNews February82003 p 31A n le ci so':r
H u a n sZ, , e l a l . , '0 v e l o p m eonti a n l n t e tU g e D
5. Utanoff, Lance, "Cognitive Machines PC Magazne Jatv 2043 p
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11 3. 'r'ot.
6. Begtey,Sharoi,"ThisRobotCanDesignPerlorma^d Lnterprel A
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3 5 . S h a a l a nK , e t a t . A nE r p e r r S y s i e m l o r tBe
cenertc, fhe wall Srreet Jouhal lEastern Editiohl January 16
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20 03p . 118.
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2004.
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February3 2003,p A1 38 Saran,Clill, 'DigitatFactofes lJseVtrtuaLReaLnvto
MannedFtishls, Ire lt llStreerJo,r,a( 2 200! p 13'
d$ron, ConPuterweeklv,March
1 0. S\all, 6e\\ouaBeet Pcworld March2003,p 83 _
L nda, Al LovesLucv, ConputeNarld Noeemhel 39 LouderbackJ m, 'ReatWorld Lessois USAweekenc 'r
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"Meei Paro The Therapeutic Robot seal ,]!t 40. Powrs,Kemp, nThere, Falre5 Seplember
12 Walton Marsha, PCMagazneocrobet28 24'':
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anl ne Navenbe| 2a, 2003 w.nn I
42 Armstrong,Davidlie'egwav, Ihettt/a1LStreetJouha|
sraff,' RarsWhiskersHetptoMakeBetlerRobots Fa.rorvEqulP'
1 2 2 0 0 A , p8 1 .
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Scanlon, B tl,'Roboticdav nciSc!tptsFirst succes5
6et 2,2403 Mcnh.on
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44. Moukheibefzina, MindOverMatter'' FarbesMatctt1'
15 WysocklBernard,'Robots n tne OR, fhe WallStreetJou'nat
February262004,p. Bl. l u stl h n ki n g
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17 Stall, 'MachineVison and InfraredLiqht -a/,
Bag-IagIe5t, ConputeMarld December22 2003 p 7
Visio. sptens Design,Apr | 2003 p 29
Sliwa,carol Geman Relailers RF D Erron Rivalswa
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reatth ManagenentlechnologvFeb arl 5 1 . M a c h a l a bD
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l o r M u l t i p l e - 'a m e r a 53. Beqley,Shafon,'A BeaulilutscEn.e, GettngThe MalF
2 3. Sh iha vA el al. , ' Dis t r ibut edI nt ellgenc e rhe t4al street-lburnalMav10 20c'
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stephen,NewTwstior theWrist, F'l"s, Fer_
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56 WeissTodd,"Pr nter Maji., ConputeNarld ')anua'/2L
26 ( zhang,et al, 'Recognitionof Diqtal Curyess':nnd From
PattemRecognnian 31
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January2003, p 123
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of a SouthAfrican
0ntineAirl.ine
Anes hM anir ajs in g h
Jniversitv of Durban

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d a te sT h e s econdstepattow scusl omerstochoosei hemostconveni en t or cheapest :. ft
b .s e d o n th ei r need.K utl rl aatsoattow scusromersto bookcarsand accomm odalio. :
s te ptw o .S te pl h.ee i s thet.ansacti on stage,w hi chauow sc!stome.sto choo ser he
s u rta b te p a y mentmethod.Thec0nfi rmati on andti cketcan be pri nredoncepa ym ei: - :-:: ,
b e e ns e ttte d.K ui utahas noi embracedmob Lecommefceyet, becausethe t echno: :
d o e sn o t s !p port the abi ti tyro aLl owcustomersto purchasea ti ckettn threee . sy s: . : .
U n ti k eo l h e re -commerce srtes K ul utai s unctLrtte.ed ands mpteto undersl andenh; :
i n gc u s to m e .servi ce. K utuLai sa fun b.and w i thoffbeatadverti si ngcampa ignsandbr :
g re e na n d b t!e cofporateanda fcraftcotours-butbehnd the fLrnexreri o.s a gr o": :
p e o p tew h o are ser ousaboutbl rsi ness
K u l u l a ' sf ul !re s exi femetyprom s ng.Technotogy changesconrtn!al tya. nd KL :
s t.v e s to h .vethebesttechnotogyi nptaceatati ti mes.B 28e comnrercew tLconr in! :
b e a ma j o .fo cusofthecompanyi no.dertodevetopaddti onaLdi stri b!to nchannet s.
trttte o .n o c o st.l nconj !nci l onw i thbankpartners K rrtutasdeveLopfgaddi ti onat m er f : : .
o f p a y me nto i repl acecredi cardpayments, aLtowng more peoptethe oppo.r ! nt y r : .
T h e s e tra n s acl i onsw tl befree. X ututasal so nvol vi ng customersi ni tsmafke t inqer . : :
b yo b tan i n gthei . pe.mi ssl on ro p.omotespecal offersbye,ma tand shoftmessage: :
v i c eto c u s l o merscettphonesIhe K uLuLa W ebsi tew rl tsoonserveas a ti cket ingp. - :
w h e rec l s to me.s can atso prrchaseB ri ti shA i rw aystckel s, i n th.ee easyst eps - , .
c o mp a n y h a smanyotherdevetopmentsi ni heppettnethai w i Ienhance cusionr er se. : :
Ac c o rd i n gl o S chott2,W e are not ai onl i nea fti ne,j ust an e tatte.rhat se lt s a r _

D i s c u s s i o0nuesti ons
1 T h i sc a s edoesnot ment on any b:ckup systems,ei thefetecr.onc or paperba: : :
Wh a tw o !Ldyoufecommendto ei sure rhatthe busrnes.' .]ns 21171365?
2 . l t i s c te a r fromthi scasethat X !l uta i sa Lowcostprovrde.W hatetsecoL r Kut
t d ! i; : :
w i h i ts l e chnol ogytobrngn addi ti onat revenue,
saveon cast andenhancecust o- :

3 D o e sth e app.oachtakenby K uLutai n terms ot ts straregy,ts bl si nessmodet .: :

th e th re e pri ncl ptes
of successl end i tsetfl o other b!s nessesw anri ngto enq. q:
 vr.t' ,i rN r:i l P ods

K ut ut af l ghisa re a l m o s ta tw a y sfL rttD oy o ! th i nkthat by partnerng w rtha company

5uc has Las t m i n u te .c o th t o capaci tvat aLtti ni es?W hat afe the
m e a i rtl n ec o !L dfL )7
r is k sr et at edt o s u c ha c o tta b o ra ti o n ?

l r ilic atT hink ing0 u e s ti o n g

: K ut ulain t ialt yd e v e l o p eidts s y s l e msn h o u s ew hi chi t tai e' outsourced to A fK i osk
n B os t onDoy o uth i n ki t s w i s e fo .a n e _ b u sn essto ol tsoutce l t5 svstems devetop
devetopment
m ent ?ls lt s t rs te g i c a Lsl yo u n dto o u ts o u rc es ystems to a companv In a
dilf er enic oun try ?
: W t ht hec u. . e n i t.e i d 5 n m o b i l e c o mme rc ec otrl dK !t!taoffe' l tsservcesonmobl e
dev lc es s uc hasc e tL L rta .p h o n e s ? Wo thi nknq
thuel cdo m panyhavetoati e' l tsstrategrc
t o ac c om m od a te (
s u c ha s h ft?l s p o s sb teto d evel op a text' based that
Interface coutd
l. c r t it at ea pu. c h a s eIn th re ee a s ys i e p s ?
 Systems
Development

Sysier.s nvesii!aior .rnciAnnLysr!

SystemsDesrqnllrrFi'cnrenlal on Mainlenancand Revr''/'/
 $ystems Investigatic:
and Analysis

': I ri i r ir r . '1.4 i : I
 s\nen nve5' Anar,,
earonand I cup,* o

INFORMATION SYSTEMS IN THE GLOBAL ECONOMY

BMW. GERMANY
a New5y9temto RampUp production
Designi|lg

The BMW Group is rcputed to b the only manufacturer of automobiles and

motorcycles worldwide tha.t concentrates single-mindedly on premium manu
Ia.turing Etandar& and outsta,nding qua.lity for all its branats. Its brards
include BMW, MINI, Rolb-Ror.ce Motor Cars, and BMW Motorcyctes. The
BMW manufacturing plart in South Caxolina is part of the BMW Group,s globat
marufactuing network erd is th exclusive manufscturing plart for the
compa,nys hotseling 23 Roadter and XE Sporis Activity Vehictes.
The ZB ard Xb arc so popular, in fact, that BMW wa se ing them fa.stI than
rt could build them. "Customer derD-and for our new Xb Sport Activity Vehicle
and our popular 23 models rcquired a sotutior tha.t woUld suocesstuUy sped up
md support streanlined productior," sat Hars Nowak, program manager for
BMW Marufaturing Company in Spartanburg. MerufacturiDg each of rhese
sehicl$ rcquircs hunahds of parts ftom hundreats of supptiers, so coordinating
pu.chasing and acquisition of these parts can be morc complicateal th3,n coD-
struciiDg the vehicles. Executives at the ptart recognized that increa.sing ths
emciency of paxts prcarrement could be key to ramping up production to meet

To lay th groundwork for devetoping a lean a.rjd mean procuremnt sr.stem,

BMW organized a t6an to investigate the pmblem and gather infomation. At
lhe time, BMW was using a custom-built infornation system to ma.naa its sup-
plier and rogbtics rcquiEments. The old system monitord pa,rts inventory anal
placd oders with suppliers weu beforc they w6re needed to avoid halting prc-
duction. Aa a result, the plart ha{t targ amounts of excess parts on hanat anat
ureliable delivery schdules. I'he old s,.st6m was wasttuI-and worisome. Th
iem sat dov,/n with the rcsults of their inv4tigation to stablish objectives for
a Dew and improved system.
Ar ideal system, they decided, would need to include a tight supplier ntwork
that kept parts coming to the a.sgembly lins in juEt-in-time (JIT) mod6 to prc,
duce cars to meet customer demaDd. The cha,Ueng was in dea]ing with hunatrcats
of different suppri$, oarh ofwhich requtred va.rying amounts of tim to proctuce
and deli\,r the pa,rt8. It was soon clear to the team that the demanals of their
drarn system far exceded the capa,bilitieE oftheir cunent custom-built s'.stem.
They decided to look to external software vendors for a solution.
AftI conta.cting a nmber of softwalc vendols. issuing requests for propos-
a]s (RFPS), ard anabzing the rsult8, the tearn found ore company with ri/hat
appoared to be an idea.I solution. SoftwaE giant SAp otrered a cu,stom-designect
automotive p.ocurement solution catled m],AP Automorive. mys.Ap Automotive
@erca.me the challenge of clea,ting Bchedul$ for each of BMW'S suppliers by
automatically generating custom schedDls for oach part; the systgm generateat
*hedule6 to match BMW'g assombly-line planning and sequencing dirctivos.
ODce BMW decided on the SAP solution, it v/as able to complete its implemen-
ratioD within one month.
The new system prcvides two i}?es of $ports to suppliers: long-horizon
forecaats and short-horizon JIT delivery schodrtes. Laxeer suppliels recive the
Psft1 | sysr.msoevetopmenr

infouna.tion via electmnic data interchanee (EDD. Other suppliers access the
mySAP Automotive Supplier Porta.l. wher BMW posh the rcquirements to prc
vide up-to-alate information on its delivery neeala. Using only an Intrnot brows'
er. suppliels car view this informa,tion in !ea.l time, including relea.se schedules.
purchasing document, invoices, a,lld enginee ng documents.
As parts are shipped, BMW receives sdva.nce shipping notifrcatiom (ASNS).
which provide exact infomation on parts counts and delivery date8. ?art8 a._
riving at the BMW dock a,re then received and transferred dircctly to the lin.
The new system goes beyond procurement to monitor ploduction statN in
re3.r time. mJ,AP Automotive registers pmduciion conflmation ard pails coD_
sumption inlormation every three minutes. Parts consumed during aasembly a?
removed from the inventory count, ard costs axe postd to ca,Iculate the wlue of
work in procesa. Prcduction supewisors are able to monitor the ebb ard flow of
parts inventory in real tim6, a.s w6ll as look a.heed md know when incoming
shipments will be axdving. Hans Nowa,k sums it up thls way: "rq]'AP Automo-
tive helps us r.educ order-to-delivery time, trenethem our supply chain activ-
ities in the aias of demand planning and traEking md tmcing of mateliar
delivelies, ard improves inventory accum.y acrose our Sparta,nburg plant-n-
abling us to siglificantly ieduce time-to-customer for ou:r popular X5 and 23

BMw a.lso values SA?'s standa.rdized and sca,Iable platform. The s''stem can
be expanded arrd moclilied to embrare new tunctiona,tity or chancs in business
processes. BMW has alleady iniegirated other business pr.ocess$ with mySAI
Automotive. Infomation housed in BMW systems can be eaily accessed, in-
cluding lorccat rcquirements lol components. sals ordeB, md vehicle bill of
material. In a.ddition to the industry-specific solution, BMW is using SAP appli
cations for logistics, financia]a, md hma.n resources.
Asyoureadthis chapter.considerthe fottowingr
. vllar is rhe value ofcond.uously evaluiing end imprcvins th ;nfornadon systens$at
drivea conpany and onn(tit with its suppliersand cusromers?
. \V1rar are imporrant onsiderations when deciding wbether b implemeni a ns
informtion sste m?

Vhen an organization needsto acomplish a nw task or chmge a work proces, how de

ir do it? lr dwelopsa new systen or modifiesan exnting one.SysrensdfleloPhent n th
acdviry of crearingor nodifiing existing s1srens.It refen to all *peca of the proces*fron
identifring problens to be solvedor opponuniriesro be exploiiedro $e inplementation
and refincment ofthe chosensolution. Evensovernnental agenciesue system doelopment.
The Naval SeaSystensComand usedsystensd*elopment to srean ine irs procuremenr
ptoess.'The nilitary operationhuan annualbudgaof$l9billion.Asa resuhoftheproject.
 systemrovengatonandAirLyns I Chaptor ls

the naval depanmeor ws able to cut bulng tine by 85 Percent fron roushly 270 dat6 to
rbout 30 days.ln anorhersistens dneloPhent project,the U.S Congres alloQted$1.35
billion torheInrernalRevenueService(IRs) to upgradeits computersystems.'?Congress md
U.S..itizenshoperhat the upgrade will male ir easier
fot peoPle io conlad and inreract wirh
rheIRS.
The resultsofslstens developncnten nea the suces ot failue ofu entireorgari-
zrtion. It can ryen meanlife or deathin sone c*es. Physicians, for enmple, wereactively
involvedin devetopinga 3-D ryten for surgery.r The nw sysrem allo* doctorsto do
pmcriccsurge eson a priienls internal organsbeforeactully operating, P.evening mistakcs
ud saving lives. Sueessful sptem d*elopment ha dso res ted in huge increasesin r* @
.nuesand profirs.Compade that don't innoqte with n* systems developnent initiatives
Syslems
A FewSuccessfut
or fail to succesfullyonplete a systems developnenteffon en lose millions Undentaadiog Projects
DvetopmGnl
rd beingableto applya systensdoclopnent life cyde, rols, and echniquesdiscusedin
lSoufce:DataIrom Besl in
rhischaptermd rhc rextwill helpemure the success ofthe developmentprojectson which
Class, Canputetuortd, March 15,
pa.dcipere.It an alsohelpyour cueer md improverhe financialsuccesofyour com- 2 0 0 4p
, .3 l
'ou
ilanv. Table 12. I surm&irs some succesftrl qstems developnent Prcjects.'

LLC
RetiaitPharmaceuiicals, Thelergedrlg companydevelaped? satsforcdautomatron
sy,lem hat uredrcicerecogninor.Therew systerrreducedlhe tjne
t tool to respondrosd.escallsfrcm eighlweekslo lessthar a day.

Thecrcditcardcompanyusedsystemsde!lopment to creata
sysremlo l^.lp reklve credrlcardcha.9edisputeswrih . usoners
6;d (fent.. Tle web basedappticstioisrreamliles the p'!cessi.s
o ' c h .rg edi spul eg\
eavi ng w l i ch manages
l i mea4omo.ey.V i sa,
esl i natestl " .t rl dl l $@
o v ? r3 00ni l .ronc.edi tal o oeb.tcdrds,
morpll-an$l b'llionovertl"enerl livFyear5.

OF5Y5TEM5DEVELOPMENT
AN OVERVIEW

in today'sbusinesses,manage$and enploy.cs in all funcrionalares work togetherdd use

rusincssinformarionsrntems.As a result,mcr of all typcsare helpingwirh development
rnd. h nany.ses, lead;ngdreway. fhis chapterand the ncxtwillProvidcvou vith a de'per
:pprcciarionof the slscns doelopment proces and hclPyou avoid@stlvhilses'

s 9 y s t e m s0 e v e l o p m e n t
P art ic ipa n ti n
:ft!.tivc slstehs dsclophent requaes a tean etron. Thc tem usullv oroisa of stake-
iolders, user, nanages, systemsdoelopment specialists' and varioussuPPoftpersonnel'
This team, called thc /@.fuzear reaz, is responsiblefor deternining the objectives ofrhe
a
dti,rmation s]stem drd delivering rystem that mets thesc objectives Manv developnenr
 teans use a prcje.t nanager rc head the sysremsdselopnenr effon dd ille prcied man
asenent .pproach to help c@rdinate the sysrensdoelopmenr Proce$. A?/,1,.' is a Planned
collecdon of activities rhat achievcsa goal, such * construcring a no manuhcturing plot
or dseloping e new decisionsqport lsren. All projectshavea definedstaningpoint o;
ending point, normlly expresedm datessuch c Augusr 4th and Novcnber I lth Mon
havc a budg*. such m $15o,0o0. A poject nnndgo ts the individul responsiblefbr cootdi
natingallpeopleandresources neededto conpletea prciecion dme lnslstemsdeveloPmeni
the projecrmanagercan be an IS personimide the organizarionor an externarconsulran'
hited to conplerethe projer. Projectnmacr needtechnical,busines' and peopleskills
"Ii's a delicatebalancingrct." salsJackProbst.vice presidenroflT proess and governanc:
ar NarionwideInsurance.5 In addirion ro comPletingrhe proj$ on tine and vithin tb.
specified budger, the prcject nmager is uually reponsible for conrolling prcject qualn'
raining personnel, faciharingcommunianions,ndaghg risl$,andacquninganvnecesao
equipment, induding office suppliesand sophisticatedconPute. s/stems. Researchstudie
haveshown that project nmagenent succes faaon indude good lea&nhip from *ecutn c
and projectnanagen. a hish lqel of rr$r in the Projecrmd its potentialbenefits,aod tht
connitment ofthe projea tem idd organizationtd succestullycompl*e the projectant
implenent iis results.o
In rhe contct ofsystens developnent, stakeholdetc re individuals who. either thenr
Ind vlduatswho,either themselves selvs o. thrcush the area of the organizaion they represent, ultimately benefit from th:
of t hfolg h the org anz anont hey systemsdevelopnenr prcject. One lsens doelopment nethodology' called 43,& zole-
represent,!ltimalely bnelitirom
izg, olls for very active parricipation of cutones md other staleholder in tbe lstens
the syslemsdeveloPmntProlect.
dnelopnenr p!oce$. Uses are individuals who will interact with the systen regularly. The'
can be employees, managen,or suppl;en For large-selesystensdweloPnent proiec6
lndivd ua lswh owiltnt er ac t wit ht he whererhe invesrmentin andvalucofa systencanbequitehigh, ii is @mmon to havesenio:
levelnanages, includins the conparyprcsidentand tuncdonalvicc preside"ts(offinarce
nrketiog, md so on), be pan of the dodopnent tean.
The IS conpetence ofnanagers cm havei big inpacr on the systemsdevelopnent eilb r
Managen with nore knowledge and skill in conptrrer technoloSr re nore will;ng to fof
prmerships with lS people and to lead and panicipatc in systens doclopment projec--r
Usen who do not agreewith a systemsdoelopment projecr, howod. cd be hostile to tr:
projectand may eventry to disruptit.
Dependingon the natureofthe systensproject,the devloPmenitem nish! indui.
systemsanalysamd programnes, among orhers.A slstemsaalyst is a Profe$ionel"i:
Professionatwho specatizes n specialias in anallzing ud designing businesssystems Sysrens analystsplay wrious rols
analyzng and designn! business while intencting wirh the sta.keholder od users,nmagement, vendor and suppl;ers e
rernalcompuies,softwm progmnmen, md otherIS supportPersonnel(seeFigurell l
Like an uchitect d*eloping blueprints for a new building, a qxtems analystdevelopsdeaile:
programmer plans for the nw or nodified rysren. The progmner is resporoible for nodifying r:
Specati.t responsiblelof mod lyii9 developing prograns to sadsfr uer requirenents. Like a contractor construcrirs a nG
p rog ram s t os al s ly
orde v top in9 build;ng or renovaringm existingone, the programner ales rhe plansfrom the sptee
ualyst ard builds or modfies the necesary sofrwue.
The orhersupponpersonnelon rhe de'elopmentreamm nostly technicalspecialis:
including darab*e ud telecomnunicarions cpens, hardmre engineer' and supplier re-^--
re .e n ra rn eO' .ne or moreofrhe' erol e.ma beo,nourcedto ou' ' i deexpensor .on'ulr *:
Dependinson the masnirudeof the systensd*elopment project md the number oi Ii
sysemsdevelopnentspecialists on rhe ream,the tean may also include one or norc li
managen. The composition ofa develoPmenttem may vary oYertine and frod projecr :r
projecr.ror smallbminese, the developmenttem may onsht ofa qrtems amlvstmd ti':
L"sines owner * the primary saleholder' For lrger orgmiations, fornal IS sraff can ir-
cludehundre& ofpeopleinvolvedin a varieryof ectiviries,includingq6remsdevelopmt.:
Eve1, development team should have a ream leader' This individual cm be hon the -:
depanment,a managerfron the <'npany. or a co"sultantfron ouLsidethe conPaDy.T::
team leader ncedsboth techdol and people skilh.
Developnenr projecrsplc ge* demandson the stafrwho may alrerdy havedavro d.'
responsibiliries. To keeplS peronnel motivared.nd reducest.ess,sone conPaniesha':
 3 r , r r i , . r r a +q i o i a , d a i i l r : : : I o '. e " " t"

@
T h es y s t e m s a n a t y sp tta ysa n
m p o r t a n t . o l en t h e d e ve to p m e n l
i e a m a n d s o l t nt h e o n typ e r so n
w h o s e e st h e s y s t e mi n tsto ta tty
Theo.e-wayarrow5in th slig!r do
n o t m e a nt h a t l h e r e 5 n o d r ct
c o m m u n i . aot n b e t w e e no th e r te :m

&a."s a3{
- Sotrwareprosr:mm.rs
m e n b e r s T h s a r o wsl u Et
n d i . a t et h p v o t a t . o l eo l l h e
s y s t e m s a n a t y s la n i n d vi d u a tw h o
i s o i t e nc a t t e do n t o b e a ta c tta l o r
m o d r a t o rn e g o t a t o ra n d
nlerpreterfaf dvtopmnl

\a*
SYSTEMSIANALYST
/

.)/l
t), ,/ |
A, B ,/ vendorsandsupplil
ql,-.& / .t
lli!-

:dopteda consultancyapproachto dcvelopmentA casinoconpany, for exmple' can ue

:hisapproachto helpcurcosrs,inprove productiviry,and redu.eburnoutofns IS satT.'l he
l.rryecNino and hotel opentor can let ns lS staff*lect upcomingproi.crsand give s/srcns
Jevelopmcntreamsthe rcsources they ncedto complctcPtoF.$ on rime.
Regardlcsofthe specificnatureofa project,systemsdwelopmentcreatesot modilLes
.rstems,which ultinarely neans changeManagingthis changeeffectivelvrcquiresdtvel
:rment teammembersto commun;.atewell lr is;dporunt that you learncorr municrtion
.kills,becausevoupobably will participarcin systensdcvelopmentduring,vourcareer'You
nay evenbe the ind;viduJwho init;atessvsrcnsdselop'rcnr.

In i tia ti n gSy s temsD ev eLoP men t

jrsremsds.lopmentheginswhenan individualorgroupcapableofiniriaringorganizational
;hrnge perceivcs a needfot r ncw or modifiedqtrem Srch indiridualsharc a stake;n th'
Jevclopmentof rhe svstn. Exccuiivesat an xirline company,for exmplc, c.n innirte r
.,sremsdevelopnentpnrjectwhen theydecidcro expmd the company'sVcb siterc rllow
oployees to log on to dre sirem get deeplydiscountedflight and favcl opponunities A
:inancialserices compmy can initiate a systemsdevelopmenteilort ro inrtodu'e a ns
mmrgeme.t (CRM) qrtem to hundredsof its barks To incrcrse
-ustometrelrtionship
.ecuriry,PershingLLC initiateda sysrems devclopnentelTorrro build the lnmsion'Dttec
ror Srsrem(IDs). The companyis a securitiescleaing firm that handlesabout 5 percnt
rirhc transactions ofrhe Ne* York StockErchange.IDS wasbuih to n*e clcctronicse
:uriiicsrnnsactiomnore securebccause moreand moretarsacrionsarecondtrcred rhbugh
svstens, and they nust be safefron tampering T
;onpurcrized
Sv$emsdeveloDnerrinitiativesariscfrom a1Lloels of an organiuattrnand arc both
phnnedandunplanncd.fo cosrsa"d improveeliiciency,dre mroagersrt the I'ublic
(PBS) -d"ce
launched a masive svsens developnertelfon The projcct* ill
i@dcasrins ScNice
eplaceexpensivc broadcoting cquipment with less'expensive I nrelcomputen.The new svs
,.o wil Jso increase the teliability oftnnsmirring shovr around the counrl* The project
:; schcduled to finish bv 2006 fd is erPeaed to save PBS rbout $100 nillion annuallt" In
lc . - e' . . ' ne y re m .d * J o p mc l , P,o r' rri ri ' re' .h" ng* rooLFe * rrm or.ompmi " '
\'enris Pharneceuricals, for eunple, embrrkcd on a sysrems devtloprncnr Prcie't to
 rb't a I synci,.Dderopm-ar

upsnde irs e'haiLsysrem.'Theupgradecauseda c"nplete redoelopnenr of the conpany s

global hardwre and software systerns,including is openting systens The nw systens
d*elopnent projecttook nore than threeyear to conplete. PeugeorCitroen initiateda
sysems d*elopnent ellort to u* softwm ro improve its car body manufacturnrg.roLike
nmy systens doelopnent effons, the PeugeotCirroen projecr had an inpact on the om-
paniesthat supplieditscupurs. Theconpmy belocs that thesystems developmentproject
resuhedin m addirional$130 nillion in iddeded proflrs.
Solid pimning ad nanagerialinvolvementhelpsensurethat rheseinitiativessupport
broaderogmiational soals.Systemsdeveiopmentprojectsnay be inirined for a nmber
ofreuons, u shownin Fizure 12.2.

@
to Initiatea
TypirlReasons
SystemsDevelopmnt Project

oppo.tunfiis,suchasa
hwe-comme.ce iniliativ

rapable ol iniliaring .h.ng

Mergen and acquisitionscentriggermatrysysrensdseloPnent projects.'rBeuseIh:

information systens for companis de usdly ditrerenr, a large s)'sremsdevelopnent efior
is rypically required to unify systems.Even with similar infornation slstens, the procedure;
culture,rraining,and managementofrheinfornation systems aretypicallydifferent,requir'
ing a rcalignnentof the IS depanmena.
The federal governmenr also fosus new system dcvelopmenr Proiects in ihe prival.
,eror. In r-hew*e ol reant llnrn. iJ 'tu 1s.rle governmenrn inriruting new orpor'
financial reponing rules undet the Sarbmes oxleyAcr These nw reg xiions have cause.l
many U.S.companiesto initiatesystensdevelopmentetrons.l'lSoneompanies havebeer
ovewhelmedby thesenv, st.icl reporringrequirements.rr RegisCorporarion.m opelalo:
ofhai. s.ldns,estimaredthat the costof conplying wirh the new et will cosi ir more rhan
$100,000.t4Someconpmis lre building sotsxue fron scnrch ro conPly with the ad
while otha conpoies arelookingfor softwarethey on purchoe.'5Other governmentinr
tiatives havealso iniriared systens d*elopment. The CIA hs funded a venturc-c.pital ffrn
 sl nems i r.stqatoi ai dA naLys s I chl pte 12

cJlcd ln-Q'Td. whic.hscelshelPfrom corPorarions and their s)sremsdeveloPhentdep.rr-

menrsro build new spy tools for securiw.The Centc for Disese Contot (CDC) has
developed systens to hclp it deal with biorcnorisr threatsand other posible crises
Corpomre litlgnion, which appeas to be on the rne, alsohas iniriateds)'stensdeveloP-
mcnt projecrs.New systens are often needed to proted conpanies from lawsuitsdd help
then in coun iflawsuits are brought againstthem.

a ndAtig n in gCo r p o r a te
n y s t e m sP l a n n i n g
Inf orm at ioS
andl5 ooal s
Because an organiadon'sstrategicplanontains both organ;zatlonJgoalsand abroad urt
line of steps req$ed to rerch then, rhe stntcgic plan affects the gpe of svsten m
organizadonneeds.For exdple, a srrategicplan nay identirys orgdizarionalgoalsi dou-
bLingofs,les rsenue wnhin five,vea6,a 20 Per.entreductionofadninistrative expenses
orcr threeyean, acquisnionofat leasttwo competingcompanieswithin a yeer,or narket
lcadership in a givenp rcduct.ategory.Orglnizationalconnitments to policiessuchascon'
tiruou inprovemenrarealr reflectedin rhe sthtegicpian. Suchgoalsmd connitnents
sctb'oad o"dinesofsyste- pertornace.
Often, a sectionofthe stntegicplan lisn guidelinestor deeting specificsoalsthatelate
to unirsor departnens.Exuples ofthescguidelins night be inproving custonerscnie
fu luxury carbryen, expuding internationaldisuibudon by pulchasingexistingdisrribu-
tors,and usinga specificmount of noney to buy backconpany stock The stntegicplan
also providesgener.l direcrion!o the finctional area within an organization,including
marketing,prcduction,finance,accouniing.and human resources. For the IS deprincnr,
thesedirectionsre encompassed in rhe informatidns,vsrensplu
InformationSystemsPlanning
The rcrm informarion s trns planing refersto the translarion ofstrategic and organia' information planninq
systems
T h el f a n s t 6 t i o no f s t r a te gc a n d
rionalgoalsinto qrtems developmentiniriativesGeeFisure 12.3).The Mdrioft hotlchain,
oflan z6t onat qoats nto systems
fo exmple, invitesits chiefintormationolTrar to boardmeeringsardothertop levelnan- d e v e t o p h e ni tn I a t v es
trgemenrmetings.ProperIS planningensures rh.t sP.ificsysremsdevelopnentobjecrives
suppoftorganizational goals.

@
l i l o r m a t o n s y s t e m sp ta n n r n 9
translo.ms o19antrahonat goats
o u t l n e di n l h e s t f a t e 9c p ta nr i to
* speclfc sysremdevelopment

andls Goats
corporate
Atigning
.{igning organiationalgoalsand IS g@lsis criricalfor any rcccssful systensdoelopnent
cffott.Sinceinformationsysenssupponotherbusiness acivities,lS snil andpeoplein other
depannentsneedto undentandeachotheis rcspons;biLities and rasks,asthe "Informarion
Systens@ Vork" featue dplails- Deternining whetherorpnizarional and IS goalsare
haveincreoinglytacklcdthe problen one nesure
alisnedcd be dirffcult,so researchets
ofalignnent ues ffvelevek,nnging fron adhoc proce$es(L$cl l Alisnment)ro oprimized
procerses (lrvel 5 Al;gnnent).
Fakta DesignsFinanciatManagementSystem to LrserconkotLed systemthat cont.lnsatLbldgei_.ebtedl!nc: :':
hom lnventory to productonoverhead
tun'rovef costs.Atl re,a:-E
SupportCorporaieGoats
managefsnput ther bldgets nto the new system th.ou-a_.
TheLeading D.nishdisco!nlretaitclran, Fakla,rccenttybecame e.sy to use Web-basedsysiem deliveredover the comp; .:
lrustratedwLthts ln.biUVloma ntan lts budgetTheretartefhad ntianet.Thebldget s then f natzed.and the nlmbeE are':,:
grcwnbeyondthe capabLitiesof its antiquaied budgelngsystem ew . rre._
ble As a fesr.rtt,
everyonecan qLr|ckty
qetan overu
and somethiq neededto chaige We tve ln a wo.tdwhere t s -
cruclalfor!s to beable to.eact qlickLyto.hanging c rclrmstances
Faktatrarnedils rgonalmanagersafdis f nancestail.' r
be.aLrse ouf p.ofitmafg ns are so smatl says FnancaL Di.ector
ne!.rsystemto ensurethat they lnderstoodthe new bL:l=
C F Thorh.uge lf we areto earn money, !,re must be featty lolrgn
nq process.Faktas lS depa.tmentstobhas beenslmp[ti r::
n controtLng ou. costs. Eul the otd system for estabLish ng the
bldgetnq Thedaysot ma_--=
Theyno tongerhavetoworryaboLri
corpotbLrdgetwas notsupporiing the goats of the organizat on
, o " q ond o," -od... budo" : .
ls wth att systems devetopmeftprotects Faktas S
depa.hent beganbydei ningihe goatsof thes!temn tightofthe Wth lts newI nanciatmanagement systemIn ptace.the -:-:
goatsof the organzalon.Theystld ed the detats of the clment nat dscolnt chan can contfot bLrs
ness opefations and h:_l!
sys t em t os eewhyi i w atisnt:gF a k ta h a s .etot: L rtte ntsr6regrons prevolstytaken days o.we-':::
bldqeiingquickty Whereit had
in Denmark each of whch has a manager who is financaLtv t can. . r =
detemnethebl dgetl o.thew hoted scount chan.
responsbtefof the shopsn his or he. .eg on. The syctemin use jlrst ve plt an endto atl the::tr
accomptished in a few hou.s.We
rquiredeach.egonatmanager!owork olt h s of her ownbudget
excLsesfor m stakesln the b!dget conctudesThorhaLrge
and send t lo the companyheadqla.ters n Velte. From there.
Faktas s depaftmenlcotLated the bldgels lrom alt the reganat
D i scussi on
Quesl i ons
m.nageE:nd passedthe combinednto..natonon io the hnance
depa.tmentThen.the fnance depa.tmentat the companys 1 l _l owhas Faktas new systemchangedthe wo. k : : :
headqladersmanu3lt determinedthe ovemltbLrdget by using of i ts regonal managefs.ts S staff. and t s r . : - : 1
spreadsheets or otherformsof doc!mentaton. somet mes even
resonngto percLtanopape. 2 B esi dessl reamtni ngthe pfocessof cotl ectlngr eg : :
"ltwas at.erdycteartous sveratyears agothat the sliuation dr'. o^h.
16_o^c/sd1 roo\odte6 6l -:

was becomnq !ntenabLesaysJensBrnkmann,FaktaefnancaL of l he o.ganl zati on' l

cont.otLe. l wasextremety d fflcLrttto contrctthevastqlantLtyol
nfo.matonthal cameircm the 16 rcqrons nto ttheJheadoflce Critic6i ThinkingOuestions
Ofien t tookdaysor eve.weeksto coLlect altlh d fferentbudqel
3 N ow thal Faktas fi nancedepa.tment snt st r a: : n:
infomaton,andthefewasa majordsl of e.rors occurng durnq
tl re companysbudger _r r
w th man!attycal cLrl ati ng
can f nanceemptayees l se thel f addi tonaLt im e
thatthenewsystemsho!ldprovdea centfatrzed
Faktadeclded - : _.
seNefaccessibte manage.sto attowthemto store
lo atlrcgior'raL
I P .ovl desome examptesol how fnancl at manage- : '
nfo.maton dlrectLyin the cenl|at system The systemwoLrtd softw aresuch as that n use .t Fakt. m ght nilL: _: :
automatethe calcLrtat.ns.c.e.te the bldgel, and provLde lserut
and changethe nvestmentand pl rchasng slyt e: .
repo.tstoatLmanage.swthn theorgan zaiion.BecaLrsebldget ng
is commonto aLlcompaniesFakta glessed that sucha sotltion
wasprobabtytreadyonlhe market tlolrndltssotuilon napfodLct r'.r
success
soURcS:'sAs Ju^e13,2004.
stores Fakia,acceseed
fromSASCo.po.aton sasca4/su.cess/fakta.htnl sas Finan.at nteLtig-"n.e web 5t. ac.E:=:
SASwo*ed wth Fakta5 lS depa.tment to deletopa cusiom_ )$e 1A,2AA4, w.sas coh/so tutians/h nanciannder. htn l: FDB lon-. r
goats Theresutt?A centraL FaklalWeb3re a.cessedJune13 zEA/.ww ldb dr/defattt asplid-l.
izedsyslemthatmet theorg3nzatrons
 rnven
sysrems satonandAnatysisI cb3lie! 12

One of rhe prinary benefitsofIS plann;ngad alignnent ofgoalsis a long+angeview

ofinformarion technology s usein rhe o.ganization. Speific sysrmsdseloPment ididatiaes
may sprios from the IS phn, but rhe IS plan nust also provide a broad fnne*ork for tuture
succe$.The IS pl,n should guide dwelopnent of the IS infrstrucrure over time. Ano$er
beneir ofIS plmning is thar ir erouresbener useofIS resource*including tunds, peronnel,
md rine for schedulingspecificprcjeca.ThestepsoflS plmnins areshownin Figure12 4.

@
TheSlepsof lS Ptanning
Someprojectsare dentlied
througholeratt S objeclives,
whereasadditionalprojects,catted
unplanned projects, ate \dent\l ed
ffom olhrsources AU identified
p f o j e c t sa r e l h e ne v a l u a te dn t r m s
ol lh | org6ni2ationat priority.

overall IS objectives ue usually distilled fron the reler:rt aspectsof rhe organization s
n.ategic plar IS prcjects can be identified either direcdy fron the objectivesdetermined in
rhe first step or idendfied by others, such a managerswithin the variou tuncdonal areas.
Se$;ng priorities and selectins proje.ts gpially requires the involvenent and approval of
*nior nanagenenr. Ifhen objectiv$ de set, planners consider the resourcesrecessaryro
complet dre prcjc$, including enployees (q6tens analllts, Prog1:'l]mes, dd others),
equipnent (computer, nerwork serers, printers, ard oder devices),expen advice(specialiss
ud other consultanrs),and soliwe, mong orher.
 a Competitive
Devetoping Advantage
In today\ businessenvironment,mary companiesseeksy*emsdevelopncnrproieas rhr
will provide then wirh a conpetidve rdvanrase.'lhinkins conPetitivelyusuallyrequne:
creativeand ditical analysis.For exdple, ! conpany may {ant to achievea compeririv.
advanrage by inproving its customenupplierrelationship.Linking custoher and supplieE
cm resulrin superiorproductsand sewices.Fuji and Kodak are hopins ro achievea com
peritiveadvartageby developingonline photo+haringsewices.'6 The seniccsareained a:
canera-cnabled cell phone uses who don'r know what to do *ith the photos atter the.
snapthen with rhei.ell phone.AllstareFinancialGroup usedthesofrwareprogrm Visu:]
Studio .NET ro crcate a V/eb site. called AccessAllstate,to allow 350,000 salesreps to ge:
informationabourAllstateinsurane, rernement,ahd invesnentproducts''] Beforethe\Irel
site wx available,Alhtate sdlesrepshad io call rhe @mpanyfor infornation Bylookiog::
problens in no or diff*ent waysand by intoducing innovativemethodsto solvethen
hanv orgdizariors havgainedsignifrcanr conpetiliveadvantage. In somccases, thesene"
soLrtionsareinsphedhy peopleand rhingsnot directly related to the problem.
Creativeanalysisinvolvesth nrvesrigalion ofnew aPproaches to cxisringproblems B.
The nvesll9atonor nwapproaches lookingat problemsin oewor dirTercrrwavsandb- introducing innovativc methodsto sol.:
then, nany firns havegained a conpetitivc advanrage. Typically, these rerv solutions:r:
inspiredbv peoplcand *en!s noi d;ectly related ro rhe probleh.
Crithal dalysis requnesunbi*d od carefulquestioni'g of *hether svren clenr",'
T h L nb iaseda ndcar eiut queson l are rehted in rhc mosrefltcdveor eficient ways.lr involvesconsiderinsthe csr.blishmei:
ingolwh eth e.syslemet em ent s of n* or different .elatn,nshipsarnong system elemeotsmd pcrhaps introducir.
are.e tate din th e mos tt lec tv e nrvolvesde fbllol'n i
no elenentsnrto thesysrem.CriticJ analysis in s'stemsdevelopmenr

. Q,enia,;"C ltdtemtnr dtul ar,rytoru. Quesdoning usen abour their needs ur

cantesultin krtcr slstemsard more)ccrate prcdicrio.'
clarilyingthe; inirialresponses
'loo olien, strkcholder and usrs specif c.rrah s)stem rcquirenenls becauscth:
dsuhe thxr dreir leedscan only bt net thrrway. Ofren, an ahdnatin approachwoul:
be better.Ior ennple, a *rkeholdermay be conerned beeue thereis alway too nur:
ofsohe irens in srockandnot enoughoforhcr items.So,the stekehold.rnisht requ.i:
a otally new and improved inventory control s)srem.An alternativeapProachr::
idendfi rhe root cruse fo, p"". inuentorymaragemenl.This latter approachmisr:
determinethat sJesforeccringis inaccurate and nccdsimProvementor thar produclc.
is notepable ofmeetingthe set producrn,n schedulc. All rooofien solutiotuaresctecr.:
beforeacompleteurdcsranding ofrhe nature of thc problen itselfisobained.
.Id.ntibin?dndrcsol,i"CobJcctiue'at.loidtdtia"rtratraz,4rirDiff*entdepanncnts::
rn orsani,albn c2n havedifkrert objeciir* and orienradons lhe buing deparn.r:
nav wanr to mininik the cost of spa.ep,rts by alwa)sbuying lrem the lowes ..i
supplicr,but engineeringmight want to buy moreerpensivc,higher'qualityspatepar:
to reduccthe frequencyof replaccmcnt.l hesedilieren.esmusrbe idenrifiedand .esol\!.
beforea rcw purchasingsystenis dcvclopedor an existingone nodified.

E s t a b t ish in0gb ie ctivefso r Syste m sDe ve to p m ent

The ovenJlobjectiveofsystensdoclopnenr is to achi*e business goals,not rechnicrlgor'
by delivering rhe righr ionxnadon to rhe righr personat the right time The impac a p:
ricular system has on an otganizrtioni abiliry ro meetits goals deternnres the rue value
that systemro the organiarion. Although all systemsshouid support business goals,sor.
srstens re nore pivoral in continued operarions and goal atainmcnr than othe*. Th.':
mission-criticat
systems sysemsarecalledmission-dti.al systens.A! order'Processing system,for erample,is u.:
Systmsthat playap volaLrolein an ally considered missioncritical.\fithont it, few organizadons .o!ld conrinueddly activiri.!
org anza t o n sco ni n uedoper atons and rher clerrlywouLdnot meetstt goals.
The goalsdefired for an organizdtionwill in tum define the obiecrivesthr re ..
for a systen.A nanufacturingphnt, for *amplc, night dete.minethar nhimizing rhetot:
cosrofowning and operaringirs equipnent is criricalto meetproductionand profit gor:
 sy+emsnvenear.nardAn:Lr5
5 | o-pt". t,

Critical suces factors (CSFs)arc factor that areesentiJ ro the succes ofcertain fmcional critical 5!cc6ss lacio15 lCSFsl
-rea. of r r r or gan i z { i o n .)h e t\l l o rm" n u tu .ru ri ng m;ni ni / ngequi prenrna;n' .nr- F a c t o . st h a t a r ee s s n la tto l h e
andoperatingosr*wouid be convertedinro specificobjccrives 6r a propo*d systen.one s ! c c e s so f a f u n c t l o naal r e ao t a n
specificobjeclivemishr be ro alen mainrenaneplannerswhen a pieceofequipment is dr
fof routinprevenrive naintenance(e.g.,clcaningandlubricarion).Anorherobje.tivenight
bc to alen thc naintcranceplannerewhen the necesarycleaningmeterials,lubricationoik,
ot spre prrs inventorylevelsare belowspecifLed liniis. Thse ohjectivs .ould be accon-
plnhed either through autoneti. srock replenishhentft electn,n; dara inrerchmseor
throqh the useofexceptionrepons.One sudy found that differenrCSIS mighr be impoF
nt dfting different ph$es of a systens d*elopnent project.
Regudlessofthe pafticular sysens developnent e$on, the developnenr proces should
define a systemwiih specific pefornance and cost obje.tives. The sft.s dr failure of rhe
,vrems developmenteffon will be nesured again$thse obje.tives.
Performanae0biectives
The orent ro which a sysren perforns as de*ed en be nedured throlgh ns perfomad@
objecrives.'3Hillon Horels,tor*ample, investedabour$13 nillion ro inprove $c pcrfo!
nancc ofits wcb site.'' The new web siresystemsdevelopmenteffon allowedthe conpany
to doelop spccificcontenrfor irs horels'difrerenrlocaiionsand cukues. Accordingto a
selior vice presidenrof Hifton Inrernadonal."We're now nuch more able to ale our
worldwide nerwork of hotels and mrket them to where our custonerslive." Ehery, a
worldwideshippingcompmy,wasableto developa newransporaion sysemthat increaed
profitsby $80 nillion inNorthAmrica. S)'stempe.formanc is usuallyd*omined by such
hcor asthe following:
, Ibe qudli4 u usefutnasoftbe ourpat. Is the sysremseneratingrhe risht inbrnation for
a value added busines proces or by a go.l oriented decision mLei?
. Theu.ufary afthe oLt?,'. Is ihe ourput accurateand doesir reflecr the true sitdadon?Ar
a resultof the aeoundng scandals ofrhe early2000s,when cohpaniesovestared
'otue
r*enues or unde$tated expenses, accur.cy is becoming more important, and top
orporate oftiars are being held responsiblefor the aeurary of all corponte reports.
. Thesudli\ ot u'e/nh*' ofthc lntndt ofthc output.ls th ourput sneratedin a foin rhar
is usablemd edly undersrood? For exdple. objective often concernthe legibilityof
rreen displays,the appearde of dodrnenn. and the adherena ro .ertain nahins

. ll" . p. . J dt ut lh a " ry tu t g n e ,a k J . l , rh e,y n emg.n.,r;rg ol rpJ i n,,m. r,' mrfl

organizarional goalsand opemrionalobjecrives? Objecrivessuch as cutomer response
dne, rhe dme ro dtermineproductavaihbility,and rhroughputtime are*amples.
. The $dkbilitr afthe mubiflg l!'tem. As melrioned in Chapter 4, rato6;[9 allom an
infornadon systeh to hudle buines gronh and increscd businessvolume. For
umple ifa midsized businessrealia an annual l0 percent growrh in salesfor seeeiJ
yea6, ad inforhation sysren that b scalablewili be ableto efficiently handle the inoease
by adding processing, sorage. sofoare, datab*e, teleconmunications, md other
informadon sy$ems resoure ro handle the growth.
In somec*es, the achievenentof performnce objecrives can be easilymerured (e.g.,
bv tracking the tine it rakesto deternine product availability). The achievenent ofperfor
dance objecdvesis somerin$ more diflicult to rccrtain in the short term. For cmple, it
may be difncuh to daermine how nay cutomes ae lost becauseof slow reponses to
.ustoner inquiries regeding product availability. Theseoutcones, however,are ofren closely
r*ociated with corporate goals md are vitat to the long tern succes of the orgmization.
Seniormanaeenentuuallv dicraresthei. aita;nnn!
Part a I s/sLdi3D.FLopment

Cost0bjectivg
The benefiaofachievingpefornanccgoalsshouldbe balincedwidrall cosrsa$ocialed$i::
rhe sysen, includingthe following:
. Dddopment$t!. tm.osrsrequiredro gerrhesysemup ard runningshouldheincludcr
. Co't' tuhtud ro u,iqu.n6' af the 3r$.n iP?Icdtios. A sy$en s uniqueness has :
'h. but re(sablcsysremmay $ preferable to a lc-
profoundeffrct on its cost.An expensive
costlysystem$irh linired use.
. t ired in"dtnent! in hat ltu'ite antl rektetl equipnLent.Developemshould considercosts;-
such irernsas conputers,nctwodcrelaredequipment.rnd cnvirotrmentallvcontioll.:
dna cciiers in whi.h to opcrarcrhe equipmenl
. otcoi"copefd'incmstrafthe${r.u. Operadnsco$sin.lude coststorpenonnd, v,ft\a:.
supplies,and suchresouresasthe electicity rcquiredro run lhe system.
BJancnrgperformanceand cos objecrirswnhin the overallframeworkoforganizatior-
goJs car be challenging.sysrcnsdevelopmenrobjeaivesrre importanr,however,becu..
they rllow an organizationto allocareresourceseffecivdv md cfficientlyand measurct:.
succesofa systems de'dopnenl clTorr.For l'C manufactures.for cxample,lam and..:
ponens of a rypiel PC cm cos undc $ 500,which includesabout $ 130 for the prccs' :
$100 for r CD o! DVD, $100for menory, $45 for rhe\rindows operarhgsvsrem,and I..
resron orhethardwarepansand a,nponents.zosomc beLieve ther low costsrvill oentu: .
leadro lowd.osts 6r PCs. '1'hNs york siock Exchanse (NYSE) hs invesrcdabourrl
billion ro speeduading md reducccosts.r'Stocknad* dreconplcrcd with hunan b.ot.-
on a rading 0oor.In the tuture,elccaonicradingcould takeovcr,slashingtradingcor' :

W e b - B aseSysted m sDe ve lo p m e nTt:h eIn te r n e t,

a n dE- Co m m e r ce
I n t r a n e ts,Extr a n e ts,
As seenin the manysuples andc*es in thh andotherchaptets, comprnicsarcincteasic:'
convetting ar lext sone porlion of their busincss ro ru! over tht Interncr, iiffaDes :
exnanets. \Yeb-bxed svstems development treas thc lnterner as an integr:1part oftk ;:
velopment proces, Dor just a cohnuniotiors tool. h some rlevdopn,entcffors. ::.
lnrefnet be.omes lhc nost importddt spect ofrhc new or mod;fied svsern.ApplicarLr-'
rhararc being noved ro rhe Inte.ndindude those rhar support sellingproctuctsto custoo::.
placing orders with suppliers, a"d ltning customcn access inti,rmation about product,r:
hventory, orders. or aaounts recimble. In addirio!, a numbet of companics sell tl': -
producaaod seruices only on rhe Incrnt. Internettechnologyenables conpanicsto cxre::
rhcir irformatun systemsbcvondtheh boundariesto reachrheir custoners.supplicrs.,rr:
prmcr, allowingthen to corducr busines much frstet, to interactwith mort peoplc.r::
to kccp one stepaheadofrhc conpetition. Somecompanieshavebeenwilling m sun: -
curenr lo$esf.od their e-connerce initiarivsto glin an advurageibr the tuture
Building a $ati. Web sirero displaysimpletert and graPhicsis fairly $nightfonl.r::
Hows'er, implementingadynaniccorebusinrssappli.ariontlritruns ovo the\rb is Nr:
morecomplicated.Suchapplicationsnust neer specialbusnrcss needsThey must be r: ,
to scaleup to supponhighly vdriabl. talsacdons fron Poteniirllyrhousands ofuris ldea
thevcm scaleup insrantlywhen needed. Thc,v musr be rcliabLernd faulttolemnt, prcvirl::
coninuou av.ilabilily while processing all rransactions acuratelv. Theymustalrc integr::.
wirh existingilflastructur, inchding cmtomer and o.der &dbrscs, cxisringrPtlicatir'..
and enterprise resource plenningsvsrcrx.DeveloPmentand manrtcnance mu$ be quick r:
exy. because busiles nerls nay r.quirc chalging aPplications or the l1y
Tools and tecluiquesare availablcfor building rnd running \xrcb applicationsl{-.
werediscusednr Chaprer7, ;i.luding HTML, xML, Java,.NET, VBScript,\feb scniL-
rechniques to developVeb contcnt,and the naragcmentand maintenuccof\(eb conter:
lhe besrt<ds providecomponentsb supporrapplicarionson an enterpriscscale\h:.
speedingdevelopncnr. Soenl vendors,includnrgNetDynamics,SilverStrcan,Webl og :
NoveraSoliware.NeiscapeCommuoicetions,Microsoft,and IBM, providcwhat is kno..
d an appli.rtionsscref to providermote rcces to databases ria acorporarcintranet.Th.'.
 synem3i!c.l qdonardAiatFr I cupt"t t"

toolsinclude .NET by Microsoft and Websphereby IBM. ln addition,most ofrhe tools

od techniques discusedlaterin this chapterand in Ch,pter 13, suchasCASE tooh, rapid
applicationdevelopnenr,joint applicationdevelopnent.and object-oientedd*elophen!,
re also usedto develop and naintain web sites.

eToys.com i s a c o m p a n yl h a t !se s
t h e n t e r n e ta s i t s o n l ysa te s

De v e l o p m e n
S y s t ems Etn dE n t e r p r ise
Re so u r ce
Pta n n in g
Enrerprisereso&ce plmning (ERP) software. discused in Chapter 9. h* reachedbeyond
business processes dd is incre*ingly afecting systensdevelopnent.Not only areplmners
;onsidering ditrerent trpes ofsFrens thar indude ERP softwae, but rhe ERP sofvre that
:; aheadyin place h also driving planner ro explore md develop different types ofrysrens.
Oihef ERPue6 arc movinglion jut uing the soli@re to run the business to try;ngto use
r to nake busines decisioos.ERP srrehs can be used to inregrare d organization's uans
acrion proc$ing slareh (TPS) and provide ihporlant inftrnation and decision suppon to

LitlySoftwarehelpscompanies
r 6 t i z h g h e rp r o d u c vi l ty6 i d p r o f
t a b i t i t yb y c a p l u rn g a n da n a tyzi n g
r e a t t m e d 6 t a6 b o u ta l l l h e r b l s -
nessprocessesus nq ERP.
Psir 4 I sEkmsDr.irmnr

An inpoftenr nendin s)rremsdevelopnentandtheuseofERPsysiems is thai compa.ia

wish to stry with $eirprinary ERI'vendor (SAP,Oncle, PeopleSoft, Baan,etc.)insreado:
looking lsshere for ansren to thcir datawarehousingand productionplanningneedsor
do elopingin-housesolLuions. Thus, theylook to rheh orisinalERPvendorto providerl*
soludons.In addiiion,many sofrwre re building soliwarethat integrates wirh th<
"endon
ERP vendors package.Foi example,AspecrDevelopnent,a leadingsupplierofelecnoni.
car:togsfor high-techconponents,hu now enreredthe marketforonlinecatalogsofnain-
tenmc, repair, md operations (MRO) supplies.The ompany ha-sa product caliedMorocc
thar is an MRO supplies caralogfor usen of SA?t ER? soft@re. Morocco works i' co.-
iunction wirh rh purchasins module of SA? and dnects buyers to preferred supplien
specifiedby the purch*ing depannent.fuain, therek les;n-housedevelopnentand mo=
dependence on ERPvendon and then srrategic pannersto provideeiiancemenrsand adC-
ons ro the original ERP package.There are three popular approachesto lcquirins an ERJ

1. Can?tehmli,e EM laclasr. Conpanies on use one ERP vendor, such as SAP. d.

nnplenent one conprehensive ERP packagefron one vendor.
2. Bc* of breetLA secondapproach k to selecr the bgt par6 from each ERP vendor E
doeloping an ERP system.ALthough this can result in ge$ing the bestconponent pare
integmringrhe conponentsfron differentvendon can be dific t or ihposible
3. fubrin lJ.lnh tbis apptoach, an organizarion will impiement a conprehensive pack{.
fron an ER? vendor and supplementir wnh other parft or componentsby other ER-
or sofsare vendor. This is a 0dble and popdar approachto implementingERi

When a wstens developmentprojectinvolvesimplementinga new ERP systemor md'

ifring an existingone.a nunber of criricatsuces factors.omeinto play.includinsl
. \e l e .ri n grheri C hrLR -f l i " rh. o,gri ari on
' y.ren
. Ensuringrop managcmentsuppor
. EducatinCkey mxnacesand usen ofthe nw or nodified ERP slstem
. Employincd Is sixffwith goodtechnicaland conmunicationsskills
. Us;nccood projectnanagenent toolsand echniquesio inplemlt the ERP sFten

SYSTEMDEVELO
S LI FECYCLES
PM ENT
The systens developmentproes is alr called a s1mm dedtpnent li.ji Ecle (SDLQ b<av
th acdvities asociated wi$ it are ongoing. As e@h s/stem is being built, the proied rE
rinelinesanddadlines. unrildrlast$e svstemisinstalledand acepted.Thelifeofthe svr-
conrinuesas it is mainrainedand rwioed. If the sysren needssignificantinprovem:
beyondrhe scopeofmaintenance,;fit needsto be replacedbecause ofa no generadonn
rcchnologi,, or ifthe IS needsofthe orguiarion changesignincandp a nw project wix it
initiated and rhe cvcle will stan over.
A key fact ofqrrens developnenr is rhar th latet in the SDLC an elror is derected.E<
nore expcnsiveit is rc orect GeeFisure 12.5).One redon for the mouniins @sts;s ti:
ifm enor is found in a laterph* of the SDLC, the previousphasesnust be roorketi ::
sone qrenr. Anotier reson h thar the e(on found lare in ihe SDLC have ao ihPa.t.!
more people. lor *mple, an cror found afte' a systen is installed nay require retnino5
user once a "wo'Laround" ro rhe problen hd been found. Thus, expetien@d systeh d.
prefer an approach that will otch enor early in the Projed life cycle.
'elopes
Severalconmon systens development life cycles exisc radiioml. prororypiDg, @P{
appliotion dcvelopment(RAD). and end usc dqelopment. In addition, conpmies
-
outsourcerhc sysremsdoelopnent process.Vith somecohPdies, iheseapprorchesr:
fornaliad drd documnred so that sysrcmdevelopetshavea well defioed proes to ibtlc
in other conpanieElessformlind approaches areused.KeepFigure 12.5in mind r .rr
areinroduced to rkernativeSDLCSin rhc next sruu".
 sysremsnvesrearon
andanarrs, I co"1t rz
'

M
The later lhat systemchangesafe
m a d ei n t h e S D L Ct,h e mo r e
xpenslvethese changesbecome.

Investigalion An.Lysis Desiqn InpteNnlation M.inten.nc.

TheTradit i o n aSl y s t e m sD e v e l o p m e n
L tifeCycte
rraditional systens dwelopment e{Iots co .a"ge fr"n a snall project, stch * purchas
ins an inexpensivccomputerprogrm, to a major undenaling. The stepsof tnditional
rsrems developnent may vary fron one conpany to the nexr, but nost approacheshave
:ivecomon phases: investigarion, design,inplementation,md maintemnceand
analysis,
:eview{seeFieure12.6).

l---'** w
! I *,,,,*"'.,* | Ihe TraditionatSystems
^**** Oevetopment LifeCycte
; | |
Sohetines,informatonlearnedin
i-F a parrcularphaserequirescycl
oacxroa Prevrouspnase.
ng

t
,
I

,
,
t

l-:
a
,
,

,
a
a
,
 Pu t4 i s r neh! D c t opm r r

sysiemsinre5tigation In rhe systensinvestigtion phte, potcntialproblemsand opportunniestc identified

T h esystemsde ve topm ent phas e and considered nr lghtofthegoals ofthe busincs.Systems ;Drestigathnattenptsroanswei
dur n9 whichpro ble m sandoppor t rh questions"What is lhe prohLem?" and "k ir worrh solving?"The prinary resuhofthi.
e d a ndc onsder ed
un I e sa rerd en rif
phaseis r dcfineddwelopnent projectfor which businessProblensor opportunirysmre-
in tq ht olrh e go atsof t he bus ines s .
nens havebeencreated,to which sone orsaDiadonalrev,urcs havebeenconnitted, anr
for which systcns arallsis is reconnended. Systens oalltis atenps to answerthc question
Thesystemsdevelopmentphase
.\trlu
nuv rhc nrformationsystemdo to solvethc probleni This phse involvesstud,ving
nvotvng the studyoi ex st nq sys oisring systensmd work procesesto idendrystrengds,we.kne$es, d opporiunitiesro:
tems andwork p.ocessesto ldentity and prioriti.!
imprcvehent.The najor outome ofsy*ems mrlysis is a list of requi.ements
slre n9 ths,we akne s s esa., d oppor
lunit e slo rimpro ve m ent Slstens dsign seeksto answerthe questbn "How will the informar;on systemdo whar i:
rnust do o obtrin thc problem solution?"The primary resultof this phxe is a technia
designthat eithc dcscribes the newsvstenor describeshow existingsysenswiLlbemodifiei
The systemsdvtopmentphase fhe systemdesigr derailssysteh .utputs. inpurs, dd userjnterfaceqspecifres hardware
t hatd ef n esh owthe i nt or m aton
solivare,databxe.tclecommuniations,personnel,and procedurecomponents;md shos:
syslemwill dowhal I must do to
ob la inlh e p fob temsot uton. hos rhesecomponentsarc related.Systemsinplemenration involvesc.eatingor acquirin:
rhcvarioussr5lem.omponenrsdemiledin th e sr$emsdesign,assenblingthem,andplacirg
systmsimplementation thc nwor modifiedsysteninro oprnion. An inportant rdk during lh;s phaseis to ta:
Thesystemsdevelopmentphase rhc users.Slsrens inplcnenration resuks;n d insraled,opcrationalintornation systtr
nvo lvn glh ecrea tonor ac qur ngof The puryoseof s)tted mainte
thar meetsthe busincs ncedsfor which n w* developed.
vaf o us systm.o mPonentdet s at
ed n th e sysle msd es lgn,as s em ruce dd reviq is ro ensurelhat the svsten opearesand to the systemso thar r,
-od;f
bt n g th em,a nd pL ac ing
lhe newor conrnruesro nat.hanging bus;ne$needs.As shownin Figure12.6,a ryitem dnderder.:
modlfd system nro operal on. oprncnrmovesf",n one phxc ofthe tradnionalSDLC ro thc nqt
Thc rraditionalSDLC allom lbr a luge degreeofnanagemcnt control At the end o:
systemsmaintnance
nd
ea.h phase,a romal review is pcrformed and a de&ion is madc wherher ro continue r ir
Thesystehs devetopmentphase rhc projecr,terhi.ate the projecr,or perhapsrepeatsone of the tuls of the curent phas
t ha l en su festhe sys lemoper at es Useofthe rraditionalSDLC alsocreares a greatdealofdocunentation, suchasentity rci:
an d mo diieslh sys t ems o t hat t rionshipdiagrams.This docunentation,ifkept curenr, can be usetulwheh it n iime::
conlin ue sto mee lch an9in9bus i nodift thesrsren.The trditional SDLC alsoensures tharo.ry systemrequi.ementcd b<
relrtedto abusines need.In addnion,resuiringprodu.$ on berevicwedtoverilythat thr.
mtisly the sysrem req ementsud confonn ro organ;adonal standtds.
A najor problen with the raditional SDLC is rhat the userdoesnot usethe solutiol
unil the sysrcrnis nearlyconplete.Quitc often,uer get a systemrhardoesnor meetthei:
realrcedsbecaus ns developncnrwasboed on the developmentteam'sund.standins.:
thc nceds.Ihe rmdnionalapproachis alsoinflexible.Changesin userrequirements cannc:
@ bc aaommodaad during doeiopment. In spiteof is limitations,however,lhe tadition:
SDLC is still usedtu large,compl* systensthat alTectendrebusinesses, suchsTPSS r:
Adv.ntaqesand Disadvantages MISs.It is alsolrequeotlvemplovcdon governnentprojecs becausc of the stren$hsme:
ol Traditionil SDLC
doned previously.Table 12.2l;ss advdiagesand disadvantageofthe rraditionalSDI C

Thisapprcachcreatesconside.abte
systemdocumnt.Ion.

It producesmanylntermediate Userccannoteasityreviewlntermediate productsandevallate

productsthatcanbe reviewed io whetherapariic!lar p.odlct (e.9.,datafiowdiagfaml meets
s e e w h e th e rth emye e tth eu s e r s thel rbusnessrequi rements.
needsandcontormto standa.ds.
 s!dpm. nresrqatonandA natr5, o'"p""
I
',

P r ot ot y pin g
P.otoq?ing t.kes an ;terative approach to rhe systemsd*elopment p.oce$. During eth prorotyping
renrion, requirenents and alternative solutions ro rhe problem are identified and aalytd, An ite.ar veappfoachtoth systems
ncw solutions are designed. and a ponion of the qrlem is ihplenented. Users ee ihen
encounged o t'y the prototype and provide feedback(seeFigu.e 12.7). Prototyping begins
with the crenion of a prcliminary nodel ofa najor subqstem or a seled-down vesion of
rhe entire systen. For example,a prototipe night be developedto show sa-ple .epoa for
mas md input scans. One dweloped and refined,the protoqpical repora and input
screensare ued c models for the actualsystem, which may be devciopedusing m end-user
progmming lmguagcsuchasVisualBs;c. The ffrst preliminarymodel is refinedto fom
the seond and thnd-generution modeh, od so on, uniil rhe @nplete s1stemis develoPed
(reeligue 12.8).

@
Prototyping
ls an lter.tive
Approachlo Systems

,
 Pafta I synemrD.v.topmonr

@
P rotolypin gsa p op ular t ec hniquei.
f
systemsdevetopment.Each
InYc.risila.nd r.rty:e
generalionol protolypeis a
piobl.m 3utfi.i..tly ro d.wtop
refinmentol the previous t
gene rato n b asdo n u s e. leedbac k .

t
I
I
,
t
t
,
,
,
t
,
,

opralionatprotolype Protoq"es car be clmsified u operational or nonoperational. io oper*ional prote

Alunclion n9 prototypethataccess tpe is a prototlpe rhar worls-cceses real dara llles, edits inprt data, makes necessr
es reatdata liles, ed ts nput dala, @mpub ,ns dd conparisons, md produces real ourput. Iully d*eloped linancial rcpoe
maksncssarycohputrlronsand
comparisons,and producesreat
areexanples. The opcrarional protorype nay ces .eal files but perhapsdocsnot edit inpur
A nonopenrionalprctog? is a mock-up,or model.It typiollyindudes outputand inpu:
specifications and fornars.1he outpursincludeprinted reporrsto nanager and the sc.*.
protolype
nonoperationat layout ofreporrs displayed on personalomputers or terninJs. Th. inpurs rsel how d"u
A mock-u p,o r mo de l, t hatinc t udes is captured, *hat connands usen nusr enter, and how the systen accescsother dara 6la
and
ou tpu ta nd inp ursp ec if lc at ions 'l he primary a&otage ofa nonopcntional prororype is that n co he developednuch frt<
rhan an operarional prototype. Nonopeniional prororypescan be disctded, and a fully op
crational systen un be built basedon whar was learned from the prototypes. Researchhe
shown rhat lsrems investigation, dcsign, and implenenarion oe the phxe thn bencfiI r<
@ mosr fron rhe prototyping approach.According to Poru Munshi a .onputer sysrcns coi-
sulnnr, "Rapid prototyping is thc corncntone of jnnoudon. In the dilenma bcstr
Advantags and0isadvanlages perfecting a design md operinentiog, go for rhe experinent every tine."'?z The advant-aes
ol Prolotyping
and dhad'antagesofprororypingaresunmuized in Table 12.3.

5F.em bdc\up.nd recovery,pertorma4ce,sd selunty issues

r oeovenoo(edin the haslplo delelopaprolotype
 synemsilest qatonaid Aoatyso I cr,"pt"r t,

A9 il. eDe v e t o p m e n tJ,o in t

Ra p i dAp p tic ati onD ev el opmnt,
Ap p li ca tio nD ev el opment, and 0th e r S y s t e m g
0e ve l o p m e ntA pproac hes
Rapid appliotion dwelopment (RAD) enploys tools, Iechniques, and nethodologies de- rapid appticaliondevelopmenl
:ignedio speedapplicationdoelopment. Vendor such d CompurerAsociaresInierna- IR A OI
:ion!l, IBM, and oracle narket founh-genenion lmguage md other produca argeting A systems development
approach
lhe RAD tuarkd. Rrn,nal Software, e division of IBM, hs a RAD tool, called Raiiotul technques,and
thalempl oystoots,
melhodotogiesdesgnedto speed
lapid Dcvcloper,to makedoelopins larseJavrprogramsandappli@tionseasierand fdter.zl appl i caton
devel opm enl
llAD redues paperbued documentation, automali@lllgene.ates p.og.rm sour@code,
rd faciliratesuserpaniciparjo! in des;snand dwelopmentactivides.ft hakes adapdnsto
:harsins s)6ren requirementserier. Other approachesro rapid developmeor,such as a3le
ltrchpnent c entene pngann;ag (xD. aXow the systens to chage as they m being
J:"eloped. Agilc dcvclopmcnt rcqunes frequenr face-ro-he meetings wnh the systens de-
,:lopes and usersr thry nodify, rcfinc, and tesr how the qsrem neers usere'needsand
\hat irscapabiLirics arc.Sonc predictthat agilcprogrammingwilloentually beusedby nosr
T dcpamncntsbecauseof lhe volariliryof the busines envircnmenr-the lensth of the
::rditionaldoelopmentlife cycleen reducea qstem s usetulness onceir islinallyconpleted.
he agilc dcvclopment proces is nore fluid and flexible, bur ir en be compl* ud rime-
:onsrming. XP uscspairs of progrmnere who work together ro desig!, res! and ode pats
rithe sy*emsthey deveiop.The itentive natureofXP helpscompaniesdeveloprobust
, *ems, wnh fewer errors. Sabft Airline Solutions, a $2 billion airline trarel conpany. rced
.J ro eliminareprogramning eno6 and shortenprdgrm developmenttines.la The com-
r:rv manages13 nillion linesofprogranning codein 62 softwaeproducts.Sabreusesthe
rn prognnming languageand XP to rapidlydevelop;tsapplicadons.
RAD makesqreis;ve use ofrhe joint applietion d*elopnent fAD) proce$ for deta joinl apptication
development
:nlectlon and requirementsanalysis.Origin.ll)' developdby IBM Canadain rhe 1970s, tJAD]
iD ;rvoivcs group in which uscr, srakcholdcb. and IS profe$ionals work rogether Pfocessfordatacottectonand
'rccdngs requrementsanalyssin which
rnalyzeexistingsvsiems. proposepossiblesolutions,md definethe requiremenaofa new
useE,sGkehotdeE. andlS proles'
: modifiedsystcn.IAD sroupsconsistof both problen holden md solutionproviden.A sionaLsworktogelherlo analyz-"
:-rup normrlly rcquircs ole or norc top-lcvcl cxccurivcswho iniriare rhc JAD proces, a systemspropose
existing possibte
:'-.up lcadcrfor the ncctinss, porcnrialusers,and one or mor individualswho act d sec- sotutionsanddelintherequre-
.:uics and clerls to reord what is aconplished and to provide genenl support for rhc mentsot a newor modliedsystem.
rrions. Mary ompanics havc found thar groups ca develop betrer reqftemens thm
-Jividualsworkins independenrly a havexsesedIAD * a vcry succesfuldeveiopnent
.:h nique. Today, JAD often ses go"p t"pa't !t!t% (GSS)softMre to fo$er positivegrdup
-:cr..rions, while suppressingnegarivegroup behavior. Group support lstems were intro-
: :ed in Chapter10.
Rr.D should nor be ued on every soft*are doelopment prcjecr. In seneml, ir is besr
,kd for DSSSand MlSs and le$ well suiredtor'l PSs.Durins a RAD projecr,rhe levelof
'riciparior olstakeholdesanduser ismuchhigherrhanin otherapproaches. Theybecone
. rking mcnben of thc tcm and cu be expecredto spend nore than 50 percent of then
, ad producingprojecroutcomes.This dme @mmirmentcan be a problen if the uses m
neededto performtheir normal bmines role. For this redon, RAD iem participdts
-:o
:: olien taken offth& nornal signmens dd put full iine on the RAD project. Because
:: rh full iime connitment md intenseschedrledeadtines, RAD h a hish-prssuredsel-
:nent approechtharcm easilyresultin employeeburnoui.Table 12.4lisrsduniages dd
: i.rdvantages ofRAD.
hototDins, repid epplicationddelophenr, agiledevelopment,dd joint application
:..clop-ent ue ured ro o"erome someofthe perceiveddisadvdtags ofrhe raditional
.,:cms dwelop-e"r life cycle.Theseporentialdisadvdtagesin.lude problehs wnh dE
r:lirional prcjecrpladninsprocess, slow developmenr rines, i lower success rare,and nor
::,sfing uer needs. Thee approrches alsomkeadvantage ofnewerprogrmninslanguases
rechniques.In addirionto theseqstems dwelopmentapproaches, therearea nuber
-:j
..a systemsdwelopment approaches,including adaprivesoftaare developnenr lean soft-
.re deveiopment,the Rational Unifid l\oces (RUP), Fearure-DrivenDoelopment
 P.li { | sFtn. Ddeirpmd

(IDD), and dynanic slatms devclopmentmchod. often createdby.ompurcrvendorsri

autlor ofsystcmsdevelopnentbooks,theseaPProa.hesall ottemptto delivcrbettersy*en.

T h eE nd - UseSyste
r m sDe ve to p m e L
n ife
t Cycle
@
Systensdevelopmentinitiarivesa;se fron . wide varieryoforg.nizat;oD3lareasand i::
Advantagesand Disadvantages
viduals,includingusers.The prolif!rution ofgeneral-purpose infornation technolog :-:
OfRAD
rhe flexibilityofnany packagedsoftwareprogrms havcallowednon IS.nPloyeesto iii:
pendendydcvelopinfornation systemsthat nccr rheir neecls. Suchemployees btlievt ri::
bybypssing rhefomal req sirioningofrcs,urces from the IS.lepdrnent, iheycande,..:':
ryslemsnorc quicklr.In eddition,theseiodividualsoftenbeli*e thartheyhaveb*tdh::;'
ino their own needsand car doelop systemsbettersuitedfor their Pu.posesln addi{i -
many e"d usersare inc.esingly dcvelopingconputer systetusor solvingcomPuteHei::::
problcmsfor other.r5 Denois Christerscni coworkes oftcn ell hin to fix corrpr::
glitchcs,printer problenr, or e-nail stoppagesChristensenis a markeing managerrr: .
Michigancreditburcauaid not a.onpurcr systemsperson
End-uerdeveloped systens nnge fron the very snJl (c.s , a sotivare rourine !o n:.s
form lertem)to thoscofsignificantorpnizationalvalueGuchascust<lnerconrad datat'r<
for the web). Adnn Osmani fron Drbhr, lreland,for ennple, devloped his oM I n k
-..
browser.)6 "1 just wantedit faster6r myself,"
osnani srid. Like all proiecrs,someend -<
developedsystensfail, and orhersare successfll.Inirially, IS professionakdiscountec:.
valueof rheseprcjects.As thc numberand mrgdrude of.hesep/oiecc increasedho$. :.
IS professionals beganto realizethatAtrthegoodofrheenrireorgeniariotr,theirinvol'er:-.
with rhcseprojec$neededro increak.
Todav, rhe rern end user slttems doelopmert desoibes rny systemsd*elopr-
prcjeciin which the prinaJy e{Iortis undenakenby a ombindon ofbusines managers:r:
Anysysremsdevelopmenlprolecl n users.Rathe.rhan ignoring rheseih;tiatives,sturc lS professionals crcounge then bt :'
whlch the primaryellorl s undef fering guidanceand supporr.l echoical a,sisonc, comnudication ofsrand.ds, and :-r
takenb ya combn at lonof bus nes s are just some of rhewaysIS Ptu:.:
shatingof"best pracdcei throushourthe oanizarion
sionalswork with notivated nanagersard employees uddenakins deif owd sr!r:-:
developnenr.ln this way.end-userdeveloped systens er be scuctured ascomplcmer:-
ro, r*her than in conflictwiih, disting a.d energing informadon sy*ens.ln addithn :-:
open conmunication anong Is professionah, manager ofthe affected busines area.a
usen alLowsthe IS professionalsto identifr specific initiatives so thar additional orgr:
tional resources. beyondthoseavailableto busines mlnases or users, are provided to: .

'Ihere are disadvmtages of endter systemsdevelopmenr'Sohe end uses don\ 1-:

developmd resta systeh Muhinillion'dollar mistakes'fo: =
the training to erTectively
ample,canbe nade usingfaultyspreadsheers tharwereneverrestedSone end-users!s::r:
are also pootly docmented. Then. when rhey are updated, enore en be intoduced
-
makethe systemerrorprone.ln addition,sone end userssPendiine and co.PoraieresoL:=
developing systemsthat were alreadyavailable.
 iy:retrs fvesrqr,i ai.rArrLrs; cr'npt"" re
I

[ , l a n ye n d! s e r s l o d a ya fea l r e a d y
d e m o n s t f a t i . 9t h e r s y ste m s
devtopmen cal p a b ltty b yd e 5 i 9 nn 9
a n di m p l e m e n l r n(gh e r o w n PC

Lsourc:Photodsclcetty maqesl

0ut s our c inagn d0 n D e m a n d

C o mp u tin g
\{Mv codpanieshire an ouEide con$dtingfin or conpoter companyrhrt sfecializ.sin
.: {ehs developmenito !*e ovcr sone or all ofirs develdpmenrand operationsacrivities.
s nenrioned in Chaprer 2 . o"tloutci"g and o, .l"tuznd conpuriry are oftet vcd.,' Seaa,
ioebuck, and Co., for example,is looking for an oursidecompary ro perform many of its
devclopnrnt ud opcntions activirics.r3 Serrsis hopirg rhat thr outsourcingcom,
'irems
lny jt selcctswill hire somcofjts 200 peoplewho $,ill be laid ofi Outsourcnrghd al!)
r..ome an impoitan! economicand poliricalissuein today\ economyfor conpaniesthat
rtsourceoverseas , A groupofU.S. conpaniesandoganizadonshave
fomed the Coatirior
E.onomic Growth andAmeiculobs to $vro co'rbat rhe ou$ourcnE backlash.Com
-r
:rnirs canspendnillions or q-enbillionsof dollns ro hire othercompariesto mamse\\/eb
r r M or l. er y c r ..o J " n o rrs e d c v ..e .." n d 1 fD d e,kope,,' ,...r;on,o.,,..,,.,sd" " t
: majorpbonecornpan)'agreedro pay rn outsourcingconpdrabour $3 bjtlion ro provide
:r,danceon cufting cosrsand improving eliiciercy. MCI, for exampte,w* givenan out
.rurcins dealworth $20 hillion ro developa cellularphonesFlem in Bashddd,kaq, by rhe
-.s. DepaitmentofDefttue.roConpaniessuchasCoodl-ea.aDdSakshaveusedon demand
:.mputing to increse seNicesand reducecosts.rl
A reporrbv lhe U.s. Connerce Depafthenr, however,repofts$ar the Uniied Siares
rpons nore privare,secior jobs fiom orhercohtries ihaDir expons.r,p.ivarejector jobs
i.lude computerproganming, telecommunications, hanagemcntconsulting,lcgalwork,
id rclaredjobs.The sulplusofjobs comins into the Unired Sr.resfroh orhercountliesis
:karer than $53 billion, a.cordinr !o rhe repoft.Table 12.5dcsfiibsrhe circuhstancesin
, rich outsourcingis a goodidea.
Ousou.cing can involvea ]argenumberof countriesand companiesin bringing no
.:oductsand seNi.esro market.i The ideafor a new.ohpuler server.anorieinarein Sin-
in
- p or e.bc r ppr o. . J ,r H o u ro r. d r,i ts a e d I rd i " . engrce,eoi n tr qrr. rrd " ,.ernbcr
. Ausrralia.The chainofnents can be comolex.
Reducingcoss,obtainingstareof-the,aritcclnologr,eliminaringstaling and pcrsonnel
:roblens, and indeoing re.llnologicalflexibiLiryarereasonsrhar companieshaveusedthe
:rourcing and o. demandconpudns approa.hes.Reducinsco$sis a prinary reasonfor
rsourcing. One lurerican .ompurerconpany. f<r exanple,csrinard lhar aprograhme.
(h three ro nve yearsof erperiencenr China would cosr $12.50 per hour, whil a
:.ogrmhe. wirh sinilar experience h rhe Unired Srares{ould.o$ $t6 pcr hour.}
 Paft4 | ;Frm, D.,aL.f"rn,L

it
Whna co.npanybetieves

Whentherels tim ted oPPoftunlly Kodakoutsourced its LSope.ations, includingmainrramep.0cessng

tetecomrnuni catiand ons,personatcompLters!ppo because
d, t her e
fo rth ef rrnto d i s ln g u i s htsetl
competrtiveLy through a pa.t cLrta. thecompanvi hr ough
w asl ml l edoppo uni tyto di sti ngui sh t hese
l5 operationof apPucation. 15aperatl ons. K odakkeptapP catiL ondeveLopmenl andsuppon
i n-house bcauseI thouqhtthatthese had
actvrl i es

WhenunlnterrupiedSseruiceis

n gd o e sn o tsi rl P
W h e ro u ts o u rc dat
F rms m!si ensufethatthel .l Sstaffsrem.i r technl caLt yup- toe
the companyof technicatkiow-how d ro1a.6_1.ei perns6rodeveoo .l re:pol i aLi ol <
feq! redfof future 5 innovaton

Whenlhe firm s exrsting

lScapabitities are timlted,
inferon
inefiective,or tchnicat(y

W h e na n rm i s d o w n s inzgThe Firsi Frdeuty, a malorbank,usedoutsou.cingas Partota pfogram

io reduceihe n!mber of employees bv 1,600andstashexpenses bv
decisionto o!tsourcesyster.s
deveLopment s oftena resPonse lo $85 m Ll i on.
d o w n s inzg ,w h c h fe d !c e sthe
n !m b e ro i e mp to y e eosr m ana9ers
e q !i p me nal n ds y s te m sa,n deven
tunctionsanddepartments
0uisou.cingaLLows comPanres to
d o w n s i zth
e el Sd e P a rtm ent and
atlevate diflicultf nanclatsitoations
b y re d u c r.gp a y ro tta n d

There are disadvanLages, horvcvcr."Companiesmav be askedto sign conplicatcdo::

@ rcsri.rive legJ conir".ts rhat m1 bc difticuLrto chmgc lnrernrl cxpeLtnecan be lost u:
16
tor
whento useoutsourcing iovrhy can rlier undcr an *rsourcing rangement S0hera compml oursourccske' I l
SystemsDevetoPment oeror".l'"irhe'potisc i. tednicaland businesfuncrions$ no lmgdnceded- Oncerh'"
is 1"""., tl'"i. .*pern'ncenith thc organizarionand crPertir in inf"dtarioD $ '
","p1,,v"",
ens is l"s. Clur"".cnrg.ncL on demanclcomputnrgcan be rcrv cosLvfor that tersr:
Becrrseofr t-ault salcsorderiig sysremthar had becr outsourccd,aviatior pans conpr:'
I
Atulllosr aboutS70 milLionin sals So,AviJl decideclto developia ownsv*emslor r-
r
millnD rnd sNva $'130rillion indcascin sJcs.Ior rtrhcrconrprnics,it 'an trcd;fiicdll
achiever comPedrileadvlrage rvhenconpetitotsareusingrhe smc cornputeror consuLr i::
cor"p.nv. \lh.n thc ou*.urchg or or dcrnandcornputingis doneoftihoreor in a krer:-
rs tl::
p.,pL" h." taisedsecuritycorceLns A C:incr, Inc studvestnnares
-.",.y, "-. crnirr l rrtivities to I nd ia Rusia Prkisr:'
ab""r !0 p**irr of U.S. com panies oursrtrcc
ud Chiia, whi.h could icopudize sccuriry'r"HoN Bill inrpoitdt dah $d rrades"r':
be gudcdi Thc Banking lldusrv TcchnologySecrttariat(BITS) has d'lcloPed r 'ri
pag. a-u--, descril,inghorv co'rPalies can developsecurnvguirlelircs ard prct'
,iurcsr"h.n onv,"rcnrg.r" Thc guidelintsrre bastdon the ]Ncrnrdonal Orgdiz'tion t':
Shnddrdiadon s ISO r7799 nrformaibn sccufiti .odc.
A numbtr of compmiesoffer ourourcnrg and on demandcomPutingsen'ices k'-
gaual qrcns doelopmcnr b sPe.idli?ed s.Nices IBMI {ibbJ Serricts'6rexm4ne'
iL
one of thc l:'g."t full+.-icc oursoutcingand corsuhins scnices IBM has consuhan:
locaredin oFlc* uoundthewor'ld Elecfonic Dau Svsrehs (rl)S) is anorherlxrsc@mp]ii
thxr speciJlizcsin.oNrhingrnd outsourcing.l:EDS hasrppro'imatelv I40,000 'nPlo\"
 sv.rems
nve:i q.L.i
an.rA rrLys.I o" ptu" , e

in almost60 counties and hore rhn 9,000 clienrsworldwide.In one year,che

compmy
asned$31.4billion in ncw conracs for consuhinsdd outsourcing.Ac.enrure.
which wo
one pan of.. ttu.,aodersen, is aoorher@nplny rhar spedalizes;n cons"hing and
ousoufcing.arThe cohpany haj nore thm 75.000enpldyeesin47 @untries.
Sone conpaniesue giving cusromersthc option to ouaource work.e E_Loa,
an
:nrdnnlom-prce$ing mmpmy, givescustomcsthe choiceofhaving rhenloanproce$d
rhe Unired Statso in Indid. rf.dopted by orhef conpa.ies, rhi; approa.h;uld
' ler
:usrome.sdccide;mportanrissuesaboutoursourcinsjobs.o!rs, and,tuiiry. r. sme
@res,
tr,mtuies ar b.ingins oursourcdjobs backhone.1'A softwae companyhoped
to save
nrllions ofdolhrs by outsoucins prognmnjng jobs ro othercounuies.Becausc dre foreign
werenor faniliar witfi rhe cohpany,somesofr*de featfteswde otuine,taid $;.
"orkers
.arhederelopmenttook monrhsinsteadofweeks.

ORSAFFECTING
SYSTEMS
DEVELOPMENT
SUCCESS
r(cssful s/srensdrrelopnenr m.ansdelivcrinsa slrieh rharneetsuserandorsaniarional
l.ds<n time and wirhin budser.For onc offfce Depd projecr,lhe .nake
so.l. we;e to
: sinple; nale it lirr; nake it measurablqmakcit happer.,"6SFrcns Jselophetrr tea,tere
:r'e idenrificdfactos thar can con$ibute to succesiul.y"".i a.u"rop.."i
:rsonableosr. Thesefaclos arediscusediexr. "e;..*.t "

0eg re eo f Change
r. najor facrorrhar affectslhe qualiryof sl,slems
developmentn rhc desreeofchansc aso_
:ried wirh rhe p.ojeci.The scopecan vary fron implenentiis mind;nhanchen; to
an
:\istins sysrento majorreergineerirg.The projecttean Dee&ro re.osnik wte.e rhev
are
:r tntssPectruhot chdge.
Continuous
lmprovementVersu5Reengineering
r-.discssedin Chaprer2, onrinuous impro,iment
proyecrs
do nor leqdre sisnificmr bus;
::,s proa$ orIS changesnor ret.ajninsofindividu.ls! rhus.rhey ha"e a high desree
::rcess.Typically,becarseconrintuusinprovemeDrs involvcnino, inprovenc;1". rh$ als" "f
... , elr r i\ elvm , de ! l ,e n .n 6 . Or rh e o L h .r n .n d reengi n.,rngi " * ,* .,..d* ." ,,1
:ruges jn how the orgaizarion conducc business and @mplete,;sks. The facrorsssoci
::.d with succe$ful.eensineering ,re sinitar to dose ofmy devetopment ef6rr, including
, up p d ,. ,l e rrtyd .n T d .o rp o rre g ort, and ,yrem, d* r oon.., obF..
. .. r ! lJ r c n m r n a g e me no,t. h rn g r.M ri o r re e nts reeri ngtrci c.^ r(nd ro h^e J hi B h
. ol r i. k h' I r h ,g hp o ,.n rk l i o ' m d i o r
b u n Fe* Lenrti ..,.eef,gun I La,.
" l. o
Xane9ing
Change
r. abilitr !o mdage changeis ciirial ro rhesuccess ofsystemsdoelopment. Ncw svsrens
.. i, dt ' l), r u. e. h" n8 et-o
. re \rm p l e,t-e
. $ o rk e n ri ,o n men,rnd haD i ,.;i u,e,.i r i nE nJbl v
.r..r ed b1 t he der e l " p me nn, f J n p $ In to rn r o n .) .,.m. U nt.,runfl et).no, e,eryon:
r:pts e*ily,-md the inceasins complexiryof qrrcms @n nutiiply rhe problcns, d $e
.irhical
and Socielatlssues"spccialfeaturedocribcs.Manasingch;nge requns the abiliry
:r recogni4.xisrins or potenrialprobtems(paticuldy rhe concernsof u!;) and ded wni
:en beforcrheybecomea seriousthrearto the succe$ofrhe new or modiffedsv$enl Her
. r ul of r he nor c o n ro n p r.' h te m ,:
. rer that rheenployawilllosehis orherjob, power,
orinnuencewirhh iheorsaniarion
. Beliefrhatlhe proposedq,$em wil.reare more
work tho ir elininares
. Relucrme ro work virh ".ompuier people'
. Auiery rhar rhe p.oposedqnrem ll ncgativelyalrerthe
sriuctu.eofrhe oEari,arion
 Pst a I sy5emsDevetopmmr

Beliefthar other problens are more presing rhan thosesolvedbv rhe proposedsvstem
or that the systemn being developedbv people unfamili& with '1he wv things needto

Unwilingness to iearn no proceduresor approachet

@
Th ede gre eofcha ngec angr eat t Y
alfectthe probabtly ol a prolects

Risk
of
Feiture

Continuous Business
improvemnt process
reengineering
Degreeof Change

Proenting or dealing with these rpes of problems requira a oudinated eflon kon
srakeholderand uen, naager, dd lS pe.sonnel.One remedvis simplv to ralk with l
oeopleconcernedand learnwhat their biggesrconcerns*e. Managenentcanthen dealsic
tho* ,"d t'y m.lin;nete ihem. Once inmediate concensare addresed,p'opc
-*e.".
cd be@mepdl ofthe proje ted
 ptexity,Interoperabi(ity,
andControl O.actesoneoJthetastof thebi gS companestol l m pont he
intercpe.abrltybandwagon. f.4any
of O.acles . vatsLnthe blE nesg
: S professionats
betieve
th.t technology
s outof controt of
app[c.tonssoftwa.business.nctLrdng SAPandSiebetSystems,
.:;t th.t t has achewd a twet of compLexty beyondthe
acknowledged theprcbtemtongagoandseemto havea headsta.t
- : _ehensonol mosthumanbeiigsand,increadngly,e!nsome
Lo on oracte In oEctes olher ma n busnessafea,databasesoft
o
-r.0 "o rt" o pd. J lps
\,arc bothlBNland MlcfosorthavealreadyadoptedWebseNces
Lrse.
whichw.ec.ealedby varetyofcompanies
" ;ystemsn asa wayto Linllncampailble systems.
:i': I fferingtechnotogies
thaiarenoteasityntegrated
Pfovldingbrdges between dverse systems wll assst
i.hnotogyhas permeatedmanyblsrnessesand ndustries
'_e pasttenyea6.n therlsh to futtyexptot lechnotoqy companies in iamingsomeout of controtsyslems.blt it wrltnot
many
end ou. battteswth technotogys compLextyAs we tearnmo.e
:rnies havebuLtlhe. technology lnlrastrLrcture
decemeat.
aboutihe potentlalof informatonsysims,s conUnLre to cotlect
: _.w fnd themsetves with a hodqpodge ol seNers.databa-
lncreaslngan]ounts of dala lo dr!e ncreasngty comptex
:.d appticatonslrcm difterngvendoEtied togethe.with
. (o pr ehe bt 6 f o. r h. Td o ,
apptcatonsfor specatizedseryices 1n fact lhe lrend in S
./ o d" -rn - bej.
L devetopment is to designsystemsto manageoursystems.
" , ) s a^ s de. e L o p m ep .o j e .s :rp o (e 5 ,rh e 5 e da/
overtycomplex Newsystems desgnedbyHP, BM andSLrn Micrcs)tems wofk
' ::llefed afoundsimptilinqand consoLdaiing
to concealcomptexit/by automatng manysystemmalntenance
'r.mat onsystemvendorcarernu.hto btameforthecrrent tasks Tomorrows nformaionsystemswtl flrther femovelS
controtfromthehrmanopeEtorbyproviding an addt onatLayerof
: : affau. ln promolingthe saleof theirovr'nprodlcts,many
,: 1ntionatly soitw?rebeNveen the Lrserand the ststem.Wth the additionat
designed slstemsihat do not ftefact wettwith
sLrtomalloncomeadditionat concemsoverretablttyandsec!.ily
. o-s produ . In 700?.Ld y l-t'an. tt0 o' 0'c(le
.r-rton, usedhs keynotespeechat the companysannLrat
:1on lo chidetheinformaton technoloqy industryformakng CritiraLThinking 0uestions
:'cutt for corpomteS mnagers. He u.gedcampanesto W haibeneftsare enl oyedby usi ngone l S vendo .r or at t
:: datetheir$tenrsand to stopcustomizlng the r bls ness
::ron softvare.CompanlesEltisonsad, havecotlectivety W hy mi ght a conrpanydeci de on a mul ti vendoflS
:r bL[onsof doltarsow.the bst decadeon consuttants and
-: :raffto maintanand integrate theirtanqtedsyEtems" ts a
- :'m adnes s . at it h e s e s e p a .a te s y s te n ' rs ,' E ttEonsai d.l mpted
WhatWoutdYouDo?
: :.ns speechwas the messagethat companeswoLrtdlare
DoLrg Talesonnhe.teda n ghtmsrewhenhetookthe C 0 position
-. .etter ftheyranonlysystemsdesiqned byOracle.
',.. yearstate. at the sanreqalheing,ttson preacheda atE !ropeanTo!reLtd.Theentl reorgani zatonw :sklslr aledwilh
: - h e r oc. o r .L < lo e o lh o Or d d s na/l
ihe nformalionsystemswhich!!re basedon a hodgepodge of
"sqig 'a( p.odlcis sdoptedwe. the pastI 2 yarc Dougea.ned
ihelob onty
-:: cattedthe customl'DataHub,whichis designed to heLp
:r. e5 nstantaneolsly gathe.andintegrateinfo.maton from byassunngihe prcsdentof the companythat hevvoltdbeableto
:-s deslgned bydrrlefent andevencompeting-companies straghtef oui lhe mess Oolq receiveda qenercLrs bLrdget
to
e p.Lei o,-al i o sv,e-, oa l d6o (F.drda g
,b lrsescom.nuncaton standa.ds knownasWebse,!rcs o
: .compatibleappticatonsaodc.eatea systemofrccord
:-::ome.datasuchasonlers,contcts andservicehlstory. 3 Lfyouw efe D ouq howw ouLdyo! approachthe pro bLem ?
?cte has appa.enttychangedits tune lrom advsnq W hatw o!td be yo!f fi rstE tep?
::fes to get on the orcte bandwagonto a more hetpilt 4 W outdyo! be i ncl l nedto moveto a sl ngte-vendor
envi-
!d p ,o.d "slom panes v L oos o( er pdLe. , - . ! E fonmeni ?W hyorw hy noi ?
:.nr k t oget her .I s a h u g e b e ret,f s a i d B a s h eKh
e f a n ,senror
:r ol TatVertexSyslems, a LosAngets ii|n] specia[znq in S0URCES:AlorieGi|ben,'0racleChange3Tuneonlntegmron,
tdFrterye
con, )anuary 27, 2a0qIomvaget, u staws OLrot conttot, tnrawortd, Jan-
: conslllingservices.'BeforepeoptewoLrLd buythe [o|a.lej rary30 20AAM.infotuotld coh, AtdrieGllberl, EtlisonPush* TCompa'
r.d bLrtd their own bridges.Now 0f.cte s p.ovidingthe niee ro s nplily," cNEf News..an. November 14, 2002
 P.!t a I sfb.. Dae
"f.""t

O u a t i t yan dSta n d a r d s
'l hc bigg'r th projc( r
Adorhcr key strccc$hctor is the qoalirv of Proj.d Pluning '
moretikelythrt poorpLmlnrswill leadto significanrpnrblens A fedenljury',ior car': '
f""rd th.-rker of""'igational softwarepanlv rcsponsible for an eirplaneorh nearCr
Colonbia. Poor qrtens developnent planning can be derdlv.
Many companiesfind that l*ge syster"sprojcctsfall behindrhedulc, go overbuc:r
and do not meetupeaatiors Although properpLanningcannorSuarantec rha! th$e r':'
ofproblcmswill bc avoidtd,itcan minimize rhelikelihoodoftheiroeurence Cood srs:'-
d.'dopmem is not aut'mric. Cerrain facrorsconiribute o the failureof svstems d* :
'
rl*. r...s aDd courrcrneasures ro eliminatc or allniate rhe Proble':: ''
p-;..,.
-"",
sunmdized in Tabl 12.6.

PoorprobLern
definitionand Fottowa standardsystemsdevelopmentaPproach

Pd cammunicatron
"ii,li*uiili_i.,-1'1]1|'ii,i*ltii:]lirta:rr::.:
N arow l heprci ectfocustoaddressonlmosti
ythe mP or t anl
is ioo ambitious
P.oJect
businessoPportunrlres.

anduser
Lackol management ldnufyandre$uit keystakehoLders in
lo beactivePa.ticipants

'',,*:il*l*{,yry suchas lS0 ?001

lmptemntastanda.dssyslem,

poo.re'ridsand*rplmlnte*r.;1.1,,,:..S!ii1x,!1*!:;,;;,1y;l:N*;1;,:,;.';::,
Usersafe unablelo usethesYstem Devetop a.igoroususertrainingprcgramand bodgetsuflicienr1-F
in the scheduletoexecoteil

Thc doelopnent ofinfornation sysrcmsrequiresr corstanttade offofschedul. ::

@ .os versusquJit/. Hntorialll the developnenrofapplj.atio' soliwarchasput a' or.:.-
ProjctPt.nninglssuesFre- phNis on s.hedulcand costto the dctrinenr of{lulity. Tcchnjques,su.h s uscofrhe ::
quenttyconlributihgto Projecl 9001 srandards, havebeendevelopedrc improvc the quality ofinformation sy*emr' :
9o0l n a setof;nlernadonalqualirysrand*dsorignrdf developed in Europein I 98- l:,
most rec.nr ve$ion was published in 2000. Thesc srandrrds addres custornersarnh: :
and arc the only *mdards in the ISO 9000 family where rhird parry certificathn .r : .
:.h i e .e d .Adherencero I.o' ,uL,t i ' r R qurremea';n mrn" ' nrernJuonJ n,,kcr ' I '
conpaniesintheUnited Statesandaround thcworld sr;ve to achide ISO 9001.eriii.::
Many IS orgmizarionshaveincorpontedISO 900I , rctalqualitymanagement, six r,.: -
(fist discused;nChaprer2), and othaqualitymeasure into thewaytheyproduct sott" ':
lBM, rhe largecomputerand consultingcompanl for umple, trscsISO 9001, six !i
'
rh CapabilityMaturitr Modcl (CMM) d;cused rqr, and otho quality approrl:
Maste[ard Inte.natunal uscspars of th. CMM. MurerCard's quality progran :
 andAialys.
sysremsnvestiqalon I Cmpto tz

lS0 9000 s a set ol inlernationat

qualitystandardsusd by S and
olhero19anlzations to ensureihe
quatityof pfod!cts and seruces.

,honened the tine it takesto d*elop new software,while reducing so6aare ddecs Nonel
Networks use ISO 9001. Ofte+ to emure the qulity of tle qntems developmert ptoces
and finished product, an ls orgmizarion will form its own qualirv ssurdce sroups to work
wnh prcject teamsand encomge then to follow e"ahlkhed standards.

TheCapabitityllaturity ModetICMMI
oqenizarional erperience with rhe systemsdoelopmenr proces is also a kev f'c'or fbr
s stens devdoprnent sucs.{' The C:pabiliry Maturig' Model iCMM) is one wav ro m@'
rre this experience.h is boed on researchdone at Canegie Mellon Univeriq' md work
bv rhe Software Engineering Insii re (SEI). CMM is a meaure ofthe naturitv ofthe soft-
*are dwelopoenr prccess in d orgniation. CMM grades an orgadiation's s'stens
Jeveloprneni naturiq, using five lwels Forn initial to opiinized GeeFigure 12 10) A brief
descripdon of eachloel follows

@
I5l SystemsDevelopmentl,laturity
galed on the Cap.bitilyMetu-
rity t4otut lci{ l

t4l

t3l

12l
 P&t4 | lynems lddopmenl

1. 1,,rzl This level;s rlpical of organiaiions inexperiencd wirh soliwde and syscr.
development. This lcvcl ofter hs an el hoc or evena chaoricdoclopment proces.
2. Repearabk.Thc secondlevel tacks devlopmen! cosrs,schedulcs,and functionaliq. T::
disciplineo repeatprd;ous sysrems doelopnert success is in pla.e.
3. Defned. At the rhid.level, organizarions use docunented a.d dellned proccdur.s. .
projecrsdonc by the org:nizarion 6e thesesrand.rdized approachcsro develop solie i':
and sysrems.ProsrDning $udards are o6en usedar rhis l6'el.
L Managed.Ar rh],sl*cl, olsaniznions ur ddailed meuures of rhe svstens developme::
processro help managthe proce$ and inplovc sofrwareand systens qualiry.
5. Opnni*d.Thtsisthehighestlwel ofexperience andmaturiry.Continudusihprovemer:
n usedto strengthenall *pectsofrhe systensdevelopnenrproe$. OrganiarioDsar rl-.
lwel olren iniriareinnovariveprojecis.The goal n to oprimizeall aspecrs
of$e syse-.
developnent effon.
The CMM nodel hs beenpopularin rhe Unired Sraiesdd aroundthe world, and SE
certifiesorganizarions
s beingatonofrhe fivelsels. Aly orgdiaiion .d seekcnificati.:
and many onputer-consulting .onpan;esarremprro be cenifiedat the highestlevel(op:
mizadon).wipro GE Medi.al, for dadple, receivedLevel 5 cerrification.The conpr..
developsadvancednedicai softwarefor compurerired romography (cT) scannen, mas-:
resonance imagins(MRr) dev;ces,and orhernedical equipmenr.saskencohmunicario::
Conpoy is a telecomnunicarions and cons ting conpanl' thar har alsoachiqed t.ey:'

U s eo f P r o je ctM a n a g e m e n
Tto o l,s
ProjecrmaragementinvolvespLanning,schedulins,direcring,and conrrolllnghumar. :i
nancial.and technologiolresources fo. a definedrdk whoseresultis achioemenrofspec,i:
goalsand ohjecdvs.Even for snall sysrensdselopmenr prcjecn, some qpe of pror:--
menagehenthust be u.drlaken.AmericaWest,forexample,strugglediinanc;allyafrerr::
September11 terroristanacks.'oThe airline indusrryhu losr $18 billion sinceSeptemk:
I I and nar loseanoder $10 billion beforeits c*riers recover.As a result,airlinecompmir
aredenandinsmorefron rheirsystems developnentprojectsand rheifprojecrnanaseme::
rools.Aeording ro Joe Beery.chjef infornarion off:lcerar Ame.icaWes!, 'The risors,.c..
smina and nilesronesrharyou haveto meetro nove foraard with oewprogramshareno'
beome nuch nore intense."
projeclschdute A prcject scheduleis a detaileddesctprio. ofwha! is ro be done.Eachprojectactn;.
Detate dde sc.pllo noiwharis t o be rhe useofpeBonnel and orher resources, and *pecred conpierion daresare described..
projecr nilstone is a criricaldarefor the cohpletioh ofa major pan of rhe project.r::
proid mileslone completionofprogran design,coding,testins,and rcleae arequples ofmilesronesfo: :
A crl ca tda tefo r th e c om pt et ion
of prosrannins project.The projecrdeadlineis rhe darelhe enrircprcjecris io be conple,.:
a malo rp arto llhe pr olec l ard operational when rhe organizatiodcan expecrto begin ro reap rhe berefirsof r::
proiecldeadline project.one conpany offe( a 20 percenrrcfundifi! doesn'!neer a clienasprojed derdlir:
Dalelhe ntire projectis to b," In addition,any additionalwo.k doneaflerrhe projecrdeadline is performedfreeofcha5:
comp lele dan do pe f at ional. In systensdwelopnent, eachactiviryhasan earliestsrtt rime,etulie$inish dne, r:
dackdnq which is rheanount ofdme u acriviryen bedelayedwithoutdelayingthe em:::
criticatpath project.The criti.al perh consis$ofall acdviriesrhar, if delayed,would delayrhe enr::
A ctivtie sth at ifd ta y edwould project.Thesea.iivjdeshavezerodack dme. Any problemswi$ crirical-pa$aciiviiis$l
delaytheen t.e pfo jc t causeproblensfor rhe enrircp.ojecr.Toersure rharcrirical-parhactiviriesare.omplekd,i
atinelyfohion, formalizedp.ojecr managenenrapproaches havebeendeveloped. Anumk:
of tools,suchas Projecrb1-Microsoft, are avaihbleto help conpute theseditical pror::

Although rhe srepsof st6rernsds'elopmentseemmaightfordd, larye. prcjec$

-.
becomecomplex,requninglirera.llyhurdredsor rhousxndsofseparateactiviries.Fo. rh.r:
asremsdevelopnenreffonrs,formal projecimanagenentnethods dd toolsbecomee$.r.
ProgramEvatuation
an.l r;al. A fbrnalized approach called Progm Eraluation dd R*ie Te.hnique (PERT
(PERTI
ReviewTe(hnique creares$ree rine esrinaresfor an activity: shone$ possibledhe, nosr likely time. a::
A fo rmatzeda pp roa c hf or dev elop longesrposiblerine.Ahrmula is fien eppliedro.one upwnh asinslPERTdmeesrjmn:
 systemsnveneaion3i.lAnatys, I cl,.pru" rz

A Gmtt chan is a graphical i@l sed for plannins, nonirorin& and coordinadns pro, Gantt chait
jectsj it is esentially . grid ihat iisrs activities and deadlines.Each rine a rask is conplered, A g r a p hc t t o o tu s e df or p t6 n n i n g ,
a darkened line is placed in rhe proper gdd cell ro indicaie dE co'npledon ofa ta* Gee monito.ing,and coofd narlng
Fi s ur e12. 11) .

PROJECT
PT"AXMGDoqrtEttaflO @
9v5r'n
SampteGanltChart
sa.rehoG!lnMrort sy6rehlrodtflc.it.nl AGanttcharl progress
shows
syEten - s.n.dut drdrvlty throu9h
systems
devetopment
r a.hpl.r.d.cdvfty a c l i v l i e sb y p ! l t i d g a b a r th r o u g h

R,3Int.rrls si.toure rtrtt

D.l

D.2.2

l,2.2Bulld

iw..*ty leh rqi.w. hot $dn hr.

lorwrrehou.G2 throulh 5

Both PERT md Gdrr iechniquq qn be auronared using proiect manasemenrsoft@.e.

This so6'are monitos all project acttuirjs md derermineswhether acrivities and rhe entire
p.ojeci de o. time ud wiihin bdger. Prcjecr maMgenent solia"re ako hd woikgroup
apabnides to handle nulriple projectsand ro allow a reamro inreract with rhe me soft*ue.
Prcject hanasemenr sofiwde helps hanaseB derenine rhe be$ way ro reduceprojer con-
pledon tine ar rhe leasrco$. Man/ projer manages,however,feu that rhe qualiry ofa
nstens developmni project will suffer wirh shonened deadlins ud rhink rhat slack dne
should be added back to the schedule as a result. s*eral prcject managenent sofrwre
packases areidenrifiedin Teble 12.7.
 Pa a ND" L
| "., ""p ."

@
setctedProjctMana9ement
,lr,l*l,ie:ry,:,::.llll
]

Prgidsqhaibr

d ftwa r eEn g in e e r inICAS

U s eo f Co m p u te r - Aid eSo g EI
Toots
software
compuler-aided Computer-aided softme engineenng (CASE) rools autonate nany of the ttks requrr<
engineering
ICASEl in a systemsdevelopnenteflort and enforceadherence to rhe SDLC, thus insrillinsa h.=
'Iootslhat automalemanyol the degreofrigor and sBndaJdization into rhe entiresysrcmsdeeelopnentProces.VRCASL
t6sks requlredln a systemsdevel for example,is a CASEtool that can be usedbya tean ofdevelopersto osist in developt:3
opmen teflo rta nde nior c adher
appli.ationsin C++ md oiher Ianguages.'1 ProverTechnologyhasdevelopeda CASE tc'
rhat serrchesfor progranming bugs.The CASH tool setches for all posible designscena.r
ro nake surerhatthe prcgrumis eror free.OtherCASEroolsincludeVnibleSvstems (z ar
diblz.ton) and Popkin Sokware (.auu.Vophin con) Popkin Software. for ennple. a
generatecodein founh-generationprosramning languagessuchasC++, Java,and vise
Bcic. Other C.A.SE rclatedroolsincludeRarionalRose(partofIBM) and Visio, a chmiq
aod gnphic prcgran fron Microsoft.Conpaniesthar produceCASE toolsincludeAcc*
ruc, Microsoli, Orade, andorhe6.OracleDesignerandDeveloperCASE tools,for exmp*
@ cm help sysrens analystsaumnate and simPlib- the d*elopment processfor datab*e sr:
tens. SeeTable 12.8 for a list of CASE roolr dd rheir Providers.The advantages r':
Typi.atCASETools listedin'lable 12 v
disadvantaees of CASE roolsare
 5l!r.nr i!.i: latoi r I AirLy!s I chaltr 12

Produceslistern;,,gth; 6rsar
ellecllvt.pe.aiioial Ufe.

Producesystemsthat moreclosely
meetusef needs3ndrequremenis

Froducesystmawiih dceUnt

Produce
systems
thatnedtess Requiremoret.ainlngot maintenance
slall

Produce flexibl
1nore systems.

0bjec t -0r i e n t eSdy s t e m sD e v e to p m e n t @

lhe success ofa sysemsdevrlopmenteffon cm dependon thc spccificprogrammingtools
Advantase5and Di5.dvantagE
rod apprcaches urd. As me ,netlin Chapter4, obje.t oriemed(oo) prognnhing lan of CASETool5
3uages allowrhe interacrn,nofpn,gmmning objecn thrtls, anobjectcorsiss ofboth data
.ud rhe acridr rhr can be poforned on the data.So. rn objed could be d.ta ibour ar
rrnployeeand all the operatn,ns(such* payroll.benefis,and tu calculations)dnt night
bc perlormedon the data.
Derclopingpn,gtamsand appl;.at ns usingOO piogianmilg Languagcs irvolvescon
*ructng modulcsarL{parrsrharcan bc rcuscdin orherprogranrr;ng projecis. i': Chapter4
J*c*sed a rurber of progranning larguagcs rhrt use rhe objecr-orienred apprcach, in'
:ludins Vnual Besic. C++, andlava. Thcse languagcs allow s,rsetns developes ro ral<e
rhe
OO approach,naking prognrn devcLoprncnt trstcr and more eiicient, resultiogh lower
r,*s. Modules cm be de"eloped intcrnallr or obtanrcdfrom an erremalsource.Once a
;o mpany hasthr prcgranning modules, progenmcrs andsystems analysrscannodilyrhen
:rd integrate them *ith otho nodules to form ncw programs. C[.l'ower dcvclopcda rov
.,sren o bridge rhe gap hetween rew Lnemet bascd applications and older legacvsvsterns.
t he nosy*emallxs ns nanagersand emplovecs to scarnlcsly share dataand in1bLnarior.
L!flI'owu urd objec<rienterllaneurgesrnd approachcs, suchis JavrclssesaDdJ.vaBeans
r reusccomputcrcodcand reducesystems d*elopmenl tid and costs.5r
objecr-orientedsFtens dwelopment (OOSD) combinesthr ldgi. ofthe svstns de object-oriented
systems
,clopntenrlift crclcwirh thc powcrofobject-orientedmodelinsmd prograhhing. OOSD devlopmnt {00S01
a definedsy$cns doclopmcntlife cyc1e, much like thc SDLC- The life cyclephoes A p p . o a c ht o s y s t e m sd e ve to p m e n t
'ollows that comb nes the toqicof th sys
;an be, and usuJlv rre. conpleredwith nanv itcrations.Objecr-oriented sysremsdevelop-
t e m s d a v e t o p m etnite .yct w i th l h e
rnenttroically involvrsthe follor.ing: p o w r o fo b j e c to r i e . te dm o d e tn g
, Llrnt;J1;ng potuatial probhns a opponuritts uithin the organizanon that would be
qptuptiak ftt the aO approach.This pro.ess is sinilar ro tradirional systems
inlesigatio!. Ideally, rheseproblemsor oppoftunitiesshould lend thrnselvesto the
developnenrofprogramsthat canbe built by nodifringexistingprogramningmodules.
. D$n; g ahat hkd ofslstzn *en fttluir. This an ]sis neans deining all the objeca rhar
arepart ofrhe ueis wo.k en*onnent (obie.t orintedrnalxis). The OO tcammus
studydre businesand bJld a modelofthe objectsthat uepan of the busines (suchr
r custoner,ar order,or a paynenr). Manr of the C-ASEtoolsdiscussed in the previous
seclionca! be used,sBrtingNith this sep ofOOSD.
. Deric"i"cthe ynem. This processdefinesall the objects in tlt sysremand the waln they
inrehct (objectorienreddesign).Desigr involvesdwelopioglogicjl and physiel nodels
ofrhe new syren by addingdetailsro the objectnodel sranedin analysis.
. Prcgrannins r nodifr;ry nohlel Tlis lmplemertarion step ukes rhe object model
begunduring analysis and completedduring designud rurrs ir inro r serofiDreracling
objecrsin a s)5!em.ObFcroriented programminglmguagcsarc designedto allow the
programmerro crearecl*ses ofobjrcr in the conpurcr sysremrhar corcspond ro lhe
 Put 4 | sFtems Deletopmeil

objecrsin ihe acru.l businessproes. Objects such 6 cusromer,orden and paymenr I

tedefined d comptrrer sy'stemobjecrs a cusroner screenj an order enry menu, oi :
dollarsignicon.Progmme6 rhenwriie newnodulesor nodi8, existinsonesro produa
lhe desiled progrds.
Eualuanon by *ers. The inirial inplehe.ralion is *aluated by users and improre
Addnional senarios and obje.ts ue added, and the q,cle rpears.Fintly, e comple!.
tested, and approved systen is adlable for use.
P.tiodi fuicu a"d nodilica',,,. The complered md operadonal slsien is revised a
rsular inrrals dd nodified u neceso.

SYSTEMS
INVESTIGATION
As discussedearlier in the ctrapter, sysrens invesrigailon is rhe firsl phse in the $adniou
SDLCofa newormodifiedbsinessinformrion systen.Thepurposeis to identilyporenlE
problemsud opportuiries and considerrhem in light of rhe goalsof the compmr. I:
general,systemsinvestigation attempis ro uncover @sea to the following quesrions:
. W}lat prihar)- problems mighr a new or enhued systemsolve?
. w}l2i opponunids nishr a new or enhmced sysren provide?
. whei new hardwa.e, software, databoes, relecommunicetions,pesonnI, or procedG
wil inprove an qisring s)srem or ue rcquired in e new q,srem!
. v&at are the poEtrrial asis (variable and fixed)?
. VAat are the dsociared rislc?

I n i t i a tin gSyste m sIn ve stig a tio n

Becauses''srens dflelopnent requestscao require considerabledne and effoft ro impleme.:
many oaniadons have adopied i fomal procedure for iditiating rysremsdevelopme::
syltemsrequestfofin beginniogwirh s}sreff inve$igarion. The systmsrequert form is a docmeni that is fiU-
Do c!me nlf tte do ut by s om eone out by someonewho wanis the IS dparrnenr to initiere sysremsinvestigarion. This foE
who wan tsth e1 5d epar t m ent t oin -
tDicalh includesrhefonowinginformarion:
t 6te systemsrnvestgation
. Problems in or opporrunities for rhe systen
. Obje.iives of s).$emsinvesrication
. Oveniew ofrhe prcposed s)6rem
. Lrpected cosrsmd benefiis of ihe proposed sysren
The infornation in the sysrensrequet forn helpsro nrionalizeand prio.irizerhe r-
dvirisofdelS depanhent.Bded on rheoveiallIS plm, rhe orgmiaiion's needsandgl)s
and rhe esiinated value and plioriry of the prcposed prcjecrs, managersnake decisiod
legarding the initiation ofeach sysremsinvestigetion for such projecrs.

Participantsin SystemsInvestigation
Oncea decisionhar beennade ro iniriaiesy$ens investigarion, rhefrrstsep is todeterm:*
whar nehbers ofrhe developneni tem should parricipate in the invesrigation phce of li:
projct.Membe$ ofthe dnelopnenr ied.hanse frcn phasero phse Geeriguie 12.t:
Ideally, tunctional manaseF are heevily involved durins rhe invesrigation ph6e. O!b=
membeB could include usereor srakeholdersourside nmasmenr, sfth ar an enplo),ee si:
helped initiate systemsdevelopnnr. The re.hni.al and finmcial *perrise ofothers pam:-
iparing in investigetion would help the tem dererminewherher the problen is wonh solri c..
The nembersofrhe dryelopmenrteamwho parricipatein investigrionarerhenresponsi:r
for gatherinsand anaryzinsdau, prepaliDsa reporr jusrifyingsystehsdwelopnenr, d
presenringthe rcsuhsro rop-ioel nanagers.
 , d Ai. ,. . I cnsetrrg

ThInvesliqalion
Team
@
t5 T h e S y s t e m s I n v e s t ig a l i o n

T h et e a mi s m a d e! p o r u p p e r a n d
middte level manaqers,a protect
m a n a g e r ,5 p e r s o n n e t.
u se E a n d

. Undrtak5 analysis
fea5ibility
. sy.temdevelopment
Estabtishes 90aLs
. 5elect.systemdvelopm6nt melhodoloqy
t Pfeparssysleminvrli9alr0nrcpod

F e a sib itityAnaty s i s
1 key stepof rhesysrems inresigationphue is feasibilitymalysis,which assesrstechnical, leasibilityanatysis
:cononic. legaL,operarional,and sched e feujbiliry Geelisurc 12 13) Technicalfedibil- A s s e s s m e noti t h e l e c hn i ca le, co
n o m c , t e g a l ,o p e r a l i o n aat n d
ir,vis concenedwith wheth* the hrdwarc, sofrware,and othersysremconponentr canbe schedule i e a s i b i l i t oy i a p r o j e ct.
rcquiredor developed to solvethe problen. TechnicalprobLems, forcxanple,wereencoun-
rred in developnrgan auromat;c tool systemfor long'haul irucks or rhe GermanAuto- tech ni.at fea5ibitity
nwer be fully implemenred. A s s e s s m nolf w h e l h erth e h a r d -
-"ahn.rlThe sarelnebxed systcnsdeelopnent projecrnay ware, sotlware,a.d othersystm
c o m P o n e n rcsa n o e a cq ur e o o r

tr d e v e t o p etdo s o l v et h e p r o b l e m

tr
E
tr Techni cat,E conomic,
Le9aL,
@

H operational,and Schedute
Feasibitily

Eonomic feasibiliq'deternineswhetherthe projectmakeslinancirl serseand whether economicfeasibitily

rredictedbcnefiaolGetthe costand tine neededto obtainthem A securities conpany, for D e t e r mn a l o n o l w h e th e rth e
p r o l e c lm a k e sf l n a n d a tse n sea n d
:rample,irvestigatedthe economicfcasibjliwof sendingreseuchteponselectonicalLyin- whther predictedbenelitsoltset
read of throughthe ma;I.Economicanalysisrevealed that the no approachcodd savethe t h e c o s t a n dt m n e d dto o b l a i n
.odprny up ro $i00,000 a year.Economicfeasibilitycan inolve coh flow rnalysissuchas
:hat donein ner presentvalueor internalrareofreturn (lRR) calculations
Ner present value is m ofrcn-used approach for nDking competing projects and fbr
.lererniningccoromicfeasibiliw.The net presenrnaluerepresents the net anount by v hich T h ep r e l e . r e da p p r o a chto r r a n ki n g
c o m p t i n pg r o j e c t s a n d d e te .m
nin9
'rrojectsavingsexceedprojecrexpenses, afrerallowingfor the cosrofcaPilaland the pdsrse
ifrime. Tle cosrofcapiralis the.'erage costoftunds ued to financerhe operar;onrofrhe
iusiness.Ner prescnrvaluerakesinto rccounrthat a dollar returnedat a latet d*e is not
tonh as nuch as one receivedtodav,bequse the dollar in hand en be inested to errn
prograns.suchasLotusand Excel,havebuilt-
proff* orinteres in rhe interin. Spreadshect
ir functionsto conuure rhe net presentvalueand intetnalrateofretum
 | .'.,".."","'"'-"",
"-..

tegat feasibiLity Legalfersibility deternineswhethcrlawsor regulationsmryprevenr or limit a syser:

Delernin6tionot whethe.laws or developnentprc1'ect. For cxamplc,anlntcrnctsitetharailowcduscr to sharemusicwitho
re gu tatio ns
na yp r ev e. l or lim it a payinghusiciensornusicproducer wrs sred.Legrlfe*ibility involvcsa! dal)'sisofcxisri::
syslmsdevelopmnlproiect.
and tuue lawsto deternine the likelihoodoflegJ rction agrinsirh. sysrcms dc'<lopnr.-
prcjecrand rhe po$;ble conkquen.s.
operationat f eas jbility Openrioml faibility is a measu,eof-hrher the projectcn b. put nrro.crion
Mea s!feolwh eth ef lhepr oiec tc an ofent;on. ft can jndude logisticalard motivarional(acceptance of chms) corsldcnrlo;:
be p ul n toacton o. opr at ion. Morimdobal .onsidenriorx arcveryinportant because ne* sysr.m,.ffect ptople rnd c:
flom and mayhaveunintendedconsequenccs. A: a rerrlt, powerandpoliticsnaycornt r::
play,andsonepeoplemay resistthe new s$tem. Bccause of deadlyhospitalerors, r htrl::
cdrecoDsor !n looked iito the dperationalfe*ibility ofdcvcloping a new computeri:.
phlsician ordcr cnrry sysremro rcqu;re that all prescripdons .nd every od. dodor Si .
"
ro statT6e entered irro rhe compder. Tle .lmpurcy thcr cfiecls fof dn,g all*gi.s .: ,
hreractions berwccr drugs. Ifopa*iora111liasibie, rhc no sysre," .",1d u'e iires ard L. :

schedute feasibitily Schedulefeasibilityderermineswh*her thc projcct can be conrPletedin a rcasor.::,

Dete rmn al on of wh elhr t he anouu oftine a proce$ rhar iivolves baLncing thc rine ard resourcereqlirclrcnl.
pfojectcan be completed n a fa rhe pxrje.t with orherprojects.
son ab teamo un to f tim e

0bj ec t- 0 r ie n t e dS y s t e m sI n v e s t ig a t io n
Thc objec!-orintedapproachcan be usedduring all phasesofsysrcnxdevelopment,ri :
investigationro maintenda rnd review.In rddirion to idedtityingk.,v particiPanis:::
puforning basictuuib;lity analvsis,key objectscan be identifiedduring svsrcmsim'cr:;:
tior. Comider a kayakrentalbcincss in Mrui, Hawaii,\'hre rhe owncr wan$ ro cont-
erizeits operations.There *e nmy sysen objccrsfor fiis businos. induding thc kr :
tenraiclerk,rcnring kaya[sb cusomen, and addnrgmo katals into thc rcntrLptogr:-
The* objeca can be diagrumncdnr a useese diagrah (ste figurc 12 14) Asyoucan...
rhekayakrentalclerkrenc kayaksto cusomer and addsnew kavakrto the currcnrnntn. -
of kayaksavailablcfor rent. The *ick figue is an cxampleot'an arrar.and thc ovah c::
represent r rurrarr.In ourexamph,the rcror (thc kayakrenelchtk) nrer...
an event,caLled
wirh so usecues(rentkayaksto customcr rnd add no kayaksto nrvcntory.).'lheuse.r.
diagrarnis part oftht Unified Modcling Languagethat is usedh objccr-orienred sv.,.-

@
UreCaseDiag.amfor a Kayak
RentalApptication

T h eS y ste m sIn ve stig a tioRe

n port
repo.t
systemsinvesti9ation The primaryoutcomeofsystemsinvesrigarion is t systehsinvestig.rionreport.This rer .
Su mmaryofth ere s lt t s of t he s y s sunnarizes the resuhsofsy$ems invesrigarionand the pntess of feasibllityardnn:::
tems nvestigalio.and the process .econnendsacouneofrction: continueoninro s)stensanafrn, modlfy theprojcctin r:.
ol fea sibtlya na tysisand f ec om investigationreportis sho..-
manner,or drop ir. A rypicalsbl. of.ontents 6r rhc sysrems
me nd atio no fa co ufs eot ac lion
i n F i g u re1 2.15.
 systemsnvestqatoi3ndAnatys' I Oapte. re

@
A Typic.tT.bteot Conlentsfor
Johnsdn! Ftlrin,lnc. a SyctemsInve5ligation
Roport
Syriahs hYeslig.tion Rlorl

CONTENTS
EXECUTIVE SUI{MANY
RYIEWot GOA|"5end OBJECIIVES
sYStEl.,l
PROBLEMS and0pPoRTUl|lTlEs
PfOJECTFEAsIIIIITY
PROJECT @5T5
PROJECTBENEFlTS
RECOMMNOATIONS

The slstens investigation reporr is revi*ed by scnior nanagenent. ofren organized s

:n advisory cohhittee, or steering committee, consisting ofsenior mnagement and tsers steringcommiltee
rion rhels depefthenrandorhertuncrionalares. TheseindividualshelpIS penonnelwid, An advlsorygroupconsistlngot
their decisionsaboutthe useofinfornarion slsremsin rhe businesand give authorizarion s e n i o rm a n a 9 e m e naln du se r sfr o m
l h e l S d e p a r t m e n t . n do l h .r l u n c
rc pursue tunhe. systemsdfllopnent activities.Afrer revis, the sreeringcommiftee night
agreewith the recommendarion of$e rysrem ddelopnenr reamor suggesta.hadge in
prcjecrlocustoconcentmrenore direcrlyon meetingaspecific compdy obje.tive.Anodrer
ahemarivis rhar weryone may deciderhat the prcject is nor fedible for one reson or another
ald canel rhe orciecr.

SYSTEMS
ANALYSIS
Arre. a p.ojecr hs ben approved for ftnher studl rhe nat srep is to answerthe qretion
'\ihr nu* the infotmation sysrcn do !o solv the problem?" The proes needs to go
byondmere.ohputrizadon ofaisring rystens. The en*e system,and the busines proces
with which n is associated,should be evaluacd. Often, a firm en nake great sins ifir
resrrucruresborh busines activnies and rhe relaredinformation sysremsimultaneouly. The
overall emphasisof anallsis is garhering data on the exisring system, derermining the re-
quirements for the new s/steft, considering alternarives wnhin rhese consrainrs, and
invesrigating the feas;bil;q'ofthe solurions.The pdmary outcomeofsyaeru analpis is a
f rioritizedlis of slsremsrequiremDrs.

Gener at
Con s i d e r a t i o n s
Svsrensanalysisstarts by clari8'ins lhe overall goals of rhe organization and determining
how rhe *isting or proposed informtion s)slem helps meet then. A nmufacturing con,
panr, for exmple, night wdt to reduce the nunber of equipmenr breakdowns. This soal
can be rqnslared into one or nore infornational needs.One need miehr be to createand
m inuin J n J uur , , c l i s ro f e rJ p i e reu i e q urp me n m
t d a * hedul efoi pr* enr i , e mal nre-
nance.Anotherneedmighr be a list ofequipmenrfailuresand rhen causes.
 Pst a I systems
oNetopmmr

Anelysis of a smlll conpany's infornation systemcan be fairly straightforuard On the

othet hand, evaluatingan aisting infornarion systen for a largeconpadv cd be a long'
rediousprocess. Ar a result,largeorganiations*aluating a naior informarionsvsrennu
nally follow a fotnalized ualysn procedure, involving thesesteps:
1. Assenblingthe participanafot systems anallsis
2. Collectingappropriatedataand requnements
3. Anallzing ihe daraand requirements
4. Preparinga repon on the distins systen,ns sysEmrequiremeils,ud projectPrioritid

in Syste m sAn a tysis

P a r t i c i p a n ts
The fiff step in fornal snalysisis to arsemblea tem to siudy rhe qisting s)stem.This grcui
includesmember ofthe oiginai develoPnenlrearn ftom uers md stakeholderro 1S
penonnel and nanagement Most orgmiarions usually allow kev menbas ofthe d*elo*
ment tem not only to anallzethe condnionofthe exisdngsysrenbu! ?lsoio peform oth-
aspecnof qrte-s development, suchc designod inplenentation.
once the panicipants in sysremsanalysisare asenbled, rhis grory d$eloPs a lisl o:
sp.ificobiecivesand activities.A schedulefor neeting the obiecdvesmd conpleting $'
specificrctividesis alsodweloped,alongwith deadlinesfor eachsrageand a statenentol lnr
risources required n each stage,such as derical personnel, supplies' and so forh ltlaio:
milestonesarenormally establishedto help the tem nonitor Progre$ and deiermine wheth
problemsor delalsoccurin Perforningsysrensdatysis.

D ataC o lle c t io n
The ourooseofdata ollection is to seekadditional informarion about the problems or ne'c'
iden;ified in rhe svsremsinvesiigation rPort During this process,the strengthsand we!-
nesses ofthe existingrysren re emphasized
ldentifyingsour.esof Data
Dara@ilcrionbesinsby identifringandlocatingrhevarioussour.esofdala' includinsboE
internal ard externai sourcesGeeFigure 12 16)

@
lniernatandExlernEtSources
ol Datafor Syslem!Anaty5i5
 ;!;r.ms fFr Fr m rd !r r.]!: I

Cottecting
0ata
Oncedarasources havebccnidenrlffed,datacollectionbesins.Fisure 12.17showsrhe stePs
involved.Data collection suchrs intcdss,
may requirea nunber of roolsand technigues,
dnect obsenation, and questionnaires.

@
Tnestpsin DataCotteciion

t
[;;-l r
t
I ,
,
Fot low- up. ^dc L. . ili( at ion

Inrewiewsmay eirherbe strtcturedor urotructured.Ina srructuredinterview the ques slructuredintervieYt

ai written in advane. in an msructurcd intetuiew, lhe quesrionsa.e not wrtrten in A n i n t e r v l e w w h e fteh e q u e slo n s
'ions a r e w r i t r e nI a d v a n c e .
advancerthe inteniewer relieson cperience in askingrhe best questionsto urcortr the
inherenrproblensof the existingsysten.Ar advanrage ofthe unsrtucturedinteriew is that un5tructurd
interyiew
n allowsrhe inteniewerto uk follow-up or clarifting questions immediately. A n n t e r y e w w h e r e th eq u e sto n s
nore menben ofthe analysistcamdirecdyobsenethe a f e n o t w r l t l e ni n 6 d v a n ce .
Wirh dire.r obsra.ion, one or
existingsystemin action.One ofthe best ways to undentand how rhc cxistingsystemfunc-
rions is to work with the user to discover how data flows in certain businessrasks Wa r c h l n ql h e x s l n q sysl e mIn
Determiningthe daraflow entailsdirectobservation of usen work ptocedurcs, then repons, a c l o n b y o n eo r m o r em e m b e r so f
curent screens (ifautonated already),rnd so on. Fron rhis obseNetion, membes ofrhe
analysis tem dererminewhichforns andprocedures are adequote and which are nradequate
and needimprovenent.Direct obsenationreeuiresa cenainamountof skill. Thc observer
mrst beableto re what is reallyhappening andnot beinfluencedbv his or her own atnudes
or ftelings.This approachcm roeal important problemsand opponuniricsrhat would be
ditlicult to obrainusingotherdaucollecn,n nethods. An *anplewould bc obsen'ingthe
rvorkprocedures, repotr, mdcomputer screens rsociatcd with an accountspayablcslstem
beiDsconsidercdfor rcolacemenr.

D r e c t o b s e r u a t o ns a m e th o do r
d a t ac o t t e c t i o no n e o f m o fe m e m
bers ol the anatyss leam directty
obsetuethe existifq system n

15r!rce: Digllal Vrs,ohlGetty

 Psfta | 5y er. LrryeLrpn.it

\flhen nary data.,"rces arcspreadoverawide geographic area.questionnaircnal Lt

A melh odol qa the r in!dat awhent he rh bestapp.oach.Like inieriss, quesionnairescan be eithd stuctured or unsttucnred
da taso urcesa re spr eadov er aw de In noa cases,a pilot study is conductedto fine-tunerhe questionnaireA fbllow-up qud
donnairc can also opture the opinions of those who do not respondto the origin.

car be emPlovedlnsomecdes, relephon.

A nunber ofothet datr collectiontechniques
callsarcanexccllenr-ethod.h orhercses,activitiesmavbesimul2ted to scchow rheexisri.:
sysremrcacn.Thus, fakesalesordcs, stockouts,customercohPlains. a'd data-flowbor
st.ti5ticat samptinq denecksmry bc crearedo seeho\r rheexisdngsFtemrespondsto thesesiruarions. Statistiel
S tecto n o fa ra nd oms am pt eot sampling,\rhich involvsdling a randomunple ofdata,isanothertechnique.t-ore*mple
drta a nda pp tyn 9 the c f r ar ac t er
s- supposerhatwewmt to collcctdatath* dacribes 10,000salesordcrsreceivedoverrhc Ln:
lr csoi th e sa mpteto lhe whole
ffl )ears.Beciuseit is too rine'consuding to analre eachofdc 10,000salesordcr. :
rardorn s,mDlcof100 to 200 salesorder fron the cnrirebarchcan be collected.The chr:
acterisricofrhis smrplearerhen asuned ro applyto ail 10,000orders

DataAnalysis
The drtacollectedin irs raw firm k usuallvnoradequatero drerdinethe effect;vene$dr
cfficiencyofthe cxistingsy$emor lhe requirene.rsfot lhe new q6re'r. Th ndi srePis r.
manipularethe collecteddaasorhariris uable byth.d*elopnenr teammenbenwho at:
ptuticiparing;nsl,$emsanalysn.This manipulaion is calleddataanalsis. DaIaand acrniF
M 6np uta rono flhe c ot t ec t ed dat a nodeling, usingdrta-flowdiagms.nd entirv-reletionship d;snnl e ueful during dac
s o tha l I s usab tefor t he dev t op analyskro slow dataflows and rhe relnionshipsamong vaiious obiects'dsociations,r:
men trea mmemb er s whoaf e par for dara analvsisinclude applicatio:
activiries.Other conmon ro"ls rnd techniques
t icip atn g ln sysle m sanat y s r s .
flowcharts,grid chara, ciASEtools,and the object-oierred approach.

DataModetinq
Data dodelins, fifst introducedin Chapter5, isaconnonlv rcceptedapproachto modelis
otganizarionalobjecs and asociarionsthar cnploy both rcxr and ghPhics l he qact " :'
that dara nodelins is edPloyed, how*er, is gorerned by rhe specific sysens developmer:

Dao modelinsis nosr ofren cconpLishedthroughthe uscofentityrelrrionship (ER

diagrans.Rcall f.oh Chaprer5 thar an endry is a gendaliEd representation ofan obi-
r1p*such r r class ofpeople (employee), aenrs Galed. things (desk$' or places (l'hilade-
phia) and that enriticspo$e$ .eitein arrribules.Obiects can be related to othet objecr r:
nunerous wals. A. entiq'-rclationship diagm, such as ihe one shown in ligure 12.15i
describesa nunber ofobjects and thewys they areasociated. Ar ER diagran is not capab*
bv irselfoffully desoibing a busines problem or solurion beose ir lack descrip ons oitL:
rclatedactivities.It is, horv*er, a good place to sttt, because it describes obje.t tvpes an:
aririburesibour which data may need to be ollected 6r Procesing.
ActivityModeting
To fully describeabusinesprcblemorsoludon,h is necesaryto descdberherelatedobject'
ssociations,and activities.Acrivhiesin this senseue *entr or ircmsthri arenece$an t
fulffll the businessrelationship or rhat on be associatedwirh the busines relationship in :

dala-ftowdiagramtDFDI Activity modeling is often aconplished through the useofdata-flow diagrms. A datz-
A mo d tofo ble ctsas s oc lalons , flow diagmm (DFD) models objects,dsociations, and activities by desoibing how data cr
andactvit es tha td es c rbeshow t'low beween md around various objects. DFDs work on ihe prenise that foi every acri'i-
dal6 can ftow betweenand around or flow rhat car be describedasadata elemerr
thereh sone onnunication, rransference,
DFDS describewhat activitiesare occuning to tulfilla breines relarionshipor accomplish:
business task,not how these activitieste ro be performed.That is' DFDS showihe losi
sequence of*sociations and aciivities,not tl'e Physial processes. A systemmodeledwith r
DFD could opemremanuatly or could be conpurer base4 if conpurer based,the srtter
could operarewith a variegv of technolosies.
 @
D a i a a n d A c t i v i t y U od e ti n g
L a lA n e n l l y r e t . t o n r h i pd .9 r .m
l b l A d a t a r L . w d r q f a m l cl Ase
m a n l . d e e c . p t i o no f t h e b u si f 5 s

L s o ! r . e : 0 L , w f e n ! eS.n d e fs ,r /,
M d ! . r / B l B o y d & F r . re f Pu b tsh
ing Drnvef5MA l9t5 |

DAiA.FI.OW LINE

tx-@:

DlDs are easl to clevel,prrd .rsily undcGroodbr ionrechnicaipeopte.DrLr itos

.,:Lrnsuseliur pfunarvsrmbols,$ :llust.arcdh Fisde l2.t 8b.
trlfu fa ,. rhe dara,|,owline trclL,d.sr..orv. ihrr sho* ,he dirccrionof.Latr elcmcrL A f f o w st h . t s h . w t h e d lr e .t o n
d a t ae L e m e nm t o v e m en l

r',.cr Jr',,r,1 The proccsssymbol.eve3ls a llDc'ion thar n terlornJ. Conrpurnrsgross

pav,cnteringa salesordrr, dltref ng n.r.handise, aid prntringa ,epoir.rc e\ampl$ oi R e p . e s e n t aot. o f a f u n cti o n
tuncrionsthar can bc i.presenredNirl] I process sluoor.
 r'.da I synem3DereLopnenr

. E"ti| slnbol. The ntiry srmbol shows eithe. rhe source or desdtration of ihe
Re pre se nta tion
of t her a s ouf c eor
da{a
eleneDr.An entiry cm be, for exelDpte,a cusromerwho initiates . salesordr, an emolovr
desl nalionof a data etement.
who re.eive'r pay.hecl. or e m.rnager who ger, r 6nrciJ repon.
. Ddta A dat^ storet*eals a sroragelocarion for data.A darasroreis anv comourerizd
Representation
oIa storageLocalon 'to,e.
or m:n u:Jdaraworagelocarion.inctudingm,gnericmpe.dnk. a nting.aliner, or I desL
Comp.ring mliry rch(ionfip diashm. sirh dJ(J-flo$ diasrmq provide.in,ishr inro
,
L h ec.o rc p r ol rop-dow ndesi 8n.F,sureI2.18r ,nd b,hos ;n,i q. * tati on . h, p; iagl@
and a dara-Ilow diasnm for rhe same busine$ relatio",hip_"*.iy, - a m"-be; .f;g.[-
club^pla)'inggoil Figue 12.18c provids a brief desoip.i." .f tl. S",;"",, .t"ton,t ip-f..

AppticationFtow.harts
apptication
f low.h.rts Appticidon gotrciaru +ow (h retarioNhip.mong appticrrioroor yrem. turume tlu
Diagramsth6l show relationships r .mJl bu'ins' ha colle.reddrD ,boui iB order p,oe.irg. invenrorycontrot.invoicins.
amongaFprrc6tronsor sysrems.
ud markering dalys applierions. Mdenenr is rhinki;g ofnodib.ins rhe inknro;
Hry conrol appliarion. The Ew faca coltecrcd,however, do not help in determining how thc
applications ae related ro each orher md the darabasesrequired for each. ThesJrehdon-
A Telaphone 0rder Process ships de sEblishedrhrcugh data aatysis with an applierion 0owchari
ApplicationFlowchart GeeFigure 12.19).
Using this rool for dara analysisnaks dear rhe relaiio$hips among the od;,proesing
Theftowchart showstheretation-
sn r psam ong
v af ou sp ro c s s e s .

Telephone Order Process

 ' I cn er""t"

In rhe sinplified applicadon llowchan in Figure 12.19, you cm seethat the telephone
older clerk provids imporrmt data to the system about itehs su.h as versions, quantitis,
md prices. The systemcalculatessalestar ad order toels. Ary chmges nade to this order
procesing syeten could allect the company's other slsrems, such as invenrory control and

GridCharts
A gid chan is a rable rhar show relarionships mong variou cpects of a systemsd*elop- giid <hart
ment e$on. For emple, a grid chart en be usedto r*eal the darabasesusedby the vrious Tabtethal showsrelationships
amongrhe variousaspeclsof a
applicadonsGeeFigre 12.20).
systemsdevelopmentelfort.

w
l GrldCh.rt
Thechanshowstherelationships
amongappl cationsand databases.

The simplified grid ch{t in Figure 12.20 shows rhat rhe clstoner databxe is used by
rhe order procesing, narkering mallsis, and invoicing aPPlicadons.The invenrory danbde
r usedby rhe order procesing, inventory control, md maketins analysisapplietions The
supplier databac is used by the inventory ontrol application, and ihe ac@unts reciable
databa* is u-sedby the hvoicins application. This grid chart showswhich applications use
common databasesod r*eals thar, for erample, oy changsto the invenrory contol ap-
plic ion must investigarethe invertory and supplier databale!.
cASEToots
\ discused earlier, mmy systemsdevelopnent prcjeca ue CASE tools to complete analysis
mks. Most computeraided software engineeing rools hat generalired gephics progrms
fiar can seneratea Eriety of dlagons and figures. Entiryrelationship diagems, &ta-flow
Jiagrans, application flowchans, a"d other diagramsen be d*eloped using CASE graphics
prograns to help describethe xisting sysrem.During the andysis phue, a CASE reposi- CASEreposltory
besin to be A dalabaseol systemde5criptions,
rory+ daebase of system descriptions, pmetes, and objectiv+will
pa.amelers,a.d objeclves.

Requirem e nA
i sn a t y s i s
The overall purpose ofrequirment! analsis is io deterrnine user,staleholder, md otgad- r6qulrament!tnaty3ls
Detdrminationof use., stakeholder,
adonal need-s.For m aounrs palble aPPlication,the srakeholdereould include supplier
and organzat onal needs.
ud nenbers ofthe purchaing depannent. Questions that should be *ked during rcquire'
menrsuallsis include the following:
. tue ihese stakeholdeBsadsfied*ith the curent accounn payableapplication?
. VAar improvemenn could be nade to saiisry suPPlien and help the putchxing

One of rhe most diliicdt proceduresin systens mallsis is conff.ning user or systems
requiremena.Insone cases, conmudcationsProblemscd inrcrferewith the deterninatioo
of rheserequirements. For *mple, an accountspayablenmagef maI wdt a berrerProe-
Jure for tracking the anount owed by custoners. Specificalln the manager would like ro
 r han
h p e r * e e U y reponr}:r ' hoq' Jl .urome I w h" ow c morerhan$1 000 andve m ot
th'r sumn$26
90 dayspor due on their account A financial mdager nighr needa repoft
t t'l by ro look at rhe needto loden d rishier c'edii lini6 A sale
"-."-.*.a wut to roio thc mout owed bv a kel cslomer relative to sats to th'
-'t.men
managernight
*..i*m-... Th. p"'p.se of requirer"entsanalpis is to thescrequesisi! detl
'aprure O&en' varios
Numeroustooh md iechniquescanbc usedto caprureqaremsrequiremenrs'
techniqts areusedin rhe contextofa JAD sesion
AskingDire.tty
askingdirettty usedin requitenents
one thi mct buic rechniques isrkins dnecdvA'kins di-
analvsis
s
a as k s
t hal
A na pp roa ch tog ath er d6t tecrlv is ar approach thar asksusers,sakeholder, and odrer managereabout what rhev r:
users,stakehotders,and other m l hi appr' rch
modrl ' reJ' vrr w ork' bc' t l or { Jble *{em ' :-
* * .. ri " . rl ' . * * .
and -a ron Th' roleof r h"r -
man ag ers a bo !twha t t hey want * h .h ,u l e h ol den ," ,l u.en rl earl vurderrandrne' prem ' l un' r
expectkom the new or mod iied needs and detu:
remsmalyst duing the dallsis phaseis to citiellv and creativelv waluare
rhemclearlvso that the svstemscan be$ meerthem
Factors
Success
Criticat
Arother aporoach ue critial su.ces facus (CSFi Ar dkcssed earlier' nadages or
,laision nakers *e tked to list only rhe h.to6 rhat de critical ro the succas ofthen ar=
o frh e o ,c J n i zatin.A .\l forrpr" du.ri onnurgerdi ghrbrudequatei rw maLer ir |f t o-
supplieri a CSF for a salesrepresentative could be a list of custoner cunendv buving ;
*i"i. wo" ofp.odo.t. St"aing from theseCSIs. the lsten inputs,outpus' perfomme'
othii.o".ifi" .ents can be determ;ned.
""d -qun
The15Ptan
d"--
As we haveseen,the IS plan trdslares sthtegic and organizational goak into svsrems
opmenr initiatives.The IS planningproces often geneffes stelegic planning docudeto
thc
that en be med to defire rystem requiremenrs.Working from thesedocunents ensures
reaunenenrs andlvsiswill addres the goals set bv rop l*eL nanagea md decision marc
IS plan-todefinesvstems=
Ge; Fisure 12.21).Thefe are uniquebenefirsto applvingthe
o uircments. Becau* rh IS plan takesa long*nge approach ro udng informarion techrolo'E
.i';thi" the ore"iznion, the requirenenlsfor a s)srem rnalped in terns of the ls pl:n *
nore likelv ro be compadble with future svstens dryelopment iniiiadves

@
ConvartingOrganirationat
GoatsintoSFtems
Raouirements
F.";;l;":l.;;l;|*Fr,r*l
ScreenandReporiLayoul
Deveiopirs fotmts for p;inred repons md scre.ns to capture &ta and displav hfbrmatio:
*. *-".f.1" ssociatedwith developinssvsremsScreens dd rePonsF-
l a d n ero s q em'---.",uks
o,rpurrrc.pe.i nedfi nt t' veri l iLl ' rrrhed-rred ' ol uri on i ' be ingdeli'et c
M,;J ., * reen rd rcponl :1outf" ' i l i ri e'rre r' ed ro crprure bor hout lr
--p," ;t.d
and inout re,ruirenents.
&
S"i""" l"y""t i. r".h"iq"e thar allows a designerto quicklv and efficiendv design
" intcrcr w-ith the scre
Atechnq ue tha tall ows ades ! ner features,layot, and fotmat oi a display sc.een.ln gensal, usas wno
L:s
to quickLyand etfic enttydesi9nlhe frequemly en be preented wirh nore dataand les descipive infomatiou infrcquent
leatures,layout6ndformat ola d s a*o;prive information presentedto expiain the data that thev are vier ir'5
,f..ta U*
-*"
(seeFieure 12.22).
 io an.r,.. I chapt6'12

w
ScreenLayouts
tayoutcharllorirequent
lalAscrn
userswho titrtedescrprlve
requlre
inlofmat on. lbl A sfieen tayout
chaft tor inlf equentuserswho
requ f more descnprve

Repon leyout allows dsignes to dit8ran and formai printed .ePorts.Repoits can con'
tain dara, grapht or boih. Graphic preseniationsalow managrsand execltives ro quickly A techni querhata t t owsdesi9ner st o
diagramandformatprintedreporls
icw trend-sand take appropriate acrion, if necesary
'
Screenlayout diagons cd docunent the screensmer desne 6r the nry or nodified
rpplicarion.Repon layout chms revealthe format.nd contenrofvdious rePonsthat ihe
applcarionwill prepre. other diagramsand ch*ts can be developed to r*eal the relarion-
;hip berweenthe application and ourpua fron the appliotior.
iI Requirement5AnatysisToots
l nunbr of toolscan be usedro documentequirenena aralysis.Again, CASE toolsare
i ofren employed.Ar requnenents rre developedand agreedon, entiry'relationship dlaglms,
lu-flow diagrans screenmd repon layout forns, and other types of docunenration will
besroredin the CASE repository.Theserequirenenrsmight alsobe usedlarerasa reference
Juring rhe rest ofslxtens developnenr or for a diilerenr qrrems developnent prcject.
 Psta I sFems Ddetopmeni

SystemsAnatysis
Object-Oriented
The obiecrorienredJpproachen al'o b urd during sFrm\ dal)an Uke uadirionJ u+
*i.. nrcblens or poiintiJ opporrunirie' rre idenrrfiedduting obiecr'o'inred'nJr5i!
ia."'in t * o,'ii.io-" ld @lle.rins dru i' {'ll PerformedBur iroteadof rJvzug
'"n ,,"i"g a,u flow dirgms and flowch:n' m obiecr-orienred rpproch i
*. *;.ri^-e 'rri.

ln rh sectioD"objct-Oriented SystemsInvestigation," we ntoduced a kavak renai

*mole. A nore detailed aralrsis ofthat buines revealsdnt there rc r*o dms of kank
w;n
.ionl. k,'"-k" fo' on" p.'on rnd ,bdem k lak rha( d uommodare ruo prcple
i' u.ed to de'cribe diflerenr rvpe of obies o ud
rhe"OO ,pproach,a .ls 'uch 'ingle
ofka$ cm be shown in a goerali?2rion/sPrciali'?ation hir-
taddem kaiaks. The cla$es
kapk idenriF
*.hy di";"- G* Fis* 12.23) Kalaklrcm is d obiect that will store rhe
*,io" flnl *a date the lavzk wa purchued (datePurchaed)'
"*U* 'he

Genr.tization/SPeci.lization
HienrchyOi.gramlot Singl
andTandmKayik Cbsses

I
Ofcoure, there could be subclases ofcutoner, life vests' paddla' and othc itec
for kavak rentrts could be given o senion (pe@
rhe rystem. For *ample, price discounts
6r rtar.) *d.t'a"nis Thus, the Cusroner classould be divided inro regulat' rnir.
-e.
and student cusmner subclases

ThaSystemsAnalysit RePort
rhe follos;;
Systemsamlysis concludeswith a formal qttems arallsis repon' It should cover

. Th srenCths and wealoesse ofthe *isting svstemflom a saLeholdels pespectivc

. ii" *".i.a..r'aa* requirenenrs for th. ne* .)"te' (atso caJted'ttrc fvna;ot

ryunnd$t
. I he od;zrionJ tequiremen6tor rhe new 5vsem
. A d*.'lotio" .f-h"t ihe new infotnation rysreo shoLrlddo to solve rhe problem
 sysrems
nyeEuqar
oi andAnaLys.I o*pt"" te

Supposeanalpis roeals that a marketing tnanagerthinks a weahess ofthe exirting slstern

is ns inabiliry ro prcvide accuraterepons on product awilabiliry. These requirenents and a
preliminary list ofthe corporate objectivesfor the ns systen will b in rhe sy$emsanalysis
.eport. Particular arEnrion is placed on dear ofthe existing slrrem rhat could be improved
m meet userrequirements.The table ofcontens for a typical repon is shown in Figure 12.24.

@
A TypicatTabteot Contentstor
a Reporton an ExistingSystem

The systens snalysis .epon siv6 managersa good undersanding of rhe problems md
nrengils of ihe existing s'sren. If rhe *isting rysren is operating bener rhan expecredor
fie ncessary changesare r@ dpsiv relariveto rhe benefits ofa no or modified systen,
rh systensdevelopmnrprees on be sroppedat this stage.Ifthe repon showsthat changes
ro oother pan ofthe sysremmighi be rhe bestsolution, the dflelopmenr proes night sraft
over, beginning again wirh qaiem investiga.ion. Or, ifrhe slstems malysis report shom
rhar it will be benefici.l ro d4dop one or more nw s)sremsor ro make chmges ro exisring
ones,qntems design,which is dhcussedin Chaprer 13, besins.
SUMMARY
5etl.g pf o.1 e:.nd sel ectnqpf' l ect sr anat r '::
l S prol ecL.r
Principle
re.o!r.c requi emenl s:5etlnq eched!l esm t Jt one: ; _:
EffectiveSystemsdevetopmentrequires a team deadti -" s anddevetop ns l he S pti ri n nq doc!meni lS Fi:
effort from 5takehotderS,u5ers,man39ers,syslems adv.nl agethroLr gn
i i ! .rri f-" s!tLn a compLl l rve :
"e':
devetopment and variou5supponper_
speciatist5,
sonne[, andit withcarefutptanning'
gtarts fl g obl ectvesl or sv5temsdevetopnenl! :
E sl abti 5h
key .spe.l of a.! succe5sf!tdevetopmenL prolF't Cf l :
The s v s lem . d. v e l o p me n L t c .m ..n s 5 l s c f 5 1 ' kehotde' s .!..css l a.LorsIC S F;lc.n be Lrsedto dentf) ?Lm po_1: '
d e l e to p me i t ;no
!s er r , m J . ager r s y s te m:
' p e c r'rL' rs obl ectl es S yst.ms del el opmentobl ecti ve5c; i n'L r :
T h c d e l e L o p m e te
n t rm s respon
!a . o! s 5! ppo ! e r:o n n e t pefl !rmai ce goal s[q!ati tvend !seful nes:or th e oulp! t ] :
r bt ef . . iet e. m ir ,i q t5 ! .b l e .l l l e so i th e f[' rma l o n:vsl em i l re .peed rl w l rl .h .LtP !t s gc.eral edlard co stobje': ':
and . let lv e. lf !Loth e o fg a nz a tl o n| 5 v 5 tc mth ' l me' L' ts l dc!--Lopment cosl s l i xed .o.ts rnd onqonq i'! eslr : _
_: '
S liik ehot de..fe s n d v l d !.1 1r' /h o .e L th c lf h ' m i etl es of A ppt.at on5 m!.t be desqnedto rneetspe cl' hr 5
th . D! qh t he i' ea o f th e o rq ' r r' t th e } fe p " : i eni !Lt
'r nee.l . Trafsactor pr.ce5! nq appt..t ons fo' t he nt e :
m at et yi, e. elt f . c m th e s y l l e n : l -a !e | ' p me flp ' o l ' ct Ll :c15 ml st be abtel o s..l e !p i o sl pport h !hl v var ah P Lr a': : :
w tt !! 1 r' th e 5 v s t-4m req!t" Lv
.re r d v ld! il. wh o ' te fa .t t ons potei t rl Lytho!.ands of !se15 l deat t vt hei :
Theyc an be em p to y e e r.a
: n a q c f. .!s t' me f' l {rppte15 ' fom necdedTheymLrstbe abL': _ :
'r scal e!p dyfamr.atLyw hei "l
of . lele to n me nre r a m. a .e ty p re ' r" ei tal rl e days a wcet ?. :
Man. ger s ' a L ti pfovd.q 2d nD !,s. day/7
fa![ tol -" ranr,
o f s t ak ehot dc . . o f rn a y b c s l a k .h .L C e th
rs e m s e tv' s n edo l nteqr tv The! - _
ab tl y !!rth ertremol yhrqhtransactl oi
L ionm . nage. . are m o l t c rp .b te o f L a r n q mJ n nq n'L"r :
' 'nd ' ta r5e:bLe to i nteq.tste w i l h ex :t ng nl f' st' uct! r e
F o. La fg es .a te .y s te l j d e v e l o p n rent p' ol e' 15 ai rp lcat lois :
.h. 4qe c!.tome. .nd order dai abaee: Legacy
i !n d v 3 t!e o t s !5 te m l e q! le
w her ; lhe inlc 5t n e n l
' ' an p' rt of ert-orpfs,aresoLrr.eptannnq svstems D eve l'pm er t :
s e ..f L e l e tm a n a !e f s b'
hiqh 1 s . om m o n l o h a l e ma ntc..nce ml sl be qu.k and easy becalcF h! 5 'i: '
the dev eloF m . ftte i m need:nra! requre an.rqa.7:tl o' to ' hti ge ap pt calloi! :
A ly s lem s . n a l y s t e a p ro te s s l o n a l h o s p e' al tes i n
anJ Llzn9. id dc 5q i n q b L s i n e s s v 5 te n rsT h ' p roq' dmm" C odrpan cs arel ocreasi .!tvconl e.Lngat te acts'm e : :
5 r e. p. n: ibt e i o r n ro d rj i rg .' d e l e to p n q p r oqf' ms Lo t 0. .t th.l r b!s .ess to .!n ove. the nLernernt . , r . net ! :
sats ly ! s . r . eq! re m ..ts 0 th e r s !N p ' rt p e ' s ' i ret 0i rn' exLra.ets. W eb based5v5tem5 de!el opment t' eat st hc n :
d ev et c pnr eiit . . r n c l !d e te .i n i .a t 5 p e ' a ts i 5 e ther 1S i et as Jn ntegfalpaft ol the devel opment p' ocess ncl l": :
depar t m ef l em E l .y e e os r o !1 . d e c o ' 5 !tt' n ts D e pendng ci l .of;m!n ci rtonsl .ot n E onre de!.Lopm' i t etl o't s t he
d e v .r' p mc i t p r' l e( ' l nd Inc ': :
t he m aqnLLr de o f l j re 5 y .te n r:r nct becomesthe mo5t rnrpo.tanlasFect 01 t hF ieN :
n! m ber . l : del e l o p m e .t s p c ca ts l ' l l rei e n m '| rc i eem TheLn.feasnq!se of E R Psol t war eha5:
'n d..l l { ed5y51em.
m ay at ! o . c t ! de o n e o f n o re 5 n ra n a g c ' sA L5' m' po nt :
al l c.tedsy5temsdevel oP mef
n y our c ar e- ar y o L r
w tl tL k e \ b e r p a rt c n svsi ems
2 s v s L'ae n
m:td el etoo-enI
d ev et opm ef t Y o ! .o !l d b e n v o L l e d|
p' 0l e' 1
te. r n as a ! 5e. .s a ma i a q ...f a b L r5n ' s r a fc0 or Principle
t eam .as a , nemb e ra f L f' e 5 d e p a ' tn re n o t f m a v bee!' r as a
Systemsdevetopmentoften uses toots to setect
CO
implemenl,and monitor projects,inctudinqnet
5y 5lem : de l e to p m e rtp ..l e .l s ma y bne l a tF' li " a f !rm
n q l h e i e e d to s o tl ep ' o b e m' w th an pr;sent vatue {NPVl.prototyPing,rapid apptication
ber ot , e. s . ns . n c tL rd
'! o development,CASE toot5, and object_oriented
!e
adlant . ge t o n..e rs e .o m p e tL o n tc m a k eL rrF' l el fe' t devetopment.
c .e .te o fg a i z .t o n ' t q rc w th to 3
f ior r . t . n. lo ' ettte rn
..q !rs t.n 1 ! a d d l e ss a chanqe The l i vc phases!l the tradt on.l S D IC are lnvest! 'i '
m er ! ef or . of po .a tc 'nd on. maL nr ent nce; :
i rnatysi sdesgn. l mptementat
lhe m ar t et or Ex L c rn acl .v fo fi e n L Erl e fra Lp' ess!r_" e ' fd potent r atpr o0i' :
fe! -" ,! S y5temei l est 9.t oi l C enl i fl es
s ! c n. 5 pot ent.tl a w s ! 1 so ' te fl rf e : a l l ;' k s
ai .l opp.fi !ni t e5 a.d .ons de.s them i n tqhl 01or gaf : '
! n or ! an z . t oi I. n I a i e s y s te m ld e !' l o ' rc n :
ti o.atqorL. S -vstemsai atv:sseeksaqene r alLr nde'st 'i'
r ior m at , onry s te rrsp ta n nn q fe fe rsto th ' l ';i 5L' t on ' rJ si
ol 1\--soLl r!n feq! .ed to sotvel he p' obte m t he ci
s ir . t eqlc . ldf f g a n l z l l l o n a lg o a t5 ' tD s v ' te ms d evei opmenl r r e dcnt i:
:yri -am ! -qt!l ed n detat ..d w eakne5ses
inlt . t lle5. E ene ft: c l S Eti r.i .g i ' t!d e 3 to fq ' anqe' ed
v .n d .e tre ' L rs e s r" ' !f' c5 S y.j l emsaes9. ....tes new or mcd f eE exLstig er :
. l nf . r m atoi le c l rn o to g!re
d e l e to p n !l.!e frL 5 o b e c tv e s: dc' I ry nq
'l l .' i r.rrement! S ystem5mptement' tl one'com pes: :
P t r ii nq . equ fe e
:_! nr. iq . te5 i i!1 . t. a n iE . oiv e. : c r and Dper a: r o i o 1 ,rl-rru./r!r R e . 5 0 , '5 i ! , ! ! s o u . c 1 ! . c ! d e . o m pa . e !
: rtem Sy5ie ms mar nt e. an. e aid . er ew enl. t s a.n b c t , e i l f r i r rt l i c y c r r i . ! l r - o s ! , . r h e , i c a c i m p . L r ! e a {i v .i r .!e
w lfro!i lr.v f9 thc f..c!5r,y S p c r 1 , o f f e l I h o ! s e o b l a ,i
r! r .l.ge 5 ol t.e:.;d t oial SDLC i. t ! de t he f ot { ow n q 5 l a t e - o l l h . . . 1 1 e c h n o t o 9 y n . f . a s . t h f . L . c 'f o t . 9 . ;t t.r
genr enl . . nr oL . . - a: I e! .. -
:bte :yslen drri ! r nenl: r t 0n ens Lr . e: t hnr s y . t - . n l
_:-e nts car b. trr . c d b. c I r i s L. led bL] ene5s ne e d s .
_.d!.e s rren v lilc. m c d r t piod! c t s ior f , a! ew t ! d r !
_l.qe s..tu dcth.lo tLc wr q ! s er c m ay ! et as ! . t - am t n a t
. , th e r:e d: as !fdc r r t ood by r he dev elopef . : h- " dc . L p_ t_.-
:r .n s e xp en s!e and d lf . ! t l t o . . r t r . ! 5er c . e e d .
t .te do rmayno tbe m ei and! s e. 5. r . f o1c t : t y f e,, e t . p m e . t t h e ! 5 - a. f p r . l e . t m a . . q e m e r t t o o t s a n d t h e L 5 e o r
rt-arme Caie pr od! c t s ! . DC! . ed C A S Ft o . l . . i i l t h e o . l e . t - " i l . r - br t e d - : p p r ! a . h a . e a t t r a .i o .:
-,iy
ir i. an te . : t ! e appr oa. h t hat nlot ! c 5 dc , n ^ g .h.t ,rffe.t the r,..e15 .i. pr. Tre q
-ltrtyp -o.t - a : t e r t l r e a m .!n t
: ! hte m. b ! td ing the iiat ! e. s c n h. ! nq! : c r ! ! t lr e o l . h . i ! i - " t h e ! f e a t - " r t h e i e ! f e e o f r s k a i d . f t e n t h E a m o !n t
: : iLL raieth -- n ti3 tv e. 5 . n. p. D! d nq t edba. k . f d f .o f o i f e w a . . J 0 . n t : n ! o L r . : m i r r . ! - a m e n t c r . . c t s d o r . : r e i t! r e
: 1q e !qg esiion 5 n t . t he s e. ond v er s on Pf . t . \ , pc : . .f ! l ! l i I . i r i t b ! 5 : . e s 5 i . 0 . , " . s . r 5 . r . . q - a r w h t - r . e e , i an e e r
.rop efa rirn;t..n or . per aic "al depend i! onr owc r t f l l . ! c L v e . f ! n d . m e . t . L . h . . r - a . r h . r t r e . '! : n z.t o n
_i sysle m !n ilerd elet . pm - anl 5 and h. w m L. h t m e a r d r.fl!ctj b ! s f e 5 ! . . d . o m p e t e . r . . k . S r . . e s . f . . L s !5 te m s
:.' 1r. or'!r. r:t.i ": . t . s pe. C. i pr c t c t r ' pno d . r . L . p n , e f r p , c l c . i s o l r e . . . v c L \ , , . r ! . h i . . 1 o r . a . . ! pp .r t
rL:n lJ9 c5 o f th e pr olot y p. ! appr oa. h iic t ! de t lr e r D t trrn L0p niffr!.m.,,1 ll.ofq !!r.. n!.irement !.e of .
: !:.rs gci a . o rp. n! . t ! 1. t r y t he s y s t e- t r et c . e t : 0 r o l c f n i c l h ! a . l o q v , c L c . r f r c l e . l ! . . 1 i . . d a b r - . . t! e . .o F
: . rlcd , !Je ft,l p 'otot y per . . i be pr od! . ed i ( ee k 5 .
"dd"g
: Lrc..mc po 51 ve .b. ! t t h- oelot ! . ! s y ; iem . 1a e.. . f s l" d
- s5 ofs c.f be d er ec t ede. r L! D . : d! : nlaqes lic t! d e r . , l l o t d : c v 'r { . f d a r , r I e . r . . e n . o q r . r s Q ! . L t i .l :n
t ow n !: th e .fp roi r . . m ; k es ll I f l c lt t t . . t a. t ol e r i f d.fds sr.h.s S0 9l0l rfd 5r !qm. .a..lio b e r se d
: a i sotrt on mrss es Lh. r ir r k w ile i, t . ij f j. ! [ t t o d ! . n q t l r e s y 5 t e m : d e l c t o p n r . . t p r . . . r : ; T r c C . p.b r ,/
'.1 f r 1 ! t ! r t y M . d e ! l C M r , l Lc i - T . r s ! . . r f o r ! . 1 r r . l . . : e !fe
: bsen t a nd key . p. r dt o. it c or s idef . t ilne . f - a o f t - a n f i . n . e w t h s . ! s i e m s d e v . t o p , n o i , Lo : ' ! . t e v e t l f r o m i l a t

.:r C a pp t ..1 o n de let . pm enl LRADI! r c . t on ! . "a t e . l r The use ola!t.m:tei p..l..L nrrfrg.-,.r1 r ! l r e .,r b l e !,
de . q ne d to spe ed . ppt c ! t of dc lc lopd, e. t t . ! . e d e t a i e d d e \ , e t . p m e i t t . a . k n r l . f d . o f L . o L . f L f r . rpf.l .ct
' .. pa p . ba se d 1. . ! m enlat r n, r ! 1om . 1. . pf . g r . m 5crad!t. Ette.l!e !se .l a n!!ti/ r ! : ! n n . c o r !.e .5
e i a b t e s t h e p . . t e . t m ; n . ! e . t o d e i r . . . t r ! h ! ! r i L r 5 , r 'r 1 e _
.rne nt act ? t es Rr \ D c an r s c f . r ier pf c ! . am m n g 3 n d t o m a k e n l e t t ! e r t t r a i . o l f ! i 't r r o f ! . . i 1 , l c i r . a L r i e .i d
i:!es, !!.rr as a ! i e delet opm . . t . . . r l. e. e p. oijr . r q ! a t t y C A 5 E t c o i ; a ! i o m a l e m a n y o l L t r . r! j , ! r f - r t a .ve i .p
h _ADma res e xl ens ! e ! s . . 1 t t r c lor L : 1ppL. a I . n m e n t t a s k 5 . i h ! s f e d N . n ! a i : i . t y 5 t : l m . ! . 1 e t 'N .r w h L e
:pn ,ei1 ijADl F.o. e: s t o q. t hef d. t r r f l pef f o . l l l eis!r ic !..d d . . ! m e n t i t o n 0 b l e . t i f c f l . d . t 51 e ,.!
ir e nts.na tys s IAD iv Dt le5q. . Lp nr ec t lr q: r wh . . h f, \\L
: .lirke r.Ld er. a nd 5 pr . f es s , Dnat swof r 1o9. t t r r . l o 0 D rr
::r ci;5 rii1l .,r'stem s p opos e p. s 5ibt e 5ot ! l0. 5 r . d . pr. e.t .a_ ire broten ..!vi n:o a !.o!p ol !c.ils lhi:
: r lr. feq !.eFr-4itq l. : newof m odlied s ls Lc t r l n : - a r . . t . s t e : d o f f e q ! . n q t h o ! : 3 n C s . r n r t t o f ! t r t5 r l
: l fr.. the f.tto w . : t r L c i D n s o . o a . L r c s y . l . n s .e l e L
- " g adv ant aqes t p! is nf ! ir Nt c r l . . de:a tEi ..-p!t:.
_ e wd D z e f . r m r v ! . J h !n l fcd
: _.il!.lion qL r.kL !. 0o. ! m - . ii: t . - 5 p. od! . . d . ! i L r y o p m - a i tp r . t e d a ! h t r e q : f e :
: : rfd I Io rcc. good 1- a. m ! ! o' k a- . nq u5e. : . s t a k .
; a ni d.fL op e.5 lr . s . d! . nt . ! e! ai. t i. e t Dt t o wn g
i n tersc p .o.c:s Lli; l c . . bLr nr. ! t t he pa. t . pa: t s
'l Principle
e; p .ri . pirt5 L obe: k lLeo i adlan. ed t oot s 3nd t e . l r
r .id i tn fgc ie . . enlaqe. l t m e 5. eq! ed t. o m Syslemsdevetopment slartswith investigation
and
anatysisof existing5ystem5.
l d 06 b^,.
-
_ ; delet c pu. r l p f.l c .l ,n w h l .h ti e p . n a .r' e ffo .l s i m..r crl tanz.r.ns . stsl em: _eql eslronr I t rrcs r f .

" " o. ob " " !" -!c:i l grr ._ p..ce5. P . ti . p:i l s n !L,,5i ems
nve: l! . t of
" q"
. po6 o

:. In sy:tem5 d .!et . p' n. r L lo lak e . ! e. . 0m e Dr a t o i d.5 !f.i l 1,,r!:i c.5 l he fe;f b tt! .f rptem..t nq s.t ! t on5
.,te m5 de !et.p ni.n r ! , 1 t ! Tlii! appr o. . h s . a t t e d
i or b!:, rn:5 pfrbi em., i ci !d ni t te.h. ..t e.D nom.. t . ! . 1
-.t
 Fsma I sy:tm. E"*t"emmt

-t!
oper at ionsan , d s c h e d !L efe a sb l tl ty .N e t p .e s entvat!e anal manl putai es l he cottectddatato provi denf or r . al. _
y s is ls o{ t enl rs e dto h e tp d e te rmn e a p .o j ct5 economc anatyss l nct!des gfl d charts,appti caion f t owchar : : : r d
ana 3t 5'
I eas bt t y . A n n v e E tg a to n te a m fo tto w s !p o ntherequest.n0 C A S Etoots Theoverattpurposeof .equ fement s
pef f o. m sa f e a sb tty a i a ty ss i h a t a d d re s s etechf s cat eco to determi ne!ser and o.gan zat onat needs
'on d q d o o e a "o d .d o "d
la r "" bl D ataanatysl sand modeLng s l sed to m odetor ! : _ : '
lf t he p. o l e c t!n d e f n v e s tg a ti o ns fe a s i b te,mal o. qoal s l i onat obj ectsand assocanonsus!ngtextand gr apn; : r +
a. a s etf o. t hes y s i e ms d e v e L o p me nnt c l !d rngperr0mance grams l i s most often accompl i shed thr oughlhP : : t l
c os t ,m an. qe r.Lg o a ts a, n d p ro c e d !ra tg o a l sl rl anvcomp: entrty rel at onshi p l E R l d agrams. A cti vi y m odet nq : : - F
iles c hoos ea p o p !ta .m e th o d o L osgoyth a tn e wl 5 enrptovees accompL shed through the !E e of dataJtow d i3qr am s:
o! t s de s peca Ls ts ,a n dv e n d o few L tlb e fa m tar w th the svs' w h ch modet obj ects, associ ons,
al and act ivrest bv . - - i_
- '11.
t em sdev et o p m e ta n t s k ss e l fo rthi n th e .p p fo a.h A systems i nq how data can ftow betw een and a.otnd vaf ous : : . 3.
dev et opr ne nmt e l h o d o to gm y L rs tb e s e l e c ted0bj ecl edo.- DFD5lse symbotslor data ftows, p.o.ess ng, enr i " trdr
ent eds y s t em sn v e .tg a ti o ns b e i n g!s e d to a greei efexi ent odtd o-F, A pp o d -. ., " : ::F
t oday T . he lse c a s ed a g .a m s p a rt o f th e U n fi ed Modetng roots are al so used dLrfl ng5ystems anatysr s
L6 eed
e.
Langlaget ha i s !s e d to d o c !m e n to b l e c to f entedsystems R aq.r-e.en.d a.-.d6l d "
, oenard .A ' L o _ _l |
dev et opm e nAs t a f n a t s te p n l h e n v e s i i gat on process 5rd,ahoo.-..a orh-o qa r.-ro

s y s t em slnv e s g t a ti o nre p o fts h o L rlbde p .e p a r ed t" l o' Lrment !s ng c. ti catsuccess factars,anddeternrn nq . eq! ': - :
from the l S pLan can be LrsedOftenscfeenand r epo': : 'adr
S y s t em sa n a L y s i s th e e x a mn a ti o no t e x st ng svsl ems charts a.e Lrsed i o document req! rement sd! r ing: - ! :
! . / hc h begns o n c ea te a mfe .e i v e sa p p fo v a tfoffurthersl Lrdy
lf om m anag e me n A t d d tl o n a ls tL rd yo i a s eLected svstem L ke t.3di lonatanatys s p.obtemsor p ot ent. 1 : : : : - ! -
oc6 . o .6 0 n tl es are dentrfed d!ri ng obj ect' orented analysLs
a( o^
ori enl ed sysl ems anatyss can i nl ol ve us ng dagr : - -
weak nes s easn dp o te n ti aatre a sl o . l l p ro !e ment.A nanal ys!s
on(pe.rq oro -:
t e: m is 3s s e m b L etod c o tte cat n da n :ty z ed a taon the exrsl i ng " q-F. -d.d9d.-oL.d

Dat ac ot te cot n me i h o d si n c t!d eo b s e N a nonntervrew s

q! es lionna i .e 5 a i d s te ts t c a t s .m p t n g D ata anaLvsi s

CHAPTER 12: SELF-ASSESSMENT TEST

Effective slstens dwelopment requires a team effort f;om 5. The rerh _- reftn to the c::.:trr
stakeholdero, uses, nanagers,systensdcclopnent special ol i mre8..dd o gdi /r,i onal gorl . i nro*'r er ' I
ists, dd nriou srlppo.t Personrel'dd ir sarts with 6e_
tul plmning. 6. What factorsrc essentiJto the succesofctna.: ':,
tional areasof an organization?
t- the rcriviq of crcalingor nod'
-ir a. crnicalsucce$factos
ilying cxisriig l,NinesslYsterN l tfers ro all aspecrsot
the proce$-iom identifving Probltns ro be sorvedor b. sysremsanallsis hctoa
oppornnities to bc exploitedro thc implementrtion and c. creativegoal factor
rellnenent ofthe choscnvnntion. d. rystemsd*elopment facton
2. Vhichofrhefollowingindividualsuhinarelybenrfnfron Sysrens development ofien usestools to select' inpio.
a s)stehsdselo|denr proFd? md monitot prcjects, including net presetrt!"lue \lr:.
a. conporcr Prcgnrmers protorlping, npid applicarion developnent' CASE *
b. mttns analyss md object-odented d*topnent.
c. stakeholder 7- What is dle $ird lwel in rhe CapabiliryMatutiF . "!!
d. seniorloel mdager (CMM)]
3. The qualityor usefthes of the output is an *anpie of Inidal
a( . ) _- Optiniad
4. like a conrracu consrructinganewbuilding or renovat- Man.ged
ing an cxistingone,rhe Prcgr.nner Qkcsthe Phns from d. Defined
tht systcmsanalystand builds or nodifies the nccessary
v,liwarc. frue or Ialsei
 onaid AnatysG I
synemsInvesl,sai cb,ptd 12

sysrem perfornmce is usually deternined by such factos t2. The sysrcmsrequestform is a docunent rhat is filta out
* 6xed invstnents in hardwue md relacd equipment. duing qstems malysis. Ttue or lalse?
1 3 .Fe*ibility malysis is typically done during which sy*ons
taka an iterative approach to
rhe rysrem dwelopment procss. Duing each iteration,
requianenrs md alternative solutions to the proble'n are
identified and mrl1red, new solutiom rre designed,and a c. Design
ponion of the qmen is irnplemented. d. Implemenradon
Join, rppliarion developmenun'ol.e'grcup meting" in
which uer, stakeholder, and IS prcfssionals vork 14. Data modeling is nosi often aomplished through the
rogetherto ,na\ze disting rystems,proposeposible solu- useof-, while activiry modeling is often
rions, and define ihe requirenenrs for a new or modined acomplished through the me of-.
sysrcm.True or False? 15. The overall purpose oftqdrements mallsis is to deter
YAat @nsistsofall acrivities thar, ifdelayed, would delay nine user, stakeholder,and organizational needs.Troe ot

a. deadlineaaivities TEST ANSWERS

CIIA,PTER r-2,SELF-ASSESSMENT

c. RAD rak (1) systemsdffilopnent (2) c (3) pqfumana objective

(4) True (5) infornation systemplmnine (6) a (7) d (8) False
(9) Prororypins(10) True (r1) d (12) FaGe (r3) a
developnmt starts with invettigation md mabtsis of (14) enrityreladonship(ER) diagrms, data-flow diagnms
(15)True

Y TERMS

ticationftowcharts594 jolnt appticationdevetopment{.JADl reportLayout597

ng directty596 573 requirements anatysis 595
E repoEitory
595 IegatfeasibiLity588 schedule 588
feaEibitity
mission-cf iticaL
systems564 screeniayout596
netpresent vatue(NPVJ 587 stakehotders 558
tiveanatysis564 nonoperationat prototYPe572 statistical
sampLing 592
:rcatanalysis564 object-oriented systemsdeveLopment steeringcommittee 589
rcatpath582 i00sD)585 stfuctured interview591
catsuccess tactors(CSFsl
565 operationaL feasibitity
588 systemsanaLysis 570
analysis 592 opefationatprototYPe 572 systernsanatyst558
store594 process symbot593 systemsdesign570
fLowdiagramIDFDI592 ProgramEvatuation andReviw sysiemsimplementation 570
ftow tine 593 Technique IPERT)582 systemsinvestigation 570
t observation591 progfammer 558 sysiemsinvestigation report588
nomicfeasibitity 587 projectdeEdtine 582 systemsmaintenance andreview570
-usersystems devetopment574 p.ojectmitestone582 systemsrequest form586
.rysymbot
594 projectschedute 582 technicatf easibiIity
587
587
rblrlyanalysis prototyping571 unstructured inierview 591
t chart583 questionnaires 592 users558
chart595 rapidapptication development(RADI
ionsystemsptanning
561 573
 Pet 4 ls r t . m ! ot uelpm { r

REVIEW QUESTIONS

r. \?hat is m IS stakeholder? 9. List factor rhn havea srons intluence on projec! suj-a.
2. \{,lnt is the goal of IS pluning? \i/har steps$e involved 10. at tools car be usedto dwclop \{rcb-bred applicacrx
in IS planning? 11. Wlat is the pupose ofsysiemsinvesrig.rion?
3. VThat are the rypicat re*ons to iniliate s)stems 12. Whar arc the steps of objecroriented ss:o.

4. V4ut rtions ca be taker during critical rnalpk? 13. Define dr differenr types offerib;lity that syscms cr-J
5. Dercibe the five lnels of the Capabiliry Maturiry Model. opnent nut consider.
6. How is r Ganti chaft dseloped? How is it use,:r 14. What is the pulpose ofsystems d.i)sis?
7. VAar rhe diilrence between sprens invesigarion and 15. How doesrhe JAD techniquesupportthe RAD sr::
's analysis?\/hy is it inpondt
rystems to identi$ md developnent life cycl.?
renove errcre early in rhe srstcns ddelopment lifc cycle?
8. ldendft four reuoos that a systens developnent pro;ecr

DISCUSSION QUESTIONS

l. \fhy is it inportant for businessmanagersro hare r brsic 8. Asurnc tharlouworktoran ins&nce comf"nl,. n.. n
undenrandnrgof the systensdoelopment proces? * h ch rppl nl i on,1or * o rl dp a,- r' l ' -I n'er
2. Brielly describethe rolc of a systen user in the systems rool ,$oul dyouu.erodfl el opl n < rn.' rp1lr : r r .r.
invstigation and q6iem analysisstagesof a proia. rppl i ," ri or' .* oul d bc nore rpp oprr"e r " I
J . Assuhe that /ou are inlestig-iring. n* salesma*eting
prcgnn for a clothing comp.ny. Use crirical anal)riisto H " * i mpoa.rn,-r,.om,nu.ri .Junn .l .i l . 'o'( f .
help vou deternine thc major tequiremenr fi,r the new Considerdissrarcmenr: "lS persouelneeda comt,::
",
of skills<rc-thnd rechnicalskills, one-third L-. :r
4. Briefly describcwhcn you would ue the object oriented skills,ud one-thirdcommunietionsskills. Do.r.-: rt
appro:chro systensdoclopmenr insreadofthetad;tional rhi . i . r uc?H ow w oJd rh:\ l i e\' l -c rr rg
sptens developmentlifc cyclc.
5. Your conpanywould like to developor acquirea newsales 10.Discussthreere*ons why alignnrgortrall busl.... : r
progro to hdp salesrpresenrativesidentift nm cu- $ IS gorlsn imporr]lr.
tome*. De<ribe whatfactorsyou would considerindecid- 1l _ Inagintthatyouareahlghlypaidconsulturwhoi:: .,rr
ing whether ro deveiop rhc applicadon in-house or retrinedoevaluarcarorgrnizrtion'ssystemsdevel, : :l
outsourcethe applicationro u outsidecompany. With whom would you meer?How * o: : n
processes.
6. Dr ilg r h e\v J e n ,:n re .ri g a ri o np h $ e .h o r mporrnr i ' makeyour messmcnt?
r r r oLhr n [. e u J 1 : w h rr a e .o m e rp p ro a " l e,roi n.rere t2. You are e seniormxnagerof a lirnctionalarealn ,, :
m;ssioi'criricalslsren is being dcvclopcd.Ho* ::- n
7. For wharrypesofsystemsdevelophentprojec6nishrpro- safeguardthis preje.t 1i.- mushroomingour ofr ' - ,
useful?\(hat are the .harucrcrsris
totypingbe especially
of a sysremdoeloped whh a prototyping techniquei

PROBLEM-SOLVING EXERCISES

L You aredseloping a n$ infofmations)'$en for The lir- empLoyees in eachlocarbn. This systen will bc -..,. r'
ns . t en' e r.a .o m p a n yh o r\" .l l re l i re * .enrer i r r ou bothnenber andftnesconsultins to ffackpanii :. , r'
netropolitan uea, with about 650 menbere and 30 invariousfitnessacriviries,suchesfneseighrs, \. . -dll.
 5ynem5nvenqaton3ndanaLl eE C baptd12

nvimhing. $iir clinllrers,xnd acrobicard yog. clascs. informarior vou hope to obttn fiom thern.Assune rhat
Llne ofthe perfornan.eobje.tivesofdre svsen is thrr it rhc relarjonal darab.sc nodcl will bc tk basisfor buildnrg
iNst help member phn x fLmessprogramto meet thcir rhis $$rcm. Usc a dar.bdc namgcncnt systcrn to dcfinc
lmicular neetl-r-
The prinary purposeof dris sysem, rs rhc varioushblcs rlu. will nakc up rhc databasc.
:,risn,ned bv rhe directorof nxrkedng, is to ssisr Thc 2. You are going io starra video rcrral busnrcss.Usnrgllle
tirnessCenrerin obta;ningd conpetitive advduge ovci objccted-oricrtedapprorch, doclop a use casc ard a
g.ncr.,l :ari " n/,pc.i i l i /J,i o,r
hi crrrl l di rgrrm rr . ing a
r .e pr o. . , rrg .,rs ,r.,,, 1 r.;,r., h ri .f m. m" g phic progre. Use ! sprerdsheerto develop a budger
""rd
., rhe requircdparicipants in rhe dwekpment tean for for the videorentalbusines,incl ing the coss to rent r
:,issystemsd*elopmenr prcject. Be surerc specilywhat spa.e,rquire l,000videds,payfor utilities,pry saluiesfor
.nts thcsc nrdividuals *ill play and what rypes of two lull-tine employcs, and neet orherrelatedexpenses.

AM ACTIVITIES

r$rems dqeloFftnt is nore ofan an and les o{a science, ). Your team ha been hired ro determire the requiremenrs
.rh a wide varietr ofapprorhes in how compdies per- and layour oflhe Web pass for a conpmy rhat sellsfishing
:orm rhis acdvi!],. You and rhe nernbeG of your ted de equipmenr over rhe Internet. Using rhe approachesdir
! inlerviq mlmbers ofan IS o.ganizetioni developmeni cusrd in rhis chapter,doelop a rough skerchofat leut five
- o .r p I ir r her r ep"rh a rrh r l \ g ,o u pu .e . i n d n e l o p inga \reb pagesthat you would reomend. MaIe sue ro show
rw sysremor modifring an sisriry on. How does the the imporrant fetures and the hpedinls for ech page.
qarizationi approrch omparc wirh rhe techniquesdis- l . Your rem ha beeo hired to malyze the poantiat ofdwel-
:csed in the chapter?Consider both the mditional systens oping a databaseof joh openings and descriptions for the
revelopmenr life rycle md the object-oiented approach. .ompanies visiting your carnpus this yelj. Describe tne
lrepareashon repoa on your findings. rulo your tean would pe.forn to cornple* s)s.ens

FEB EXERCISES

, numberofrook canbe usedro dwelop a ns Web-based 2. Loote severalcompanieson the Interoetthat have received
:rfLiation. Describethe Web doelopmenr tooh you CMN'I cenillcation. Vhat level was achi*ed? To what
ould useand the stepsyou would completetoimplement stent d{, thesecompanies stresstheir CMM certificatn,n?
: \\'eb sneto rentmoviesandgamesoverthe Internet.You wlrt najor our$ur.ins or IS consulting conpenies do not
::rvbe askedto d*elop a reponorsendan e'mailmessage advertise achieving a CMM certifioion on the Web? In
:r lour instmctoraboutwharyou found. youropinn,n, how inponot isCMM ccftifi.ation fdr the
suaess ofan outsourcirgor IS consulring company?Wtne
a report describngwhar you found.

AREER EXER,CISES

ick a erer that you are<,nsidering.\r{4ratrypeofinfor 2. Lisr fivc.riricJ su.cessfecros (CSFs)for rhc sysrcnspcc-
:rrtion systemwould help you on rh joh? Pdntrh tech- i l l ,J i n rhe l rr ,rreerereni r. l i { ,hc \pc.i fi . rcquih
rcal,economic,legal,oper*;onal,md schedulefe*lbility merts for this system.\X/hat de lhc mosr inponur
ll, : r an informaion system you would like developed for
 Put4 | sFrn: rodr itrFi

VIDEO QUESTIONS

\ratch the vidco clip DesiSn Your Own Video Gane and compurerProgradning? Might computet progra: :.4r
answertnesequc$ronsl sonc day becomep*t ofou clcncntaryschoolsr::r.
lm? Why or why no?
1. Bccauseof his enrlusiasm tbr computer video ganes,
Accordingto thevideoclip. whatskillsarerequired
16-ye&old ManeeshSerhibeganprcgrannirg h grade com-
for dcveloping computetvideogamesbesides
school. wlat night this srory sugge$as io rrends in

CASE STUDIES

Caae on technol ogyf.om H ew tettP ackard S to.a qear ea ': :

IS A N l technol ogyLrsesahi speedspeca
qh p!
t . pose- :
Hackensa(kUniversityMedicatCenterconsotidates
to connectdi ffe.entdatasi oragedevi ceswth. ssoc; : :
Systemstor Fa5tInformNtion
Aaces5 dtgl tP N a t o -s" H P S o r a: '.
New. J er s ey k n rv esfi tyM e d i c aC
s l l a c k e n s a cU t enteradopted enterpri sev ft!al artuy IE V A ]system w oLl dat t owHac'. -
Medi catC ente.to t.eat Lts d ve.se systems a s one13- l:
diqit at iec hn o Leosql o r i ts d i a g n o s tiscc .e e nn g sshofttyaftef
" We ' fea i i tm te s sh o sptat," says E d l em, accessi ngatt deta through one nterface.
t heywef e ln t.o d u c e d .
M ar t lnezHa c k e n s a csk d re c i o r o f n l o rma ti ontechnol ogy. H ackensackMedcat C enter i nvesl e d$60 m r : -
d s tsa re l 5 e e non a computef revamp i s enti recomp!t ng i nfrastructure The
. hosp :
A t t r ad oloq ya n d L rtt.a s o u ntte
tw o data centers l .om the g.oundup to me etdat a_. r '
s c r en.B ut d i g i ta l d a g n o s i c i m a g i n g ma kesupontyasmatt
pe. c ent age o f th e d i gta t.e c o .d sth a tth e h o s prtal mai ntai ns. mentsthathavegfow ntenl otdi n the Lasttwoyear s.- - :
B esdes x .a y 5 , u ttra s o !n d s , a fd M R l s hosptaL centersare accessedthrol gh i he H P syst em wr . r. :
mal es nearty attof the data managemeni ta sks. The: .:
dat abas ess to fe d g i l a t i ma g e s o l p .e s c n pti onmedr.ne
stafl no Longer needs to w orry abol t the phys caL t c. :
or der sm edl c a tte s t.e s u Lptsa,ti e n tsm e d i c a thsto.i es,ni ed _t
c at r ef er en c ea5n, dp a ti e nbt i tln g a n do th e rb ! si nessfetated dal a an the system." l f I w ant 500 gi gs a nd RA D :
dat a T he ho s p i tagt ra d !a tl ym o v e dl o th e n ew d gi taLtech parti cuLa. applcati on. donl needto knowt he phys. :
nologybut , as i t d i d s o .i ts s y s te msb e c a m eh ightyconrptex ti on, Marti ne2si ates.Thesoi tw areaut om at est hep': :
T he hos pta t s i n fo fma ti o n s y s te mh a d g row nto nctude sett ng up the dri vesandstorng thedata
300s er v er s { ro m ma n y v e n d o rsE.a c hp a te n t sreco.dsw er The system hasd.amati catl mproved y d a t yoper :
systems.R ad i he hosp tat The w a t f o. an x' ray s do!' rnf ro m over: r ':
s pr eadac . osss e v e .adt s p a ra tea n d i s o ta te d j
' " < toaco-pl aor ' " o d W re_od an . r '\ 6o
otogislstyp callywaitedfrom hatf a nrin!rteto three m nLrtes
f o. t he s y s ie mto re tfi e v e3 n x -.a yi n a g e .So mehospi tatst.fJ l he atl endi ngphyscan can go to a comp! t er a_:
_
we. e ! nable to g e t a c o m p te tes e t o f p a ti e ntdata.D octors up thei renti remedcaLh storyat the pressof . bulr :
c out d ac c es sm e d i c a to fd e rc a n d te s t.e s l L ts bLrinot th' 6 h oa ' .1 ,de. . -de(,
er. .
"ld "9- ' .
"/ .1
.o.,d. . i o , a r F <p e d- 9
im agesas s o ca te dw i thte s ts N o . c o u tdth e ytracea pati enfs ".dMol,.Ad^.5 "
t c o rd s So i l y o uhavea tra!ma on fo!tl ne sto.ageadmi ni st.at on tasks,w h ichf . eee: +
m edic alhls t o ryi n h o s p l tare
pat ief tr n E R l th ee me rg e n cro y o m].y o uw o utdnt knowthat " a ag' mpn o eJ" f' .TL ed dc
p tat can now truty toLrt the benefi tsof di gl t aliechncr : . -
he d had h s q a ttb ta d d e ta r k e no u t a w h i e b a ck, exptai ned
' S y s te ms p e o p tew e reg e ttn g o v e .w hel med ky nq p.ovde i ts pati eni sw i hi op l evel servce.
M af iinez
io m anagea n d m a l n ta i nl o c a to n s o f d a t: l 4artnez even
q! es t loned w h e th e rth e y w o ubtd ea b teto .e c overdataIn the 0iscussion0uestions
I W hat tessonscan be tea.nedf.om H a cknsack'r
z n d h i s te a m s e t o u t to devetopa new
S o, 14ar ti n e a C enterserperi ence w rthgo ng d gi tat?
s y s iemt hatc o !L dn ra n a g ea n dd e tv e rth emo!nta nsordata 7 W'd "d -o -Le .o.pi rd pr" d .n1e n , dad
n e d .T h e yfo u n dth e r sotl ti oni n new
t hatt he hos pi a i ma L n ta l echni calcompl exrty?
:- r ca lT hink ingoues t i o ' ' s S 0!R C E 5:E trsabeth
H omr, H ospratC onsotd3res
Fi r i tui q M!tt v di dor

,/h a t do y o! t h nk !.e l o n ro k e y sL oa l o d n q te c h . cat .,m H a.kenE a.kU i veGl ty ModraLC efter. Weh ste. a..e3sedl ui e r3,
_ .m pt ext y n t a. ges y s te mss !c h a s H a c k e i s :c kl V e dc.t 2Al4 w||hthad.can NP Stot.qcworl EntenrseV larAray5000 web
htlp //h I 344,1||*tr I hp.on/ptud'.le/stotss-,
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: lse Two patte.ns.nd deotfy cosl s.! i ! cppo.tLr.t -4., eipt a is

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.eporl s Lr.e.ia.eerne.i edto experne.t 4i tl r.d hocq ! . f cs
' . opo ol o g o andd !l d-" epefi to the dat:
:!fied t o t he P ! ich .s e to Pa y5 y s te mto s e ew rre the.t P ep5LCsonewandl mprol edP ! rchasetc P r_v stsL en,, ra
r :s s is rs t af f n neg o tl snt g th e b e s td e ;tw th s !p p Lefs pef{ ecterai pLe of tn benelt5 D f conti n!.!s mpfo!. m e. L
: I'eet gaton ! n. av e re da .o n s d e ra b Laem o L rnotf waste thro!qhthe systemsdeveLopme.t p...ess B y mptem . . t f q
3 p r oc Lr r em eit pr o c e s sPe p sC o w .s n o t g e L L n g g ood . new sysLem thJt s l l er bteai d scai .bLeP e!s C o hass
:.n s ! ppt ypur c h a s e 5a,n d l n s o m e .a s e si t w .s be fg pti fl eda.dmp:ovcdt5p.o.!femei tprc.e.!esb.1hno( ! -nd
:rr d. ! ed t w. s c t ea rth a tPe p :C o n e e d e d to n rp fo vethe fo. the i ut!re as I .F;ngesto me-" tr," w .h:tLenae5
: n t o c ont r oLt s s p e n dn ! T h e.o m p rn ys s s i a l fs e to!t
:ret op a s t andar d i z esdy s te mth a t w o !l d a tto u th / e m to Disc!ssion 0uestions
ed oLd I o o" d6d d
"J " "
. .: r lo negotaie! ot u med s .o !n ts w th v e n d o .sa n dcon -
si co to di scol e.tha n.ed 1.r mp.o!enr.nl n l s pre! oLr .
rd ! duaL o. " m a v e .c k , p L rfc h a s eth s a l w e re a bove P Lrrcha5e to P .y system?
2 H ow ,.\' as the prevoLrsP Lr..hase to P ay:ystemfot i l g. ed
_ ex pt or ngex , :nqt p .o c L rre m e n ts o t!to n E fro m vendors
w tl the !to.l scf P epEC o s o.qanz:t.n?
o o" o" d 1 .r.0 8 .. " 0 o "
:- T hatv endor 5s ys te mw o !l d s to .e p .o c u .e f,c n ldara
C .i ti caL
Thi nki ng0ue5ri .ns
::l abas eand pr ovd e b !5 i e s s n l e ttq e n .e i n fo .m aton
:-q h a W eb' bas e d!s e r n te rfa c eo v e r tn e c o rp ofate 3 W tat afe i he bnefi s cf mpLer.ent n! a E ystemt hai
, re t E as eol ! s e s c a ta b l t,layn d5 u p p o rta res o m eol the aLtovrs to .!stom des9r .epo.ts.fd erpermentw t h
yo!
.::i 5 why we c hos eth B !s n e s s0 b j e c t55 o t!t o n s i o be
. E nF ( n,pl .a. ,i R etatethe chara.te.st.:.t!rt!abl . data l fro! d, "d n
C hapi erI TebteI 2l to the nl o.ni L o. pr.v ded b y and
" Ng .r" p- . dd o pp
"o ". . " d
: : Co B!s ne ss So tLr t lonsG f oLr p The . eat v at ue I n P ! r the mei l rodotdet!ery !s.d i ry P epsC o s new syliem
::. to Pay.ome s n t he t s bLt y t o anat y r e oLr f 5pen d n q
 Pari 4 | lrien5 Lre'd.p i.ir

o/ ..eo i o2
S0URCESi CustomeE n the Sport'9htiPep5lco, a..essed June 19 ?004 - "
ww bus inessable. !. .an/.jston e.tspo d,9hlpepJl.o rsp, Web nleLliqen
c. web ste a..essed luie 19 TaaL ww b,stne.soble.ts.an/pt.dt.ts/

Case Three
m ! n l , C a t f o r n i a N a s e dA p p . h o p n . o . p o . a i ed . vi '
SegwayStays Light and Nimbte with otltsourced
a q e 5 t h c 0 r a c l e a p p t . a t o n s I . o m 3 5 p f n t 0o r p !r l
Systems D
-" "
De. r K am enh .td s m o .e th a . 1 5 0L lS a n d l o re!. patents o po. .l I
r et alc dl. m ed l .a td e v i .c sc l m .t-" .o ft.o L s y 5temi:ndhet te.entpa.t! d the .o!ntry
. opLefd- argi n 2 1 1 0 f. 1 d e l e t.p e da b !s n c . s to nan!l .c
t ! . c aid m ar k e ta h u m.r l r..s p o .t d e vc e thathe l reteved .eapl n!thebei ef tE .f tl retrfqe.0r..te 5y5iemT_'
.
'6o oo o O-r
wo! t d r ev ot ! t.n l z e t.a v e t T h e S e l w a y K a m ende.tared. "rl l l l o060
wo! t i ber ot h -"c a fw h a t$ e .a rj d a s t. th e h o .sc. nd b!qgy addedsol tw arei h:rtu/ Lttet w orke15at t5 .u : t on :
W h t e llr e d e v i .eh a sb e e na b t s l o w e r n t ak n! off l hsi pari i er. F.azcr P e.i sytv:na based l l ec s on0r : :
K am enqadho p e d t h a s.a p t!.e d l h e .tte n t o n ot l he med. d" ' " do"
and t . : ns po. t.t o n i n d L s t.y.n .l y s ti T h etro w heeLed S e! brow .ers Th. 0..cLe.ysteml rasnradel he . t e! ':
way H! m . f Tfa n s p o rte .l fl l l e n rp l .y s : !n q !e patented ei P ai s cr a !.cere I. mp' enen(.
off 5l teh!5 Pf o! l
d3t. andsysl enrs
l ,/l ai nl ai ni n!
dy nanr .s t . b tz a t o i te c h n c to g y
n v e s tc .sS eqw ayh .ed p- "d
W t h t hea5 ss ta n c eo f o p L 1 mi 5 t,. -
a s eaE oned C 0 to d e s l g ii h e n l o fl J i .to n 5 y 5 t em!l orl henew speedthe dart ftom the :pptr.aton .erv ce pr o! . :
w .ys he:dql rrter5 and man!.cl !fn! pt : r : :
. om pany P al r.k I tl rt s w h o ra s C 0 .t T he G trel l eC o
I p o " .o n,h -
beiof et ea! ng l o v i o r[p a .ttm e l o .S e i ]w i y .d e .dF.l l h.l i n. -o
o V oD " q P !
ui: q! e . om pr n y re q r fe d . !i q !c .p p fo :.h to Lnl ormat(l n
m anaqem enIt L l i ts s a d n a n i n l c N e w th a twl reihc j oi -" d abt! Lel s t' r:n g2l !!0, Ztl i t: s.i d. H e adde. :
, I o o '. P
t he . onp. ny i fa l L2 !0 ! h e q u .k tt d e .,d e dtl rato!15o!fcng '| b 'b
wolld bet lr ew s c s l p n thto r: s t.ft !p tra t h .d a m n mat l T a b , Lt ! t . 5 e t ! p t o w . o 5 l s v / t c l r b o a . d e x t e nsL o i ! '
d
f ' f as t f ! . t ! . e H c l i ro !q h tl h a tw o !l d b e th e b e5iw E yto rroLd ' oaa"o"
r.d.he.tyet.etlabtconne.tl.nsto5p.ftsd;t.i' :
d0s n l5 ie. f rn o to g.0 y s ]s
n . 1 . i c e s e ! ! ! a y 5 ! r t c f . e r . o n n e . t o n t o D c.!:
Z L!t 5 t ho l q h t th rt I w o l td b e a c o s ttym 5 l akefo.5c!
. o . f . . . y $ 1 0 ! 1 1t o $ 2 0 l t l p e . m . n t h . . o n i p .r .!
w. y t o b! id : l ra d t o fa t d a t3.e .te f rn d h .e a b;gded.al ed
mo.thly tab 10f a T 1 .onie.toi L i r . l w.l r td ::
T s iaf f a m s L .k cti ra tw o !td s to w :i re c o m prnys grow rn.
is t ead. he d e . d c d Se q w a ys h o l L dl s e s o t tw .fe l tcef : S l 0 !rl 0 to 912!U l l ,he sard
B yo!tso!.. ng 15system:se!w .l ' rr.sbe- ana.
f ed5 O ut s o !rc l n q:tto w s !5 to u p s ,/eo . d . w rs ze o!r l T or Lsp.od!.t ral he:thr. datacente.s,sete r : r ,an.
aqro di s re LTstaff Lnl te.d l he .omp?nyfet cs 0 . 0i.
t or of lr ir nc e " F o r a 5 ma L lLo m e d !m s l z cc ompai y the.e !etefaf C l 0 to manaqel l s o!t5oLr..edfeso ! r . e!
' \ o por
ar e r t ot ot ad v a n t:q e s
n mbl .a nd . ;
Io 5cl c.1a ..tut on thal s fLet15te.
0! 15oor .n g a L s otc l s c o m p a ie : L k c Se !]w ayavDd !p
ir ont nv - " : t m e n t:n s e :v e fss o ftw a rei n d te c hnl cats!pForl d me l r5i tLkets proau.t.
s Lalf e. s5a , d T e ry J o s t,a D a L ta s _ b a sc.do n 5!ttai t at C rp
G emI E f net& Y D l fg L L P O!esti ons
D i 5cussi on
B elor eZ t !l s .a m e o n b o .fd S e q w a yh ad been !s,i ! W hatbenelts s S eqw .yenl oynq byo!tsr ! . . . :
it ! t nc .s Q ! c \B o o k sa ..o o n t .! s .ftw a fe .To sLrpport the nr.tl on nf.ast.!ct!feandsenI.esl
. om pant s c rp .i 5 l o i . Z tvt s b .l e l e d th 3 t t E ho!Ldup!rade . p" q" bJ
t o e t he. nn a...u n tl n q p .c k rg ed -" s!n e d l o f smatlandmi d l^nof o
. f-m a l o n n f j a 5 i . L r . t u r e! n d s . r v c e . ?
s iz edb! : . ei5 e s o . a i a .g e . s y s te mth a t t c o uLd!fcw ni o
T he c om pir n yd e o d e dto to o kto f a ta .l e f 5 y sLem t0 av.rda
crii icalThinkins0uestions
pa n1! t3nde x p e n sv e .c q !e fs o n d o w nth e foi l u
I"'
A f t e. c r r i u a t n q s o ftw a ferro t Ora .te.n d S A PA G the
T inl.:!ttuci!re and 5er!..s1
. om paiy . ho s c a f !i .!5 to m l z e d v e rs .. o f . n 0.i cte 5! te
I Wh a t f . ! s t f . l o n 5 d o y o ! t h L n kS e g w a ve id !.e :
qe. f edio s m.l t rn .n L rf:c t!re .sI h c 5 )' s te mn ct!desm.nLr
iac t ! . nq and o ra e f ma .a !e me n lm0 d !te srn .d. I on l o Ine w th o!tso!fc.d !endofE,

f . ! n. e : ppt c a t o n s Wo .k e rsd t Se l w .y 5 h e .dq!artersand

SolRCEs, ThomasHorrman Seqway. Tech Plans Llok Do(f i ,,
it s m an! la. l! f rrqp L .n ta c .e s sth es o ftw a .ev a W ndow 52U 0!
en\\\h Canputeyo.td laiurfy 26 200t wr.o/rlrr'1
scqray. Websrte ww.s.,gtrl.on r..essed Juno l9 ?001, :
Ah.rd ct I Ib F.,,,t/s1,lune 12 2aD! ww||.te\rs ,ers..r
 S />tem. i r{ qatoi and A nd?ss

eeto - th eop elh q vig_ . e: SAor u, . om e' 5- ! ( e, . s Lor ' B M w 27. RappaM A. TheUt tity BusinessModelandthe Fuiureol Com-
:,p accessed June18,2004,ww.sap.can/solutians/industry/auto- pu\ ng SeN ces, l RM Systems -lautnal, rol /.3, Na. 1, 2004 p. 32.
. le/cLstanercuccesiEMW GroupWebsire accessed.runel32004 28. Sliwa Ca.ol "SearsPlansro0ulsourceParto T Inf.astruclufe'
bnwgroup.can mySAPAutomotive Web site,accessed lune 18 camputeNatld Janraq 19,2oo4p.1
M. sap.can/s aIui ons/i ndus try/autamative r c h a e l , 'B u n
2 9 . S c h r o e d eM s e s 6 c o a t i i i o n B a t l t e s 0 u t s o urBa
cick
nq
Gsl, rhe WallSteet Journal,Mafchl,2004,p. A1.
3 0 . B r e w i nB o b , " Wo r l d c o m Wn s $ 2 0 M B d t o B u i l d B a s hd a d C e ttN e l
Hamblen,Matt, NavseasRol ShpComsin, Canputeryorld, wark, CanputeMadd,May26,2403p.14
31. Stall,0nDemandVison, tuwlBM .on, ac.essed.nJanuary25
lvess,Iodd, New Clo TakesRens ot IRSTechLrpgrade,"
c,D- 2444.
prterwadd,J{re 2,2403 p.14 3 2 P hl t p 5 M c h a e l , 'M o r e w o rrkso u l s o u r c et do ! . S t h a nA w a yi r o m
DemaitrcEuqne the Ateate(Gaod, CanputeNartd,June2, 11,DataShows Ir h/r1rsr.eetJaunat, l'larctr15,2444,p. A2
33 Bu.kman Rebec.a,"N-P outsourcnq: BeyondChina, Ire t/all
Starl 'Besrin CGss, ComprreMarld,l ar.615 240\,p.3. Steet Journal,Feb ary n,2404 p.A14.
Noffman, Thomas"TheFesou.celolPrc)ecrMandger,canputer 34. Bulkeley,WilUam, BM oocumentsolve Rare Look at Sensilive
wodd, Fe6rtary 6, 2004,p 35. PtansonOllshoring,rhe WallSteetJaurnal,Janta.y19,244!'p
Carter,Pamela, The Managemenlof Meaning Towarda New
ModelolProjectManaqementResearchCotloqu !m nformalion 35. Manes Steven 'ELeclron cs Jobs outsourced ro \ou, Farbes,
.id ManagementSc ence0eparthenl,Coltege ofBusness,Florda M a r c h1 5 , 2 0 0 4p 1 5 8 .
5lateUn versity,September 21,2003. 36. Namblen,Matt, '0utsourcinglT SecurtyFunctons C6nSucceed
iltlelder,Steve,'Best in Ctass securilySelupldentles Attacks ConputeMadd, Janrary 19, 2444.p. 34.
withMlnimatDrag, Cohputetuarld,Feb ary 24,2aa3p.4a 37. MelymukaKathleen,'WhenThe Ch p5 Werc 1dwn canpute.-
Anthes,Gary "TVlor rhe 2lsr Cenrvy. conputeMorld,]Uly21, wa d, May26 2AA3, p. 41.
2003p.3, 2. 33. Verton,Dan,'ollshore Codig Work Raisesscufily concerns'
VitcheLlRoberr,'E-MaitUpgmde, ComputeryorldAptlT 2003, Canputeryorld,May 5 2043,p.1.
39. Vtayan,J.,'olishore 0ulsourcingPosesPfvacyPe.ts, torpul-
Palchong, Atarn,el al, 'mproving Car BodyProducton /rrcr eNo d Fe'ruary23 2044,p 14.
lr.es, January2003,p.36. 40. Mearian,Lucas,"Bank Group0ffe.s Gudeline5on 0u1sour.in9
' rJ o ,Mdlh id,"Po- l- e qer . ' dr 0- 4. h. . |, t d"d, C a - Sd.urry Risks, canputeMrld, January26,2004, p l0
tjtewarld, Fe5rua.yC,200L,P 3t. Ll. BM web page at M lRM.con.seNices/stagegies ac..ss.d an
(erstetter,J m, 'Sarbanes-oxteySparksa sortwareBoom 4,5/ ]Uty29,2AA3
iess week,Janaan12,zAALp 91. t!2 EDSweb pagear w.ed'cd accessedonJuly292003.
Ihurman Mathias,ovetuhetmedbySadanesoxtey Complte._ 43 AccentureWebpaqeat !J,Watce.ture.can,accessed an Ju\y29,
torld Mat.tt l 2004,p 33. 2003
rollman,Thomas'L.lsersStruggtelo P npoinlSarbanes0xteylT 44 Drucker Jesse, PfessI for Delh 2lor Datlas fhe Wal Streel
aaers, ConputeMa.ld,Decenber 1 2003,p.1{. Journat, Matc6 9, 2444,p. 91.
.lolfman,Thomas,'Emcor saveson sarb Ot Conputetuarld
45. Thurm Scott Lessonsn nda lhe WaUStreetJournal,Marcn3,

randler,James et al., 'Fuji,KodakCreatns VirluatScrapbook 46. Anthes,Gary '8e51 i Ctass DatawarehouseBoostsP.olirsby

?ackyMauntain NeM, )!ne 16,2aa3,p.28 EmpowerinqSalesForce' co,puteTarld, Febtuary24,2443,p
3r mes,Brad 'MrcrosoftNFr, Pa Masazine, Matcn25,2043, p 7t
Ln da ,e tat.,'HowSor t wafPr
.!a Lta .e, t k AI I ec isPr o l e c t
e ojecRs 47. Welcomero lS0 EasyWebpageat wwisaeasy con,ac.essedon
)ettornance, DecisnnSciences,spri92004.p 239.
J u l y2 9 , 2 0 0 3 .
<ontzef,Tony "olobatAppeat/, rbmatiohweek,Jarrary19 200t,
43. Anrhes0ary,'ModelMana Conputetwartd,Marcn 8,2004p. 42.
M. inlornat iahweek.can 49. Capabitty MaturityModelforsoltwarchomepaqeat wryeel.t,
30mes,L ee ,'DoweGetEnoughn nnov alionlor W halW e o l v e t o c/4 acce5sed on Novemberl6,2004
{icrcsalt, the Wattst.eetJau.,a{ MarchS,2004,p. Bj 50 Verron,Dan "StruggtngA rl nesScrutnDe11Prc)ec\s,ConpLt-
rwye., Paula, BigBangartheBigBoa.d, RusinessWeek Fe6ru- ewo.|d, Aptl\ 7, 2003 p. 1
5 1 . L u X i a o h u a" M , u t i r u s ecfo l l a b o r a t vWo
e r k n a v r t u a l E nvfo n
vunshi, Porus, PrototypingAlt lh Way to Pedecrian, Busi menl Based CASETool, lnfornation and Software r,".hnalagy,
.essline.)!ne 23,2003,p. 1 A p r t 1 , 2 0 0 3p, 2 5 3 .
jrwa,caro l, Rato na t SollwarSet
e ldRolt0ul Rapd Dev elo p m e n l 5 2 . L e h m a n nH, a n s A n0 b j e c tO r e i t e d A r c ht e c t u r e[ l o d e t l o r n te .-
- aol. conputetuorld, May 19,2003 p. 7
natlonatntormatonSystems Joumalal GloballnlornatianMan'
:irhes, 0ary,"SabreTakesEx\rcne M.asurcs, Conputetua d ageheht, )rly 2403,p. 1.
'Th UnofficatTeches," fhe WallstreetJaur 53. Vlayan,-lakumar, Bestln Ctass apptcaton FrameworkAltows
sandberg,.rared, EasyPorralA..ess Canputerworld,Fehtuaty2L 2Aa3,p51.
.,1 May28 2 00 3,p .81 .
54. KarnilschingMallhew,AurobahnPlanl5StuckinSlowLane lre
Marks,Debra 'Ieenaqe Web Wn r'pnes to Createa Belter Watlsteet Jaurnat,0c\a6et 21 2003,p All
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INFORMATION SYSTEMS IN THE GLOBAL ECONOMY

TIIE HOME DEPO", UNITED STATES
TheHomeDPot
Digitizing

Tbe Home Depot i6 th wodd's largst home imFovement rctailer ard second
la.rgst U.s. rta,iler. The chs,in curaently operates 1.640 stores in 50 U S. states
enal in the Districi of Columbia, eight Ca,nadiar plovinces, Metico' ard Puer'lo
Rico. You would thirk that sucb a suclresstul company v,/ould have a,state-of_the-
axt infomation s''stem, but that has not been the case. "Antiquated comes to
miEd," sar'6 CIO Bob DeRodes. "The wires and data switchee wrc undersizd,
so we couldn't move la.rg arnounts of alata " But that i6 bing changed with the
launch of T'he Home Depot's $4oo million IS overbaul.
Denodes likss to lefer to the retailet's tecbnological overhaul as the "di8i-
tizing of 1be Home Depot." And bes backing up the tIm with new in$aatruc-
iule anal appucations that are drasticarly changing the way that I'he Home Depot
employees-wherver they aI in the spravliDg enterpd.se-do tbeir jobs.
DeRodes likens the net etrct of the upgtade to "the ditrerence btv,en going
onlino with a alia.l-up connection and gtting broadbard." Information in tbe
form of raw alata, vitleo, ard images win be zipping fi:om PC to PC and ftom storc
to store. Tbe Dew systems v.iuprovide a neax loo ditrerence for store manaB
a-r}dina.jor impmvements for managment at Eome Depot hsadquarters
Previously, ea,ch Home Depot store bad onry one PC, which sat on ttre
naragr's desk. Everything else in the store was a,dumb tertrIinal. '.!ve couldr t
even put brcwseN on tbem if we vtantd to," said DeRods The new inftastruc-
ture pmjest includes a lollout of 40 to 50 V/eb-rca.dv PCs arrd mobile devices to
each of the stors. The new PCs 3re situated at all the seflice desks in the tor3:
tho6e for contractor service, customer snice, customer returns' paint centerr,
bome decoBting, rcceiving dockE, and elswhere
Ter6a Chapman, maffgr of The Home Depot's Cumberland store in nolth-
wst Atlanta,. ha ben one ofthe flmt to *perience the upgrade "I've ta.ken back
20 hous a wek that I used to spend under a pile ofpaper6," she 3avs. Chapman
can aress the new Stor MaDager's Wo*bench application from erv of the 30
PCs positioned axounal tbe stor-ao more runlring back to het otrice to consult
frle. The syEtem lets her rcview th psdorrn8Jlc of ales plomotiols' monitor
security cameras positioned over the rcgistels, 8.nd a3ce33 a $rite ofofrce tools
She particuhxry apprcciates tho workload apptication, which tBcks prciect8 and
emproyees who a.r essigaed to them. As she demonetrates the application' sh
explains, Tbj-s ntry is for the set-up of the seasona.l trce-cutting area l]er s
the alesdline. Hrc's rFho it ItEs aeigned to And if vou look her, Jrcu'll see tbat
it r,ea.scompletd a,rld when."
llle distribution of epplications such as the Stor Ma,Dager'8 \dorkbench to
PC6 throughout th stores is done cent.aly ovor the corporate intxant to en6ur
that evryone is using the same vorioD ofevery oftware progtam "Thor i3 no
removable mealia on our device6, so people ca,n't irlstalt or de-install an]'thiDg,"
DeRoales sat. They can't put in a, CD. All th PCs are network rna,rlagd. 'We
aJ-eoalon't want people loading data onto CDs ard csxrying it out," ho added'
''Removable media is a,bad thing in a coinmsrcial environment like a stot.
Psfta I systemsDertopmenr

The upgrade also consolida.tes five sepaxate point-of*ale ("OS) 3oftwr

pakags, which the staf previousry used. into one Tbe new POS software eD-
ables cashigrs to us poftable scan guns for ha!')' items without rcmoving tbeB
from caxts- Tbe soltwre a.loiDcluds all online castder book wbich eliminat3
the need for cashier to look up items without bax codes, such as nuts ard bolts-
maruaUy in a tbfee_dng bindr' "Cashiers still have to look up unbaxcoded
itms, but tbey don't have to mess amund with that binder," DeRodes 64.v6 'Il3
automateal dow. We guarante that a c.shier will find the code for whatever he'!
holaling ir his band within frve touches of the 8creeD."
Consolialating the POS srtems into on standardized svstem a,lso makes uP
gIades eaier to marag. .The biggst prcblem with having frv aliJfercnt POS
systerDs wa.s that it took Eo long to nu.Le charas," DeRod$ says. "Evry tim
we wantecl to alo something new ard alifferent, we had to build it, test it on 6f?
ditrerent systems and deploy it on ftve diferent svsterns
At the healt of the new cyEtem is e ma.ssive data vrarehouse built on IBI
hardwExe ard utilizing Big Blue s DBz sollvtare. The vtarhouee holals tbE'
yeaxs of rccent POS data. Populating the alata warehome with such alata is be
coming 6aier, too, a.s Ibe Home Depot continues to IoU out the new PGI
softwar system to all its stores. The data warehouB soon will prov|Ue valua*
inforrnatior a,rld decision 6uppo* to the compaq/8 hurnan rffource depaxtmem
its indivialual store rnanage$, ,,nd frnance atalf thrcugh a sta,ndard Welr brows
over the corporate intraret. The new date. warehouse will provide a sbgle .l2a
source for such vaded tunctions a,smerchardising. pnoe optimizatiod' invents_
sav nsurilt:
ry maraSment, aral huma.r rcsource plaDning lndustrv insiders
that applications run offth san data makes it eacrer for multiple dpa,rtmeDlt
to execute compa,ny-{ride strat9'Ie8,
"ltlhen v,red go out al}d say we werc going to digitiz The Hom Depot' md
mployes saial, What does that mean?'" DeRodes recarb. 'A rot of peoPE
thought the company had been very successtul r^rithout much technotogy " Not
that tbe systm is being instald gld realized, evryone is wordedng how tbq
evI sunived without it.
Asyoureadthis chapter,considerthefottowing:
. Vhar rype of comideratiom nut t'e confronrcd whn designing . major ts(o
renovarion su.h asTh Home DePot's?
. \{het disruptions ro normal buhes pncrices go along with implenentins nN c
modified qnterns, dd how an thse disruPtions b minimi4d?

The way ar information ryetemis designed,irnplenenred, ad mhtained prcfoundlv affcc

the daiiy finctioning of m organization Like hvestisation md anallsis oveted in &
prwious chapter, derign, inplneniation, maintenme, and sis coveredis tlis chaP6
itrive to achi*e organi""tional goals,such c reducing cos6 incrains Prcfits, or inProvi=
 synemsDesqn,
rmpLemetrraton,
Maintenan.e
andRevewI Ch.er.r 18

curtomer sedie. The sod is ro dselop a nq or nodi6ed slsren ro deliver rhe right
info.marion to the .ight peson ar rhe righr dme.
Afrq rn orgdizarion inwsris s dd aoab%s ihe need for a n* s)sren and approves
irs dwelopnen! rhe prcject moves to rhe later sragesof dwelopnenr deign, inplenenra
to., and mlintemnce and .evis. This chapcr presents rhe bdi.s of slrrens design,
implenenrarion, and mainrenancea r*iew Borh usersmd tS personnelneedto be aware
ofthese stagesso rhar thq, cm parii.ipare in good systemsdevelopinenr no rnafter what
field rheir o.sanizarios are ir

SYSTEMS
DESIGN
The purpose ofqrtems design is ro atrwei the quesrion "How will the informarion srsten syetemsdesign
.o l v r r p, oblem l"T h e p ri m,n re .u i ro i rh e .rre m , dei gn ph* c i s r re.hni caldei gn rhrr Stageof systemsdevetopmentthet
Jerail,sy,remourpuo. inpur:, rnd u.er inrertrce.;.pe!;Ue.hardwre. \oftwrre. dj;bae\, answersthe question Howwtt rhe
teleconhunicarions, personnel,and proedures; md show how thesecomponens *e re- rnformationsystemdowhat it mlst
do to sotve6 p.obtem?
lared. The nq sysremshould overcome shoacomings ofthe qisrins slsteh ud help rhe
organization achifle irs goals.The stsren mut.lso neer enain guidelines, ;ncluding urer
and sraleholder requirenents and rhe objeaivs defined duins previous dqelopnenr
p \se , . I her e. ln. t. w " .rh e re .o mr. r C J i fo rn i ac o mprnyrhatl es peophmeerandi nrmrt
on a 3-D \reb sire,spe.r more than $17 million to desisnm onlin simuladonrhar lers
people chat, play erds, md flnr wnh anra6, lifelike chtuacreB that apma on Inrernet
.i re s . lhe r om panrh o p e .rh rr rh eto u . y e r .r(e m, devetophent prci ec;;i senen,e,e,.
enuesfron individual subscriber and conpdies thar wmt io adveniserhen prcducc on i$

Design can rmse in s.ope from individual to nulricorponte prcjecrs. Nearly all con,
pmies are condnually involved in designing sysrens for individuls, woilgroups, and the
enrerprise.AM Gener,l desisneda ns rysrem ro help ro speedproduction ofns Hminer
spon-utiliry vehicles,as rhe "tnfornation Sysrems@ Vork" fearure decribq. Inffeajinely,
.omprn,e. unden"kemulicoroorurede,gn. wheren" o, moreomprie form a p. rrer-
ship or .n allianceto desiSna new systeh.
systehs dsisn is t ?ically &complished usins rhe rools dd rechniqfts discu$ed in th
previous chaprer.Dependins on rhe specitic application, thes mertodr an be ued ro sup-
pot md docunent all alpec$ ofs)6rem desisn.Two key aspecaofsystemsdesignarelogical
and physial desisn.

Logic atandP h y s i c aDt e s i g n

Ar we discused e&lier in rhe darabak chapre., desisn hs t*o dineNions: logiet and phys
i.al. The logical dsign refea ro whar the systemwill do. The phricd dsign ref{s m how togical design
dre t*ks are accomplished, including how the componenrs work togethet ad whar each Desc.ptionol the lunclionaL
r e q u . e m e n t s o la s y s t d n

Logi.atDesign
Logical desisDdes.riber rhe ftncrion l rcquirmenc ofa s/steh. Thar is, it conceprulias physicatdesign
what the sysrn will do ro $lv. rhe pfoblens idenrified thioush erlier analysis.Virhoui Speclicarionol the characte.islics
this srep, rhe reclnical deBils of rhe systeh (such N whi.h hardMe daices should b ol lhe systemcomponentsneces-
acqrired) oftetr obsure rie be$ solurion. Losicaj design involves planDins the purpose of sary lo pll the togicatdesigninto
eachs)sren elenenr, independeni ofhddwarc md sofrwaft onsideErions. The loeical de-
.i 8 n \ pec , f ic r r ioN re d e ,e rm i n ern
d d d o .u me n red
i 4dudeou,pu' .;npu,.pro;es. fi te
' hr
and darabde. telecoDmunierions, proedures, controls and seoriry, and personneland iob
requnenentsGe Fisure l3.l).
 :,:

AM GeneratDesignERFIDSystemfor Just-in-Tim6 o predee ed epre La6 .61.l hp i - o " ."

^o' t"
Detiverieg Whefe0atl butlon,whichsendsaw retesss gnatioa centratse..:_
-/." ,-r-:r .o1o- bei g ed
AM GenelCorporauon, whichmakesthe poputarHummer.had ' eque.
wafeholseby identtnq the tm s RFD lag andatsolocate5:'-.
a probtemas b g as ltsvehicles.lts p.oducilon tneswe.esLowSo,
wrctess sgnat f.om the lorktift nearestthe ilem. The tetr :
t nvestigaiedmethodsio speedup opeEtons Oneoflhe prrnary
o p.or6o o, 6roti fi ' cD dspl a,.. d' h" ope" Lo - peed.
p.obtemsthatstowedproducton t found,was rcptenish ng pa.ts
to gatheranddetive.whats needed
ont heas s em btne yl.l f,fonf s ta n c e ,a w o rk e r.a n o#29steerng
ltof
Theeffeclol the systmis neartym |acLrLous lt cLrtsolt :r :
rodsat sialion12ontheLne.pfodlctonwolfd qrindto a tuttwhrte
middtenrenrnd plts produclion tne peEonnet in d.:-
everyone W3tedfor the forktiftto.ffve withanothercrateof.ods.
commlnicationwth is
theforktftdrlverwho ctosest to them t-:
AMGener:tsmanagenrentteam setoutiofind. bettersystem that
arerestockedn a matterof a lew minltesrathertl-ra n : n irouf \:
woltd makesurethEtthe ltow of paa(sto the assembty Ine f.om
onlyhasthe systenrstreamtined rcptenishment on the tine br' '
the wafeholrsewas lLrstLnt me-witholt any l.gs and wtholt
aLsofeedsmpoftanlinfomaton to la.ge.systems.
Af.lGeneralfeedsthe nformatonl.om WhereNeltoCimpl: -
AM Generut,lke most othe. aulo manLrlacturerc usedan
Trackersoharedesgnedby GE. CimpticltyTmcker pfovr-
age old papercafd-basedsystemthat org naledin Japancatled
superyisofs wih a detated.continuols{tow ol nlormalio.!_:
Dd l dpo - FIa drd gn,r'rU.de
^a attows ihem to optimrzethe manufactlnngpmcess,w. :
worke.noticesthsl p3rtsaretunnnq tow he of shepostsapaper
manaqing inventory teveLsand tocatons schedulng.eso!.ces;-:
card,\dhchls pickedup bya .oaming.eptenishmenl !!orker,who
rolt ngmateratsnroreeifectvely
ta k es lhec a. dt oth e w a re h o l s e .T htheere
s !p e rv i sordi spatches
Theftex b ti tyand.el abttyof theW he.eN etsy st em hasat t oq: :
a io.ktiit drive.to detive.the requestedpall. Althoughit was
AMGeneraltooperate at peakeflc enryandf:mp up p.oducto--:
revotutionary when t was ntroducedn loday'sd g tatworldthe
meetpentup demandfo. Humme.s,saysDeboGhCatefa.: :
Kanbansystem,scumbercome. .1.
AM Gene.atwantedto reptacethe systemwrth a compute. " ^ " al vc-e,J w F, F. o ,
ptantfloor s revotlrt
onlzng the altomot! lnduslryandwe a_: :
netlvofk Howeve.imptement n9 traditioftt nef,lorktechnotogy
pe-c- as. rponr. .-esad. I rors- ' ohe" opea nq! o. ' r '
menttunnin! nehvorkwres to the produciontne and instatling
Generathasatready reatireda ret!.n on iisWhereNeinvestme-:
tem nals,wh chwo! td becosttyand napproprate.Assembtytine
andtheapp[catonscontnle to payblgdvdendseveryday.
w or k er didnt
s t e to ty p en o rd e rs o a
ha\ m n te .mn a t
Upon examningsystemstrom other manlriactureEal'/
Generatfolnd the perfectsotulion n a systemdesignedby DiscussionOuestions
Whe.eNetCofpoton. WhereNetsystenrsconsst of r.dio
freqlency dentifcationlRFDltags,fxed positonantennas,and
1. Howhaswrclesstechnotogy
nesof production
changedthe da ty roLrtl
tinepersonnetand s!pervsors?
E
Webenabtedsoftwa.eio tck inventoryn warehouses and on 2. In whatwayshasthe RFIDtechnoLogy emptoyedn the
production Lneslhe primaryfLrncton olWhefeNetso.oductisto s!lemsstreamt ndthe prodlcton tne atAMoen-"rat?
assistcompaniesn qucktyLocaungnventorywthi. the suppLy
Criticatth'n king 0ustions
The WhereNetsystemlocatesand tracks nventoryusing
3. What jobs do you ihink were tosl and ganed by r:
exiremelytow powef.adiojrcquency tagsanda communicatons
r p p- 6 dr,o. o' re wha-e\er lsre- ar AV Ge-eral --
netwark. AnteinaspostLoned insideandoutsidethefactoryreceve
s!ch trade-offsheatthyforthejob
marketandsocietyat tar,c:-
lag t.ansmissons anddetivert|ackng nformanon to a compute..
4. Whtmarketad!ntageshasAM Gene.atganedbyupgfad-l
ThesystemthenidentflesthetocEton olthelagwthin I0 leetof its
its repter'rishment
system?
exactpositionWhiteWhereNetwoltd assistAl\'l Gene.alwth
montodnglnventorythro!gh thes!pptychaf ,somethlnq morewas
5oURCES, LndaRdsencn.e,
Hummer PlantmplementsPa s RepLe_
needed 1ogetit lo theassembtytne naJTfashon ishnanr,
Arsehbty-Tracki^g
Sysrens.'
Canputevadd, Matcli14,z\r-
n workingto design. prcductontne systemlor Fo.dMoto. wwcanputeMadd.can:WnercNel Ju^e20,2004,
Webs le accetsed K "
Company, WhereNetproduceda prodlct il namedWhefecatt hherenet.oh; Cinpl.ny Tracker Web site, accessed .iune 20, 2C:-
ww geindutitat con/cwchtbdu.ts?pnlid-2&id-hni32t Fa.rory log c we.
\ ihe.eCattlnco.porateswretess ontheprcduction
cattbuitons Ine s te lf orinloon Kanbanl,a(e5sed Jr^e 2n,20AL w.fa.t brylogic.can/h I, :
fo.eachlnventoryliem n!se.Whensupptyof aspecficpalrreaches
 sy:i emstresqn mpl efP daton Mr i roi i nce and R ever I C *1t' t"

@
ot LogicatDesign
Components

Oltp"t Reqsirehehts.Lo1ical designofouput describesall outpurs fron the svsten and

include dre types,fotnat. contert, ard frequencyofouquts. For ennple' a 'equirment
that all compmy invoicesnust includeihe customer'soriginal invoicenumbern a losic'l
designspecification. Sdeen rnd lalour tools can be u.sedio caprurethe output rcquiremenrs
tur rhe system.An investnenrconpanv, for *anple, candesignits outpur for a new order
e n' r y . ) r enu beo n ' i { e n r * i rh th a to f l r. o rh e n q rem' rd ro pro' rdea.ommor ortout

Ih?n Req"irnds. One ourput requircmentshavebeendescribed,input designcm

begin. Logic.l input designidentiffes rhe types,format, content. and frequencv of input data
f'or example,the tequnene"t that rhe syst n must caPrurerhe cusroder'sphone nunber
fron his or het incomirg ell and usethar o autonarieLLylook up the custoner'saccout
informationis a logicaldesignspecificationA varieqvof diagrms and streenand rePoit
hyoLltscm be sed to r*eal the qpe, fornar, and contentofinput data.
Plads Requife,nent!.-the rypesof c.lculadons, conParisons, xnd seneral dara maniPu-
larionsrequiredof the s'sremaredeterminedduring logicalproces design.For ennprq a
payroll p.ognn requiresgros and ner pay computarions, stateand federal tu withholding,
andvariou deductionsandsevings plos. LinuNetwon' for dmPle, hd desisneda cluster
ofmore than 2,000 for
processors the Pentagon'The procesor will fbrm a superonputer
to be med for weaoonsresearch.
Fib and Databae Retpnene*r. Most information Evstens require files md database
*stems. The capabifties of theses)slems 3ie specified duing the logical design phase Fot
exanpte, the ability to obrain instmt updaresofcusroner recordsis a logical design specifr-
cation.ln mary cues,a datab* adminntatoris involvedwnh this cpecr oflogicdldesisn
Datr-flow and endtytladonship diagnns are gpielly ued during lile and databoe design'
The designofan organi,ation'sfile and database systensshouldincludethe cot of file
nd database storage and the cosrto manage the orpnizationi storage.For oery doll* spent
on phlsiel stonge, a ompany can spe"d $7 on data and stoage managemen!Becameol
thesehigh costs, sone companies are codsidering a chatge-back poiicv. where individul
deputmena pay for theirstorage and nanagemenr costs Mmy banks now haveto capture
jThe
dd intesraiemorecustonerdata * a resultofnew inrernational banking reg ations
ncw daabascregulations, which arebeingorerseen by the BanLfor InrerDational serrlemn6
in Switzerland,could cosrbanks billions of doll.n and must be implemented bv 2006.
Tetz.onnusndno$ R.4uirene,t!. During logical design' rhe generJ nerwork and
ielecommunications lequirenens needro be specified. Forexample, ahotel nighr specili a
eet a I sy.r"n,,
o*a"p.-,

client/serer slsren wirh a ceftain number of workriarions.Su$er Heahh is designing:

wireles telecomnunicationssystemto help conply with FDA requirenentsto piaceb-
codeson drugs.rThe designcilk for w;ele$ L{N and lPphoncs.fron thesebsic requir..
menrs,a hvbrid ropologynighrbe chosen.Graphicsprosrms, C{sE rools.endthe obje,--
odenredapproachcM be usedro facilitareiogicalnetworkdesign.
Pro..duft Requiletuenr'. All informarion sysems require proceduresto run applicario::
xnd handleploblens if rhey occur. Theseinporrant policiesare aprured during logi-
procedures desisn.Once specified,procedures can be desdibedtuins rql dd word p:-
cessing programs.Ior example,the stepsro add a new cusoneraccountmay involvea sen.-
ofboth manualandconplterized Isks. wrircn procedukswould be developcdro pro.r::
d efiicinrproce$ for all ro follow Amirrude Holdings.for *mple, designedncrvp+
ceduresro spccdsystensdevelopnenrproje.is.JThe nw desisDcallsfor proje.ts b
brcken nrro smallerinc.ehenrsrhat can be conpleted in six ro ren wcekj. -
Co,tlok dkd St"tiry Requ;lezc,ri Another impoftmr parr oflogical design is t{r dd:l
nine rhe requiredfrequercyand cha.acrerisrics of baclq svstens.In general,*e4th.r:
shoutdhavea backup,induding all hardware,software,data,pesonnel,supplies,and fa._
ities.I,lanninghorv to avoidor recoverfron a conpurer releteddisster often srms ar r:r
$ageoflogical design.Securitydesignis alsoimporrani A largePC manufacrufef,6r.!
mple, disovered a porerrial problen rvith the securiryof irs \ireb site that would h:.:
allowcdhacker to get pusobal in6dnarion fron its .u$ohe.s od poGDrialcusromc:,
Oncediscolered,rheporeorialsecuriryproblem wrs fixed.Desisninssysrenslhar.an der-.
and proent vituses,invasionofprivacy, and orhernegariveaspecrs ofirformaiion syneE
is alsodoneduring thisphaseofsystemsdesign.T Hidden in e worn thar dirupredrhousrr
ofcompurersin 2003 ws a ne$age ro soilwde devclopers, "Stop naking noney and =
your softwarc."sDevelopingsafd solrvare is an imporrant palt of conrols and secur,-
requnemenrs. Sone.ompaniesand universiries arealsoincludingse.uriq-mining in rh.-
systemsdesigncurricuh.' One Hong Kong schoolreaches srudenrshow to hack ino to=
pures so rha! l}y wil be berrcrpreparedfor rhe;rcdeers.Accordiry ro one insducbr \::
reaches rhe course,"Ofcouse, ihis is ju. a fakesinularjon."
?enonnel anl Job Requbenc,rr Sohe new rysrcmsrcquire additional enployees; orher
may modiry the r*ks ssociakd wnh one or more existingIs poshn,ns.The job drlesi.:
descripdons oflheseposirionsare idnrifieddurins losicalpesonneidd job desisn.Or+-
niarion chara areuscfulduring personneldesign to diag.an variouspositionsdd job ftl-
Word procesingprogransarealsousd ro describejobduticsand responsibiliries.
PhysicatDesign
th n i ,J d e.,ga,te(fi e.rhe.hJn.Fri rk,.i rhc.vneml omponen,\nc!!\.rDr opr r '. 1
logicaldesigninro action.In rhis phese.the chdaae.isr;csofhardware,sofrware.databa<
telecommunietions,personnel,and procdure and conrrol speciAcations nust be detaiJ::
(seeligure 13.2).
Hal.ludre S?riJicationlNl compuierequipnenr,includinginpur, processing, and ou:
pur dryiccs,nust be specifiedby peformancecharacrerisiis.Ior dample, if the losi:
desisn specifiedthat the darabce musr hold Largcamounrsofhistorlcal data, then the svsre:
sionge devi.es musr have large epaciry.
Sofuare S?rifcitiow. Nl sofiware must be specified by capab;lities. Ior oample. :
do?f,nsofuses nusr be abteio updaterhe datibareco.curcnlly, s requiredin rhe IoFa
des;sh,rhenrhe physicald.sisn mus specii a daoharehanasementsysrenro allowrhis::
occu..Ifrhe sofnvareisto bedeliveredor usedoverthe Internet.this needmustbeconsider::
durinssoliwre desisn.Siebel,forenmple, de.idedto deher ns softwareoverrhc lnrcn.,
so ir specifiedm online sstm ro pe.fbm rhar service.ro Siebelmakessolivare to h.:
conpMies nanagetheii cusroheraccounrs.Pi\ar, rh.6ln compdy strted br StweJo5
the foundo ofApple Compure.,desisnedsrunninganimadon soliwareb bake hovies5u.:
rs A Bus'! Lif, Tat Story,Mo8tds, tnc., and Fiadins Nma.tt 'this softwareand its relar-
comprter sysemshavrhelpedthe companymakenillions ofdolirs. Sone conpanies,o:
d fileNet and iBS Anerica, havedesignedsoftwarero automarerecordkeepingto he:
companiesnonnor iheir operationsand ro comply wirh ncw financialrepoiting requir:
mena underthe SrrbanesoxlcyAct, discssedin Chiprer 12.t,
 systemroesgn.npLemontaion, andRevew I
Maintenan.e chapie 13

@
of Physicat
Comgonentr Dsiqn

In sone coes, software cm be develoPedinternalb'! in othea it will be purchasedfrom

ar IS vendor. This is oiien called tie "mke or buy" decision Ar nerrioned in Chaprer 4'
open+ource oftware is beconing inceasingly popular. Regis CorPoruiion, m oPerato. of
hair salons,plans to spend about $100,000 to purch{e soft@re ro comply wit}t Saibanes
Oxley '3 The Disuict of Columbia decided ro purchxe three softwm nodules from
Hyperion to help its 68 governnentagencies do a benerjob ofbudgedng.'aThe milion-
dollar del is part ofa largef$71.5 nillion s/stems dqeloPmenreffort that is exPecred to
savethe governnent nore than $60 nillion annually. Logical design specificadonsfor prc-
considered during the
srad ouipurs, data inpuis, md Pro.essing requiremena are also
;hl'sical dsisn of rhe softrrue. For ermple, the ability to @ess data sroredon certain disk
files that the program wiil use is specified
Ddrdbdv S?edfuatiot. The type. strucrure, md tuncrion ofthe databasesnust be spec-
ified. The relationships between data denents establishedin tie logical des;gn musr be
nir.ored in the ph)sicel design o well. These relationships include acces paths ard file
structure organization. Fonmately, rnany excellent databrc rnanagenent svsrernserist to
asisl with this activiry.
Tdrconnu catior Specifur,;,r The .haracreristicsof rhe comrnunications sohwde'
media, md devica nust be sp<i0ed. For *anple, if the logical design requires that all
membes ofa depannent nust be able rc share data ad run conmon soli*are' then rhe
locul ma nerwork configuration and the omnunications software that are specified in the
phpical design nust aconmodite this cap$ifity
Pennel Stecif;catkns. This step involve specifying the backgroud and experienceof
individuals nosr likely io usethe rystem,induding the job descriptionsspecifiedin the logical
desigr ln the p*t, conpanies hired a large nunber of people to ansver quesrions tron
cusronen and porendat custoners The costsofthese employeesmd tleir tnining could be
*aggering. As a result, nany onpanies *e staning to autonate rhis tunaion ro redua
peronnel costs md provide nore acorate information A najor airline compan/, for d-
mple, en usea knowledgemdagement s/stem ro streamlinerhe curtomer reladonsProcess'
Sorneconpanies are trmsferring jobs md enployees ro other coutries " A London mvel
agency,for xmple, has moved mary ofits employeesro India io sve monev. The rr'vel
agencyprcnora this prcgIm ro enplovees t a way to seethe world u c a nw a&enture'
P,ocedureaad Conrol Sprifcaratu How eachaPplication is to run' d well aswhar is to
be done ro ninimize the potenriat fo! c.ine and fmud, must be specilied Thesespeciffations
include auditing, backup, md ouPur disftibution tnthods.
 Pst 4 | s k m . D. . . oem { ,

0 b j ct- 0 r ie n teDe
d sig n
Logical and phvsical desigr can be compiished ming eirher the raditional structured
epproachor rhe objected-orientedapprorch to slstems dqeloPnent Both approachesut :
variety ofdesign nodels ro dooment the n* system'sferures and the development teo :
undcntudings and agreenen$. Man). orsaniarios today are turning to oO doelopmen:
becruse of irs inoeared flexibiliry. So, we outline a fry OO desisd consideraiions d.

Using the OO approach,we designkey objecmand clxses ofobjeca in the new or updarec
sysren. This processincludes considerurion ofthe problen domain, the oPendng envimr
neor, and eheuer inrerface. The problen domain lnvolves the clases ofobjecr reiated to
soiving a problen or realizing an opportunity. Refer 6a.k to ot Maui, Hawli' ket"]< rcna)
shop enmple firt introduced in Chapter 12 where we inroducd the geoeslization/spe-
cialiarion hierarchy showing cluses: KayaHten in Figure 12 23 is d eknpie ofa Problem
donain obiect rhat we will ure to stote information on kayaksin the rental prosram. Thc
opeting envnonnenr for the rental shop'ssy'stemincludes objects that inrenct with prinr
ets, system sofrware, ad other sofrware and hardw*e dqices The uer inreface for de
svstemincludes obiectsthat usen interacr with such m butrons and scoll brs in a Vindo":

During the designphasewe alsoneedro considerthe sequenceofsenrs that must haPpc

for the qsren ro function conecdy. For example,we nighr wart ro design rhe sequenceot
qens that ue neededto add a nw kayak to rhe renral prograrn. A sequenceofoenr is
often celleda scmano,*'d it can be diagrmmed in a sequencediagram Ge Figure 13.3)

@
Diagramfor the
A Sequnce
Adda NewKayakllemScenario

Kayakltem
KayakrentaI cLerk createll

getDatePurchased

datePurchased
 s..." F oo q.l ore I c* o* t"

A sequencediagram is read srartins Fom the roP ud moving down.

1. The C@te arrcw at the top is a mcsage from the kyak rental clerk to the Karnklten
objer to crateinfornation on a new kal5ll m be placd into thc rental program.
2. The IGraLItem obiect knows rhat it needsthe ID for the kayal md sendsa mesuge
to the clerk requestingthe infornation. Seethe getlD afiow.
3. The clerk rhen q?es rl| ID into rh comPutr' This is shown with the lD anow
The darais sored in the Kayakltemobjea
4. Ndr, Kayaklien requsa the purchascdate. This is shown in the SdDatPurchsed

5. Fimlly, tfie clerk rype the purchac date into the conputer' The data is also trms-
feried to I(avakltem obiect. This is shown in the datePurchued afow at the bonon
of Figure13.3.
This scenariois o y one exanple of a sequenceof oents. Other scenariosmight include
entering infornation about life jackets, paddles, suntm lotior, and other acesories. The
same rypes of use ee md genemliation/specialization hientchy diagrm discused in
Chapter 12 car be ceted for each.ad additional sequcncediagrarnswi ako be neded

InterfaeDesignand Controlg
A nunber of spcial s)stem chancteristics should bc considered during both logical md
physicrl design.These characteristicsrelarero how uses ecs and intenct with the rytem,
including sign-on procedurer, inteEcrive processing,dd interative dialogu.
for Signing0n
Procedure5
Accesscontrol methods are establisheddurhg sptems design.\rith almost anv ryttem' con-
nol problens may e sr, such as crimhal hacker breaking into .he systemor m employee
misrakenlyaesing confidential data Sign-on procedua arethe firer line ofdeftnse aginsr
l}r*e problenr. A sign-on procerluc consistsofidend6etion numb6. Pdsords, and other sign-on procedure
sfeguar& necdedfor an individurl to gain accc$ to conPutr resources The sign-on' elso ldentiticalion
numbers,
Passwords,
andothersleguards needed foran
calcd a "logon," en identify, vetit, and authorize acce$ md usage(sceFigurc 13 4). Iden- indivdualto 9einaccessto compul_
dfierion neans ihat th compurer idendfies the user u ralid. If you mut enter ar
idenrification nuber and passwordwhen logging on ro a nainliame' you havegonethrough
rllc idenrification prces. For systcmsand applications rhat are more *nsitiv or sedre'
verificatior is used.Vrification involvd nteriig a additional code before accessis givcn.
Finaly, authorizrion resuicts the uer's accessto cerrain Pans ofa sysEm or aPPlition
Comider a credit-checking application for a rnajor crcdir c.rd omPary. To srant oedit' a
clerk nay be given only bxic credit informtior on the sceen. A credit noager, however,
wil have an authoriation code to sct addidonal credit information about r clinr'

@
TheLeveteof th6 Sign-on

InlaractiveProce3ring
Today, most computer ststens allow interactive proesing With this rype ofsltten' pople
dircd/ interact with rhe processingonponent of the system through terminals or net-
worked PCl Thc sysren and the uer rspond to eachorhet in real time, which mears wirhin
a maner of seconds.Inreracdve reat-rime Processingcquires sPecialdesisn fearuresfor e{e
 Pst. I syndnsD*etopmmr

of se, suhd nenudriven sysrens,help conndds, table lookup hcilities, and rcsrd
menu-driven
syslem pro.ed $. \a/ith a henu-driEn sysrem(seeFisure 13 5). s$ sihpl), pick whar rheywM,
System nwh ch usefs simptypick to do fron a list of alerndives. Mosr people en easilyoperatetheserypesof sysrens. I'he\
wha trhe yw:n rto do lr om a t is t of selecrthen choice or respondto quesrions(or promprs) fron the sy$en, and rhe sysremdod

@
Ameiu d r ve nsys t emat lows y ou to
ch oo sewh6 tyouwant f r om : t s l of

Submenu
--i

hetp la.ility Many designersincorporate a trelp facility inro the qsten or applicarionsprogrm. Vhe:
Aprogramthalprovdesassist:nce a uer is having di6cuhy underranding what is happening or whar rype of responseis er
when a lset is havtngditliculty pecred,he or shecan activaretie help tadli+ TJrehlp s.retr rclaresdi.erb' .o rhe probler
uf de.standingwhat i. happe.ingof
whal type of fesponseis expecred. rheuer ishavinswnh rhesoftmre.The programrspondswirh infornation on rheprogr:r
sratewhar posible commandsor selecriomthe usercm give and what is expectedin rern,

Incorponting tables within 3n .ppliqrion is mother very usenrl design technique

Lookup talles an be ddeloped ahd ued by @mpurrprogramsto sinpli! and shoner
T ablesc onr ainin
da g ra l h aat re data entry- For *anple, ;f)-ou a.e enrering a salesoldcr for a compdy, yor sinply trpe i.
devetoped andusdbycomputef its abbtwiarion,suchu ABCO. The progrm will then go ro the cusromertable,norm:ll'
pr ogr am s lo
s im p ti fy
a n ds h o d e n
stored oo a disk, and look up all thc iDformation pertaining to the .onpany abbreviar.:
ABCO lhar is required ro @mplere dre salesorder. This infornation is then displayedon :
screenfor conllrmarion.l he useof rheserabiesan ereventwdtins a fthendous oour:
o l u m e e n t enngLhe d{r overandoverag,i ni nro Lhe)n.m.
' ame
Ifa problemocur in the niddlc ofan application suchasa tenporary inrerruprior
ofpowerora printer nrnningour ofpaper the applicationcufuentlybeingrun is rypicali.
shut dom. As a result, easyro use mtalt prccedutes are developedmd incorporared inr:
5 mpill ed processestoccessan rhedesign.wi$ a resiarrprocedure. itisverysinpleforan individul ro resaft an applicarn.
appt cationlromwhere t teft ofl. where it left oft
GoodInteractiveDialogue
Dialoguerefersto the seriesofmessages
and promps conmunioted be*een rheq*tem r:
rhe uer. Frcm a useis poinr ofvis, good inienciive dialogr fron the conputer sysrem:
e$enrial,makins daraenrry fasier,edier. and nore dcuhte. Poor dialosuef.on rhe cor-
putercanconfruethc ucr andresulrin the wronginfornatior be;nsenr.ed. Ifrhe compu-
sFtem prompts rhe uscr ro cricr ACCOUNT, does it hean accounrnunber, r,vpeo:
rccourr, or some$ins elsc?Table I3.I iistssone elementsrhar help desisne6creareso,l:
intemctivedialogue.Thcseclcnentssho d be considered durins lslems desisn.
 syEtemsDesiqn mptemeilaton Manienance andRevew ch4ltor 13
I

i;ii;;.r''.r':.:r
di; oi the s(faei should be

Reiipecr.

Designof SystemsecurityandControts @
rh e .y * e m ' i n re rfu m d u' er i nrenri on' de' i gnenmut al ' o
In ddir ion r o c on ' i d e ri n g TheElementsof Goolt
d*elor *sem securitv and contols. These kev consideradons involve e or prsent'on' Intera.liveDiatogue
,l"t co.""rion; disaso Plmning ed recoverv;and svstemontrols'
"tio". "nd
Preventing, Detecting, andCorredingErrcrs
rr'. S*. r^.-*p"",i* tine rodealwirhPotenrial aros is earlvin thedesignphse'
"J
Durine insBllation o. after the sysren is operating it is nuch nore expensiveud tine-
consunine to hudle erors and related prcblens Good svsrem design attenpts ro P'evenr
steps
a'on befo-rethey occur, which involves recognizingwh't an happen md d*lopi"g
p--d"*' r'h"t.a" p.*nr, derct,?nd correci erors This proes includc dweloping
""d
a good backup systen that cm .ecovert.om m ero''
DisaslerP[anningandReaovery
can be
Disttet plam;ngis tlte procersof anricipating and providing for disdtes A disster
.i (" fl-d, nre, or eanhquke) or a huno et (terrorism' rror' labor unrest'
-or ensua
-t ""t..e imponant frle). Ar euthquake in Seatrle'fo' esnple, causeda onpanv to
of an
loseits releconnunicatiom capabititiesfot &1s' which forced the manufacturing conpanv
to shut down sone of its opemtions Discter planning olien focses P'intilv on two ssuer:
mrimainrne.Lheinreeri.volorpora,e injor-rrion od keePing'}reinli'rurion sv''em run'
.." . ^, 1 ; , . , 1. ; * .i .m o n b e re " u m e dA. Crl i rorni rh$ rharfore ho' P i rJ' ro be
e , r iquaLe- p, oo fh ap ' o m p te dh u g ei n v s me n s i n i nformari on suner H e:Jth'
" prem' r6
r" - ^" i i" S - l** i ' .., ir | dr
J b out$ bi U i on 2(' ho' P rbl 'to comP l ere
" 'll 'Pend
" ' i i m.e ' effora law
im disxter planning and reo"ery ro omplv with the California
.
Di.*t"; *."; is d"fi".d d ihe idplementation of the disotr plan Although com-
mav The mPtementationof the disaster
oanieshaveknom aLout the imponm@ ofdisastr Planning md recovervfor decade'
p.pu" The prinary tools ued in disaster planning and reoverv are
io .or
"d"q*tely didatabase, alecommunicarions, ud pesonnel balups The Nadonal
hrdware, s;ft\{ai;
Associadonofsecuities Dealer (NASD), for auple, lru ahle to recoverquicklv from tie
afrer
cffects ofhuricane Isabel.tTAcording to the chief rechnolog' otrcer, spe'ling a dav
"we've had flooding and sisnilicant power ouras6' bur we've not had anv
rhe hurioe,
n is ed r r anw, io n . W e { rn e d Pre p J ri n g ' e ' e rJ d rv' agorooure rhl w ehrdourbui ms
. onLindr y Dl, n' i n p l ,,e .- l n a n o rh e ro e d i e ' e l generdro^ manvbr' nk' brokerage\' Jnd
'I
cla,ing opendons in the Northeasr provided automatic ccoverv from a nssive Powr
 failurc thar tooh placein 2003.'r Thesedisasterrecoverys-*ens meantrh* thousandsr:
computerswereablc to prcces billionsofdollas oftranucions in rbe middleof the por::
Itlurc.
Hatuttunrc Bn hLP.ConPaniescommonlyforn arrangemeds wirh the; hardwarevend":
oradisasrerrccoveryomparyropouide access to a comparibleconputcr hardwaresvs.:
or addn;onalhardwarein the oenr ofa disrtcr. A duplicatc,opera rnrl hardwaresvster
fiar is readyto usc (or ihmediarecess to one througha spccialized vendot is an qamr
'
hol site of. hot sit.If rhep.indy compurcrh* problcms,the hot sitecan be usedinmedhrl' ''
A dup lca le,o Pra lion6thar dwar e r backup-Alother approachis Io usea.old sit, alsocalleda /e4 which h a ornpur:-
syste morimm date ac c es st o one envnonnent thr includes..,oms,clectricalsenice,releconnuricationslinkr, darasro'{'
t hrou gha sp eciatizedv endor
J * -e ..rn d rh. l rl c. l t a p.bl em o..un " i rh th p' ' mrn omourer' h" .l ' :p'om p'
hardwareis brought into the cold sitc, and rhe completesrsten is nade optrdonal F :
A co mpu tef nviron m ent t hat both hot and old sites.relcconmuni.rtionsFedia dd devicesre usedto providefar rr:
lfctud esfoo ms,ete c t fc ats eBr c e, cfficiemmnsfer ofprocesinsjobs to the disasterrccoveryfacilirr'
t ete co mmuncdtio nsI nk s d: t a
A nunber ot' lirms oflcr disoter recovcryserices Sun Microsystens,fbr *mplc, i-
stora gede vlces,an dt he t ik e; at s o 'l-hislarg. facjlirycd moDr '
doeloped thc Areric* Comnand Cenrcrfof its cstoncF
abour5,000Sunclientsto preventporenrialPrcbiens BusiDess R.ordsManagem.niott'::
rhe DilasrerRecove.yCcnrerin Pittsburgh,which providesrhe h.ikies, comPuters)srer:!
ard orher equiprnentfor recovenfron unplannedbusnrcssinrerrnpriors To provide:-
eilecrive,tully equippedworkplrceio tine ofdisoter or sPecialneed,the celrer cont!:'
technologrto ensurethat a businesstaysconncctedbothlocallyandsloballv'nrcludinglu-
rquipped compurcrroons for lool and remoteprocesingiwiring 2nd public bnn'h "
.hrnge i<ilides ro suPpoitvoice,data,facsirnile,and video releconnunicationsr'onpl':'
.
olices and seniceswith conferenceroons, privare oliices, and worlcration arc* to accor
modatemore than 250 peoplerand operaiionaland technicalsuppon to osist in reo -
ery.r')GuardianConpurer SuPporrisan internrdonalcohPutersupPoft'onlpanvP'oYrd''i
a mriety ofcomputersenicesincludingon+itehrrdwareand softwarema;ntenance, conc:::
dis*ter recovew,md ouisourcingseflices."
sta$Lng,

C omp anes tha ts!lte r a dis as t ef

can ehptoy a d saster recovery
se tuce,whch ca nsec ur ec r t Lc at :od . . ; ; )' d id , i; ), ' f r' : \ / F e L -| +
data backup ntormat on. These
setuicecompaniescan also pfov de
: fac t ty lrom wh ch to opefate6nd
comm!nicalo ns e q! ipm entlo s t ay
in louch with customers.

Sofuatc and Datab* Bdcr,l. Makins duplicarecoPiesof a.UPrograns,fiies'and dtrr:

backsup sofs'are and databues At lexr nvo backup copiesshould be made one copr c::
be keoi in the lS deprtnent in caseof rccidentaldestructionof the softwarerthe or!':
shoulJbe kept ofl-sit. inasafe,recurc,fircprool and ternperatureand humidiw-controll':
 SFlems oeriqn np(emenlaton Ma nl.nan.o and Rovew I Chapid 13

environment. A number of srjce conpanies provide this t}?e of backup environnent.

Oncle, for emple, otrer its c1$tome6 disasierreovery products for iis darabde systens.
A key objecttue is to help conpanies keep their +onmeice applications runing. Orade
Parallel Fail Safe,one of Oracle's disasterrecoveryproducts, car sitch frcm a failed \reb
sne ro a parallel Web site and rhen brins rlre failed Web site back online within 30 se@nds
ofia failure.
In addition to rppliotion software, rystem software, such c openting rystens, should
alsobe bacLedup. One apprcach is to run multiple operating sysems on the sane conpurer
systen or serer. Some *pens etimare that this approachcan saveasmuch 6 70 pe.cent of
rraditional backup cosrs.The primary disadvantageis a slighreduction in speedand per-
formme. Conpanie such d \4{Ware in California offer softwue that allow compurers
md sewes ro run up to 20 different operadng rysrem at rhe sametirne, including \rindows
3.I, \rindows XP, LIND( md orhe6.
Backup is alsoesential fo progms and data, induding datawaehouses and data marts.
Sone compdis provide datab*e backup sewicesby distribuiins critical daraio remoie daia
storagecenter. The center ae linked with fiber-optic lines ro allow the npid tnnsfer of
data to neededconputer sptems in ose ofa disxter. Companiescm alsousessophisdored
softwre to hdp conpaies mnage their distribured dau centes. The advert of nore dis-
nibuted sy$eor, lil<eclient/serer systems,meas that mmy usersnow haveimportmt, ad
perhapsmissior-c.idcal, data and applications on theil computen.
Utiliry package inapensively provide backup Gaturesfor desktop conputers by copying
data onro CD-ROM or CD-R\r dnk, rragnetic disk, or tape. Brt software md darab*e
backup c.anbe very dillicuh if ar orgnization has a large anount of daa. For sone con-
panies,making a backup oftie entire &tabase could take houn. A tight budgt may dso
prohibit backing up significant quanthies ofdata. Ar e result, somecompmia ue *lectiw seteclivebackup
brckup, which involvescreatingbackup copiesofonly cenain files. For dmple, only criiical Crealn9backupcopesol onty
files nighr be copied wery nighr for brckup purposes.
tuother backup approach is to nake a opy of all files chansed during the last llw days in(rmenlatbackup
or rhe lat wcck, r techniqre called incremenul brckup. This approrch to brckup ues ar Makinga backup
copy
olaltliles
inagc lo9 which is a sepamtefile thar oneins otrly chalges to applicadons-\qhenever an duri ng
changed l hetast iewdays
or
application is run, m image log is aeated that ontains all changesnade to aI nles. Ifa
problen orcur wirh a databue, m old &tabue wnh the lasr tull backup ofthe data, along image tog
with the inage log, cu be usd ro re-qeate ihe curent da.aba.e. A sparalfel l hatcont ains
only
T.l"connu"ication' Bdck"?. Mosr discter reovery planscall for backing up Internet cha.gesl appLi
o cations.
"ial
ard rcleconrnunications slsrems.This is especiallytrue for compoies that havesubstmtial
e-@mmerceoperations.Sorneplans night call for reco@ing whole neiworks. In other plans,
the nqr critical nodeson the nec,vorkare ba&ed up by dupliere omponenrs. Using such
fauft+olerur net-rorks, which will not break down when one node o pan of the nerwork
maltuncdons, qn 6e a more cost-effecti"e approach to tle@mmunications backup. IBM
ha an information sysrernto help monitor computer networks dd the Iniernet. The sysien
allow computer rystens ro monircr themselvesand nake charges that ae required * they
or then environmenr chmge
Pnonnel Backup. lnfornttion systernspersonnel must also have backup, which can be
acconplished in a oumbcr ofwals. One of the best apprcachesis to provide cros-tnining
for Is end other pesonnel so that eachindividul can pefom an altemate job, ifrequircd.
Ior example, a compoy might train enployees in accounring, 6nance, or other IS depan-
ments to operatethe slstcn if a disarer strikes.The onpany @uld also make an agreernent
wnh another IS depanment or an outsourcing compmy to supply IS penonnel, ifnecesary.
 I
| !!!1r i. !lr :!r Pft

TheSun GadDa t ! 5y s 1mhs 9h

a vatab t Iy comm andc ent er

comp an les con tinuous acly c es sand

Pro ce ssn torma t ion- wt hm nim at
d own tlme e ve nd u. ii9 a d s as t er
L so urceCou rtes ot
y SunG ar d
Un au lho f:edu senol per m it t edl

SystemsControts
Securirylaprs, frrud, anclthe im'asionof prnacy can preserrdisrstous problenx. For :
ample.becruscof rn inadetlMtesecuriqand.onfiolsstem, a linurcsrnd optn,nsrLade::
a IJritishbanklostalrout$ I bill ion.A simplesy*ens conrrolmighrhrvc prevented
a probi;-
rharcauscddrezooyearold bank ro.ollapr.In iddirion, fron tine to time,IRS emplo'..
luvc Lrcn.rught l,x)kingar thc rctLrrnsofcelebrlriesand orhers.Prevenriieind dcr..i : :
rhcs.prolrletusn rn impornnr pan ofs6tems design.Prcvendonincludesrhe follorvir:
. Dererminingporcntiil problems
. RaDkingrhe nnpofldce oftheseproblcN
. PlanninCrhe bcsrpla.e and approachro prcvcrt problems
. Decidingrhe be$ \ray ro hdhdleproblc'nsifrher o..u.
Elcir effortshouldbe madro pr.vent problenr, bur compoies h$r eslablishproccir.r.
ro handleproblehs ifrhe).occur.
Mo$ IS dparrmen$csrablishtighr systemscontrolsro nainrxin datasecuriry.S!$.:
Ru tesan dpro .ed ur c st o m aint an controls.an hlp p.evenrcompurcrnisuse,crime,and fraud by mdnagss,emplol,ees:.:
oftcrs. The accounlingscandalsin the earlv2000shrvc cased nsv IS deparincrr:
dcvclopsyeehs conrrolsro makc ir nue difficuh for cxccudvesto mnlead irvesors r: :
cmproves. sohe ofrhesescandals inknrd billjoDsofdol]rs.
Most IS det'anmenrshavca setofgeneraloperaringruLesthar heh proreft rhc s'n.-
lS d ep arrme ntsin whi. h only SomeIS detaftmenrsarcclosedshops, in rvhichonly atrthorizedopsaror caDmD rh...
!u tho rz do pe rat or sc an r un t he -
prters. Orher IS deparrncntsareopen shops,in which other people,suchasprogram:::-
and sysemsanallsts,rrc rlso .uth.rized ro run $c coDpuren.othd ruiesspeclrydrc r
du.t ofth IS depr[m.!'. -
5 wh . h people,
5 d ep afime n1 n Theserulesrre examplesof deter.ene conrrols,which involvep.everringproblcr\\ :.
sucn3 s p foq fam m er sands y s r em s
h,re th*occur. Makinga conputr morcsecurcald les vulnsable !o i brerk-inis an!,:.
a na tystsafe a(to wedlo r un t he
comp ute rs,n ad dlont oaut hor iz ed dample. Cood co!(ol rechniques should help a! organizatiobconrainand i..orer ir.
-
p mb l e m s .' l heobj ecri vcofcontai nnrenrcoD rrcl i sroni ni hi zethei mp. cr of apr obin\ r,
it is occurring,and rccorcrvcontn,l involvesrcspondnrgt<, a problem rh.r h.s rh.:l
deterrente controls
Ru le5an d pro ce dur s t pr
o ev ent
Manv t)'pesolsi{rcms .ontols may be dodoped, do.umencd, inpLencnied.rnd .
p rob temsb efo relheyo. c ur
viscd. 'l heseconffolsro!.1\ ill atpecrsofrh. orgenizetni (re Table 13.2).
Once coDuols.r. dereloped,ther shorld bc docuhsrd ir va.ioussrandardsma.:l
rhat indicrrehow rhc conttulsd ro bc inplcntntrd. Tnev should thcn bc implemer:::
md frequenrivrcvicwcd.It is.onrmon pracriccro measurerhe qrent ro which con::
techniquesarc uscdrnd to trke actionifthc conrrolshrvr not beenimplcmcrred.
 @
f' l a i n ta secufi tyThei rpl rpose sl o
n i n p u ti n te g fi t yand UsingSystmsControtsto
reduceerorswhrle protectingthe computersyslema!a fst Enhance5curity
imprope.or f .aud!lentinput.lnp'ri controLsrangef.om
stafdardEednputiorms to etiminaiingdata'ei try
'rsrng
e r.o .sa n d!s n g ti g h tpassw .rdandi dentfl cati on coni rol s

D e a lw i ths ti .s F e c t. o f processi ngandstorageI he !se

o f p a s s w o rdasrd i d e n ti l i c.t.nnumbersbackupcopes
o i d a ta a n ds to ra g ero omsIhathaveti ghtsecuri l ,
s y s te msa re x a mp tes oi pfocessi ngandstoraqecontrol s.

o !tp u tg e n e ra tefro d mthe comp!tersystemi s fecorded

l n a i l l e i h :t rd i c a i e st he .eporl .anddocuments
that
w e .eq e n e ra te d l h e ti m etheyw e.egenerated,andthe.

D e a L w i the n s u r i q a n etl ci entand effectl vedarabas

s y s l e m.T h e s ec o n trots ncl udethe use ol l de.tl i rcati on
n u m b e .sa n d p a s s w ords, w tho!t w hi cha user rs deni ed
rc c e s sto c e fta i . d a t aand i fj ormat on Manyol these
o-l o. a o r o \id F d b, da.cb"." a )"9"-"ri 5/sLea ,
" "

P ro v l d ea c c u ra tea n dreti tsbl data

e and nfo.nratron
tfa n s fe ra m o n gs y s tems Tel ecommuni cat ons cont.ots
rnct!de fkewaLtsand enftyptionto ensurecorrecl
w h i teel i mi n.i i fg the potenti aL
c o m m !n j c a ti o n fo.

M a k es u reth a to n l y a !tho.zedpersoi nel hav accessto

c e fta rns y s te m sto h e Lppreventcomp!ter .el ated
mi s ta k e sa n d fi b e . P ersonneL contfotscan nvol vethe
u s eo l i d n ti cl .tl o nn !hbers andpassw ords thatatrow
o n tyc e rtan p e o p l ea c ce5s to partcul a.dataand nformati on
l D b a d g ea s n do th e rs ecurtydevcesl suchas smartcardsl
.r 1 o r - ve 1 r o r i.6d o4oo 6 t-on 4. e ri 9.tro dq
- cd - r ,
a re a si n th e rn l o .maon
t systemsfacLi ty.

M a n yc o m p a n r euss e D b a d g e eto
P r c v e nut n a u l h o r i z oadc c ssl o
s e f s t v e a r e a s n t h e i n l o fm a to n

l S o u r . e O N o e LH e f d f ckso n /
 G e n e r atinSyste
g m sDe sig nA[te r n a tive s
Wlen individuals or organiations require a sysren to perforn additional functions that r
qjsdng s)'srencannorsuppoft,they olien rurn to oursidevendor to designand suppiythei:
nw sysrens. Srch purchasesrequire *penise in both htdware aod softw*e. \rheths :r
i rJ i ri d u rJ i ,purch.rng,pa.orJ,omourerora.ompJn)nr.,l ui ri ng3(rpen' i! en'i-
l
frame co-puter, the rystem co be obtained from a sinsle vendor or nuldPle vendos
Florida'basedFideiityNarionalFinandal,for emple. usedthe single-vendot approach,;
acquirer centralizedinformationsysrem.z']The companyselected IBM for its nulrimillio:'
dollar project to speedptocesing for the $8 trillior of mongagesand loms it process
for large bani<s*ery day. In sone oses, the vendor sinply prcvides hrdware or solir*
In orher cases.the vendor providesaddnioml sewices.Someofthe factos to consider,:
selectingavendorarethe ollowing:
. The vendor's reLiabiliryend financial stabiliry
. Thc trDe ofsetui.e offered after the sale
. The gods and swice rhe vendor offe6 and keePsin siock
. The vendols llingnes to demonsrniei$ products
. The vendor's ability ro repair hardware
. The vendois.bilily to nodifr its softwaremd ia willingnessto irvest in continue;
developnent of ia soliere
. The availabilityofvendorofferedtrainingoflS personneldd systemusers
. EvJuarionsoflhe vendorby independentorganiarons
Vhen additional hardmrc md soFrate are not required, alternative designsare otrc
generatedwithout inptt from vendon. Ifthe nw sysem is onplex, rhe originaldevelor-
meni ream may wanr to involve other peronnel in generatins akrnative designs lf ns
hardware and so6aare are to be acquned fron an ou*ide vendor, a fornal requestfor prc-
DosalGIP) shouldbe made.
Requestfor Proposats
requstlor proposattRFPI The request for proposal (RFP) is one ofthe nosr impoftant docunenrs senenred duti\
A docu men tthaspe
t c if esin det aI rysremsde"elopnerr. It often fen !s in a fornal bid ihat i ued td determine who ses :
requifedreso!rces such as hard- connacr for new or nodified qstens. The RFP specific in derail the reqdred rsources su-:
a hudware md software. ile it can t&e time md noney ro dwelop a high-quaiity Rf?
ir can swe a conpdy in the long ron. Conpmies thar frequntll gederateRIPS can auroma!.
rhe pro6s. One conpany, for *anplq puchased a softwre package,called The RIP I{:'
chine from Pragnatech Softlee, to inprove the qualiry ofi$ RFPSand io reduce rhe dft
it tales to ptodue them. The RFP Machine storesimporlot data neededto genenre Rf:
md automatesthe processofproduing RFP docments
ln someqes, sepere RlPs re d*eloped for difTerentneeds.Ior exmple, a conp*-
nighr deveiop sep*ate RlPs for hadmrq software, and &taboe systems The RFP alr-
conmunicares rheseneedsto one or more vendon, md it provides a my to evalute wheth<
the vendor hu deliveredwhat lru qprcted. In somecases,the RFP is madepan ofthe vendo:
conirecr. The Table of Contn$ for a rypical RIP is shown in Fisure 13.6
Financiat
0Dtions
VheD ir comes io acquning conputer slsrens, s*enl choicesare available,includiog pu-
ch*e, leue, or rent. Cct objecdvesdd consiraints ser for the s)'sten play a sisnifiqnr roi.
in the afternative chosen,u do the advantagesod dhaduatases ofeach. Table 13.3 sum
marires the advmragesand disadvmtagesof thesefinancial oPlions.
Deternining which opdon is bet for a ptticular omp / in a given siruado. @n :<
dimcult. Finan.ialconsidrarions, dlaws, the olganiatiors policies,its salesmd tran*:
don srowrh, ndkeiplace dynanic, and the orgmiationk finaocial resourcesare all imp".
ianr facros. In sone cses, leue or re"tal feeson mount ro more than the orisinal pu!ch.<
price after a few yem. As a result, some ompaies prefer to purchoe their equipment.
On the other hmd, constmt advancesin tehnolos'. c.n make puchxing rislry. A com'
pany would not wmt to purchoe a no multimillion-dollar conputer only to ha.=
rewer and more powerful ompuren availablea fv months larer at a lower price, unles +c
 9/!.n!D .!9' n1"ei .i rnc.

@
A TypicatTabteof Contenlsfor
a Reoueslfor P.oDosal

OV ERVI EW O ft hE EXI STI NG

CO M PUTE5RY 5 T E M
SU M Tv I ARYoI C0M PUTER RELATEDN E E D S a n d / o r P R 0 B L E M S
0BJECTIVES of lhe PR0JECT
DESCRI PT 0N ot W HATlS NEEDED
HARDW ARE FEO UI REM ENTS
PERSO NNEL REO UI REM ENTS
COM M UNI CATI OREO NS UREM ENTS
PR0CE0UREStBE o DEVEL0PED
TRAI N] NG REO UI REM ENTS
MAI NTENANCE REQ UI REM ENTS
EVALUATI 0N PR0CEDURES lhowv end o r sw i l l b e j u d g e d i
PROPOSAL F0RMATthow!endors shoutdrespondJ
IMP0RTANTDATESlwhen tasks are to be completedl
SU M M ARY

Rentingl5horl-TermOptionl
@
Advantagesa.d Oisadvantages
of AcouisitionOotions
No risk oi obsotesaence Noownership
of aq!ipmeit

Nolongt er mf l n a n c i ai nt v e s tm e n t

No inirislinvesthenl of t! nds Re;dcii6 ientalagram

nis

M aint enanc
useu a tl lyn c l !d e d

LeasinglLonger-Term0plionl

No risk of irbsotescence High.coslof caocting

1a5e

No t ong- t e. m
I i n a n c i ai nt v e s tme n t L ongerI mecommtmentthanrefti f9

No initiatinvestmenloffLrnde No ownershlpof equipmeni

Les sex pens i v e th re

a nn ti n 9

Purchasin9

Totalcoitrot overequlpnent Highinit EI invesiment

Cans et t equpme n a
t t a n y t me A d di ti onaLcost
of ma nl enance

Candepr ec iaete
q !i p me n t PosBibitily
oI obsotescence

Lowc osift own e dfo ra n u rn b e r 0 th erexpenses,

i nctudns taxesand
 Pda I sFe-' D*"t"p.*l

computer @n be esily and ioqpensively upsmded. Sone scwer, for cmple, are dcsignei
ro be rahbk a allow proeson to be added or swapped, nenory to bc upgruded, arr
peripheral deices ro be ;nstalled. Companies often employ soeral people ro derermine rh.
bestoption bued on all rhe hctor. This statro alsohelp nesoriarepurchce, leue, or rena

E v a l ua tinagn dSe te ctin ag Syste m sDe sig n

The ffnal stepio systems designis to mluare the variou afternativesaodselecttheo". d'-
will oFer rhe bestsolutio" for orsaniarionalsoals.Dependingon then weighr,any o"e,r
rheseobjecrive may resulr in the selectionofone desisn over mother. For *mple, finance
conerns might make a onpany chooserental over equipment purchar. Specific perfor
nue objecrive*say, rhat rhe nqrystcm musr perform online daraproessing mayr*ui-,
in a complex network design for which control prcedures musr be esrablishd.Evaluarins
and selecting the be$ desisn involves achioing a balme ofsysten objectives that will be<
support orgmiational goals.Nornally, the proces ofsalurrion and selectioninvolvesbo=
a prelininary and a final *aluador before r desisn is sel<red.
ThePretiminary
Evatuation
prtiminaryevatualion A prelininary *alution beginsafter all proposalshaveben submined. The purposeof tl'-
An in tlat assessmentwhos pur mluarion is to dismis unwnted proposals.Soeol vendon can uually be eliminated F.
posisto dismisstheunw:nledpro
investigatingthen prcpos.lsandconparingrhemwith the originalcriteria.Thoserharcon'
posats;beginsaft-ar.tt proposats
prc favorably are aked to make a formal presenrado" to the anal)s;s team. The vendo:
should also be asked to supply a list of compuies that use their equipment lbr a simil:
purpose. The orgmiation then @ntets rhre refcrencesmd oks them ro qaluare tha
hardw*e. then sofrmre. md rhe vendor.
TheFinatEvatuation
finatevatuation The final erduation begins with a detailed investigarior of the proposals offered br lbt
A deteited nvesti$lloi ollhe pro renainins vendors. The vendoa should be uked to nake a ffnal presentation and to liL:
posatsollered by the vendors
demons:raterhe slsre-. The denonsration should be a.scloseto actul openting condnios
remain ng alter the pretiminary
asposible. Suchapplierionso papoll, in"eooryconrol, and billing shouldbe conduot
uirg a large mount oftet data.
After the 6ml presentationsand denonstntions haveben given, the organization malc
ihe final evduarion and sdection. CGr @mparisons,hudware performance,delivery dats
price, flexibiliry, backup facilitie, availability of software tnining, and naintenoce tacro..-
areconsidered.Ahhough ir is good to compue ompuar speeds,storagecapacitier,add odF
similr chd.ieristio, ir is also necesary ro oretully uabt whethe. the charete.istic d
the proposed sysiemsmeei rhe conpdy's objecrives.ln most cdes, the RFP capturs ths
objecdves lnd goals.Figure ll.7 illusintesthe evaluationprcess.

@
rhe stagesin Pretiminaryand
Finatvaluations
Noteth atthe n!m ber of pos sble
atternativesdecreasesas lhe f rm
ge tscto se rloma k ng a f inat
 sysr.msDe.iln mpremedaron I cmptu" te

Te c h n i q u e s
Ev aluat ion
Tbe es.t procedure used io rnake rhe final evaluarion ard selection varies fiom one orga-
niarion t drendt. Sohe werefirerintroducedin {Jhapter2, includingrerurnon investnent
(ROI), e*nings growth, n*ket slure, ostomer sarisfactiob, dd roral cost ofowde6hip
(TCO). In eddiiior, four otherapproaches a- onmonly ued: grorp con*mr, ost/ben
benchnarktesrs,and poinr waluadon
efit analysis,
GroupConsensu5
ln gmup onsosu, a decision-making grotrp is aPpointed and given the rcspomibiliry of
Decisionmakingbya groupthat is
makine tlre final saluatior and selecn,n. Usully, this goup includes the menhen of the
appointedand giventhe respons-
doelopnent tcam who pani.ipared i! eidE sysrcns malysis or rystcm deign This ep- b L n yo l m a k i n gt h e l i n a te va tu a ti o n
prorch night be used ro o:lurc which of s*erJ screenlayous or reports formars is bot
Analy5is
Cost/Bnefit
Crst/bene6t aalysis is an approreh that lisrs the osrs and benefitsofech proposedsystem (ost/benefitanalysis
An appfoachlhat liststhe costs
Once dpressed id nonerary terms, all the cosa are conpued with all the benefirs Trble
and benfls oi each proposedsys
13.4 lists some ofthe typical costsand benefia asociated with rhe flaluatbn end selection tem. 0nce they are exPressedin
procedure.This approth is usedto evalute options whose costscan be quantified' such u montaryterms, aLithe costsare
which h*dware or softw*e vendor to selct. comparedwith atl the benelits.

nxn it Anatysi5
Cost/Bnef Tabt
@

Redu.Edronuraclur ng .o3rs

,,iore eLicientut. ol equipmsi

Redu.edddiihe orc6sh tim.

Hbherpn.asa r6utr orbetler

si3tn 6sid t; pdq,amm*

a n d uss

tlS*Xi?*i
,:il!i@*!4t1],:.:l.l::i iir:**
 Pst 4 l5 l m ,DP.e tDp m q l

BenchmarkTesls
A benchnark test is an exdinarion thtt conpres comPutersysiensoPeEt'ngundr tl:.
An examinationth:t comparescom smc condi&,ns.Most computercompaniespublish rhcn own bencnmarkresrs'hut sor:
pu tersyslemsop er : t inqu. de. t he ofbenchmarktsts wirhout Prior wrirrcn aPP.oHl.Thus' one of th b-:
forbid disclosure
apprcachesis for m organization o develop its own tcsrs, rhen use them ro comPare tr.
equipmentit is considernrg.This approachm;ght he uscdro cohPde th. cnd-usersvni:
respomerine on two similar rysems.Soeral independentcompmiesalsorate comPutt:
sysrems.Conpanruo /, I'C Magazine, and nany ott'er publierions' for example' not on
sunmarizevrious sptems but alsoevaluaremd conpa.e conpurcr s)stemsand manui::
turcrsecording to a numberofcircria.
PointEvatuation
Oneofthe disadvaongesofcostibenefit dalysis is rhedimcuftyofdete.ninins rhemonet-
pointevatuation
system valuesfor all the benefits.Ar approachthat doesnot enploy monErl valuesis a Pom:
An evalu alo n p roc es snwhic heac h ewluation system. Eeh aaluatio. hctor is assigneda weighr, in PercentagcPoints. be:
evatu atiofan cto r s as s ! ned a on impoltancc.-l-henee.h proposedinfornarion systenis evaluatedin terns ofthis farrr
weigbt,in perceftaqepo nts, based
and givena scorcrangingfron 0 to I00, where0 me.nsthar thc aftemdve doesnor addr-:
on mporta.ce.ThenachProposed
syste mis e va lua t ed in t er m s olr hr s thc Garu.e at all and 100 m.ans that th altermtive addreses rhat feature perfccdv I::
lactorand I ven a scoreranqifg scorcsare totted, and rhe systcmvith th sratesr rotai scoreis sclecred Vften using pot::
Irom 0 to 100 The scoresafe evaiuation,m organizationan lisr and ev.tutc lite.ally hundredsofhctom Figure ll !
tota teda, nd lhe s y s lemwir hlh showsa simplifiedversion ofthispoess. This appcoach is usedwhentherem nanv optir::
greaiesttotat score s setecld
to be qluted, suchowhich softwre bestmatchesa Pafticularbuinsss needs.

@
An ltlustrationot ihe Point
Evatualion System
15 ,ll! I '5 lr' 1 :
In lh s ekmple, softwarehas been -5
l ', {t r '. ), 15 .,Ll l! U l
g ven lhe mostweight 140percentl,
ea )t!, !1:5 t0 i ,tri 225n
comparedwithh:rdware {35
p ercen tlan dven dors uppor r125
percentl.when systema s o2! I 9r'15
e v6 L!a tedth, e to t at oilhet hr ee
Isctors amoLntsto 82.5percent.
SystemsB s raling, on lhe other
Becausemany clemeor nsr be @nsideredbefo.e en organiadon cm make a ii'-r
hand,totals 86.75percent,which rs concernsnig::
selction, point evrluationcanincludca lrrgemnbcr ofhctrs Performance
cto se rrol00 pe rc ent . Ther ef orte,he
indude the depc::
includespeed, stongc epacity, md proesing capabilities. Costsmighr
i rm choosessyslem B.
requiredon @nudt signing,p.ymentschedule,, leasernd rentalarangements' nante nr
to rhc -
@sts,dd availabilityoflering dnpaDies en all rhesefa.to6 are added Parl:
evalution system,a eery large grid cm resuk. The rcm of rhe grid list rhe vdous factr:
inponut to the dienr company,md the colunns of the grid representthev*ious rcnlt:
th.t respondedto the requeslfor proposal. F-venifwcishts aJenot used,a chtt ofrbn 6-
can be very helpfin.Sone conpaniesjust ue checknarls m indicatewhich vendor h:':
satisiedcerrainhctos.

n Sp e citica tio n s
F r e e zin gDe sig
Near t}'e end of the design stage,sone organizationsprohibit finher changesin thc d$-
of the system.Freing systemsdeign specifietions neans that the uer agreesin sttr: 1
rh lhe desisnjs a<eprable(seeFigure13.9).Other orsniations, howevo, allow or o::
enoutage design changes.Theseorydiarions often se agiLeor rapid slstems d*eiopn:::
approaches.intoduced in Chapter I 2.
 sysremsDesqn lmpLementalionMa iienance.rnd Rd!ew I C*pr" t"

w
FreezingDesignSpe.iti.ations

.f*"fiiJ:i"".

-a-i

Th eCont r ac t
one of the most inponanr steps in lstems design is ro d*elop a good conract if nN
computer facilities re being acquned. Finding the bestterns where weryone nakes a profit
cd be dimcul!. Most onputer vendorsprovide standardonrrca; however.stch contracts
ate designed ro protect the vendor. nor neessarily the organization buying the computer

More dd nore orsanizations& using ou$ide consdtmts and iegal fitnN to help rhem
dwelop their own conrrcts. Suchcontructsstipulate exa.dy what they *Pct {ioh th s/sten
vendor and whar inerrcdon will occur berweenthe vendor and the orgaoization. All eqdp
ment specificarions,software,reining, insralation, naintendce, and so on areclearly staied
Also, the contncr sdpul.tes deadlinesfor thc variou sragesor nilestones ofinstallation and
inplementedon, !s w.ll as acdons that rhe vendor will rake in c*e of delaysor problens
Sone organiations include penafty dausesin the contracr, in e* rhe vendor is unable to
meerits ohlisation by rhe specilied date. Typicalln rhe requestfor proposil beoms Part of
ihe @ntdl This savesa considerable amounrofdme in developinsrhe contrrct, beceue
rhe RFP soecifies in deail what is expectedfron thevendors.

TheDes ignR e p o r t
Slstem specifications are lhe final res!-tis of ryrtems design. They include a tehni.el
descripdon that deteils systen ourpua, inputs, and urr interfaes, a well as all hardwue,
sotsrare, datab*es, telecommunications,personnel,and procedureconponena and rhe
-ay desi9nreport
rhesecomponenrs are lelated. The specifrcationsare conBined in a dsign rcPon, whi.h is
fbr
rhe primary result ofs)stens design.The designrepon refle.ts ihe decisionsmade s/stens Theprlmaryresutl
orsystems
design,reftect ng the decisons
desisn and preparesihe way for systemsimplementation. The contents of the design repon m 6 d ea n d p r e p a fn 9 t h e w a yl o r
aresumrnarized in Figure13.10. s y s t e m sm p t e m e n l a to n .
Ir is imponanr to mdeBtand and thoroughly complete the systemsdevelopmentactivities
.overed in lhis chapter for dy new sptem. Thesephasesprovide t}te blueprinn md ground-
work for rhe rest of syaens dselopment. The activiries of the nen phaseswill be euier,
fcrer, md nore mrnte and will resuh in a nore efficin!, effective sltrem if rhe desisn is
complete and *ell thought our.
Prior ro irnplenentation, experienced ptoject nmasers place fornal onuols on the
project scope.A key conponent of rhe p.oces is to rses the cost md scheduleinpact of
eachrequestedchange,no matter how small, and to decide whether to include the change.
Olien the user and rhe project tem decide to hold all changesunril the original efron is
conpleted ard then prioritit rhe entne set of requeseo cnuge
 Pdt4 | s Ft Pnsr der . r t u, r

@ & Ftori nnc

Johnson
A Typi.atTabteof Contenlslor DesignRport
Systems
a SystemDesignReporl

EXECUT VESUMf,iARY oiSYSTEMS

D E 5GN
R E VE W oi S Y S TEA
MSN A LYSS
MAJORDESGNRECOMMENDATIONS
h a . d w a . ed e sq n
Softwaredesign
Per5onnetdosgn
0 o m m u n r c a h o nds s g n
0alabasedesgn
Pro.du.esde5r9n
T r b l nn g d e s q n
M : n t e n a n c ed e s i q n
S U M M A RoYf D E SG N D E C I S0 N S
APPENDIXE5
GL0sSARYoITERMS
INDEX

SYSTEMISM PLEM ENTATI O N

Afier rhc infordrion svstcnho beendesigned, rnunberoftasks n*t beconpleredbeio:.
systemsimPtementation rhe qrtern is installedand rcadyto operate-This proes, calledslttens implementation.
Stagof systemsdevelopmentthat indudeshardwareac.luisition,sofrwareacquisitbno.dcveloPmenr,userprepararion, btri.:
incL!d esh a.d war eac q! s r t on, s oil and traidng ofperv,nneL,sircand darapreparation,nrrallation,tesing, starFup,and u--:
warea cq ! sit o n or dev elophenl
acceprance.'rhetypical sequeneof systemsinplemcnrarioDetivities is shown in Figu:
userp rep ara tion,h r ngandt r a ning
ol personneL, sit and data prepa.a 13.11.Companies.d rcapgrearroards alier implemerting ns systems.United Par.:-
\e n i \r r,{ e\rmpl c.i Tpl em(n,.,ir $J0 mi l i on p,oi ..r,o mprovehor pa, l, r =
, rnq,s f ad up,
tion , nstatta tontes ' ( f5r.
flow and arctrackedfron pickupthroughdelivery.'zr UPs'srewefidencies shouldcutmo::
rhaD100 million deliveiyhiles and savcthe ompany rbour 14 mill;on gdlons offtel l:
the banking indurry, FleetBosonlinlncidl Corporationimplcmenteda $10 nillion l:
projecro cnt:lizc all ol its neeork opererionsin one roon. Thc proiecw;ll allow f1.."
Bostor ro cut in lS saffand saveabout 3,500 squde feet of officesprcethat wrs tscd r:
sroreneNorkins cquDmnt.

fr o m a n lS Ve n d o r
A c q u ir in gHa r d wa r e
To obrainthe.onponenrs for an infornatior qrtem, orgenizarions @n Purchse,lcde. i:
rent conputer h*d*are and other resources from an iS vendor'eBay,the populatInten:
J i o n .ire.ro, .\Jmpre " cqui redhurd,.,i ' ot l ' r' rd$rF.e^d. ro i n.n ' .e r \ c 'p<d *:
reliabilitvof its computersysrcm.']{lhe old hardwtuccouldni preventa cruh that l*r::
abour r dav and cost eBavrbout $4 nillion in los salesand $5 billion in the valueoi::'
stock.Thc newlyacquiredhardwarek available99.94percentofthe timc.
An IS vcndor is aconpmv rharoffe^ h'dware, sofrvarc,lelecdmmunicariors s)5tt6-
databases.IS pcronnel, and/ororhcconputerrclatedrcsources. Type oflSvcndorsinclc:
generalcompurcrmanufactures(e.s.,IBM and He$1ett-Packard), shall.onpurer manL
facruren G.g., Dcll and Gaeway), peripheralequipnent m.nufacturers(e 9., Epson fi
Cannon),conpurcr dealersoddisriburon (e.g.,RadioShackandCompUSA)and lersir;
compadies(e.g.,N.tioDal Conpul.. L.asinsand PtuamounrComPuterRentals,Pl.C).
 SyslemsDe59n rmpLementaiion
Ma ntenan.e.andRevew I Chrptd 13

@
Typicatgteps in SFtems

P e rs o n n eht:i ri rga n di r ai nl ng

CompulerdealeE,s!ch as
compUSA,manufaciure buildlo
systems
ordercomputr andsell
:nd s!ppliesiromolher
computfs

I nc. l
C oudesyol com pUsA,
l S oufce:
 Pu t4 I s r t em sDdet oom m t

In addition to buying, leasing,or tenting conputer hardware, it is posible to pay onh

-
for rhc compudng sewicesthat a company uses'z5Called "pay-u-you'go," "on-demand o:
''utility' omputing. rhis approachrequiresan organizationto pay only for the omput-
powerit uses,asit would pay for a utility suchaselectriciiy.JPMorsanChse' 6r qamPl.
is buying only the conputer rcsourcesit needsfroh IBM. Hewl$'Packard offcs its cl;en:
a "capacity-on'demand" approach.in which organizadons pay accordingto the @mPut-
rcsources actuallyused,includingprocesors,sroragedoices, and nework hcilnies."'
It is alsoposible to purch*e usedcomputerequipmeni This option is especiallv attr{
tive ro firns that arecpetiencing o economicslowdown TraditionalIntetnetauctions*
often usedbyconpaniesto locateusedor refutbishedequipment.PoPuld lnternetauctio:
sies sonerimessellnore tha" $I billion of@nPuteFrelaredequipnenrannu.lly' andcor-
pmiesen purchcc equipmentfor about20 or 30 .entson rhedollar.However'buver ne.:
ro beware Prices re nor always low, and equipnent selecrioo can be linired on Inrernc

In addidon,conpaies are;ndeasingiyruming to senjceprovide6 to implemen.soe

or alLofthe rysremsthey need.As dis.used in ChaPter4, an appli@rionseric P.orid=
(ASP).d help a compdyinpLenentsoftwareandothersystems. The ASPcm provideboc
end'user suppon and the conputers on which ro run rhe softwde ASPSolien focusoDhiSL
end appliorions, such x da!.ba* systens and enrerprise resource Planning packages t
mentioned in Chapter 7, an hrrnet seryiceprovider (IsP) nsisrs a @nPany in sainjns ac.s
ro rhe Internr.ISPScan alsousist a conpany in settingup an Internetsire.Somesenir:
providers spccializein specificsystemsor areas,suchu markeriry, 6nance' or nanufacrMr:
Ifnew hardware is to be purchued or leued, old hardware may have to be disade:
Eachyeu, nillions ofcomputer rc discardedbecause new conputersareacquired:71}x
acquiring new hardwte car also mean disposing of older hudwm. Some hard*are can *
donatedto schoolsand charitablc osanizations. Sone conpmies recycleh*dwarc. Sou
staresareconsideringcharging up to $10 od new PCs as a recyding fee

A c q u ir in gSo ftwa r eM
: a keo r BUY?
A. q i r\ h a rdqare,ppl l ati or .ofi * are.rn be n qu:red.everulrry. tu pre r ouJv m +
tioned, it cm be purchasedf.o- *ternal doelop.r or d*eloped in house.This decision:
decBion
make-or-buy often called rhe nale-or-buv decision Aloka Airlines, for exmple, deided to purch:c
whelhef lo
Th de csionre ga r ding so6mre for itsInternet serch enginefor fare od prie'?3 The purchred softmre alloe
obta n lhe necessarysollwarelrom ns cusiones more choices fot flight schedulesand prie To shae the cost of in-hoe
internator externatsources.
softwared*elopnent. Coca-Cola Enterprisesand SA?. a largeERP softwareonpanv' ha<
decided to jointly doelop softwarefor beveragecompanies.:'According to the CIO ofcc
Cola, "This should improve narket secution, and the consumer will exPeriencebeit-
ser;ce. " In sone cares,companlesusea blend of*ternal and internal solivare developmex'
't hat is, off-rhe-shelf or prop.itary sofrware Progms are nodified or cuaomiad bt i:
housepersonnel.Softwarecan alsobe renred.roSalesforce.com, for enmple' rens sofsr:
online tbat helps organizationsmanagetheir sales force dd intertut st,ff lncrearinglv' s:-
wrre i. beingviewedx r uriJirl or rn i.r. nor a produ, r you pu', h*
Slerem iolr:aare, such as operating q*tens or utihis, is g?icallv purchued from :
softwareconpany. hcreasingly,however,.ompaniesare obrainingopen{ource sv$e-
so&ware,such asthe Linu operating slstem, which can be obrained frce or for a low c6'
Software
ExternatlyDevetoped
Sone ofthe rerons a company might purchoe or le*e externallv developedsoftwareindun
iower costs, les r;rk regrrding the feature and performance of rhe pakagc, md e*e c
insrallation. The co$ of rhe ofmte packge is known' and there is lnde doubr rhat n *a
meet rhe conpanyt needs.The amout of dwelopmenr effort is also les when sofrwae *
purchued, conpared with in-house ddelopnenr.
Open-souce software, a fint discused in Chapter 4, cm subsiariallv cut rhe @$ .:r-
sofware acqdsiiion. OPen-sourcesoftware includes openring rysrcns' zuch as Linu, atx
numerous application software p.&ages, including the MvSQL databaseprkage. 5<
Chorer 4 for nore infornarion on open-ourcesoftwte.
 sys{oms
Derqn, mpLem,"iraron.
Ma,ntenan.e
a.d Review I cUpt",.u

NewmarkellnternationaL, which
r.ventedhospitatity$tesandvent
managemenlsoflware, ff eated
Detphi,a Iorecasting6nd lrackinq
toot thal givessalespeopleinstant,
updaledon-screenroom
Inrofmalion,includinglrans ent
commilments,tafgel r:les, and

(5ource,Courtesyof Newhafket

If a onpany chocc oFthe+hclf or contnct so&wre in its no

sysrens.it nut tale
rhe 6)lowing sreps:
. Re!;etuftals, lequ;rneits, atu! .o,tt. js
It impqtnt ro maly"r llle program,s abititJ, ro
\arLry u,cr rnd orslni,|onJ necd.. In ,omf cae,. pu,, h,rd .ofrv,;
do*ni !;,6
d l o f or s , nia, io n ..re q u i re m e n r,,rm i g h rh J re rear,,.,,h,,_." .,.* ;;;--r.fr-:;
coss are a$o mpo.rant. ln nost qses, software can be purchded
for unlihjrcd use or
.4 ,,S,, it , - f ia' ^M r ny o trh e rp p ro a c h e .d i \u ,rd i n p rNi ob\erob.i n(tudi nqrhr
oflrbpmenr or F9(rr Inr proposrt..pertormingfinanci,l,nJ)\F.
od nrgorir in; rhe
:orw&e conrEr, shoutdbe udemken
. Mod;fr u cutoniz tufud,a Extemaly
dqcloped slimre seldon doesqervthine tfie
orsoia,ion I equirA.So.(\rcrnr v deLetopedsotMrc m,)
hNe,o b. nodifiei ro j i,6,
u.cr rnd o,SJniarionJ need..\ome \orrwre wndo^ wilt n,;r
wirh rhe modifi,arion,
bur orhers inay nor atlow rh* sofrw:re to be nodified at a[.
. A.qunc to./t,at. i4t.rfarcr Urualty.
proprieury rcrrwe rcqu,re, sftqre iorerface.
progam modifiurion. rh,, ajtowp,,,pri.rrry \ofr$rre ro Prog16mso.prograh modifica-
wtrK q n otntr rrture ard "r
in dre orgrniztion. For tuDpte it an orgmizarion tions lhat attowproprietary
pu(nar\ J p,npne(,n invenrorl ,ofmre prJrgc. r.ftwrF inrerf,Le, sonwareto work with olher
m6, Jt@ ,tc
$tN{e ro rdt w'rh olher p,ogrm\. ,ucfi 4 .Je. orde,ins r.j soltwareusedin the oflanization
'w biUinsomellh.
. an.i.a@ptthc,aliwal4 EIchrUy dsetoped stk{c
,r^t ,hudl br @mpiekty-r$Rd
by urh In !h( envircnnenr ih whi. h ir is ro M beforeir i. a.repred.
. Moaht asd ndiataib the sofuare
dnd tuhe nodifb,k;. wittt neny tuRNte
applicadons.chanss will likely have to be "e.fudt,
hade over'rihe. Thi,.p.a;h."ld b.
.onsidered in advan e beatle, ,s henrioned bfore,sohe sft@rc
*!d;s do not anow
then sotrwaE to bc nodified.
\)Vhenlhe struerc is no' meeringorgania,ionJ goil\ o. dpe.
, olotu.,he sotiwre un
hr rbd,ioned inneado[modifieJ<hen , difltcutr deci\ion.
5;m..ompani$ hJvc,Denr
mi l l i o nroldollan r o r . q u i K rd ,mp te me nn, rR r p ..t" * t)
. _-," ,* ;;i .;
'o .e \(re r hr r he)de. ide Jro d u n p rh e ,o rM rc . tu r.h * " 1 ., f" * a ...
rn o ,Bn iz r ion . hed, . b d i r,,n b ev .ryd i ti i .u J rro i n r" g .(.p,.h" * d-f,* * .r' " .,
_fr* " ..i ,h.,;;;
sff$r'e rhr rcmpuv i, , unenrtt ujin8 t-o, (ampte, a n+ a<ounn
reaivabteprosrJn
purehrrd hum s ,{r.ide vendurmay nor work welJwirh rhe{mpany \
inrcn,,,ryco;rrcl
rn o DIr nS pr c 8r m r .
 PEr ! I sydpmsDeveropmst

In-House-Devetoped
5oftware
Anorher option is ro male or develop softwre incrn lly. This approach requites the com.
pary's IS posonnel o be repoNible lor aI dpectl ofsoft,are dselopnent. Aj meniio"d
in Chapter 12, onpmie en also use outsourcing to deelop pdt o. aX ofthen soft"-.
usingourside@npanies.r'
Soliwarc cd be dweloped uins th objecr orienEd rpprorch or more tndirionar ap
proaches.-l'he obj@r-oriented approach is arractive if rhe o.soizarion cu reue qisrir!
obi., s from or-ha,ofiw*e pr.ka8c,Md projc.b. CrdinJ HeJ,h. fo, r\Jmple,,!rn, g Ir
m i l l i o no n d o.topmg ntu \o{ i w re r,, redu.ep,e\ri pri ondo^ ok obF(, ne wa r o d.
velop reusble ode for later updaresor chdger to rhe systen. Accordi.s ro Ri.hard ciN
' e n i o r\ i (e pre,i denr
of i ni ormrri onrehnotogyfor C rdi nrt. " w e w dred rher ( hik. r ! .
ro be desisoedin a way rhar would allow $ ro continua y upgnde the ode "r,
sone advdrage inhreni with in-hosedneloprd sofrMre inctudc neerine user ec
oBd izr ional requirmenr' ud havingmorc teJrue\ dd in, I eard ndjbitio i; re,F. o..
astoniarion ud .hmses. software progms developedwirhin a conpmy alsohrve gre4-
potential.fd ?rcvid;ng a conpedrive advantagebecaue competnos cdnor easilyduptiar.
then io the shon tern. The Nwes Coso nine devetopedsophisdarcd ninins soft.,a;e rh::
allowed the mine openton to increae the producdon ofcoppea tn. and zinc,tep"sirs r:
sourhern Poitusal.rs The so6mre allom rhe geolosy depanonr ofNses CoNo, a
ioir:
ventu. of Rio Tinro dd dte PorrWEe governhenr, ro display 3,D nodels of the mix
;n\rd of the older 2 D modelstrom ,he old .ofr\lm. In n;her.se. N {\A dnetnfed :
softmre prcgrain caled DAC for spaceqptorarioi ro analyr how a spa.q.fr ente6 disrs
enurcnnents and amospherer.raThe awrd-wiming sofF,aft w6 usedfor the Mm clohl
Suneyorand the Man OdysFv mision!.
It is possibleto res softwarefron orher dseloprDenr cfforu to reduce.h dme ;t ta].
to deliver in.hou,e {ftwre. Bank of Ameriu, fo; nJmple. ,eue. prniou.ty dne opcc
softva.e to deliver nfl softwde in 90 daysor les.
ChicfPtusrannd T.nn'. ^fems of expditnced rS piofssionals,re neededto dev.t(r
ctief programmertm softwre in-hous. The chif programer teo, also elled Jte bad onpranner ean. n t
A groupolskilted 15professionats
sr.up of\knleJ IS prcfs,ionals wid, $e ,ak ofde.ignins Md ,mpt;m;r,n8 J .n ptr,
wh od esigna nd implem ent as el oi "r
grn,. This ren ha rorJ re'pon'ibrlirl tor buitdioq e br., sinvre ptr.ibte. AjfioE
p.o9rams.This team has lorat
responsibitityiorb!ilding the best L h em a l e u pofLhechi cfprognmmcrre:m vui e,r i $ rhe,i a rd .ompteri cv
ot r heom n r r <
sottwa.epossibteiatsocattedlpad prosmm, ro be dwelopcd.r numbc.or tunLr;oture @mmon ro, Ji ,em,. A ryDi.'l L.-
ha r.hief prcglmmci. r ba,kup progmmer. oneor moreoJ,. progm-.^. J tib,*
dd m omde drks d se.fttaJies (sft Fisure 13.l2). Chicf pros.amers or prcjcd tu_
Jge^ arcoftcn pa;dabour$ 100.000snualy t'Th( rJa4 tor r huic proqrmmcr on r,lE
fmm $50,000ro $80.000Mnually. shi.h is down ,ti8lity n"- p*io,'. yo^ au" ,"
sourcine md other e@nohic facrois. ",..

@
A HirafthyChartShowingth.
TypicstStructureofa Chief
ProgrammerTesn

Tmdirionally, prcgmmer r(,ns @nsisredof mployeeshired by the onpoy. rncr*

ingly, @mpdis rc lookjng ro othe' onpai* or *" oA* m p-"ia. c
irnporrut t*[ ofprogmmins. Rssio ro&et scienrisrshaverurned "o""ni*
rhei. skills fiom nucta
weaponsro soli}te ddelopmnr. Software cobpoies in rnd;a en malc hudredr of |c
lions ofdollm b)' doiry progr.mming for large ohpdies in rhe Unired Starsand doui<
 Syslems
Desqnrmptemenranon
Mantetunce,and
Re!ew Cr,"pr." ra
I

ThePtugaw"ks Life Crcle.Dneloping in-hous sofrvare requiresa substanrialmounr

of detailed plaming. A sriesofsteps aDd planed activiries n rl'dimize rhe likelihood of
developinggood software.These phoes male up rhe progmins tife cyde, 6 iltusthted Progr.rhmingLifarycle
in ligure 13.13dd describednel:t. A ser es ot stepsand ptanndacliv-
i t i e s d e v e t o p dm
t oa x i m i ze th lei ke -
lihoodof devetopinggoodsollware.

ta.<'
-,'1i1;":-\
r,:g,/ i"x

ru
@
/ Slepsin the Programming
Life
Cyct

InvestigErion,anal)'sis,ud design rcriviries have already been started ad completed in

m,n ) r af , . s o r hepro s ra m m eur.u rl l l h n a d e u i te d,er ofdd,menb du, dqc;be w hJ
the sy'stemshould do and how it should operate.An dperienced prcsrmmer will begin wirh
a Lhorcugh rai* ofrhese documenrsbefore any code is uitten.
Langua$ and software selecdon involles drernining the besr prognnming languase
fbr rhe application.lmponanr characreristics ro be cotridercd rc (1) the d;mculrv;fthe
floblem. r2, rhe ry?r or pro,e<rng to be u,ed rbatchor ontine).U) rhc ea. wi(h w;ici Lhe
program @ be chssed larei, (4) the qpe ofproblen, such d buitre$ or scienrific, md (5)
the .osr ofrhe ldguage. Ofrn, a nade-offnust be inad beivftn the 6e ofse ofa language
aid the efiiciency wirh which p.osms execu.e.Older programming languges ae nore
efficienr ro rm but nore diffiolr and time-consunine to dqeloo.
l r os Dm , odin8 i, + e p ro t' ., o fw r i ' i n 8 ,n !ru . ri o ; i n (heh;8urgesel < rd ,o.ohe rhe
prctlen. Like a ontrrtor building a houe, rhe @nputer prognmrner follows rhe plans
and docunn$ dqeloped in rhe previour sreps.This detul aaention to derail emures rhat
the softwm actuallv aconplishes the desired reulr.
Tesring and debugsing re viral srcpsin dweloping compurer prcgmms. In geneel, tesr- technicaIdocumentation
ins is rhe proes of naking sure rhai rhe p.osru perforhs a iDrendedj debussing is rhe Writlen
detals usedbycomputer
pro6s of loedns and eliminariry erors. oPerators
lo execute
lh pfogram
Do.uinenradon is the ndr srep, and ir can indude rcchnical dd uer documenffion. andbyanatysrsandprogrammers in
Tshnical dcuentation casetherear probtemswit h
t he
is Bed by conpurer operaros ro ereure rh prograh and by p.o9ramor theprogramneds
malysts and progrmners in ese rhere ee problms wnh rhe prcgnm or ir needsmodifi,
orion. In trchnicaldocumenrarion,the pu.poseofevery major pieceofconputer codeis
w.iften out and explained.Key variablesare,s dekribed. Usr deunentation is developed {5r do(umentation
lor rhe indi"iduJ. who ue lhe proSEh. rhi. rypeotdo(umcn6rion ,hoss s$. in eary- Wr lten des(ipliondvelopedfor
leunderstand rerns, how rhe progran cm ad should be 6ed. rncoryoffing a descriprion i ndi vdual sw use
ho a p.ogr am ,
ofthe benefirs ofthe nq application into uer documentadon nay help stakeholdes un- shown9usfs,in easyto-under-
oe,,bnd J,r reaon<for lhe progrn od .peedser &.eprr. e. The .ofiwrre rendor ofien standterms,howtheprogramcan
provides such docunentarion. or ;r may be obtained from a rehn;el publishing firm. For
dmple, Micrcsoft provids userdocume.ration for its spreadsheetprckase r,xcei, bur rhere
are literally hundreds ofboolG dd nanuals for ihis soliware frcn other sources.
 Pet a I sysGmsD*eLopmed

Inplementarion,or convesion,is the lasrstepin developingns computersoftwre. ::

involves installing the sofrwue md making ir opeerional. Severalapproache!de discu!.e.
later in the chapter when we discus imtallarion.
TootsendlechniquesforSoftwareDevetopment
Ifsoftrue will bedwelopedin-home,the chiefprogrumnertem cm usea nunberofro:
A programmn9 stlcl!re nwh ch, rechniques, md approaches. Opdonsincludesrucruredprogrmning, CASE tools,obj<'
aflerstartin gthe s eq! enc e,pr o- orientedinplementation, cros-platforn developnent.integratedd*elopment enviror-
gramm ng statementsareexecuted
mena, md smcrured walkthroughs.
onealte r6 no the ru nlit at llhes t ale-
ments in the seq!encehaveb,oen Srructutu! D*ig and Pnsazzt,s Structured design dd programning techn;qw
. enth e pr ogr ame r hef
exe cu tedTh wereoriginallydevelopedin the l97os and 1980s.The basicideais to inprove rhe logra
end so r con tn ue son t o anolhef progm flow by breaking the progran into groups of statenena, called imrcrzrer. As sho.:
in Figure 13.14, only three rypes ofstructure re allowed when using structured prosm-
ning. In rhe sequencestructure, there dlr-st be definire srdting and ending poinrs. .\n-
A programmng stuci!re thal stming rhe sequence, progroming staremenare erectredone rfter uother until a1lrr
attowsth e co mpu t er t obr anc h satenents in the scquenehavebeenqecuted.Then the progran eirherendsor contine
de pe nd ing
o n ce rt an c ondr lons .
oo to another$rtrcrure.The decisionstructureallom the compter to branch,depcndiog
Normatly there are onLylwoposs -
on ceftainconditions.Normallp rhereue only two posiblebnnches.The final srrucrure:
the loop sructure. Actually, thae ue wo ommonly ued stucures for ioops. Onc is o:
do'untii strucrure, and rhe orher is the do-while structure. Both accomplish the sanc thirp
A p rog ramminst g r uc t ur ewilh lwo In the do mtil srucrure,the loop;s repeated undl a certainconditionismet.ln rhedo{nt
commonly!sed str!crures fof
srructure, the loop is repearedwhile r cnain condnion *ists. Structured program coe
too ps:do -un titan ddo- whileln t he
do !nt tslru ct!re t he t oopls dwelopnent on be the key to d*eloping sood prcgrah code. Sone of the characrerisr!-
re pe ale d!n t ta cedainc ondt on is of smcrured prognnming areshow! in Table 13.5.
mer In the do-whitestructure,the
to opis re pe ate dw hilea c er t dn

CF ?
ry 9ry
ry E3 l T-T+XI ]

@
TheThreeStructursUsedin
StruduredProgramming
ry
@
@
l--

In genenl, r good apprcach ro wridng a lage program n to stan wnh rhe nain noc*
and work down to the othe. noddes. This is caled the top-dom aPproachto Program+
A go odg ef e l a ppr o. c ht o wr linq and is ued in structured program design and programning. Althoush rhe oncept of tq-
a la rgpro gfa m,s t a. l ngwit h t he down progrmning is simple, its use is beneficialin untanglingor avoidingcoding a
ma n mo du tea nd wor k ingdownlo
debLrgging problems.The proces beginsbywritingthe nain nodule. Then the nodJc z
rhe nqt level are written. This procedure continues until all the nodules havebeenwr;n<
 c*n* t"
slsiem: lpeqi motementiion r'1 |

Characteristitsof Structured
Programming

..',

'Ihemodutes.re coupteit
loosety

to programod'ng' tne rop

Figure 13.15 illustnresthe mP down apProachln addition
i.i- u Ne,l in restQ anddebusgingrhus, afrerrhe rrsr' or nain'
""".*J 'r'*ra
;. i,
to
and debqged But rhe main modulescndsrhe comPuter
*art';l
-.i"-, ""ed
i..r' waoen)e' \o 'imPre
*Fih h,'-Jnobeen arrhe
moJure'
'n.."...J
,e .o ndle' J r r e t r ; r en ro ' e n drn ec o m p u rebr r' k ro rh e
-.i"i.',, mJn modul eothi n ' d D eturrv
arefouniin thenain nodule' thevarecorectedimnediatelv'
-J".-"r"."i""".a.Ir-'oa
ryl
L evetI llhe ma n m oduiel TheTop-Down APProachto
writing,Te5ting,and
r Wfleth ema ii r odlt e Debugging a ModvtarProqrem
b .Wrtea nyne c e. s ar v d! m m v m o! uL' 5ait hes e' o n d L e v r L
.. iest th. mr n m odut e
d . Deb uqth e ma r nm od! t e.

level2 lTlr!p r! . edur e s donef or a' hm od! Leor 'r r 'n m e l

tev_"t
b Writ. :iv n c . es . : r v d! m m v m odut s lort hc r er t l o w " r
, i;.it;.;",1 ,,1" : h em o d u {e sr h t r ta r e a b o v (t h 5
r h s w r t aur . nr at ic ar t v t es tLt
ona in the stru.tLtrech3ril

r or t 4v et 5l
r t r epeat ed
LevelN lTh 5 p r oc edur e ' lt

rreofrm ted du' i ngofrure

C 4s f / , , t CA \ F ro o l ' fi $ r d i * L * e d i n L h a Prer' 2
l -or e(dmP le od( D er!ro-
d rye lopnent. o r ur cma re' o m e o t Il ' e te ' h n i q u e ' -rr' e "r
ro n r' m rv J' o h^r rrrerrrc' rr tne < ooe
ftri c alh ee' *at ed r ' i n s C A \l to o l ' L A\l
c A \l L o u l ' $ h trh J l o w ' r prcgrmmtrromN Jnd mJtd me
*" a ."
a a h ' l P i n' l rse meF r' currd do
i-*,o.,." - - t ' . e. . *, , .d U ' i n g c A\l ro o'
n , ,1t P t" grd
-ro" :n re rm ' o i i me ' p e n r m a nren' rce
o o i u. ; ' i' ,
*"oiiiil*iiu.aradoz.p- t i, , l, , lr "n
cm ahoue theobjca'oriented
Conpanies apporch
Fri nsmodu' e of' odr' or obi e'r'
. a. . . *. , - ' v ;* ,h i ' rp p ro & h ;o l l e c ti o n o l d
" i. "
.;;;; : . i ;".. .,.b .' o i rn mo r nrni mal ' odrng' hargc' r' :e
" " p p ri .," o n ' ' ae'
re o ur r edr om e. l' r i th L h e d o e l o p e a o b i e " o rm o d u re' of" ' deF' enrhough" o;e' r" i enred
a*a*. - , ,| ." . n o r ;q ri re rh eu ' e " r o b ;' cr' o:mred l ' nc" rce' mo" d" er:P ' -
'.h "* c a e rh q P ro \rd e rh e ' el rngu ' i n' rudeJ"
Lhenf or t h; ' t r u.r,rc 16
",. "nd
i-plenen!*ion edier and nore slraishtfomard
doe oorerr ana ' rn
".1C.r, , Ul. . ' , . *"-"L p ' " ' i o rl v d o e l o p e do b i " n ' ped' ol urre
s . , " e -a,r'."
t or o o p l e . rh eo u n e ro rh e " rv * enrdl di < J)' " .
i mor o\ e- qual: q. ' hol " " " :' l ' '
m i g h ra l ' o h a v e a b i o l erenrJ\hop l l Inbrryde ' ,n" rrrmoP
e xdnDler ndia. hr p ' e rl 2
n o b i c v .re ' i n ro rh c ' o n p u re rvrem rheJLrFb( nodrrrrdrrom,D e
me, l- obi. . r ' nm K
\ottuJ e
ka valr enr J . y r em rd re u ' e di n th eb i q ' l r re n u l b u ' rne$
.ii* ,txc el'""""td s.*t"es, for ennple, rble to save about $55 million io doelopns
-x
 a sFrch by rcusiog software.r'/According to the chieftechnology officer for A\1t, "Anyrhinq
we do and havero redoh a nesariveROI projecrbeauseweie jur duplicatingsonchn5
we alreadydid and spendingmoneyto do ir without addiry much vrlrc."letBlue Aina,-
usedVisual Studio .NET to inplenenr an invenrorytncLing sysem thar ued rhe objc,
orienredapproach.rs The appli.aiion only rook rhreemonrhs ro inplmenr and allos.r
enployeesro scanshiphen$ u.sidshmdheld conpureb.'Ihe sc.nneddaiaws uploadedr
the conpan|s daraboe. The applicarion paid for irself in sevennonrhs through rduc<

Cn"-Pkafam Dtu lapnenr. In rhe pur, most applicarions were developedand inpF
menreduing mainframeconputrs.Todav, nmy appliodons m developedon persom
conpurcrs by uses of rhe s)rrems.ln responseto rhe grotrrh of end-userdevlophen,
softmre vendon now otrermore roolsand techniquesio PC use6.One soliwaredevclor.
cross-ptattorm
devetopment nenr rechnique, called cros-platform d*elopnent, allows programmers to d*elop pr+
0evetopment
rechnique
thalallows gnms iher can run on conpurer systens that havedifferent hardwareand operaring qstenr
pfogfammers to devetop pfograms or platforms.Veb senice tools,such d .NET b)- Mic.osoli illrodued in Chaprer7, ar.
that c anr u. onc o mp l l e rs y s te m s
having d llerenlhardwareand oper enmples. \rith cros platforn developnent, the sme prosran misht be lble ro run on bor
atingsystems, or ptatiorms a personalcomputermd a nainfrane or on so diffsent rns ofPcs.
Ifltegated De"elopne"t E tuanrztr Softeare vendon alsooffer integrateddwelopme.:
inte9rateddevelopment environnentsto $sisr with prognhning oD peconaiconputers.Integrateddselopmen:
e nv ir onm entllO
s E5l envircnhents (IDES)cohb;ne rhe loolsneededfor progrmning with a prognnning l&
Devetopment approach thalcom guagein one inregntedpackage. IDEs allowprogranmersro ue simplescreem,cusromi,.!
b nest het oolsnee d efo
d rp ro 9 ra m pull-dowD menus,and sruphical uer inrerfaes. Someevenuseditrerenr-coloredrcxr ro allo'
m ifg w lh a pr og ra m m lta
n gn 9 u a q e
ntoone ntegraled package. aptogrammerto quickly loqte secdons,vrbs,or erors in prognm @de.h gne.al,IDt
can makeprogtamning soliw.e horc inruidve Conbtuing thesetoolswith the larguag<
itselfmake h euier for ptos.ahtuer ro dwelop sophisricared programson pesonal cor
puten, naking them morcproductive.
VisualStudio.NET from Microsoftisan exmple ofan iDE. VisualSiudio.NET consi!:
ofa collectionof web toolsforMicrosoffs rysremsdselopnent stntesr on thelnterner.i:
is alsoconsidcreda npid applicationdevelopnenttool. OrucleDesigner.which n sed.'i'-:
Orucle'sdatabuesysten,is anothercnnpte ofan IDE. The populr Eclipse\forkbenr:
slpports IDFI rhat.an be usedwith the C and C++ progrdning languager-3' Eclips
\rorkbench includesa debuggerand a conpiler. along with other tools. Builder 6 Enterprs
by Bodandisaothereumpleofaproductthatsuppors the adnngesoftheIDE appioa.i
Builder6 include roolsto helpprognnners write,debug,conpile, and runJavaprognrr
The overallgoalofBuilder 6, like oiher IDE !ook, is ro incredeprosrmmf produco\i.
and reducesoli@re dneloptuenrcosrs.
Struaued Vallth,ough Regardles of the rools or rechniquesused, companiesshoe;
rwi* softwarethoughour the developmentpro@$. Conpanies often usc a structure:
walkrhroughtechnique,which;s q'picallyperformedby chiefprogrmner reams.As sho":
structuredwatkthroug
h in Figure 13.16,a strucnuedwlkthrough is r ploned md preannouncedr*iw ofr::
ApLannedandpreafnouncedrev w progres of a progran nodule, a structure chm, or a hunan procedure. fhe walkthrou5
of the pfogressofa programmod helpsteamnenben rwio ud evalute the progresofconponentsofa structuredprojt:-
ul ,a stru ctu fechar l,or a lr um an
The vrucrured walkthrough approach is also usefd for progranming projecs that do no:
use ihe siructued design approach.

A c q u ir in gDa ta b a se
a n dT e te co m mnuica tio n sSy stems
Acquiring or upgrading darabae systenscar be one of the mosr nnponant srcpsof a syver-.
development effon. wlile most compdies se a relational datab*e, somearestarting to u<
object-oriented datab*e sysrems, suchs obje.t sto.e fron L{.elon Coiporationand o>
je.tiviry fron objectivny, In..
Becausedatabases area blend ofhardware and softwre, nany ofthe approachesdiscus<
earlier for acqdring hrdwrre and software also apply to databasesystens. For *mple.
upgraded inventory conrol sysren nay require datab*e capabilities. inclding nore ha: -
disk srorageor a new DBMS. Ifso, additional stonge hrdware will hrve to be acquired fro:
an IS vendor.New or upgradedsoftwaremighr alsobe purcha*dor d*eloped in-house.
 DesisnmptenoiratonM
systems I cotp"" t"

WalkthfoughPlanni.gand Preparation @
A structuredwalklhfo!gh is a
ptanned,p.eannouncdrev ew of
the progressofe particularprole.l

fesponsibleror partrcularp
det verabtereviewandd scuss

WatkthrouqhpartrcrPant5
pfovideIeedbackand evatualron

ollcom is incorporalednlo

\(rith the increxed use ofe-connerce, the Internet' innanets' md qtranets' Ielecom-
nunications is one of the fastest-growinsapPlicationsfor todavt busineses and individuals'
I he N*drq vocl mrker. lor flamPle. i' in\e{ing SqOmiuion rn a no neuork lsrem 'o
&
stremline opemrionsand cur cosrs Acording to the chiefinformation ofticer for NasJaq'
"weie goin! to be able to take a lot ofcncuits out ofou nework md savecosts" Like
d"t b-e sy.t"-', r"l"---unications sysrcnsrequi.e a blend ofh*dware and sofste For
pcrcnal conputer systens, the primary piec ofhardwne is a nodem' For client/serverand
mainfrme svstems,the hardwareqn include multiplaers, con@ntntors' commumottons
proceson, and a vriery ofnerwork equipment. Comunications softwarewill also haveto
ie acquned 6on a software company or dseloPed in-house The Internal RevenueSewie
(lRS) iired . nq chief informaiion olicer to ovesee its luge systemsdevelopnent eFon to
improveneF ork securiq'dd orher telecomnunications ofthe IRS omputer svs-
aspecrs
rem s Again, the earlier discu.ssionon acquiring hudware and sofrme also applie to the
acquisition of teleconmunic.ationshrrdwte ad soliw*e.

UserPreparation
User prepantion is the proes of readlng nanAers, daision naLcs' cnploves' other
Theprocess managers,
ol readying
**s .t"er'.td". r.. tt'e new svsrcms This acdvnv is an imporart but often ignored olher
"rd declsonmakers,emPtoyees.
uea ofsystens inplenentation A smatl aidine might not do adequae enplovee training tor new
users,a.d stakehotders
with a new mtuari prckage.The result could be a grcunding ofnost ofi6 flighis aod the
ned to find hotel rooms ro accomodate unhappy traveler who were stranded
Vithout question, trahing uers is m esseniialpan of Ner preptation' whether thevare
mined by internal penonnel or by orernal tnining firms h rcme cd6, comPdcs that
provide softare also rain user at no chage or at a reasomble price The cosr oftruining
car be negotiatedduringtheseleaionofnwsofrxte Otha compadescondua usa rmin'
rn er hr ouqhour r he ' ' 5 re tu d n e l o p me n tp ro e ' C on.erroand apprehen' i onr rbout rhe
;.'" r e" m . r . , b e e l i m i n a te d,h rc u s h (n s e rru i nj ngP rosrum(l npl oree' ' houl d be
acquainredwirh the slsteni epabilitia and limitatiom bv the rime thev re readv m we n'
 Part 4 | 5rtn. D'etoei,.,r

P r ovidn q u se rsw th pr oper t . aning

canh etpen su rerh att heinior hal on
system s usedcotrectly efi dentty,

Source Photodisc/Getty
lmaqesl

l S P erso n n e [ Hir
: in g a n d T r a in in g
Dependingon the $e ofthr nervsysrem,an organizationnay haveto hire and, in t::
cascs,train ns IS personnel.An IS m.nager,sysremsaralysrs,conpurerprogrammcrs, d:::
entry operatox,and similarpesonnel may be reededtor the ns sqrcm.
As wirh end user, rhe evenrualsucccsof ary svstcn dcperdson how ir is usedb, : :
lS persomelwithin the organizarion.Training prognns shouLdbe conductedfor tn. :
penonnclwho *iLl be usingihc conpurei systen.Theseprognms rre sinilar to thos. ::-
rheusels,ahhoushthevmaybemoredcrailcdin thc rcchnicalxpcca ofthc spens. EffeL: :
rrainingrvill help lS personnelue rhe new svsremro perfonn then jobs and supponor::
usersin the organiz:tion.1he C!.O ofPeoplesofr,for examplc,beli{cs rhar IS pc6o.:.
needrraininsin rhreea.eas:busines,rechrology,and m undenrandingofother coun:: .
and people.He says,"lfyou get a strongbackgroundin oserhreerhn4s, you'lLbe abi. :
panicipatein the future."il

S i te P re p a r a t io n
The locatio! ofth rew s)aten needsro be preparedina process
calledsite prepaation. !:-
Preparaton ol lhe tocaton oi a new a snall rysrem,siteprepararioncan be assnnplcasreararging dre fumiure in rn ol}ic. :
makc roon for a conputer. Wnh a hrgcr svsrem.thk processis not so.rsy because ii r:
requir special{;ing and air .obditioning. One or r{o roomsmav havero be compJe::.
renov*ed. and additionalfurniture nay haveto be purchased.A special11oormay ha': ::
be built, underwhich the cablesconnectingthe vati<,usconpurer componenrsare pl::::
and a oew securirysystemmay be neededro protect ihe equipmen!.ror largerswe:
addnionxlpowercircuirsnay rlso be required.

D ataP re p a r a t io n
data preparalion,or data Data prepararion,or dataconvetsion,involvesmakingsurelhar all liles and darabaset :::
readyto be usedwirh new compurersoftwareand systens.Ifan organizarionis insrallic;
Ens urnqat tlilesan dd a ta b a s a
e re
s ne* palrollprogram,rhe old emploveepavrolidatanay havero be converedinro a fo'a-
f ady lo
beus dw t h n e w c o m p u te f iha! can be usedby rhe nov compurersotovareor qsren. AfreLrhe darahasbeenprep::::
or.o.vefte.l, the.onputerized database
ssrenr or olhersoils arervillrhen be usedto m:
ain and upd*e the compucrfiles.
 Manknce.aid Revew I
syslemEDessirmptementat'oi co"p*" t"

l n s t allat ion
Installation is rhe proces of phpically placing rhe cornpuer equipnent on the site ad initattation
Theprocessol physicallyptacing
the
making it operational. Although normally the mnuhcrurer is respomible for installing pmentonthes t eand
computerequ
flon the organization (usullv the IS nanagc) should ovu-
-mput-.quipme"t,
*. t:t'" p-..*, --eone
nati"g."re that all equipment specified in rhe conract is installed at the
proper locarion.After rhe slsrern is imtalled, the marufacturer performs severa'ltesa to ensure
tl'"t rhe eq"ip-"nt is op"oting asit should.

Testing
Good tesring procedureste esential to male sure that rhe ns or nodified infornadon unitlesting
T e s tn g o l i n dv i d u a l p f o g r a m s.
system opehtes d intended. Inadequate testing on result in nistakes md prcbiens A
popular ta prepuation ompany, for exanple, implenented a Web-basedtu prcpution
The prcident oftlt ta preparation- Testin9ihe entire syslemol
iysrcn, but pople could *e one anotheri tu
"'eturns. testins cd prqent thae gpes of
*tLJ i. scenario Befter
"o-p-y
S*eral forrns ofrating should be used,including testing eachofthe individu:l programs a large
T e s t i n gt h e a P p l i c a t o nw i th
(unit rsting), tesiing rhe entire systemofprogrms (ryttem testing). resting the appliQdon
with a lage mount of data (rcluine testins), and testing all related svstens rogether (inte- Integr*ionte5ting
gretion t$ting), d well $ .onducdng any tes6 reqdred by lhe ss (acceptd@ t$ting) Teslngalt ftatedsystems
Figure 13.t 7 lis6 the rype oftesiins. In addition to !he* forms oftestins, rhreereditrerent
rypesof reting. Alpha testing hvolves mring an inconplete or orlv version ofthe svstem' ac.eplancetesting
*t'il" bet ciing i"a*' testing a complete md sable svscm bv end usen Alpha-unit anytesisfequredbyihe
Conducllnq
tating, for ennplq is tesrins an individual Prognn befde ir is conPleielv finished Ber&
unit testing, on the orher hand, is perforned alier alpha tesring,when rhe individual prognm alphateslinq
is conplete and ready for useby end uers or eafty
Testingan ncomplele
Unir tesrins is accomplished by developing test data that will fore the compurer to
*ecut" *.'y slte-""t i" the progmm. In ad&don, eachprogram is testedwirh abnormal
qamPle, iesrd betat5ling
dara to determine how it will handle problem. Mohegan Sun Casino' for andstable
Testinga complte
{r
rwo sepanreprcgruns before using them for irs dayro-day operatiors One progrm allows
the auionatl tmsfa of tunds ro some of irs slot nachines. The other program provida
bener suweillancc and data collection

w
Typesot Tesling

Systemtesting requircs the testing of atl the programs together' It is not unconmon for
dre ouqut fron one progrm to becone rhe input for another. So' svstem rsting esures
that rhe output from one progran cd be used m inpul for another prosrad within the
 PaIta I sy.r.i,s Duehonat

Votume resringensuresrhar the nriresysremcm handtea larsea,nounr

'ysrem. ofd::;
u n d .r n r/ l optrdi ng.ondni on,.In,rgnri onr$ri ng el nrre. i h he 1rw p, u8r am .
,1 ' e rr.,$ ,.h orh(r nJi o, rppti cari ^n.. tr rt,o cn.u,r, ,h,, d" ,J t-,. em.i ..tlt i, l
{ rc r rc u , t-trJopri \d.;otu. tbr eumph. r rew i n,oron .onrro.rpoti r ,.; ""J "
. , " , . q_ .
d d ' J i n p u rl rom rn ol de,orderor" a* i rg rppti .rri on tn,esui o.re,,i ne" o,r , lhedon-
e n .u ,e,T oo,h dJk fl o" oes..r ,he rs .,r,rexn,i l CJppti ,r i on.. t.;.so , ; ""
, . , i, , .
F p .. J 1 1d one,fi eru ri . $,rem ,e,, i ns. \,1erae
ne,.,..r* " * ." .p,,,y" | o, , 1.
" nd i^, ,,.
i n d rn ^ . h s de\el oprdr roo.(dl c,j i ( onne.r ro pe,rorm rre8tu,:o;re.ri n g, or
d rr.. _
insuruce applicationsand darabses.llA@ordingro Donald Lighr, celenet
Conmuni;
tionsanalysr,"The differencewirh ;Connecris ns abilig, to delivera return
or a relarnr..
shaltinvesmenr.Therve taken.n rea rhai iscriii.al wilh independen r agenrson one ha:j
and provides ofe{ernai daraon the orherhand nd b,.,ghr rh"- r.s";".."
Irinall)-, acceptancciestiry makes sure rhat rhe new or modified srtem is operarnrs
r
i n r.n d e d .R u me..rherrnoun,ot mrmo equi rcdJ,k,...,. m;Lhod,, , nd
r o. e.
b c re .,rd drrri i srhr\D har.A ..errrncereni l g.nqrrc.Lhrrr pe,rornun.rob jc. r ivr , de, i. .
tor lhe sysremor applialion aresarisfied.InsurancecompanyAON, for example,
uscs::
ceprance tesringto nakesuretharnewsoftwareisreedyforuse.45 "tfwe deplo),anappticrj.-_
h" 80 pdt' rr run.ri on" t,nbur .onrui n.bug.. Jeci dehoq r o r .
:." " l i j -e.rn
ro ,-rrd . \ J,.aomprnvrepr6rn,rr\e l nto\ ngu.e,.,nJ.,,trrtr.erc.ungnr ) , h. lpr , _
underrandandeffecdvelyjnleraci wirh rhenew syseo. a.-p.""- *"t"g;,,r,. n"j.r....
ofthesystembeforesran up. PioneerH;Bred tnternarional,fbre,,mplc, perfbrme,laccr_
ra n .e e .rr ngLr J nN ! op mrrJgcn,l r .1l em rhJr h.tp ." nne,, ,r r i, io" e :
growth, diseae ourbrdks, and insectinfiratiom.,6 Th. -,rew sy.ren u* hanth.td - r
o_
putds and globalpcitnning sysenNto colcct dar. and feedit inro a l*ge crop tlarab:<
Once collecred,rhe databseis avaitabte to firme,".

5tart- Up
Stan-up beg;nswith rhe finel resredinfomatior sysrem.V4,en srait-uDis finishcd.
Th ep rocesso l ma k ng t he t inal r..
* ,rrr i . l u " ,.ope,noul : vr rn up:ppro,he. rre " ,,i hLte ,.ee t_ .
lestedinlo rha t o n s y s lem t ut t y l dr,. t sur e1. .
D i K r(o n re rsi on/J,nal l Jp!h,!?,rdn..,,,,r.,r,F.otve..r" tpi nS rt,eotJ). cr .
$r,n,s the rew sFem on a s;vendate.Djred corversi., i. th. t.*i d.;i.br. _,
d,rectconversion lalso(atted ",""jt
p r,,rh b e , " u.eo.rh. porci ,i " forp,,b,em," ,dc(^,.$hcl r1rotd..remi ,,hu r o.
plungeor direct tutoveA the n$ systen is tu.ned on ar thc sameinmnt. The t.ennes,ee Valir), Aurh,ir, (n .
stoPpngrheoldsystemand starlng ihplenenred a ldge IS projecrro inp.ove emciencyand reduceco$s.Thc inDlemob.,:
the newsystemon a g ven dat -
q , r d i L ., .uroLd,hd qrnr ti veJer a r,el .ton, i rpt.
mrnu,i ol p.^.c* i r t ; . . ,
approachwas very scary,"said drc seniorvicc presiderrofi"fun.tion svsens" for"Tr ..
Slowty.ep lac nq co m ponentof s t he ' T \r,rn c ,n.gerri ngo.mhi ngB oi ngJrhe\s.,i m, thcphre-i nrpprcach . r pop. _
otdsystemwith lh os eolhe new rechniquepieferycdby many organi,arions.
one .Ihis p rocesss r epeat edf or
In this approach,somerineselled ap;4a,,::
dtprckh, .onponenLsof rhenw syrem areslowlyphasedin while cohtoneDts;frh.,
eaclra pp tca lronu nt illhenews y s .:
te m is ru n.in ge v ry appt
c at ionand one areslowlyphard our. V4,en everyoneis confidenrthar tie ns sysremis perfornin!:
peno rh ng a s e xp ec t ed;
at s oc at t ed dprned, rhe old sysrenis completelrph^ed our. This gndual rcptrcernentn repeaeo'::.
ach appliarion unril rhenew systemis run ning everyappli@rior.ln somec4es,;he
ph:<
rn dpProacn.an nke monrhs or yeas.
Pilot st.n-up involvesrunning $e new systeinfor one
Ru nnng th e n wsys t emf or one sroup of usersrarherth:n a
fo r n dtl e i ,h J numhe;o, rar,r ourr.r. r hr or .
gr o upo l usersra th,pft hanat tus er s i { ,, "
rheounrryould ure $e p;lorsrJJt,uprpproachdd imtal a new irrenrory cnrrol srs:::
rr one of rhc ret.it onde$. vlen lhis pilor rftail oudet r"N with"ur Dr;bl.ns. th:..-
h w n r,,1 (mr,r.\){ en.obe;mttcm.nred" r.,1erre,,i tou,i .r,., ,fl ri ,,r( r ui. el .
fordample, is.uing a piior srarcupfor a systensdoclopheDr phjcr ro reinor.lymrr_,
PCs.1rVAen fully implemenrcd.the ncw systen will renotely manageabout 4.b00 p1_;
,,\l u d n BJ b ourI -00 P C , on ,l ,e.,,mp.i y, tq.hi r.. I he ns .v" e; $ j rj t , , \
Lr
," 1 m o ,, /, , ,ps,rJ.,oJsre d,J pd rorm.,.n( fi x.. q i ,hou,,he;c.J ." ,l y , . . -
t _n. . i-
a renote loerion or a ship. "
 s,,stemsDesiqn nplomeilaton Ma nienan.e rid Re!ew J Cblt3r 13

E|*El-* Slart-UpApproaches
@

f---___i
lNewsvs'em I*
t-l

Parallel stan-up involves running both rhe old md nw systens for a period of time. parattetstart-up
Runningboth lhe otd and newsys
The outp"t of the no systen is compared closely *ith the outpur of the old systen, and
t m s f o r a p e r l o do i t i m ea n d co m -
my diFerencesre reconciled. vlen usersare confonable that rhe new spten is working paringthe outputofthe new system
conecdy, the old systemis elininated. clostywiththe outpul of lhe otd
s y s t e h ; a n yd i f l e r n c eas fe r e co n -
cited.Whenusefs afe comfortabte
UserAcceptance that the newsystemisworking cor
Mosr nainftamecomputer manufactures ue a formal usa acprance document afornal recrty,the otd systemis etiminated.
agrement signedby rhe userthar sates thar a phue ofdle installation or the conplete spten
is approved.This is a legaldcunent that uually renors or reducestlt Is vendois liabiliq useraccePtance
documnt
for problems that occur after rhe user acceptane docunent hc ben signed Becausethis F o r m a l a g r e e m e netg n e db y th e
userthal slatesthat a phaseol the
docment is so inponmr, many conpades get legal arsistancebfore they sign the acceP- nstattationor the comptetesystem
nnce docunent. Srakeholder nay also be involved in acceptmce to make sure thet the
benefin to then are indeed realired.

ANDMAINTENANCE
OPERATION
SYSTEMS
Systens opention involvesall upects ofusing the nw or nodified slstem. Throughour lhis
book,we haveseenmay omples ofinfornation systems operatingin a varietyofsertings Useof a new or modif ed syslem
md indutries. Thu, we will not cover the operutionofm informarionsystemin detailin
this sectioo. The operation ofany informarior sysen, howoer, does require adequateuer
trainingbeforethe slntemis usedand conrinualsuppon while rhe systenis beinsopented.
 This trainingod supporris rquired for all srakeholders, induding employees, custon-:.
and otherr. Conpuies rypicallvprovidetraining thtough seninars,manuals,and onlin:
docurentition. To provideadequatesupporr,many compmiesusea formal help dcsk I
n/p /r* consistsofpeoplc with techni*l experrisc,conputer systens,manuals,and mhe:
reourcesnccdedro solveproblemsand give accurateansers to questions.vith todar :
advancesin telccomnuniotiors, help desls can be locarcdaround the world. lfyou ar:
havingrroublewith your PC and call a toll-freenunber for ssistance,yor nighr rc.ch :
hclp deskin Indie, Clina, or anothercounrry.
systemsmainienance Systemsmaintemce involv* checking,changing,od enhancingthe sycen to mal:
Stageof systemsdvetopmentlfrat it more usetulin achioing usermd organizationalgoals This Proce$ can be especial'
nvolvesche ckinqc han9nq and diflicuh lbL oldcr software. A bgacl rysten is $ old slstem rhxr mav have been parched o:
enh an cng the syste mlo m ak e t
rnodified,ep.atedLy overtime. An old payrollProsramin CoBOL developeddecrdesasi
morelseiu l n achr ev ngus er and
andiequenrlychangedisan *anple ofa legrq qntem. Legacvsysrcnscm beveryerpen* r
to nairrain. A! sone poinr, itbecomeslessexpensive to switchto nm programsand app,r
catn,tuthan ro repair lnd nainrain the legrcI slsren.
Sofrwaremaintenance is a majorconcernfororyan;ations.a'lnsonecdes,orgdiario:;
encounternajorproblcns thafuequirereryclingthe enire sysrems dent processl.
dveloP
othersituions, ninor modifiations arc suffident to renedy problens Hrdware maite
nane is also inporrant. Conpanies such o IBM are i nvestigrting autahohic .onp'htg. \.
which computcrewillbeableto nanaseand naintain rhenselvs.5oThegoal isforcomPuc.!
ro be self-configuring, and selioprinitng Beingsellonfi-qlr
self'protecting,self-healing,
ing allom a conputer to handlenew hard*are,software,or orhercbangesto its operatin3
environment.BeingsellprotectingJlows a conpurer to idenrifyporentialatiack, preven:
then when posible, and recoverfron anacksif they occtri A$acks.an include virusei
worms,identiryrheft,indusrialespionage, and the iike. Beingself-healing allowsa conput::
ro autoneticallyfix problenswhen rheyoccut,and beingself-optinizingallowsa compure:
ro run fasterand germoredonein lesstine. The "E$ial and Societalksues"specialferu:
cxploreshow softwareconpaniesare tryins to enhancethe rrus$orrhines ofinformatio:

s r M a in te nnace
R e a s o nfo
Oncea prcgramis srnten, it will needongoingmaintenance. To sone qtenq a P.ogramtr
similr to a qr that needs oiL changes, tune-ups, and lePairsat cerraitrdmes. ExPerien..
showsthat frequenr, ninor mainenanc to a program,ifptoperly done,en preventmalc:
slsrem fanureslater. Some of the reuons for progrm maintenance are the following;
. Chancesin budne$ processes
. New requestsfron stakeholders,uses, and nmagers
. Bugsoi erors in ihe proglan
. Technical and hardware problens
. Corporatemergersand rquisitions
. GovernnentreCulations
. Chnge in rhe operadng qten or hadware on which the applicadon runs
. Un*pected events,such asrhe tenorist artacls of September1I or sereteweather
Mostconpaniesnodily their exisdnsProgrds insteadofdevelopingnew onesbeo-<
*isting softwareperforns ndy impolta.I tunciiors, and @nPaniescan havemillions.:
dollan lnvestedin the; otd legacyslstem. So, as new slstens needsare idenrified'c[:
burden of tulfilling the needsmost often falls on rhe exkling s) ten. Old progms *:
nodified to neet ever-chmgingneeds.Yet, overtime,rePeaiednodifi@tionsteic
'epeatedly
ro inrerfere wirh the systen\ overuLl
structure, reducing i$ emcincy and naking funJle:
nod;llcationsmore burdensome.
 Systems
FindingTrust in ComPuter hasdonevasttvmo'e
maymakeit mpossibte to seclre l4icfosoft
lnwhatwashe.atded as thewo'st mes s ncoanrc thanwhat theyvedone hsto.catLy blt rs the staleot secLr'ryanv
-ne2004 !nabte
r :r're.laith. compuleE the Rov:t BankoJCanadawas asks Ltoyd Hesson CEO ol RadLan'z whlclr operates
btte.?
an custome.s exactty how much money hasd0ne
: :tr ts l0 rnlttionCanEd extranel5fo.5.000fiianclatlnstitlllonE.What N4icfos'it
s targesl bank had a p"hl_"m lhal ot the
:: n ther.ccount5 Canada hasnt had mlch ol an lmP:ct Becalse oi the comptextv
inctuding every direct pavrolt the
:r: lensof mrttonsof transactlons code,yoLrfindmore ,rLrlnerabi[t
es once vo! sia'l to t nkerwth
:::rs t t handles,l.om showlng!p n ac'olnts
ioLr can tmagrnerhe flrof as mlltionsot bank .rqomers nganin..easng propo'tonolthecompany s
M crcsoftislnvest
yet been
r::.vefed that the paycheckihey countdon hadnl 568 bitLronrcsear.hand dvetopment {!nd on pfoactvesecu'tv
aconvenienced others
::::slled Wh te mafJ7peoptewerelust prolects,
such as cfeatngletf heatng solrw!fe 011en
"Lted "'o
postponed b ti pavmeits became to he: soUton
':_.ln a panicVacanonswerc nanE camPutinq AL/La'lan. complt ng appea's
try to get
:: .q!ent. and lslomerswere LinedLrpat bankslo that mostof the brgsoliwarecompanles ar p!EUing The nraior
-:"ev thattheywefedle fof basc tllng expeises pLaye.s, HP Bl'1 and Sun \4icrosystems are ofle'ng
svtems
Then ohtmarebeqandlrrinqwhatwsntended to bea rolune
productsihat are setf managlngand setf heallng Altonomic
I ' de
'o n nqupo. o - re r' o technotogy Lsbelngappledio netwofksdaiabasessoft\lareand
and deposts aqa nst cus
;: em f. ted to regster wrthd.awals neartyalt components of lnlormationsvstemsThe hope!s that
" e o ? d " D a "d "
' " . - " rl " . " svstemswllt be sbteto fea.t on the ity to clrsngesn demanoof
ol the
i_rer the backloqoecameand the worce the chance ,r;expected probLems, proudias . constanttevelof seNce mlch
: ::emben! abtetorecove.
S!.h compute.gltchesafe not slrpislig of 'are n todavs W tholt a doubt,wewllseeinc.easngeffo'tsiromatLsyslems
:-outer dependentsoc ety.Compuiersystemb!!shavebecome andsoftlraredeveLopers todel!er trustr,vo'!hvsystemsas 0LrrLves
: _rst.alinqandsomeirmes deEEtatng reatitvthatwe atLend!re becomencreasinqtydependent on nformauon svstemstrrellIlre
- :r Dlaque Lrsn oLrriobswhenwe shopandai homeono!f own ofol rsoci ei ycottdbel eopardzed l t scl earthattoday5svslem s
:-: Arihe fcidenlshavemounted cornplte'lsershav'losltrLrst n atl o{ theI complexty. $rlltrequire a hrghdegfee altomauon
_ _ e a blLt y cofom plt e.s y s te n ' rs to w ol rkh o l ti a L 'f
andarl l froatl ntel ti gencecapsbti ti estosLrccesEl! Lt ynr : naget hem
lver the pastJewyea|5 computers)temfartures haved'a\^/n depend.bt!tv,and secu'tywtl remaln
Computersystemstabltrt)7,
-:'easedatlentionas cvbefcrlmnatshave ffeated ffeqlent and industfes.ndiechnotogyspecia(sts
amalofgoatlof qovefnments
: -:.1 messerjousp.oblemsWafmsandvruseshave 'avageo{ne to worktogethe.to.ch eve.
'.neis ope.atingsy5tenrsand other softwa'e Corpo|ate
-:_r.fkshavebeensh!tdown and!aL!abteandprivalF nr"m'ton
market ]hrs hEs b'olght CriticatThinkirg ouestions
-:: beenEtolnand sotdon the bLack 6?i o
':'easinqpress!rcon svsiemsdevetopers and sofidare manu I A d< o-ao r.oa """""" tg
i '.d o ae
;:rurerstomvestnro.en pfoductqlaLty' /.'"-. "b
i lhe earLydaysoJs)stemsdevetopment anatvslsand pro 2 W hosefe5ponsbl l l tys ttoens!' l hatcomp!te' syslem s
the llnctonattv of a e secure?W hY ?
afe dependabland
:-nme|s were morefoclsed on c'eatnq
i : .ir thanon iis fetabitityand secu.ty As tlre wortd hasbecome
-:-:asingty.ligitlzed networkedandcompltef sawy the'elabity Youoo?
Whatwoutd
!_r recuityofsystemshavebeenseve'elv iestedand anontneseN cel hatsel L 't i'ket st of
'onslme's A stheow nerof Tl cketB l stef
:: .n c ehas womt h n concerts.shows,and spodingeventsvoudependon technoLogv
Softwa re devetopercnclld ng M c'osofts arc confrontngthe O\/efth paslmonth,yoLrrcomp3nvhasexpe'lenced a tolaLor sx
::,e and workinqto regan cLrstomef tflst lvlcrcsoit 10 mlnltes herc' 20 mridlesthefe
'ecenttv hou.so1spo.adicdowntrme
::ilted ts "Tftrstlvof(h)7 Conrputi'gnltiative McrosoftEnler lglres havedroppedandvou fear that cLrstome'smay be
SaLes
:'!e Technologies D fectorG.egStonesavs l seeTrlstwo'tl'r! t!rningto yo!f compettoroutofl.usi'at on
:rnuting havngthreekey etemenlscapab(tvto do wnal vou 3. W hatstepscouLdvo! take to uncove'the causeo{
yolr
:: ror witL, conslstency ol quaUtvandthec' mmltmentl"'t Inthe
:-::.mers besl rntercsts lr'llcrosoft cha|a'terzesthe pnncrpLes
4. W hat act ofs .outd vou take to ' enew voLr'cl s t om er s
: _lstworthy Conrpltng.s fetrabLi! bLrsnessnteqatyPivary Iai l hrnyo!r sew i ce?
r'
sab trrylo deUle't'!stwofthJ7svstems
Somedo!btMicrosoft
s
: fea. I!t!.e Thecompiexty of M crcsol1 pfoqramm nq cooe
 P&t a . v , le. , 0, . . "p- * t
|

SoURCES, JohnSaundersandRichadBtoom,'Banh s ClienrsinLmbo rre tralan, t,ar.n 38,2AU,, ww.letis-nexis cary Arn Bediaiz, Auronoft
6t he and llail, Ju e 4, 20AA M.theglabeandnait.con, ta\|r.nce Watsi Arniodly NEtturk world, March22, 2001,M lens ,.xis..ont Erdd
'Microsofi's Paradox, lnlornation Se.tiity. ianuary 20A4 w.letls- Soitua'eParrnerswih BM roFurtherAutonofr k ComputlngIn'riarive,
Ae
neris.con Ma Halta^ds, Mrcrcsott Slruqgles b AuiU Trusi /re /rs hesswi@,Matcha, 2044 wblen.-hexE..on.

Ty peso f M a in t e n a n c e
stipslre6mup9rade Solivareconpaniesand nmv other organizariorsusefour generallyacceptedcategories ::
A m if orupgr adl y pc a tty a code signllr the anounr of chdge involvedin mrintenana. A slipstramupgradeis a mi.:'
adjus t m enl
or m in o br !9 l i x n o t upghde q"ically a codeadjustnenror ninor bus fix. Many companiesdon'r annour::
wo. lhanno! nc inigt u. s u a tty re q u l
r esr ec omIpnqal tl h ec o d ea n d i n to user rhar a slipsrrearnupgnde hd beeDmade.A slip$reamupsradeusualb,rc!u'::i
sodorngit cancreateentretynew recompilinsail rhe code,so ir can c.earecnrnelyns buss.This nainrendce praclice;:
*plain why the samecomputer sometimeswork differendywiih whar is supposedl!:.1
patch sanesoftwm. A patchis a minor changeto ofect a problen or makea snall enhrncemcr:
A m inofc hangel o c o rrepcro ta b te m It is usuallym additionoan existingprogran.That is,the programningcoderepresenr:::
or m ak ea s h: t t n h a n c e melnt ils. the systenenhancenentis uually "parchedinto," oradded.o, rhe exisiing.od-AlrhoL-
us ually anaddit ioto n a ne x i snt q slipstrem upgrudcsud patchesare ninor changes,they can causeusersand suppon p::
sonnelbig problcmsif the programsdo not run x before.A no releaseis a signilia:
progmn chargerhet often requireschangesin the documenrarionofrhe soft@rc. F-inrt..
A s gnif ic ant
pr og ra m
c h a n grh
e at a ncw vesion ls a hajor prcsmm change,typicallv eDconpassingmeny nw features.
olle.f equir es
c ha n g ens th e d o c u
menlalionoi thesoftw6r
The R e q u e s tf o r M a in t e n a n c eF o r m
F e u u .c o f,hemounr" fel l or (l -dtcrrL' e,pen,.nrri arerJn.e.mJn)
orgbi ! . i. 1. r eq- -
A majorprogrm chang, typkatty
e nc om pas
ngsm a n yn wre a ru re s . a rcquest for m.intnd@ form to aurhorir rnodification ofprograms. This forn is usul
signed by a buiness manager,who docmenrs rhe need for rhc change aid idenrifies ::!
.equest for maintenanceform prloriq, of rhe changelelariveto other work that hasbeenreqlesred.The IS srcup r$i.-:
A iof maut hor iz
n9n o d i fi c aotno l rhe form and identites rhe prosrms ro be chansed,dererninesihe prograhmerwho
'.-
be asishedro rhe projecr,csrimetes the expectedonpleiion date,and deveiopsa rechn::
descriptionof the change.A cos/beneffranallsismay be requiredif rhe changerequr.
substantiat resolres.

P e r fo r m in gM a in te n a n ce
Dependingon organizarional policies.th peoplewho performsystensnaintenanceu-
Insotue cses,rhe reamwho dcsisnsand buildsrhe sysrenalsoperfornsnaintenance.I:
ongoingresponsibiliry givcsthe designerand progmnners an in.edtive ro build s!n.-
well from rhe oulser:Ifrhere arcproblems,they will havero fs then. In orhereses,o.!--
nizationshavea separare mainretdce ream.Tbis rcan is responsible for modi&ins, fi!n:
A spe cia lS te amr es pons ibt elor rnd up&dng exisrinssofrmre.
mo difyin9flx
, n9 ,a nd upddt ing In the ps!, @mpanieshad ro maintaineachcompurersysienor sere. separurelv. \\,:
hund.edsor thousandsofconpures scarle.edrhroughoutan organization,rhis taskcou:
be very costlyand time constrniis. Today, rhe nainrenancetuqcdon is beoning nc::
automated.Sone conpanies,for example,usemaintenan.eroolsandsoftwarcrharwillatl.-.
them to nainrain and upgradesoliware enrrally.
A nunber of vendos haveddeloped roolsro easeihe soliMre mainrenana burd::-
Relariviry Technologiesunveiled Rescue\(are, a producr ihat conver$ rhi.d,seneladon ni
suchu COBOL ro highly naintainableC++, Java,or Visual Baic objecr,orie'red.e
Usins Rcscueware, maintenance pesonnel download nainf.ame code to windows N-T ii
Windows 2000 workstations.They thcn use the product'sgr4hical rools ro analr?eL::
orignd s)stem s inner workings. Rescuevare leis a programmer seethe original sptm r :
serofobjecr views,which visuallyillurraie mod!]e tunctioninsand prosm siructurs.::
pesonnel can choosedne ofrhree levelsof irdsforharionr revanping rhe userinten-:::
conveningthe database a.css, and rransformingpro.eduk logic.
 chaptd 13
sysrem3Desqr lmptemeitalioi Mai.kian.P ,o.lReYPw I

RetativityTechnotogies
ModefnizationWorkbnchls a PC
basedsoftwaresoL!lionthat
enabLescompaniesto consotidate
legacyor rdundanlsyslemsinto
one,more maint.lnablandmodern

[Source:Courtesyof Retarivity

l P l i c a t i o nosl M a in te n a n ce
Th eFinanc i al m
fh e. o. r o m r inLe n r.e i ' r' rg g e ri n gl o ro l d e rP ' o gE m' ' heroJl ' srofmri nrenr(eun
b eup r o |r ' e r im e'sre rre rrh a nrh eI u ra l.o ' r o fd n e l o P mcnr' In ohrr sord' rt:oqdm:Ji
mr).o { $ 1 2 < 0 00to rF rrrtrmerhe
o ris inajlv . , " r $21 ,0 0 0ro J e v e l o P
."' nore than half his oi her dme on naintaining disdng pro-
;..s."--.' 'pend o n e ' l n rd d rri o no progrum'ga ol de tour mri nrnana,
"r;"s"
e .^. i; n' . id or d*a " p i n g n e w
w rrh rhe ur ol
i <p endi' r r e'i. r ime o d n o n .y i n .re re a ' i l u rn red i n Ii gure l l l "
n ser pr ogidnm i n gl :rg ,u a g ern . d a p p ro a .h e . i n .l udi ngohi eo ormrcd p' ogrum' i ng'
*;-ed o deline Ereo m, manv dsanizarions hM lileralv ni ios
-"i"..;,":..".,' ";" applietions wnten in oLderlan$ages Guchs COBOL)' which are
ofdollar in"*ted i"
both upensivernd rine-consumingto maintdn'

Maintenan.e Cosi5as a
Funclionol 496

il( ' Fa r qdg- a,

--r,
 Put 4 I sy5hmsE4eLopmmr

The financial implications ofmintendce male it imponanr to keeptnck ofwhy system

are naintained, imtead of sinply keeping cost figures. This is another remn that docu
meniation ofmainrenance rdks is so crucial. A determining factor in the decision to replacc
a systemis the point at which ir is @sting more ro fix it thu to replaceit.

T h eR e ta tio n sh b
ipe twe e nM a in te n a n ce
a n d0 e si9n
Prograns *e expens;vero dwelop, but they are wen more cpensive m maintain. Progru
thar are well desig"ed and docunenred to be efident, suucrured, ad lle*ible are les *'
petuive o nainiain in later yem. Thus, there is a direct relaiionship berween dsign dd
meintenance.More time spent on daign up front can med lessiime spent on naintenmc.

In no$ cdes, ir is wonh ihe atra tine od apeme to deign a good systen. Considcr
a sysrenrhar cosrs$250,000ro d*elop. Spending10 percentmorc on deisn would cosl
an additional$25,000,brinsing rhe total designost to $275,000.Maintenane@sts016
rhe lift ofrhe prognm could be $1,000,000.If rhis addirionaldesign*pease can reduce
maintenance costsby 10 percent,the s.vingsin maintenocecostswould be $ I 00,000.G e.
rhelife oflhe progmm,the net swinsswould be $75,000($100,000- $25,000).This rela'
rionship beween investnentin designand long+ern mainrenancesavingsis graphicll'
displayedin Figure 13.20.

@
TheVatueof lnvestment
in $ 2 50,000
Design 200,000
1 5 0,000
1 0 0,000
50,000

I Mari temnce
con
I Designcost

The need for good design goesbeyond mere costs.There is a rerl risk in ignoring sruI
systen problens when they arise,but thesesnall problems may bsome large in the turue
As nenriond edlier, bcause maintenmceprogmnmtsspeodan esdnated50 perce.t o.
nore of then time deciphering poo y wri$en, undocumenrcd progran code, there is litd.
time to spend on doeloping ntr, nore effecrives)rtems. Ifput ro good ue, the tools
"e
techniques discused in rhis chaprer will allow organizatioro to build lonser-lasting, mor

SYSTEMS
REVIEW
S;srcns rwiw, the final step ofsysremsdoelopmenr, is the prcces ofanallzing gnrems tc
T hei n al stepo fsys t em s dev elop- makesurethar rheyareopenting * intended.ir This proces often conpares the perfbrnac
menl, invotvingthe analysisofsys-
and benelia ofrhe systen asit ms designedwith the actual performancemd benefits of d:
temsto ma kesurethat t hey af e
sysleh in operttion. Hynms Robenson, m atuarial firm, reviewed d existing findcia
systemand discovered to rhe ffnrc
rhrt it no longermet rhecompuy\ needs.5'zAccording
directorfor rhe firn, "\7e had beenusinga financesystemtharhadbeenimplene"tedrh,-
years aso. \re soon realisedwe had outgown this systen o it wu not fl*ible enough tc
fit our changing needs." Problens and opportunities uncoveredduring systemsrwio riJ
 mpt0mentarior
sy'remsoesen I cn.n*" t,

rrigger systensdoelopnent md begin rhe proces anew.For exanple, * the nunber ofusets
ofd interacrive rysten incre*es, it is not unuual for system resPonsetime ro incre6e. If
rhe increasein responsetine is ioo greai, it ney be ne@ssaryro redesignsone ofthe slsten'
modify databases,or increse the power ofthe conpurer hardware
Internal enployees, external onsultana, or borh cm perforn systens wio. \0hen the
problens or opponunities are indmtry-wide, people fron sevemlfirms nay get togerher' In
somec6es, they.ollaborate at an IS .onftrelce or in a Privatemeeting involving severalfirms

Typesot ReviewProcedures
There are sro types ofrcv;ew proedurcs: oenr driven and time drjven GeeTable 13.6). Ar
mnt-dri*n sis is tr;ggered by a problen ot opportuniry sucb as an eror, a corporate evenl-ddvenrevlw
merger,or a no marketfu producs. ln sone ees companiesw:it until a largeproblem R e v i e w t fg g e r e db y a p r ob l e mo r
o p p o r t u n i t y s u cahs a f e rr o f, a co r
oropponuniry occun bclorea changeis nade, ignoringminor problems ln contmt, some p o r a r em e f g e r ,o r a n e wm a r ke l i o r
compdis usea continuous inprovement approach ro qsrem developnenr. W;th this ep-
proach, an orgadzation nakes changesro a rystem wen when small problens or opponu-
nities occur. Atthoush continuous improvenent on keep rhe systemcurcnt and reponsive'
doing the repeted dsign and inPleneniation cm be both tine-consuming and expensive

@
Eramptesot R6viewTypeg

A timedri\n revid is performed after a specified arnount of rime. Many application

R e ve w p r l o f m e da f t e ra sp cti e d
progms re reviewedwery six nonths to a year. \{rith lhis aPProach,an xisting s}'stemis
monitored on a schedule.If problems or opponunitier ff unovcred, a new s)'stemsdevel-
opment cycle may be initiated. A paltoll application, for e*ample, may be rcviewed once a
yearto nake surethat it is stili opcraring asexpectcd lfit is not, chmga are made.
Many companiesuse both approehes A biling aPpli@rion, for cffiPl, nishr be re-
viwed once a yer for enors, inefiiciencies, and opponunities to reduceoperating costs.This
is a time-drivcn approach. In addition, the billing applicadon night be rdotre if there is a
corporatc merger, if one or norc no managen require different information or repons or
if federal laws on bill collecting md pivacy chage This is an evenr-drivetr aPProach

Factorsto ConsiderDuringSystemsReview
Systernsreview should in"esdgate a number of imporiant facton, such m the following:
. M6i,,. Is the @npurer systemhdping the organiation rchise its overall mission?Are
stakeholderneedsmd desiressaris0edor qceeded with the nw or modified system?
. Oryani%tio,al pab. Does the cornputer systen suppon rhe speciEcgoalsofthe vdious
areu and depanmentsofthe orgdization?
. Ha uare a nfiware. Are h*dware and softwere up ro date and adequateto handle
cunenr and tuture procesing needif
. Ddtdb6c. Is tt\e .trent daraboe up to date md acctrute? ls databasestorage sprce
adequateto handle curent and future nceds?
, Tnhconnuhi.dnow.ls the cunenr relecomnuniiions systeh fdr enough, md doesit
allow manager md workere to send and receire timely messages? Does it allow for hst
order procesing and effecrivecustoner scricei
 Paft 4 | srrns Depbpftd

l"fomdtio" |tltm ?dion'et. Are rhcre sumcienr lS personncl to perform

crrcnt:rc
projecredprocessingt6ks?
CortroL Ate tda an<lprcccduresfor sysrcmuse and a.cess..ceprable? Arc e disrin:
d,,nrol ercclu$ adequte ro pr.red againsrero.s, nrver;onofprivacy. Faud,
an:
orherpotenrialproblens?
hai,ihs. tue rhereadegure rairins prosmns and piovhions for both uses bd
J:

a ;./. A r. d, r' opD mr ard oner:ri ng.or. i n t, c (i rh $h,r ,, expe.red't . , her e

.
a re q urrel \ budge o supp,,nrheuB ani zati on?
Candditt. k$. systen ovedy conptq dd dimc t to operareand hainrrn?
Reliabiury.Isthe systen rcliable?
\xtar is the nean rine be!{eenfdures (MTBI)?
Efrc;dcJ. Is t\e conpt:at systernctiicienr? Are qrtcn ourputs gencrated by ihe riei.
.nount otinpus, includingperonnel, hardware,softwarc,budget,and other?
Rapow tine.Hwlongdoes it takerhesysremto respona,ou,"., a,.i.gp""t p.o.*,t.:

Dotuue"tatia,.Is the lo.trDentadonstill vatid?Are changesin docunentarionneed..

to.eflect rhe currentsiruarion?

S y s t e mPe r fo r m a n ce
M e a su r e m e n t
systemperfofmance Systems_review often involves noniroring $e sysren, catled systein pe.fornane h6ue
n e n r.' l c n u nberofercrsencountered,rheamounrofnemoryrequi red , lheahounr . :
M o nito finq
thesystem t henum br processinsorcPUdme neded,dd olhdproblehsshouldbecloselyoLser.d.tfaDa,ricul-
or e rrofse ncou nle r ed,
t he am ounl
ot me moryreq ured t he am ounto,
.v i . n o, ptrl ormi rg a do-,ed. i r .houtdhr modi rted.or r ..* .y,,.. , t , "t a
'em -t
pro ce ssingo.CPUI m eneeded, and d*eloDed or r.au;red.
Systm performae productr havebeendevelopedto ncsue.I cohponens oitl:.
onputer,based inforhnion sysren,includingha.dware,sofrwar, daraba.,'rele@nmu",
systemperlonnanceproducts attonr dd nerwork sysrems.When propeiy $ed, systemperformarce products can
So ltwarlh at mea s uf es atcl om po quic[,
end emcientlylocateacrualor oorcndalDroblems.
nenls ot the cofrputerbasd ntor
mat 0nsystem,ifcluding hafdware, A.nunbo of prcdrca harc ben dncloped ro $isr in dsessinss)srempe.6rme.:
sollware,database,lelecommufi ^
Candlc is a leadingpbvidcr of h.Dagementroolsrtal honiror hainf;an. periomanc.,:
ca ro ns,an d n erwo f ks y s t em s . appliedon availabiliq'.Irs producrsin.lude CandleCon-andC..rer, an dqrced
svsr.r..
m rtu g e m e nIool Jo, ,,pri mi /i ngrn ,{ grni /ri on. .ont,Ii ng .e\our.d l nd Tdim i,
b u .,re * J p pl i Jri onJvrl rb;l i D .JndOV LC \MuN perrorm" n.e mori ,oh. r o, , eJt, i r .
rd h i .ro rnJl rnJ\,i ,otpc.fi , rtun.eun r v" r rry oi .y,,em. t,..i ,(/tuj ,rFJpr, duc, f o-
trc i ,e s ,' F srre\,,l uuon.rharprori de,aro:rdr\..to.kpertorn.,n..moni ro r ingr or o. .
acle databaseappli@rions. It dercctsand repofti potend.t probtems throush s).s;s nar.
agoot oroles. Precisc/Puhe nonims th perfornanceofoirical darabceapplicatlo-_
rdi$ks alensaboutndlicienciesbeforerheyrurninto apptiot;on pefo.manc.irobte-,
Meruinga systemis,in erecr,the 6nal taskofsyrernsderelopnent.Th. re;ks ofrh,.
p ,o .c ..rrv bnngi l -edsel opmrnl ermb,J,o,h.bcs,nni ngoi ,i rcJe,rtopm er , t , t c. .
whcre the processbegn$ agaiD.
 9,, n5 rr" dr r!rE rrrn
"

SUMMARY

S ecerl y.ka!d.andthenva5i onof pri vacya.eatso m po.

t.ni desgn consdefsti oi s Most l S departments e5t . blsh
0esigning new systems o. modifying existing ones
t ght systems.ontrol sto ma nta n data se.!fty S yst - "m s
5houtdalways be aimed al helping an organization
contfoLs.an heLppreve.lc0nrpl teIm sl se, cI me,rnd lr a! d
:chieveits goats. byemptoyeee ai d othef5.S ystemcontroLsncL!denpu ( ,oLr L
: plrposoor systcm.dcs!1. 5 to p.ep.rre
the det.lea p!1.p.ocessn! database. tetecomm!ncati ons. andpe. son
: qnnceds or modfcrt onsLoLheerislng
lo.. fcw syslcm
.:em.Loqcatsr':temEdesEf re1.r5to Ltsc
w.y llralllrc W hethe.ani i dvi dLrat sp!r.hasl i ga pefson.t.omp! ler
r!: . om poief Ls s y rL o l ' w l t w ofh oi an erpefer.e0 ccmpanys a.qu r ng an erpensrvm e a, n
:.r:h e. T he t ogl. : t de s ;g i i n .t!d e s d a ta.e q ! re me n tsfor frame compLrl erthe sysl enrco!Ldbe obtai nedIrom o ne o.
o. . do qo or o o d. 9
,iL L r ""d o . v,ai dorare the vendor5 feLabLty ai d I .ai c at 5l abI t y t he
o typeof se| V i .eol f.red,fter th. !.l e tl i egoodsi i rd se l. cs
' " .e te
p" thevei dor offer. ai d keep.i n stock !h,a!endo.5w i LLqnes. if
" or o l "
I r.J
hardw ar,the vendo.s ab,Lty to modfy i 5 soi tw a f e,t he
fcr an0 p. oc , - o! f , a. si e sq . i r!. Lrbi Li l y.f
vendo.ofl cfedtr! n nqol S pcrsonnt. f dsys
. -" o ! -! tem Lrse.s,.nd ev.t!ai i onsol the vendo.by i depe ndenl
: l l .d I of . t r y 51e m . d e l e L o p m e n l L fe .y .t-a o r the
6t 6 dt . r . . o .g ." 0 0 " o .. | .cw l i ardu/..eof 5ol tw arcw l tl br p!rch;sed f . oi'r J
"" vei do. : l ofmaLfeqLre5t l or propo5atIR FP I s need edThe
'" i n e ^ or
: r.l e a s y elemT f e 5e q !e ..e o f e v e n t.th a t a n e v ,o r m od R [P ol i Lfes the .l j n]pan!! feed!, r responsethe ! endor
.:l :ysr em. q! f er ' i o l l e i .a tl e da s .e rr.,r, o h c h .a n be provd.5Jw rrten:epty.l iaddl lon to respofdfg t.l ha coni
:r'Jm nr ed n. . , eq! e ..ed a q f.m . p.ny' sst.tcd necds,thc !cndor pfovdcs dataof r! o pef a
o" -L d",.q' .d" . d.do...dLob . ond
A n ! m be. ot : pec a t d e sg n .o n s d e ra L ro n5sh c rtd be
."
:i n lo ac c c ! nt d! f ln q b o i h l o g .a t ;n d p r,y s .i rts l r stcnr " " ;".",.fe.endor
: !. Lnt c ' iir c cla! ! . .i d .o n l .o t .e l a te sto h o w L r sers ab lty to p..lo.m .epa fs and 1x p.obtems,lendo. t.a n n9,
:::5 . nd nler r c t w rh L h . s y j i c m A s L q i 0 i p ro .e dLrfe and the vendo.s .epltal on. F nancat oDl on5 to .on5 de.
i 5 ts oi denLI c nt o f f!r]b c rs p r!!w o fd s .i d o thef nct!de p!.cha5e lease aid rent
:_ q !J . d5needc df oi d. v d !a l 5 to g a .a c c e .s t.c o m p L rte. R F P 5 f ro m ! . . o u s v c n d o . s a r . r e v e w e d a i d r . n o w e d
dowitothefewmcstlletycandidate5 n t h e f n a t e v . l !a l i o n .
3 ! a f e t y . f t e . h i q ! e s l n c t L r dn g ! r o ! p . o n s e n s ! s . co st/
" o o " up
r ac l f..il r r ar :- , rq b"." __, po .ot .oD o,dbd -or. o

r.kfof nr . f " r : t ioi n a c te a l n a n n e :.re 5 p o n dfa p d l y be be lsed ln qroup de.ision making grolp r!
d ." " a p p o i l e i a i d g l l e n r e s p o n s b t t y i o r m a k n g t h e f i n at e va l
" pp " , " " ...o -" ! a t o n a n d s e i e c t o n W t h c o s t / b e n e tt a n a t y s s a t t c o sts a o d
r t w t t . v o: d ! s e . t c o mp !te fj .fq o n a n d L fe .t l h e ! ser
b e n e f t 5 o f t h e a t l e f n a i v e s a r e e x p r e s s e dl n m o n e l a r y te r m s.
Br !t o,.- o1p" g o tLe
!i .sr em s ec ! r r y a. dc o n tfo ti i l o tl e s m a n y a s p e .t5E f.of "L
gud q"." od o o: ."."io q
: rn t on det ec t iona n d c o .fe .ti o n5 ro !l d b e p a rt D rthe - " "
.:3 T de5s n p. . c es 5 .C r!j c s o l .fro fs i n c L rd eh !m ai w e g h t s t . e v a t | ] a t i o nf a . i o r s , a n d e a c h a L t e r n . t l v e s e l a l L l
r rres r nt u. . i pno n o m c n r,i ri d l e c h . c a l p ro b t em. . l e d n t . . m s o l e r c h h c t o r a n d g v e n a s c o r e f . o m 0 to I0 0
d. 6 6 d , : . t ' o . . o d . " q o " o b-q
:: o .ef s . hoLr ldbe at e rtl op fe v e n ti oonff.a o d a n d i v a son ^ - "
a. n"" do,.\a e- db q. dp 6 a.pdit o
'loo op" o'r t i o n s a f e f f o z e n a n d n o c h a n g e s a f e a l t o w e d s o t h . t im p te
' "
.a po66l0 6o
.D " pr q " p " ". P" 9 ".i
" s y s l c m s d e s q r s l o d 0 ! a t o p a q o o d c o n t f a c t i t n e w c o mp u te r
'r d nq t o: dis a5t . . sA d s a s L ocr :r. b e a ' r a .t o i n a tu.eLa
r. fl . e. o. ear lhq! a k ol f a h u m rf ..1 l te rro .s n r.e f fa., lac;tjisrfebe nqacqu fed.Allnrldes gn.epoft sdeveloped
:: !fr c ! t or f f J : Lr .c o l ;n i m p o .t.i t fi l e l T h ,op . m ary rt the end cf the systemsdes gn phase
r l s ed n d s as t e.p l a n nrg rfd rc .o v e ryrfe n i rrd ware
i i a .e dat . b! s e le te c o m m ! c a l o n s n rrd p e rs ofnel
 eute I sp..' r.'L.r*r

Princlple D !t.base.ndtate.omm!ni c:tcnssofrwa. edev. L: :-

Theprimaryemphasisof systemsimptementation is nvoLvesacq! t ng the necessaryd3t:bases , !
to makesurethattherightinformation tetecomr!nrcatons,and Inte.i el facti i es Com pi. : :
isdelivered
to
therightpersonin therightformatat therighttime. a w de aray .f choi .es. n.tLrdn9 new e f objcL.: .

T f e p! . pos e o f s y s te ms m p L e m .i ta to ni 5 ro nstattthe rmpte.feftaton m!5t addfesspe.sonr etr eqr . . .

s v s t emaf d ma i rec v e ry i hrg f.tu d x g L rs e .s,readyfor rs U se. p.epafaton .voLvesre:dy i g manage. : em r :
ard other Lrsers fo. the new sy:tem N ew 5 per eo. ..
o o d "oo " needi o be h rcd,afd L5er: ml st be w ei tLraned i .
o" d o o ." 0 tenrsf!r.to.s P reparai i orof l hephvscat st eoiih. .
"
. : t ol ns La tbot n te s l ;n ! s ta rt L rp .n . d !s - " f a.ceptan.e ml sl be doi e. !l d any er5t,nqdatato be Lr sedi
H. f lw. f e! . q! 5 l o f .e q ! re 5 o !r.h a s l i ! L e as.g.of.enti i g s," sl emw i tl requre cofl efsi ri to the ne," fo
,r . m a: F:
. 0nr p! t err e. o L rrc el sro m .n S v e n d o .H a fd w j .e s typcatty nstattaton s done dLr.ng the i mpLe.r' rent at. r : r :
on
or t a nedt f am a c o mg !te rh ,Id w a .e ,re .d o f l estnq T.stng rn.t!des p.ogram l !nj tl t e5t , ! . .
S of t war e
.a n b eo !rc h n s c di .o m !e i d o rs o .oeveropeo rn- testi ngv0t!D e te5tng, nteqratl on tost nq, and, r . . : : :
ncuse a dec,son tefmed \tt. .nake ar buy dec/s/onA Wl
c f r ns eds oit w 6 rep a .k .!e !5 !.tty h .5 a l o \r' " ,efcosr tess.sk S tart !p begns w ri hl hc r rati esi ed nl .r m ar! r : :
f eqar dng ir r ei e .t!.e s a n d p e .ro fn a n c e3 n d asy,nstaLta W henstan Lrp s i n shed the syl tem s Illt y o. : .
L on T he s r iro !f1 o f d e v e tc o r,c net ffo :r s a L sotess w nen Therea.e a i umbe. ol di ffefei tsl art Lrpappr o: c. : .
s ot iv J arres p!rc h a s e d D e l e L c pn g i o i tw a re can fesLrl,n
t a convefsr0i L:tso catted p1,,9e at direct cutaNetl
s y s t emt hal r n o .e .to s e tym e e tsth e b u si e s s n eedsand h.s si oppnq the otd systema.d 5rartrg i ne new 5r ! :
nc . eas edT ie xb L ty n te rm s o i c l s to m z a ro n and change: g !ef da{e.W th the phase napproach.so m et m . : : :
pie.eneal approa.h componeiis ol ihe new jr-.. -
Dev et op: .s9o (tw :rea L s orrs q .e a te fp o te n t. t fcr provd nq
o o.06 6 o d ... ood . o oa.d o. q sl ow typhasedn w hl tecomponents al rhe otdo. - - d , . :
9
o' b o prrased out.W i reneveryones confdenrthart he . e. . , -
l- '
E pe.rcfmn! as expecred. l rre otd system s c. - : :
S of t wa. d e v e to p m e nst o fte np e rl o rn re d by a ch et p.o- phasedo!1. P i totstarL!p,nvol vesrl nn ng t he r si : :
gr am m er t ea m a !ro !p o t S p ro fe s so n .ts ,,rhodesi gn. fofoneq.o!p of!sers.atheftF.nati !sers Par at t e: :
delelop and E o ftre " ep fo q ra m p rogrammng rnvol ves.!nnngbotl -rtheol da.dnew syst em s'o. a. ::
r 5 ng t r adt or-aplte p rome n t.m mn g l a n g !a g e si o ttow sa ti l ecy.te
g .s 1 me.Theo!tp!t af the newsystems compar edct . : :
''" d" . a e s o " I ogQ," " _ the outp!t ol the otdsystem.a.d anyd fr.ences a- : : :
",
I . n pr ag. ! nrco d rn gte s t,n g :.d d e b !rg g n g d cc!re.t.t on c ted W hen!se.s are comfoftl bterh3t l he new s . ,
and m p( enr e i te0t 4 L c o n v e fs ro nDl o c L rme ntaN on nctudes w ork ng c0rreci Ly l i reotdsystems etmi natedM a" : .
t ec r r nc atand ! s e r d o c u n -re n ta t:.n . dofsaskthe usefro si !n a l o.maL!rser accep t anc. d: : _
T her e: r e m a n yto o L s n d te c h nq u e sl c . s o fl w aredeve! that rete!sesthe l S vendofi fcm tab ti tyfo f p. cb. : - : . .
opm ent 5t r r c rL rfe d e sg n s a p h to s o D hoy f d esgn ng and occorafterthe docLrnrent i s s gned
de. eoo 9 oo i -. .d o - o o-." 9s
nora new pr o g .a mmn ! t.n g l a g e t s a w a y1 0standard2-a
Principle
c 0m p! r t erpr o q f.mn rn ! u s n g e x s t n 9 ta .q L r ages The rop-
downaopr 0: c hs i a rtsw th p fo g f.m r n ! a i I rodLrtednd Maintenance and review add to the uselut tife :. I
o' e o ' " ..o d .e ,0 systembui aanconsumetatgermounlsof resouraGs,
^. iLc 10. " o o , .-a..-,
p( af ior nrdev e i o p me natn d n te g fa te dd e v e l o p ment env.on, Theseactivitiescanbenefitfromthe samerigo.c.5
m ent sllDE 5l r a k e s o fi w a .ed e l e to p me nei a si efano more methods andprojectmanagementtechniquesapp-{4
0- o . qr r r 5[ o o to syste|h5dvelopment.

F o! nh' gen e raot n ta n g !a g e sl 4 G L sal n o o bl ectof efted

t angLr aqes o fiaenfo th e .a tte ri a l v e l on -h o !s eC evetopment S ystems ma i tenance nvo{ veEcheck,ng ch: nc - : ,
D66oo a o .,"9."9". enhan.i gthesystemtomal etmoreLrsefLr l !'
iobr
" "
f eq! . e: s elera ts l e p sm!c. h t k e l i reo -o g ra mmi i !{re.ycte. and0.gen2alonatqo:ts l .l antenan.esc.tc. {t . f - :
T hem en d jf e re i c e s th a t w th c b l e .t o re n ted,d,j ,j ud9e5 I n!ed 5mootlopefat
r on ol thestrster Theco st s. f t :
pr 0S . . nm ef 5m !s t d e n tty a i d s e te .t.o l e .L srnd i ntegr.te ngnar.tefancecanr/ettxceedrhe o. g n.tcosror . : :
lf r c q int . ai a p p tc a tc n n s te rd.f !s .g s te p by,sl ep.od th. system S ome ma.or .a!* : of ma nl e nan. e: - :
o Bd
.
o ao 6 o
..
L o o d. o . odd p6J o6 pe6o feq!ests l rom st:kehotde.sand m.nrgefs , enh. ,
soltw re de ve Lopm eitar d . r f m pf ole qLr alt! w h e n ! s i ! feq!e.t. from !sers. b!gs or er..s, re.hi caLor . : :
o blcci.o . e nte d m pt eaer r : r 1 o" rrobtens,nevr' added
ty eqLrpn' reni ..hange i nso. 9. . : :
stf!.r!f e. i nd !ol ernment.egrtal i ons
 systemsDeeqnlmptomentatoiMainreiceandReviaw I Co"n'" t"

S ystems.evi ew rstheprocessofanatvzrng andmonrt or r ng

Man t enanc e c anbea s s l m p l ea s a p ro q .a mPa tc hto cof
-:.t a sm at Lpr obt emto th e mo re c o rn p l e xu p g ra d rnqor systemsto makes!r l hal theyareoperati ng i ntende dThe
as
pvr F^
wlth a new reLeaslrom a vendof. For otder pro .w o _rpe oi -er" 6 o o!ed--e,.r' trp dveJt dr ' Fn
-.'tware and the time driven review An event driven revrew rs trrg
ra ms, t he t at alc os tof m a i n te n a n ccea nb e g re a te fl h a nthe A | -" d r/e re' "r is
ge' " d o/ " proo" m or oD oo-u ,l '
;:at cost of devetopment lncreasedemphasison designcan
fo r ma n i e n ance amountott me
sta ed afi ra specrfi ed
.:e n red! c e m aint ena n cceo s i s R e q u e s ts
maintenance fo'm Systems.evlewinvoLves measurinqfow wetl the syslem
:-.rlrtd be documentedwith a fequestfor
s supportng the mi ssi onand goE l sof the o' g' n zatl onSys-
: l o cu r nentt hat lor m a L Lavu th o ri z e smo d i fc a ti o n pro-o t
n ia m o r a s p e ca ti z e dm a i n te nance tem pertormancemersurementmonrtorstri e sysl emr o'
r3 ms. T hedev eLopm ete
;:m may t henm ak eap p ro v ecdh a n g e EMa i n te n a ' c e c a nbe numberof errofs,amountof rnemoryand process!nq trme
a p
wlt h t h e o b j e c te d -o ri e n te d p ' o e c h
:-? a tl ys im pLif ied

CTIAPTER 18: SELF-ASSESSMENT TEST

qirring one<should 8. ASP is an enmple ofu IS vendor that offers hardwrc and
L.ienine ns ryrtem. or modirying
U*;-.a. hapi"gu orgdidrion ,chierc iG soai) softwaresolutions.True or False?
*,i
9. Soli.'are @n be purchted from erternal develoPes or
detailssystemoutpurs,iopua' and rnointer doeloped in house This decision is often crlled the
-
hcst sDecifieshddwarq softqare, databases'teleco'mu- decision
md showqhow these -
.icadons,peronnel,and procedures; 10. \Vith rhis type of stuau.e' a program cm branch to
co mponenn: r er el a re d anod,cr pan of the progrd, depending on cenan
: nerernining rhe need.dharawrreand oft*rr ior : no
swtcm is an examPleof
a. seqrcnce struc$re
a. logical design b. decision suucture
b. physicaldesign c. loop sttuctte
d. inreractive design d. C"{SE sffu.tur
d. objeccorienteddes;gn
11. tcstidginvolvestestingthe entire svsten of
-
: Point evaluadon often rcsults in a forml bid th't is used
ro dterminewho getsa @ntnct for a nw or modified r2. ihJ phue-in approachto onverion involvesrunning
svstem.True or False? b.rh ih. .ld.y.r;- ,"d the no svstemfor threenonths
. ir'" -.r"n resultsin a forrul bid that is med or longer'True or Fdlse?
,o der et nine s ho g e b r c o n rtr\' fo t d e ' i g n i rg n s or
modifring uisring s)stems II specifiesin dehil the Maintenarce md toiew add m tlrc usefi'l life of a svstembut
required reources such * hedware and sohwere' cu <onrme Largemous of re"ou.cesl heM"'ivi'ies d
Vith this approach, a decision'naking grouP appornted benefft Fom rhe sane rigorous neihodi dd Prcj4t lldase-
' 's
and given the respomibiliiy ofmaking rhe fLn"l"""lution ment tahniqus applied to slstens dwelopment'
and selecdondudng systems design 13. A(Ar) - is a minor ch,ngeto cor'ecta Prcblem
or nake a snall enhancement to e progran or svsreo'
a. costibenefit
b. point evaluaion 1r. Ml l v o' esi ari on' requi re equer for mrnr enr r
a
r" ,nrc modi fi.,' i on o prostJtu l tueo r TJ'e?
c. grouP consensus " J,hote qisr-
d. nonidal *aluation 15. A sysiemsrevifl thar is ceusedbv a problen with an
ing systemis called
: Neu rhe end ofthe design smge'an orgrniaion Prohibits
a. objed reviov
tunher chmge in the design ofthe spten This is olled
b. strucruredrcriew
of*enn c. event-driven reuew
- ln objectedorientedrystemsdesign,a sequence
.an be diagramnedin a sequence d. criric.l facro6 reviq
is .dled . tc.tunb
^nd
diagrm. True or False?

Ihe orimaryemphaic ofsyslemsimPlenenu'ion i' to malc

*ur r}e rigll infor-ar;on i'delivercd ro rle righr penon
-re
! rh dght fornat at the right tine.
 Pdda !,F.,rr D-a.L!lnF,L
|

16. Jaq,VlsualBdic, andC++ re exrnftcs ofsru.turcd pro_

CTIAI'TER 13: SELF,ASSESSMtrNT
'I[S]'AN5WI Ri
gnm'n'ng larguiscs.True or F.lse?
17. Moniroringasrstcn alicr it hasbeenimplementedis calletl (1) systemsdesisD C) b (3)Fakc(4) .cqGsr for propolat :r'
(5) c (6) liee,ing design spedfiarions (7)
i.rue ti .,*
(9) make-o.buy (t0) b
{ ) s),srcn (12) FalscLrr rL:..
(14) Truc (15) c (16) Fal k (17) syst en
pef t , : - . j

KEY TERMS

acceptancetesting643 integrated development

atphatestrng sign-onprocedure 619
643 envrronments ltDEsi640
befchmarktest630 sitepreparation
642
if tegration
testing643 srpstreamup9rade
betatesting643 648
logicatdesign613 sottwareinierfac
635
chiefprogrammer team636 took!piabLes 620 slarlup 644
loopstructLr 638 structuredwatkthrough
coLdsite622 640
marntenance team648 sysrempertofmance measure-_,
cosi/benefitanalysis629 make-o-buydecision 634 652
cross-ptatf
orm devetopment 640 menu-drivef system620
daiapreparaiion, sysremperrofmance producis ::_
or dataconversiof openshops624
6/,2 systemtestrng643
Paraltetstart-up645 systemscontrots524
decisionstructure638 paich648
desrgn systemsdesign613
report631 pnase-rnapproach 644
aererrence sysrem5mprementation 632
controts624 physicaldesign 613
drfectconversron systemsmarntenance 646
644
dlsaster systems operation645
recovery
621 pointvatuaiion system630
eventdrivnreview651 systemsreview650
preumrnary evatuation628 technicatdocumentation
finateval!aton 628 637
programming tifecycte637 time-drivenreview651
groupconsensus 629 retease648
heLpfacitity620 Iop-down approach638
req!estior maintenance form648 unrttesting643
hotsite622 requesttor proposaLlRFpl626 useracceptance document 6-:
imagetog623 restE.tprocedures 620
incremental !ser documentation637
backup623 setectrve
backup623
Instatlation userpreparation641
643 sequence str!ciure638 version648
votumetesling643

REVIEW SUESTIONS

1. V/hat is rhe purpose ofsystems desien?

7. vhar ee the different rypesof softwre
2. \/hfi arc proceddre .eqdrenents?
blckup?Desqiberhe preedue you usero
3. V4rat h inrerrcrive proce,sins?wtrar desisn factos should
be r dr el in ro4 .o u n r fo , (h n ry p eo fp ro .c si ng? 8. Idenriryspecificconnolsrharare usedto n,
4. ' 0v huoot . . rn b e s e d ro d n c to p v e b h 6 c d rrp ti .e,i ob?
integriryard seuriry.
r Hos ( an o b j e a -o fl e n rrdrtp ro a .h b e ured duri ng
'he 9. Vhar is ao RFP?\X7haris t}?iel), included in oo- --
6. \ V hJ ir e. o m e o t th e ,p e .i rt d e i g n .o r\j d earon, rhar
I 0. W hrr J.rni ri es8o on duri ngLheuer pr.p"er ior : .
r houu be i n o J .@ J n , J u .i n g h o ,h ,h r tosi cJand
'Jen sysrems lmPlemenutiotr?
I 1. Whar is sysrernsope.arion?
12. \ftar d rhe srepsofsystemsinpicmenr&:te,
'najor
 Msinenai.cand{eY'e
Desisi,rmptementar'on.
system5 | *un* t"

13.\Vtet are sone tools ard tecl[riqu* for ofmare 17. \{&at 3re som. ofih re$ons for prog'an mainEnancei
Exphin tbe ry"s ofmainrenatr.e
I8. D..-ibe the point elrlurrion garem for tleoion oi rhe
14.Givdrree'nples ofan IS vndor'
ber ystem altelMdve.
| 5. Exptrin lhe threetrys ofstructuresallwed in stoctured
19. How is s)6temsperfotnance mc.surment rel'atdro the
rr,. V * *'-" invohedin rc*ing the informarion
' 'r.p.

DISCUSSION GIUESTIONS

Describedle panicipao$ in the lstens deign snge How walution when selectinga new peronal computerand
do rhesepariicipantsonparc with the particip:nx of prldterj
sysrems invesdgaion? 9. Wirat ue the advantagesmd disadvantagesof the object-
ilune th* yoLrm the ownerof a companvrhat is about o.ienredapProachto systnsimPlenenradon?
o start narketing md sellingbicyclesover the Intern*' 10. Asume tharyou arestrring an Internetsitero sellclothing'
Describeyou rop three objectivesin developinsa new Descibc how you would design the interacrive procesng
Veb site for thk sptens developmeni Projecr' systen for this sitc. Dnw a diagran showing the hone
\* um . r hr y ou " , n ' ro .8 tr a n * ' i d e o re n rrl h u 'i ne' web pascfor rhe siie. Describethc important featuresof
forstudens at your collegeor unive$iry Go rhroughlog-
ic:l designfor a new informationsysrento heipvou keep I 1. ldentify the variou forms of testing. \(hv arc thoe so
tnckofthevideos in your inventory many diffetentr)'Pesoftestsi
Assrne that you a.e the ownerofan oniine srock-trading 12. VAat is the goal of conducting a systemsron'w? V4ret
company. Describehow y"u could desigd rhe tndirg faaon needro be considercddurins sl'stem revLew?
systen io recoverffotu a dis6ter. 13. wlut featuresadd termswould vou insi$ on in a soff'ar
packaseconrract?
rienti& mne of rhe rdvanages and disalvantag* of
purchasingvetsusleasinghardware. 14. \Vhar isuesnight you e"pectto dise ifvdu initiaterheuse
Discus the relationshipbemeenmainteranceod svstcn ofa requesrfor naintenme form when none had been
required pr*ioudy? How would you dedlwith thes' issues?
k iiequalLy inponmr for all sysremsto ha'e a disaster 15. Asiune thar you have a personalconputer that is several
recoveryplant Wh,v, or whY notl vearsold. Describethe stepsvou would usero pedormsve
wetediscusedtooduaea numberof rns rwiew rc <tetaminewhethervou should acquirea
Severalapproaches
svstems No ooeapproachisalwap
acquisitionalternatives. new P C .
ri,e b*t. How would yo" decidewhich approch to usefor

PROBLEM-SOLVING EXERCISES

You havebeenhned to dqelop a ne* computer svsten fo' but a lower naintenance cosr over the life of the lsten'
a videorentalbusires usinsthe objectorientedaPProach' The second approrch cuts rhe design effon, saving sone
u.irg infornation presentedin this chaptermd in dollar but witi a likely incrcasein mainrenance@sl
!
't'.12, dscribe in a repdr the appo@h vou Muld Prinr the
Chapter a. Enrer the following dxrain the sPreadshet
use. Using a graphicsprosram' use the objeccoriented
to document the pts of the new conPuter
'pprcach GoodD esi gn
TheB enel i tsof
OoodD esi gn P oorDesr gn
A prcjtct read has esinated the costs $so'iated with
rhe dwelopnent and maintenance or a new slstem'
ffi $35 000
mpt;mentatloncost $42 000
One approachrequiresa more comPletedesign'nd wil A nnuatMai ntenanceC osl $32000 $40000
'e . ult h r J ig\ r J 1h rg h ed e rg n rn d rm p l c m e rra rionor
'
 ru"t n | ,,,,.".. r,-"1"l-n.,

shorlclbe u o cr number. 'l'he.erhouldbe a scpr::

b. Crere a $a.ked b.r gr.dr rhrt shorvsdle tot.l.osr,
for erch vcndor. Your databaseshodd havc rr 1c.,.
r r " r uJ rr.i .1 . J .' i g ' . i ' o l r-' r i ' n -rJ.' i n(
r.r-l .r' r-rr..c " .e." I r,l -. I rl ,.l ' \ l\ lr ,
nancecoss. Be surc rLat tbe chan hasa tiLlcrno uar '
trl,k shouLd inclLrde the ordernuhber, srlesrcprcs.,:
drecosrsne hbrled or drc chrn.
rJ r .rr.. .. r J lJJ
c. Us.vouf!vo.d p,ocesingsofo*rc to wrirea paragtrph ' ' do..' l one ' urnFa '
.elaredinnrnnrion for crch vcndor. tlsing the .t.:
rheLrccornmends an approrchto rrkc and rvhl
progQm. .!ele a rrpon tlnt sclecrsrhe I'C sN.:
J . You areconsidcrn*purchasinganervPC. Usntga database ni n.rr' r. rl o . l r. r./or \^ulJ r r . LJ
'
prcgran, crcatca trble titled PC' tlut nr.ludescolumns rrt m .1o,,. .l c r." .or,,t l r n , \ . f r
' ri .' '
on all drcnnporunr cosrs.includnrgrll hardware,v,ftwt. rhe salesreprescnratiK, phone number,and rerd',
I nt nr et . p rn rrc ra n di n k ,rn d o th e r.o s rsl .hep,i man' kef fiom the VENDOR riblc.

TEAM ACTIVITIES

1. A$uhe that yorr projccrreamhasheenworkins ibr rhree 2. A:rme tharyour teamworls for a rnednrn+izcdco: : ":
non$s to cohtlete th sFicns desigiofa nervwcb-based rhr r:de rrrul bord.i r\{Y o,\' ia. \ or ': - .
cusronerorde.ingsystem.Trvo posible optionsseen to 500 ehployeesi! a downrownloqtion. The firm has. 'r
ncct alLuser' needs.The projcct teammuv nrke a final areanetworkthar is riednrto a globalmding ncsot, ::
dccisio,lon $hich optior ro inplemnr. The tablc that othet fims. \fhat specificrecomnendations qoL,:: -
foLlowssummrizessomcof rhekeyfactsabourcachoption. and your tcam nembers make to the prcsidenl r ,cl
companvro allow lour firm to recoverfron r to::":r
r . r I hr r p o .e - ru u J n r ' o o \ ro In J e ,\ ' i noo.' rrl
' J !r. r' r,enon., J,,r-R lMak. ' ur. ro in. luJ, . - . .
de..rrpr' n o' rl . br(Lr,p p o.-Ju, r ' ) oJ
b. \fho nee& to bc invohed?
rcconmend. Ptepre your pr.senrationfo. the Pr:: :,-
c. Wlar edditionrlquesrionsned to lt usvcrcd to make
aDd give vou. pnch. DocuneDr your main po,nt. - ,r
a gooddcision?
vour word pntesing prognm fbr subnissn,n r :
d. B*ed or thc dara,rvhichoptn,nwouLdyourecommend
3 . Yourrcm h* beenaskcdto pufchaseand in$Jl ! r:r- I
e. Ho* woutd )ou a < o u n t fu r p ro j cc' i i \k i n )ou.
sl'stemrhat inchdes fivc ICs, two printers,and r ', -, .r
d.isionmaknlg?
networkfot a smallbusincss. Developan RFP rhal . n'
scntto four PCvendor that specifiesall the equipmt: -:r
l l v i L ti onsltM l t ons) sofrwarerhat is needed.
$1.s $30
T ot at dev el o p m ec n
o is t $1.5 $2.2
A nnuat ope ra ticnogs t $0.5 910
I m e . equr e dto m p l e me n t
Ris kas s oc i a tewdth p ro l e clte x p .e s s e d

B ener itwl
s ttb e5 0 %L e s ths a fle x p e c te d 2 A ' h 35%
Costw lt be 50o% gfeate.thanexpected 25n/. 30%
orqanrz:ton w tLnot/cannothake zAv. 75%
c hanges ne c e s s a to to o p e .a te
ry .s y s te m

Doessystemmeetall rnand:tory Yes

 s l s r e m q D e s em
n p l e m e r l a t oM
na r t . . a i . e a n d R e ! e n I c-rt' t"

WEB EXERCISES

Usethe Internctto find two d;{Terent .ompaniesrharhave 2. Us;ng the web, searchfor infbrmarion on structured design
recentlyinplenenred a new infornation t-stem-Des.rihe ard pr, g " mn:ng. A l .o .er.h rh. u/eb for i n' " rtr
"r
rhespecificsepsthecompaniesused.You mayb askedio abourthe objected<riented approachro systensdesignand
.l fl elop. , D. ,I or . e n dr e n a i Jm e * rg eto y " u , i n .tru. implementation.\Yrite a reporton whatyou {bund.Undo
ror aboutwhat you found. whara,ndhn,nswouldyouuscrhcseapproaches to srtems
developnentand implencntarion?

CAREER EXERCISES

Describewhar rype of;nfornation sysremyou would need What specifictaskswould you pt*orn to inplencntyou!
in your chosenjob. Your desoiptionshouldincludelogical new systemdescibedin the previo$ careerexercisc?
and physicaldesign.\7hat specificstepswould you include
to be able to recoverfrom a natural or man-nade dismer,
such $ a terrorist aftack?

VIDEO SUESTIONS

aarch the video clip Making Flowcharts Using Omce )<l dd 2. \rhich of the chan srylesdiscused
$wer lhesequestions: uful in sysEms design?
. Vhar gpes oforganizaiionelstructuresand flowchanscm
berepresenteduing Microsofr\rord\ Diagfamand Orga-
nizadonal Ch t rool?

CASE STUDIES

Case Ore countres.f/etLi tecLrrrentty hasa customefbaseofS m it llon

w orl dwde,w h ch i t hopesto bu l d to 30 m Lti onby 201C. To
XelLife Sotoctsthe Besl Technotogies
Arourd the
provde an effectve inlormat on nlrastructure to att of ts
Globe gtobatoff ces,MetLi fehastakena un que and revoL ut ionar y
--e b e s tideasin t heUn t e dSta te sd o nt a L w a ytfa
s n s l a te w ett approach to i ts i mptementai i on.
': o th e r c aunt r es .T ak e ,fo r e x a mp l e ,C o o rs s m a .k eti ng Most qtobatoperatons dont consrderthe eftect st hat
::n p a i g n f or lt s bee. t h a tc e n te re da ro u n dth e s to g a n T!rn bui Ldi ngsystemsat headqua.tefE andfo.c ng thosesysiem s
r.o o se, whic ht r ans t a teidn to Sp a n i s h a s " S u ffe rfro r ndrar orroLFe| dhdeoI " .,Ll " a' eo .cero e' " p" .opa-
^or
- " F q, al, ois a, t r o u 5e ,u . .L a n o c ru -^ h e n c o -o d-i eq at ons.The.easonth s approachfa ts s becausetoca t
i avordrf'nk.
strl rcturesdfferw i detyn co!ntri es.C oLrntfi es ier ent
:::e mp t t o r oLtout a c o mmo n te c h n o to g yi n fra s i ru cl ure
:_ _ o u ghotat gt obator g a n i z a ti o n . technotog es. use d ffe.enttel ecomm!r'catr ons comp anes
Ste v eB oz z owas f e c e n ttyn a m e d i n te rn a ti o n aCL0 at and mptementdi ffe.entsol tl l are and hardw areopt lons.
r'" ; n. o. po. dr eda n e ' p o .i o n h - ." .a /. s a test" S omecountfi esfavo.non-U .SprodLrcts
. andafe moref am it -
i ts g L o b asLtra te g yMei
. Lrfe i a.w th the r homeg.ow n products.
-e n t to M et Lf es c am mL tme n tto
s a g i ant n t he ns u ra fc e n d L rs tryw i th o ffc e s n l 1
 P't4 | 5r ! r n! r er r m ! L

I he r ev o l !ti o n a ryp a rt o r [,1 e tL ]is-arp p .oach s n ts T.aveli i me l s anothefi s5uc W i hol t f . eqlent , : : .
r net hodot s e tc .tn g te .h ^ o to !y t' .,l e tL Ie h a s raken a r.!ty tacevsts saysS .varese. nterfatonatproject s. f e. : :
gt obalper . p e c vt e . w th e q u rt d e te re .c eto .tt c!tt!res by t.l a tu.e " Io! re.l ty needto go Lhe.e,to fealt ybe t - :
r or mn! an r rt..n a tro n a te L rn r tD a i a L y z eth e needsot tS the . space!nde.standnq w hera t s .t, h e . d! se!
wD. t dwide ol tl c e s T h e te a m s tl d e s l h o !n ql e ql aLi es of T.. n ng sanothe. mpo.taftcon5i de f at ionr h. t . : . . ,
eac hof M c t Lfe s to .a to n sa n dd e sg fs a s y stemth.r comes mptemertatron. i \4etLrfe
h.s o.ty a smattre amof t f :
c t os es lt o me e tn g e v c .y o n es i e e d s . 0 n c e the sysi cm i s ta.h the l T dparl menl 5 from d f{erei t off ces t , , - "
denned. t het e a ms e l e ,:ts th e b e s rre c h n o toesq tfonr!cndofs o' " ol oo rr . ot 4ao1l
ar o! id lhe w o ftd a i d d .p to y eth o s e t..trr otoqe5 as the i dJ o r o,.o ..6ap.9 , o .
gt obats t and n .dE y L rsn ! l l r s a p p ro .c hN 1 .tLi e has.voi ded smal terco!ftf,cs a.e dy ng to get l h s technot oqi: - . .
t he m o31c ommo nte c h n o to gpy.o ,rL e ms o l q l obat.fganz.- haveto saywa t s.ys Savares.
t ions :d s pr fa tes y s te ms h . !h .o m p t.ri 1 ya. n d U S . c.i tfi c The.ew afdsol l l removero. gtobatpLa t f orarme. . : .
t hr nk r nq. Lobe rnonumentatP a.t of the gtobatpl .f is t o . . . .
A t t he . en te f o f Me tL i fes g l o b a lp l a tfo fm s i ts common MetLi fes T nt.astruct!rcby .educng i ts 3U0t o 4: it . .
k nowt edqed a ta b a s ew h c h w .s d e v e to p e idn I' azi t. The to aboLrtl 0l o 20w orl dw de,w h ch w l LyetdbLgc. st . .
c om m onpt a tl o fm s mo d !t.f, i o M e tL i i ec a i ,emoveol r B o2zo5ay5' A ndi tsmpLfesl heenvfonm ent s. F -
dat eds y s t em so . s y s l .m sth a t d o n l me e ta p a.i cLrtar coun adds Thats thekey
lr y s nc eds a n d p l u g i n n e w o ..s l v i e tLfe hds been MetLi fe s atso gettng decp drs.ouftson m : - : . .
npt em entng i tsn e w s y s te m.i ec o !n rfya ra t me beqnn ng and tcense rg.eementsbecal se of l 1s hgh vor ! "- :
.ha
I . en 6. o4dv6. o crrasesA nd si n.e one teanr s w o.k ng for I I co! i -
^ ". l
Lem r r a5eno !g h l te xb i ti tyto a c c o mmo d te
d l fe.enr tei q.ow w rl rout : m!l taneo!sly nc. - a. : :
gu. qes . eq!t.1 l o n sa. n d .L rme ..i e s 4"d o. r." oo|a o
6 a b ..
"
v6r o o ...d q.po, .r. p.ol ect5 ofl ci at rel urn on nveshent o t 26 p. : :
P f as h. ntP a tv i ap, fc s i d e n tc f th e c to b a t n fo rmal i oiTe.h tfemelt (onsefyatr,e
000 i v d . o o d^ .n q op u""
^
bor o Nor ih C a ro tn 6 H e p fa i re dM e tL l fe fo ratl ow nqto. t0
D i scussi on
0uesti ons
t o 2t lper c enct !Eto mz a to i o f th eq to b a pl L a tl orm j n di l fef-" nl
c o! nt r es asw e tta s i t5 d e c i s i o n t. I W hai chal i enqes
d d l ,4etLl l iea.e n de pt oy,q,
m p L e m e n rrhesysremoi e
c olnt r y 3l , tm e P a l v a s ry s Me tL rl -" ptatformfo. ts i nformaton systems,a nd hoi -: :
r/a s w r se nchoosng
. ouit . es wh e .eth e p rL o l 's !c .e s s ra te sw o !l d be hrghand
n t ak r . g er L .atm e ro q e ( th e i n f.a s rrl r.t!rc.ght i n rhose 2. W hatare the benentsthal 14etLi lw
e tL e f loy o. : :
. ouit . 50 th a t i t c o !td d !p ti c a teth o 5 es !c .esse5:rori 0 ts !tobaLol ti cesafe coonectedto a com m . - :
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rn t0 rm a trosystems
n fotl ow edfrom thi sprel i mnarysi !dy of the B randonTr!st . ssir at : .
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B.a n d o nTrustope.atescommuni tyteams emptoy.i l entandtrai nng!n ir s, and0r .
c a rec e n l e rsspredac.ossvari ousareasof B fi stotandtheS outhW estreqi onof EnoL: - :
(o i
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a n d fi e L ds ta ff haveto efj ecti vety communi caten meeti ngcLi entsneeds.A p ar if r on . :
fr' l l ti m e e m ptoyees, the Trustatso recr!i ts part-ti me,hou.tVw orke.sto faciLit ar:e- :
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a u th o ri ti e sandotherchartabLel r]rsts,w hi cha.etypi cattyqui tesmattandt essdevet o. : :
i n te rm s o fmanagementandsystems.TheTrusti snow t.yi ngtoi r,rprovet hequaLit v. J:
o w n ma n a g ement systemsby usi ng nnovatve approaches to maxi mi zei ts eff ect ivene: :
Bran d o nTr!sl s Fi nanceandE ustness S ysremsD rector,H tarvpearce.be Lieves :-:
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a n d d a tas o u rcesand i dentrfykey resuttareasthat w e needto Joc!son to i m pr ovei- :
ma n a g e me nl of the Trust.I envs.ge an i nnovatve and i ni eqrai edbusi nesssyst emsr
tro n th a tw i tt conhn!eto evotveandgrow atongw i ththeT.usls operattonat needs. T- :
.o teo f lnt or m aton s y s i e m si n s tre n g th e n i nthg e T ru sts servi ceLevetcannotbe ovefem'
o fi i c e f,Ste v eB e n n e tth ad thi s to sav: A s an o' gani zaion
p h .s z ed lt s c hielex e c u i i v e
i h a t hasqr own500%i n th e te n y e a rso f i ts e x i s te n c ei t i s l mpoftant[fof B randonTfust]
ro ta k es t oc kand t oo kl o r c o n ti n u a lmP ro v e me n ts n ou' performancel nform' tl onand
th e s y s iem st hai p. o v i d et a .e fu n d a m e n ta ti o p e rformance management' and the m'
p o rt anc eof havng s y s te m sth a t L rtizt e a v al a b L ete chnoLogy n a pragmati c
and useabte
wa ycannotbe ov e. s ta te dl i h e re fo re a me x c i te d to add' essl hi sw i thouracademi cpad'
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devel
a ndgrow w l thi hecontl n!i ng
b u sines s y s t ems ol u ti o nth a tw i tl c o n ti n u e to e v o tve
o p mentof B . andonT ru s t
T heT r us ts s er vc e s a re d i s t.i b u te d v i a 5 0 s l te s a nd i l i s essenti attoi mprovei nfor
p' oi ectw as
ma t on f t owsf or ef f i c i e n cay n d th e m a n a g e m e not f ri sk Th s devetopnreni
l h e relor ef oc us edon i mp l e m e n nt g n e wm a n a g e m e nt systems and rni egrati ngthemw rth
o i h e rc or eb! s ines ss y s te n i si,n c tu d i n gt n a n c efo l tow i ng a detal tedanal ysi ot
s i nforma-
ti o n . equir em ent sL. a c k o f s y s i e n rs n te g ra to n c u .renti v makes p' ovi si on of sound
n for m aton f o. m an a g e m e ncto n tro tsb u d g e ti n ga nd cost nq of contract proposats di f
fi cu t i t o ac hev e. lmp ro v i n g n fo .m a ti o na n d b u s i n esssystems across the Tfust w i tl
e n h anc et s c apac il yfo r fu rth e fg .o w thb v e n s u rl n qt he besi possl bl quati
e ty and desrgn
d a t th e p ro g ra mw i t t s gni fi canttv
n l i s s er vc es .lt is a n ti c i P a teth reducecoststhrough
, s u tin g i n s a vn q si n the regi onof 1250,000 perannLrm
b u s Lnespr s oc es sr ee n qn e e rl n gre
0ne K T Pas s oci a teAb . i d IVo h a mme dw a s re c r! i l ed i o serve as ndustrl atN 4anager
a n diowor k wiih A n d yl g o n o r{ Ac a d e m iAc d v i s o a r n dP roi ect I' l ana!,erl and H i t' rv P earce
i nctuded a revi e!{ andeval
l D i rec t o. of F lnanc e a n d B ts i n e s s s v s te ms Abd l ' s i n t al task
u a ton of at tex is iin gb u s i n e s s y s te msp a ri c u ta rtycomP !ter svstems ai the Trust Whle
a n um berof s y s t e m se x s te d i n th e T ru s t,i h e s y stemsdi d not to tatk i o one another;
i o tabt y ,t he c r uoatfi n a n c l .ts y s i e mn e e d e dto ma nageaLlfl nanceretatedl ssuesl rom
p a y r ot t t opay m entf o rc o n tra c st e N l c e sT h e h o p e dfor resui tofthe devel opment proi ecr
i s a s y s t emwlt hihe i o tl o w i n gc a p a b rL i ti e s :
. A n ef lec iiv es y ste mc a p a b teo fd e tv e ri n gre te v a nti nformati onw hen needed
. A n int egr at eds y s te mw i th s i m p l i fi e di n fo fm a ton pfesentati on and eLi ml natLon oi

T hedev et opm e n to fa n l s /l T a u d i tre p o ftic n

adt n gcurrentoperati ngresources w h ch
'
of
als os er v esas g u l d efo r fL rt!rew o fk n c tu d i n qrdentl fi cal i on aP propfi softw
ate are
and haf dwar ef o r i m p ro v e do P e ra ti o n sm, p ro v edaccess to i nformatl on mproved
m anagem ent in fo rm a ti o snv s i e msfe p o rti n ga nd mprovedperro' mance

Q ues t io n s
D i s c us s ion
I W hatar e t he k e y i s s u e sto b e to o k e dn i o d u ri n gsvstemsi nvesti gaton? H ow mi ght
s
t heyalf ec tt he o l e ra l L u c c e s o
s f th e p ro j e c t'
2 . B r andonT ius t d o e sn o t e x i s ti o ma k em o n e v H owretevantw l tt th s svstemsdevel _
opm entpr olec b i e to l h e o .g a n i z a ti o n ?
3 W hy is t nec e s s a ry fo r E fa n d o nT rl s ts s y s temsi o be i nteg' ai ed?0fw hat benefi t
wout dt his be t o th e rg a n i z a tL o n ?
o

Cri t ic atT hink ingQ u s ti o n s

4 . I n whatway sc a na ma n a g e me nnt fo rma tL osnvstembenentan ofgani zati on?
d i th l ns uch sysi emsi n ofder to l utf Ltman
5 . How of t ens hou L d. p o ri sb e g e n e ra te w

p ro v l d e di n th i s c .s e s c o u r tesvof the B randonT' !st U sedw i th

N ot e,A I Linf or m a ti o n
Strategic
Enterprise
Management at InternationaL
Manutacturing
Corporation
llMCl

Universlty of App lied Sciences Fudwangen, Gernany

T h e l n te . nai i onal Manufact!ri ngC o.poratonl MC l ,w i th3,000empto yeeswor t dwde. : :

s u p p ti e .of automoti ve p:rts and s headquartered i n the U ni ed S tates G ven t he
c re a s i n gmarketpfessureandthe needl ooperatentern:ti onatl y,l Il C hasrecent t ym . : :
th fe ea c qui si ti oi s. Theacq!i si ti onof onecompanyi n GreatB .l tai nandtw o com panes
Ge .ma n yi sexpectedtoteveragethecompani es
comptemenl arymanufa ciur ngands. . :
c a p a b i ti t i es
i o gal na st.ongermarketpresencen N orthA me.i caand E urope.The e, :
s i d a ri e s afestttmanagedbytherrformermanagementteams,w hoar enowr epof r n: :
th e U .S.h eadquarters. E achoi the subsi di aresstttope.atesi tsow nmanaqem entr i:
ma l i o ns ysl embecausethe systemfutfi ttedthe requi rements rn the pastand at r he I - :
o f th e a c q ui si ti on the.e w as no vi si bl ebenel l tto changew hatw aEw orki ng.A co! pl: :
n te rfa c esw erec.eatedtofacl i tatethemonl hLyl i n.nci at.epo.tngtoiheheadqu: : rt:
R e c e ntty,theC 0ofl MC reati zedsomedi sadvantagesofthedi ver sliyof har dwar ee:
s o fi w a rep tatfornrs.W hen onel TexpertfromoneGermansubsrdarV i e.mn at dhe. e-
p to y m e n lnootherl
, Texpe.tw i l hn MC haddetai tedknow tedgeofthe tocalsyst er w-n :
i h re a te n ed.egutarope.atons i n that ptant.The companyneededi o seekext er nat . :
s u tt n g s u pportto ma ntai nthe systemunti Lanew T expertcouLdbe hi re d.Thisdp: -
d e n c yo n ndi vi d!atexpertsl n eachtocati onw as expensi ve and causedprobt em sd! . - .
p e .o d s when the expertsw ere on teave.In addi ti on,i he i ni erfacesbetweent he 3_:
s i d i a .i e ssystemsandthe headquarters' systemthat w erecreatedfi ght af t ert he a. : -
s i t o n h a dto be modl fi ed w henever a changeor upgradew as madeto oneol thesubsicr -
s y s te msE venmnorchangessuchasi hereorganl zatonofpfoductcodesor sat es: - .
g a n i z a ti ons, req!rredfepfogrammi ng, ma ntenance of conversi on tabtes,an dsubseqL: -
te s ti n go flhe reLated busi ness processesnthesystemThe Tdeparrment swor kedc! : -
t m e a n d st tl di d not fl nd the t me to nvesti n new i ni ti atl ves sl ch as en abt ingm o. :
c o mp u l i ngfor the satesforceanddevel opi nq a skategi ceni efprse managem eni sys: : -
th a tw o !l d attowconsoti dated ptanni ngand mon tofi nqof al t keyperformance ; ndca: :- :
fo . th e o r ganzatan, a proj ecttongrequestedby the C E 0.The tw o Germansr bsida- : :
h a d .e c e nttyupgradedthe r systems,and p.obtemsi dentl fi eddur ng the t est ng oi : - :
i n te ffa c e sco!Ldnoi be cor.ectedi n ti me tor the submssi onof the montht vr eoo. i: :
h e a d q u a rters. Thedai aw as fi natLy co..ectedbLrtthemonl hi yreporti ng wassever al. : . :
l a te .T h i sw as nol the fl rst t me thati he monthtyfi nancaLreportng had beendeLayec :
th a ti h e d a taneededl o be cofrectedbeca!seof sysl emretatedprobLems, whichcaL: : :
o i h e f p ro btemsat headquarte.s.
T h e C E 0fl nattyrequestedconsoLi dati onofthesystemsi ntheco m r ngyea. t oalt ot r :
a n i n i e g ratedstrategrc enterpri semanagement systemth:t w outdprovi decu. . ent n': -
m a ti o nffom atl tegatenti ti esandsrpporl consoti dated b!dgti ngandptannnq pf oc. : :
r' l ec o m p a redthe companys curent systemto the cockp;tol an ai .ptaneand st aied: _:
' n o o n ewouLdexpecta p tot to fl y an al rptanew th maLf!ncti on ng rnstfum ent she': :
n o b o d yc a n expectmanagement to .un a companybasedon i ncomptete o. incof r eci-
fo rma to n TheC 0w asaskedtodevetopabusi nesscaseforthei mpte m ent at Lonof s- : '
a s y s te m,consderngthe savi ngsf.om personnet, hardw a.and softw ar e,as wel : .
p ro c e s srm p.0vements.
Afte r I MC ' sboardapprovedthe busi nesscase to i mpl emententerpr iser eso! . : :
p ta n n i n gI E R P Isortw a.ef.om S A P ,the C 0 estabti shed a p.oj ect n.l anuar y1999 - - :
p rolec i s c hedut ec a L l e di o f c o m p l e to n o f th e Ji nancat,human .eso!rce s!ppty
chainm anagm e nat,n d c u s to m e fre ta ti o n s h im p a nagemenl functronsfo. the compLete
o r ganiz at on- c alL e dth e B g Ba n g -i n J a n u a ry2 0 0 0.A protol ypeof the appLrcatron w as
p tannedt o be . ead yb y .i !ty 1 9 9 9s o th a tth e d e p a rtments coutdtest attf!ncti onati tyw i th
a s etof c onv er t ed d a tae x tfa c i e dfro m th e c u rre n tsvstemsTheptanatsocattedfor com-
p tet ec onv er s lon of L i v ed a i a b Vth e e n d o { N o v e mber1999so that n oecembefboththe
cu. r ents y s t eman dth e n e ws y s te mc o u tdb e u s e di n paratl etbeforemakl ngthe decs on
to s w t c h s y s t em sC s m S APw e reh fed to supportthe i mptementat
. o n s u l ta n ifro on-fo.
p folec tm anaqeme nat n d c o n fg u ra ti o no f l h e s ystem-and an i ndependentfai ni ng i
o r ganz at ionw35c h a rg e dw i th p ta n n i n gth e e n d u sertfai n ng anddevei opi ng compLrter
l ras edt r ainng I CB T Ip ro g ra msfo f o .s o i n s u s e . The prol ectpta. atLow ed for hi fl ns
te m por ar ys t af tt o h e l pw th th e c L rto v ea.n dre d u n dantdataentry n D ecembef1999
T he pr olec ts t a rte dw th a k c k o ff me e ti n gi n February,.fter w h ch neartval t team
me r ilbef sbegant h e r p ro j e c w t o rk .T h ec o rn p te teprotoi ypeol the appLcai on couLdontv
b e m adeav alabL ern Se p te mb e r, s i n c es o m eo f th e team membershad to futfi l Lthei r
.egut arjobswhit ep .o vd n g th e I e x p e rts e to th e proj ecl S omeof the eartJ7 p.ol ectde'
ci s ionshad t o be fe v rs e dto a c c o mmo d a te l h e b e s t pfacti cebusi nessmodetkom IMC
o n c et he I M C t eam m e m b e rsb e i te r L rn d e rs to ohow d the S A Psystemw ofkedand the
co ns ut t ant s hadg a n e d a b e tl e ru n d e rs ta n d i n gofhow N 4C w antedtoopefai TheC
e l 0sl i tt
w ant edt o m a nt ai nth eti me l n e a n dc a tte dw e e k tymeeti nqsof i he proj ects team teaders
ro ir . nc e. L - - re -o L ? o s . s r,p p l , f" Ia _ agFmenl ,d' d r-sro " _ 4 d or !i p
managem entT ho s eme e tn g s l e d to i h e d e c i s i o nto deLayrol toutof someof i he func-
ti o nat t yand lo f ed u c eth e f!n c ti o n a l l i yto w h a t w a s real tyneededl et mi nati nqni ce-to-
h av e f ! nc t ionalli y l T h e p .o to ty p ete s ti n g p ro d !ced addi ti onatfeedbackfrom i he
d eoa. t m enls t hat n e e d e dto b e n c o rp o ra te d i n thedesgnofi hefnatsotutonpri ortothe
conv er s ion. [ 4anv oth l ed e p a rtme nht e a d sw , h oh a dnotbeenparlofthecoreprol eciteam,
o nt y t henbec am e a w a re o fth e c h a n g e s a n d s ta rtedtotatkabo!tthenew sol tw are,savng
th at i was not wo fk n g p ro p e .tyy e t a n d s o meo f t he team membersw ere scaredthev
w o! ld notm ak eihe d e a d L i n e i h e d a t . conversi on
l n. N o v m b e r. someaddt onat
.eveated
p r obt em sle g, wlth d a i ae n i ry e rro rs m a d eb y i h e temporarysta{ fw how e.e keyi ngdata
l nioihenews y s t e n i i n i n s ta n cnew s h i c h a n a u to m atedconversi onw asnotcosi el l ecti vel .
As a f es ut t ,t he pa ra tte!5
L e o f l h e c !fre n t a n d n e wsystem w hi chdepended on aLldata
b e ng av at abt e,wa s d e ta y e dT o a d d i o i h e p re s s!re the C IObel l eved the
that del a)7i ng
p rolec st c om pt e ti ocno r.ribde p e rc e i v eads h s fa tu .e.TheC l 0 andsteerl ngcommrttee ot
th e pr olec tneede dto ma k ea d e c i s i o no n h o w to movefotuard: [1] conti nue w th the
p roic ts c om pt e ti o n l a n !a ry 2 0 0 0 a s p ta n n e d o r{2l detayconversl ontothenew svstem
u n t t a pr operpara l tete l s t c o u tdb e c o m p l e te d

B is c us s ion
Q ues t i o n s
How wouldy o ! d e v e to pa b u s rn e s sc a s e to Justfy an nvestmenil n an i ntegrated
s t . at egc ent e fp fi s ems n a g e m e nsty s t m ?
W hatar e ihe e s s e n ti a L re q !rl re meIo .a s tra l egi cmanagement
n ts svstemt

CritiraLThinking ouestions
3 . W hlc ht as k s w o u l dy o u c o n s i d e rw h e nd e v e t opng the orgnat p.ol ectptanfor the
im pt em ent at on?
4 . G lv en14Cs c u .re n ts i tu a i i o nw, h a tw o trtdy o udeci def youw ere the C l 0?

Not e:T he nam e n te rn a ti o n a[4 w as seteci edto proteclthe

t a n l l a c t!r n g C orpofati on
i d enilt yof t he r ea tc o m p a n yl e a tu re di n th e c a s e .
 Information
Systems in
Business
and Soeiety

and E thicall5s! e slr in lc rma t ic nS is t e m' i

P rivacy,
: h a p ter14 Secu rriy,
a n dih e lnternel
 eIrIs

P o ti c i e sa n d p ro c e d u re sm u s t b e estab
t is h e d i o a v o i d c o mp u te r w a ste and

Co m p u l e rc ri m e i s E s e ri o u sa n d .api dty
gr o w i n ga re a o f c o n c e rnre q u i ri ngman'
i . n : l ! e i r - " . '. r . . : i , , . i : r . r i r e ! r : . I I r f :l

L 1. . r . : thr t. ,. I, r. :,, I 1 [ :]

" 'I':l :i 'l ,l l"l tr

"I
J o b s ,e q u i p me n t,a n d w o .k i n g c o ndi ti ons L r r : : - . m . . _ : n r - . l l . . t r . 1 r o r n r . 1 . r ., i -
m u s t b e d e s l g n e dto a v o i dn e g a ti veheal l h
l:- I r ' ! r 'r i i I r i : t ! r : t r . 1 n L r i i r . i ;l E.
.i,f! . -. r,..t.i, rn. :ii!t.r' it rn...r:!:
Lirttne .r ler; r.' lh. el L:i .,:l
ntor..:t or !/.: em.
 .0. " 1 dd " -" I ct.p.. tn

INFORMATION SYSTEMS IN THE GLOBAL ECONOMY

COMPUTER ASSISTED PASSENGERPRESCREENING
SYSTEM. UMTED STATES
GroundSecuritySystem
0ataPrivacyConcern5

Sin@ the terrorist a,ttacks of9/11, the U.S. government ard the airline industry
have beeD urent\y seaxching for wat's to idertily and thwart Potential attacks
before they occur. Unfortunately, thee initiatives give the airlines conAicting
goa.ls their duty aid desirc to help prevent terrori.sm ard their need to nain-
tain the privacy of customer da,ta..The Computer A.ssisted PasseDgr Prescreen-
ing System (CAPPS) was one such initiBtive that highlights th alilemna.
The origiDa.l CAPPS systm relied on the airlines owl} reaeration ayatems
to check pa-ssengr informs,tion agarnst a governmnt-supplied watch liat. Un-
der the proposed CAPPS u system, the pa.seengsr-scrning procffa would be
iurned over to th federa.l government. Pssengrs' identiti$ would be authen-
ticated by matching airline passDger data such as na,me, addr$. phone num-
ber, and bfth date against a Transportation Security Administration (TSA)
databa.se. Passener! would then be checked ag.inst botb a fedeDl telrori8m
datatra.se and lists of individuals who have outstanding warrallts for vrolent
crimes. CAPPS n v/ourd ultimabry assie! each airline p3ssenger a thrcat level
Threat-levI data would b deleted for most passengrs once they leactred their
destiDations. Data lor tr?veleru deemed high risk would be retained for all ur-
specifred length of time. Details of exactly how the TSA would dectde vthether a
pa.ssenger should be a,llowed to boaxd a pla,ne or questioned were rcver levealed.
The Air liransport Association, the trade oryanizatior for the maior U.S. a.ir
lines, estinated that the new sFtem could c\cst the airline industry $1 biUton to
charge their resgrvation systems to provide the dats. rcquired by CAPPS II. In
addition to costs, the air carrieB faced many othl thony issues, not the leaat
of which wa.s maintaining the privacy of their passengls- Preca.utions to protect
passenger pdvacy would have included insta,lliug pdvate networks between
ttle TSA ard the airlines that would pass onry encry?ted data, rcquidng the
data to pass tbftugh a multitier firewa.il beforc entering the TSA sttem. and
implementing a 24-hour audit trail that documerts all acc8s to alata.
The arlines would not volunta.rily tulll over the data neded to implement
CAPPS II, however. Although the airlines'Air Transport AasociatioD Eupported
the concpt of CA?PS II. its membe$ warted mors privacy g\raxante$ before
they supplied data for ally purpose. They wanted assurarce that the TSA-coI-
lected information would periain only to aviatioD seclrrity, tba,t the infomation
would be securly stored, that it would be destroyed as soon as tnvel tu com_
pleted, and ttrat passengm could ascess thir own &,ta and coract ary enor-
AirUngs were especislly concerned with "mission crecp," in which inJornation
intended for one pur?ose is used fo! another.
Tbe Snate Govemmenta.l A.trairs Committee lea.msd in June 2OO4 that at
least eighi airlines and airline-rservation serice8 pmwided passenger data to
contractors building CAPPS II for the TSA. fhe contractors acquired informa
iioD about passengrs who had resened tickets on various airlines aJld who
booked flights through online travel Web sitee. In providing this informatioD io
 *". on i., m. i P ne. ,id o. P,
| "
'-'"

the govemmeni agency, the cntractoE violated the Privacy Act ol 1974 by nor
notirying ihe public of wtlat tt?e of information their scrcening systems wouc
collect md how individlral passengers could find out wheiher thef data was i.
cluded in the test systems. The aidine industryi3 nowfacingexpensivecustome.
class action lawsuits as a result.
In July 2oo4, Homelaid Seclrtty Secretary Tom Ridge cited data privac.
issues ard system-inteioperability issues a the basi! for stopping turther vor!
on the CAPPS II system. Jusi two monthe later, though, the Secure Flight pas-
sengr'screning: slsiem was announced. Thie eFtem would compale passeng!:
data io watch lists held iD the Terlorist Screening Database in an attempt t.
keep suspicious p8sengeG from boarding domestic flighis.
As youreadthis chapter,considerthe fottowing:
. Vftich issueshould take prccedence mainla;ningthe physicrl safetyof trarcler :
protectingtheir righrs?
. \0hrt actionscanorganizariorsrakewhen the govrnnenteq uiresdem rodoacrirtri..
rhat willuoset or inconvenicncc
rheir cusromeNi

E*lier chaprer dctailedrhe amzing benefis of conputcr-basedinfbrmatn,nsvstm' :

business,includingincresedprolit", .up*iorgoods and scdces,and higherqulitv oi "..I.
life. Compures havebecomesuch would ha..
tools thar roday'sbusinesspeople
".lu.hle
dificulry ihagining work without rhem. Yet the informadon agc ho also bronght r;:
porertialproblemsfor worker, conpanies,aod sodety in generalGcc l ablel 4.l ).

@
Sodallssuesin Inlo.mation
Systems

To r largeexrent,this booi<hasfocuscdon the solutions not the &orny issues f::

scntcdby inform*ion svstenx.ll rhis chaprerwe discusssone of the issucsasa reninde, ::
dresocialard ethicalconsiderationsundedyingthe useofcohPuter bdcd nformrdon:.!
tens. No busiressorganiation,andhenccro infornat;on sl$eh, openr.s inavacuum. :
Is profe$ionals,managers, and uses havea rcsponsibiliryto seethat the porentialcont
quencesoflS userre tully coosidered.
Mrmger ard usen at all leveLsplav r najor rolc in helpingo.gdizatiotu achielc ti,
positirc bcncfitsoflS. Theseindividurlsnusr alsotakethe lead in helpingto mnimizc .:'
elininarerlr negativeconsequences of poorlydesignedand imp.oPr1y utilizedinfornhl L.-
 ssues
s e .u rtyPrvacy,ai dE th.at rtsrei I cbaetc 11
i nrormatonsy.tem3andrhe

systems.For nmrs and ules to havesuch an influen.e, ihey musr be proPedy educaled.
Mmy ofthe issuespresentedin this chapter, 6r ennple, should caue you to think ba& ro
one ofthe qntems designand sl'stns .onrrol issueswe havealreadydiscused. They should
also help you look fomard to how rhe* issuesand you! choicsnighi ,frecr your ftrur lS
managennt onsiderariotrs.

WASTEANDMISTAKES
COMPUTER
Conputerelated wute md nistales re major caues of computer problems, conributing
u rhey do to unneesarily high coas and lost profi$. Conputer w*re involves rhe inap-
propriate me of computer technologr and resoures. Conputer relared mistakes refet to
erors, hilures, md other computer problems thar make comptrrer ourput incorrect o' nol
usefi:l, which re caued mostly by huma eror. In rhis section we cplore rhe dmage rhar
co be dones a resukofomputer wste and misr.kes.

ComputerWaste
The U.S.governnenris the largestsingleuserofinforinatiod sysens in the world ltshould
come as no surprise then that it is also perhapsrhe larsest misue.. The sovernment is lot
unique in this regrd the sme rype ofwaste and nisuse found in the public secroralso
exis$ in the privarc secror.Someconpmies discardold softwae md oen conplete computer
sysrenswhen tiey still haveralue. Orhen wave corporate resourcesto huild and maintain
conplex systemsnevermed to their fullest extent. A lessdrmaric, yet srill relevant. *anple
ofwrte is the anomt of compmy rime and noney employeeshay wdie playing @mPuter
gmes, sending unirnponmt e-mil, or arcesing the Internet lunk e'nail, also called
ryzz. ad junk fues also caue wcre. People teceivehrndreds ofe-mail nesages dd fdes
advertising products and senices not wanted or requested.Not only does this wasl dme,
but it alsowasrespaper and conpmer resources. en wasteis idenrifid, it q'Picall/ Poinis
ro oneconnon cause:the impropernmagementofinfornation s)stem ud resour@s. The
growth ofspm hasnounted-nore than halfof all e-hail nesseges m spm. Brishmail,
a dneloper ofspan fike6, scannedabour70 billion e-nail nesagesin Octobet2003, ard
52 percenrwere identified $ spm.1 IGad the "Ethil and SocieralIssues"specialfeature to
find out aboutmoreabott effortsro slowthe spreadofspan

Mistakes
Computer-nelated
Despite many people's distrut, conpurer thenselves rrcly make nisnkes. Even the most
sophistiated hrdware carnor prcduce meaningfrl output if users do not follow proper
procedues. Mistales car 5e eused by unclear *pecrations and a lack of feedbrck. Or a
progmmer might de"elop a prognn rhat contains erros ln orher caes, a data-enty clerk
migtu enrer the wrong data. Unles srcs are ought eady and proented, the speedofcom-
pr:terson intensifi mistakes.As infornadon technolop beones faster,nore conplo. md
nore powerful, osanizations and individuals fa@ ;ndeaed risks ofqPeriencing ihe resulr
ofconputeuelated nisralcs. Take, for exanple, theseaes fron recent news.
Sincerhe disinregEtionofthe spaceshuttle Columbia in February2003 Put NASA
manned spaceflights on hold, the Rusian Soyuz epsules hrve beer rhe linchpin of the
inrernational spacesrafion'ssupply program. A MaI 2003 spae nission endedin a wild ride,
wirh the American and Rursian fiew going some 250 miles off coure due to a conputer
enor. A computer naltunction sent the capsule'soccupantson sucha steePreentry tnjectory
rhar rhei. tonguesrolled back jn their nouths. Indeed, the lmding wx so hr offtarget that
more rhm two gut-wenching hour pused beforethe recoveryreamkne* the nen weresafe.'z
 CAN-SPAMT
oeterrentor Acceterant? 100. , a. . "q /
" .a?opol $100000peron,r ' o ^.0 sr 'o
Eve']day,mittionsof peoptewortdwderecevedozenso{ unsotc ScoltR chte.has beencatledrhe Sp;m Ktnq,tabetedoneof r.
ted commerciate-maLs.knownpoputarty as spam An ndividlat mostprolcspamme.si
f nthw odd,andbeen sLrspdr edf or
|xr - :
spame maitmay be sentlo a d strbLrton tistcontainng mitLions b. bo, vi .ro.o, o1o . . \6^ .0., sra o. . 9F. qd
- "
of add.essas,
witlrthe sende.expeclng rhatontyat nyn!mbe.ot companyOpllnRealBlg com sendsmorerhan100nr Ltone r:
.eadeEwtL .espondto the ofief.For some.spam rcpresents a mes$geseveryday WhLelt is st tl too soonto telt,so E oer...
m nof annoyanceblrl manyof us becomeso oveffheLmed wth thattheCAN,SPAMAct mry haveactLraLty in.feasedlhe vorum.:
sp.m thatwe are lorcedto swtch e ma tdd.esses.TheYankee spam Antspamveidor Commtouch Softwa fe Lrd esu,,rdr."s :
ao6 o c:tr 6 .d,.po^
onty1 pefcntol spammessages in .lanrary2004co,rjpreov. -
The Rad.at Grolp estmatesspamcostsn emptoye.of 10,000 CANSPAM.Thatpe.cenlage incre.sedto95pefcentint4ay2t:-
peopteneady 9500,000 jlst fof rhe addtonat e-marl seryers 8.. oLa" o. .(0.. 1q se ,rn. or.-6oti p o.
. dr
requiredto handlethetoad -onth., tro ro.i ..c ag6 '4
SpammeEoltentake advantage oi lnrernertec,rju,oges(o d oJ ot< oomb,6f,.t,6t.oerno^br ega p ". .
conc3tther denttes and the locarionof ther operarons.They
even.esortto ncLldng the e,mail :ddressesof rnnocenr rniro CriticatThinking 0uestions
partes n the.eply-toadd.esses of the I unrantedmessages or l W hat negatve rmpacl does spam have o n co, pc, - :
smply fo.ginge,matheade.s. Knownas spoorrrr this ractc A mer ca? s l l si mpl yan annoyance
o. a 5ero usp. obt e-
s emptoyedby spammercto inflcr ihe burdenof oounceaac( 2. I,l oni tor:ch of yoLrfe-mai taccauntsi of a week.yr - :
messages whensEm is senttoa nonwo ingaddressl
lgener.ted od e ta06o /oJ-. pdml r' \l " i
0n someoneother than tlrerrmait p.ovide..The rcslti for the centageof yo!. spammessages
appearto cof f oim r o: - :
dr' o' -oi " CAN SPAMLaW?
-
mait rrboxesbecomeoveMhetmedwrh tens of tho!$nds of

TheCont.ottng the AssaltioJNon-Soticted

WhatWoutdYo(lDo?
Pomogphyand
M- r r " r f o A ' A \ rPA Vl , h I o a e .. o1.ol Yolf tegtmate smau blsness has reled heavrtyon e nr. :
2004doasnot olttaw spam it^ s.rmply ^ An t
p.ohb rs certan pGctces. settlreslro.gancl.uit andvegelabtsRecentty, yourcomp;-. :
OLrttawed practceslnctLrde Lrsng falseor misteadng rransmrss on computerc we.e take. overby a hackerand lEedto sends.:-
Intomation.deceptveslblect headings, and auiomared methods and v ruses.As a .esutt yolr company!\ias bracktrstedb) r:
ot 60 r . . I u ,o . p _ ^ .rq . s- d" . ol antEpammeE:ndnowappaa.son. d fectoryof attegodoff.-:
Lrnsol cited.ommefcaLe,malatso must incLude rhe. physicat ers c.cllated to Internelsetuiceprcvide.s,se.lnry compar::
addrcssijnd a wayior recipints to oprolt of futlfe ma tings n d o," , b-.." . .F a-" . L o5,0,.o.,o.gor q
",
o d d o , o pone L- r" r,' g o odod." . o marketng messaqes arebtocked.
-o d -re "
notewhethe.a personhas optedo!r of soticitartons. Companies
that.ent lsts ffom lh.d padiescan .!n afollof th-6taw f the tst 3. W hata.ti onscan yoLrraketo reestabL sh the loou , , . :
tackstme dateslanrpsto docLrmenr an ndvtdlats decieron to ofyourfi .m a^d get l t offthe btacktl sr?
fecervemessaqesAtlhoLrgh many spammerslse complters 4. w i i al so.t of ecrofl mi ghtyoul ak to recove.you.f ir - :
outsldethe Unied Statesro sendihe.pam, rheycan sti[ b
pfosecltedlnderlhe CANSPAMtawbecaLrs rhei.spamcalses
damagetoU 5. nle.netservice provide.sand consunrers souRcEsr
Thomas 'spamLawcharges
claburn, Gdme/rlorrrr,,F::1
December
15,2003wv)nt'arnatrcnreek.conlhe press:-
tassoctared
AmericaOntn.Ea.ihLnk Mc.osoft and Yahoorfled civil Spam Law Goe3lnroFofte in Eurcpe, tnt'omatbnweek ado'et 31.r-
.ctons lnder thetaw n February 2004aganstfou. fdjviduatsfor M niamationweek...n Thomas CLabor^ war aqainst Spam R:::l
se ndr nge m a lpiich e s fowfeg h t-to s s p .o d u c ts i h atdon
tw orkand A^, hfamaianweet,
_!.5
May 2t, ZAA/. ||w.intarnationw.ek .o4 h.-=
CtaborR CharqesFou.lidetCan spa6Law, lhtornationweek.L:-
thatvolatedtheCANSPAI4Act.TlreaccLrsed iaceLrpio fv yearc 29 2AAL.w.int'omaranrcek coh; ThomasCLaburn,-OoesCan-Spa r tr
n pr s onf of it t es a ts p a m m iannqdL rpi o a n .d d t o ra t20ye:Gtof tead \o Mote Spam1" lhlorhatiantleek, Jone 3,20a1 M.ihlu uuuott.? -
maitfmud.Theatlegedspamme.sshouldar teastbeabteto afford .o4 Liaie Cassavoy.Three M nute.; The So-ca[ed Spah King So:-::
Afi, PC Wodd,Aagrsl2AEL wwp.Mrtd.on
excettentlegatco!nseL,becaLrse tisestmatedthattheygro5sedan
 onlvsiem!rndtne ***r
se.u'tvPrla.vaid Erh ssu6 n rnlormat I cb"!t'l14
'al

A japdese @dPany, CatenaCoryoration, wo deiugedwhh thouands ofuders fu ovq

t00 niliionApple Computei Inc eMaccomPutersalic a gl;rchoued the omputen to be
listedon an Jine shoppinssirefor a Priceof$25 45 The compuv saida codenumbeJ
t a ,"t .f fi"" s1 a\D-R disq, *hich were the products it {as inreldins to sell'
was-sentto vahool lapan; however. a produ.t inform*ion darab*e natched thar ode wirh
-,le""d
deeils for the eMrc omputer and with the price for the DVDs The result wm a listing for
the compurer,part nu-berM946U/A, at a Pdceof$25 ratherthm the usualpriceofnote
dnn $916.1
CaliforniaMacv'sstoresagreedto a $1 2 nillion setrlenenrfo! over'hargingshoppes
in the ciry ofSu Diego,Los A"gelesCounty, and threeorhocounties lnvesrigatonfound
that while all the onpanl 100 Percenl ac'uare, consumers wde bong
charsedfton a few cn$ io nore than $10 over rhc dvenisd and shelfPriceson sone
clotliine and hdshoLl irens The problen was tacked to difficultv in svnchronizing the
rd'ertis-ed prices, the prices on the shelf, md rhe prices in the (che'kout resister) conPuter'
No oneallleedr hr r M;q . i n re n ri o n J l o t v e n \,rg e d.on' umen bur rherore " hrd ' real
J l rro * rh c ra r. a c o rdIn s ro rheI o' A nsel e' rror' uri ns
-"-".f " i, . " . o ' " 1nry

flam in Inu Corporution\ DB2 databue softwarewere respomiblefor a chain of

opoational-disis for Copen-
elitches that rurned a routine hardware repal into a weeklong
iaeen-basedDdske B.ni( 1he bad<, Dennark s l*gesq .m replacing a defectiveelecricrl
u; in d IBM RVA Rmac Vntuat Amav) disk storage svstem used for DB2 darawhen an
e l e , r iul or r r ee ir rn e * rc m ru l te d rr o ne b' nk\ v' Jrta-pto" -i ng
" p e rrtro n ' frl e
...* ^ r ' . n, i. t L' . , -r' .r' " .' e mw * re p ,rre d a rd re rrn ed.B urrl -eae\rddvrhebJfkob' ened
o ro b lem wr ' r hbar . h ru n . o r .o l l e c r;Jd rrJ b e i n gp ro ' + ' ed ar rheal Te' red centeri n ti b'
th e ebuins in\ en E a ti o ntu n e d u p fo u r D R ) fl rw ' * hi ch sret' hed rhe brnk ' r" o\en
w e e k D nke B uk ( uri ti e
l me r o nel' lv r *1 e k . D u ' i n g p a rr o l rh e " ul eno
i
uadine.md clearineopemrionswereinoperable
r, i; *. " - ' ' . ' - t ' " o f l n re rn r. L x p l o rer l f r h:re gnen ha' kenr meo' to' om-
promisepeGonalcodpurersusingthe Microsoftbrowser'ArtacLer can *ploit the vulner
-a .
lliril". L byp*. chak in IE or to downloadand qecure a naliciou file on a
" '..*iq,
rn"." p..blemswirh Explorerareserious'od the vulnerabihiscanenable
r,"i.
--pr....
h rc k er t o pl: c e c od ei n I ma c h i n a
e n d ru n i t'
T hou. J nds or pr t' e n r'o i K,i ' e r P e m r u e n teH e a l h tran In' orpomtedmrv hre recened
hrLe
rh e* r one m edic au o n" .h e r i o .o m p u re r' 1 re m ' ' u fferedc P oqerour" gerl -rr' oul d
dispensed ro 4,700 Paiients Patienrs codd have re-
."r*d h6"li"g *ro" o" prescriprions
about how to take rhe drus' or
cived inconeit prerription nunber, incorect instrtciions
q ri . k J v.o n o' red the \ i r duro
.'e n r he ongi' , g. . K a j .e rl e rma n e n re ' ffr' red P driherew
mh
" ' ereno
.,* , 1, . l. phon. . J i' . o u i e rd e l i ' * e d l e tte r' .a n d h o m eIni r' Fonunatel v
aclveseparent reeuons

WASTE
COMPUTER-RELATED
PREVENTING
ANDMISTAKES

r$N t' 6
l o r em ainp, of ir a b l ei n a o m p e ri trree n v i to rn e nt orgdni /ri i on'rcr se al l
a n d mi ra ]re' l i l e rho' e j sr de' cnhed
{i .e \ . lr nen, ins @ n p u r--' " L .a " * " ' horl d
Toempl oi I(
,h *. r " " U. , e. i. r.i ,r ' re :rl r rl r ,tg a n i ' r:o n u' e' ome' 1peofC B I(
e mp ,o v e erd' manrse^' l i l e ' hourdnn\e ro mi ni mi /e
<.o u' c e'el1i.iinr li a " a e l l e .rrre l r.
Prevenring waste and mistakesinvolves(1) establishing' (2)inplement-
wate md m;saLes.
ins, (3) monhorins,and (4) roiewing etrecrivepoliciesand p'ocedures

Pgo l i c i e sa n dP r o c e d u r e s
Es t abl. is hi n
l h e f ir w qen r o p ro e rr.o rp u rc rre l a re d { s re n ro e ubl i ' h ool t:e and pro' edur'
t' pamott
re ea' dineef fen' " a ' q ' i ' i ri o n u e .a n J d i p o ' J o i * r < m' od dw i r' C orput'
i, I i ti u l i ' t o G a n r/rri o n' ro en' u' ' rhrr dreu' edro herr
" ' rem
",- " ; , . i. ^ ' . a, u . -a '',
 Psft5 | n r cfm d m s!:r ir s i Bu sin e ssii d sc.ei !

full potenrial.As a result,no$ conpanieshrve ituplemcnredstringentpolicieson the r:-

quisnn,n of computr. s)sremsdnd equipment,including requirins a formal justificarior
satdenr before conpurer equipmenris purchased.definition of sandard compurin:
piatforms(openting sysrem,typeofonputer chip, rninimum anourt of RAM, erc.),r.
th useofpreferiedvendorsfor all acquisitions.
lreention of compurer-related misrakesbeginsblidentib,itrg rhe nos! conmon spd
of errcr, of which thqe rc surpft;nsly few (seel able 14.2). l o conrol and prelenr
F-
trndal problemsuused by conpurer,rclatedhisrakcs,cohpaDieshavedqelopcd poti.ie
and procedures that coverrhe following:
. Acquh;t;onud useofconputen, wirh a gorl ofavoidiDgwasremd mntake
. Training progrdnsfor individualsand worLgroups
. Mmuds and do.utuenrson how compurersysrems arc to be mainranredand used
. Approvalof certin sysrensdnd appiicarionsbeble rhcy re implemented
and uscd::
ensureconpatibilirj' and cost effecrivencs
. Requiremc th{ doctrmcnhtn,nand desd;pdonsof.efta;n applj.atnu
be filed r:
submifte.lro a.entrulofEce,in.ludirs all cdlfomulas forsfreadshcdsand adescripr;r:
ofall daraelenentsand r.lationshipsh r database sysrehtsuchsrandd;ldon cd eii
acessand usetor all pcsonnel
Oncc cohpanieshavepbnned and developedpoliciesind procedures,
rhcy mu$ con5ic.
how bestb implencnr dEh.

Ire
Typesof Computer-Retated
Mistakes

Sotnetimes conpurer errorconbineswirh hrman proccdureldfo6 ro lerd to rhe lojj r:

h u n d n l rre .l 1 V r..h ' 00J.J l " .,i ,i ri -i l e L,Jr-.)o;, ,h, X ," ,,, Lo,a. ,-;o. , , "11,, , ,
J ,^ .,,.,Bri r i .hR .y.r\i rt-o,,. t,,r1ddodR ,,(rJrrt,J,-^,e,unri nLrt,,r anr i,
o v e In q . l q,,B nr.\pi l or,q,,el rl Idi r.l -ei r,rdcnr.D < trnei ndu.,rvsnen.diiq. r
rh o rr rl :cp o * hrl w or .ofi -,,. f,obtcr b.ns .otcty,e,p,," ,r.reror j o" ., , ;. t .
" " ,.g
r.8 fi . l l i Lrl \ {el dri ocorbi r.d prcLl pr. qi r\ rh. tJ,,i ,i .,,d,r' rh \,-.r . r "
rcsultin fiiendly fire.l

l mptem e n t in gP o lic ie sa n d P r o c e d u r e s
Implehenring pollciesand procctturesto mininize rvore ard rnistakesvaricsaccordins::
rhe busine$@ndrcted.Mosr cornpanies devclopsuchpolicicsand procedurcswnh ad.,;:
fron the fimis i erndlaud;tinggroupor irselr.rnJ audirjrq firm. The policicsofrenrdj
o i rh e mtremenrri onur ,ou(edJr" ,' n,ri .i o.r" hJrheL.;otd.,,,,l i ,i nero "n. , , . . .
,. c rr-y ,n o .omrl . rer. l ,cJ.. !nmr,' or.l ear l .on.i bi l i ry r,r u" " * ,,,, . . -
-,,,d ", , .
cachinfonnariorsysren.Table11.3listssomeuscfd policis romnim;zewdreddhisrak-.
 q'"p"" t'
re.urLy Pfi!a.y.rid Ltr.rt .5re5,i nrormaroisv.reFsJidrhe **u I

@
to Etiminate
UsefutPoticie5
WasteandMistake9
. A Lrsermanratshoutdbe avaitable that coversoperating proceduresand thet
doc um ent s th m a n a q m e n i a n d c o n tro t ol theappl i cati on

Tnining is alother key aspcctofinPlemenlar;on Manv usc6 are nor Propedvtra'ned

rn d i r n ek" crn L" en o rl v si n' c
,n J" ' " lon, ie - nd 'h' "
' -p l " n ' ..ri n g " p p l ' c ri o .' t i r i rmporunrrhar rh1rrnden' rd
p- pt. * " --p " ,.,' ;"
' t..r.;l ' ' . ofpolicieand
--" - a' - J
ho* tousetl'en. * T;.inins i' oftcn the key to .cccpra"ce ard inplenentation
p-cedure.. Becau* ofrhl importance of mainr.ining accunte data and ofpeople urder
comPdies codverring to ERI' and e-codmerce svstcms idvesr
srantlinetheir rcsponsibilities.
J r."i"i,'tf.. k"y of the sysrems variousnodures
'*k "sers

P o L i c i easn dP r o c d ur e s
Monit or ing
rhe
prucedures'
1 o ensurethat usersthrougho(r an organjarion a'e follo ng sublishcd
practicc and take orective acdon ;f nec$T/ Bv under-
r*, .t"p ;
. hap o e-"iine
.r:r J ingr l' r-r --i,- n'ne ' r grnuari on' * n.mrkezJi urmot'(Jal
ot
" d l r,' d l a .,' ' i ri * rudrh ro mrJJre r'
d e ' e, opr $ p! . edu re .. V,n v o rg z rrz a rro ni mp l e renr rFrernal
rcsults-rgainsi estabhhedgo:1s,suchc percentage of dd{ser rcpo'B produ'ed m dne
p.*","!".f,l"t";p"t *-n rejecred,nunber ofinput trunsa'tionsedtercdper eisht-hou

The orsase of rhe Sarbanes Oxlev Act has causedmanl to honitor their
'omPanies Thescchanges
ooli.iesmd piocedutesand ro planchanges infinancial infotnation sptens
act requtres
ould prcfoundly aliec naDy b$iness a.tivities As Fentioned in ChaPter 9' rhe
audit commiaees can doc
oublic conpaniesto implcmentprceduc o enure thar rheir
n"-.i"r dataio validateea'ings repons Conpanies that hil to compiv
l-.-
""ai.r";"n cecs bchindban. in Octob* 2004,SunTrustBanksdisclosedthat h is
ould find the;'tip
qurni l
,.nr nc ; r . c a, nin e .u p { r d l o r rh cfi n M o q u rre n o f2u0{ JrJdcl avrngi r' rhrrJ
.-" i" s : . ' , , . . - ' b .* r' .o ri mp ro p e -' o u rri n b o ro' ' Jure' rni r:ut fi n" n' i ngdi ' i ' i on
i ' r rhe l i rr uo quatten b1
\,,: ' " lt or , l' P .tr" ,, s u n frb r u n d e n .p o rre derrni ng'
oficer and the
$I7 million add $5 million, respectivelvTwo *ecur;ves, rhe chief ctdit
conuollcr,wereput leavc'
"n Paid

s n dP r o c e d ur e s
P o t i c i ea
R ev iewing
thev are
l he final slep k rc revim existing policies and proceduresad deretmine whether
rdequte. During reiew, peoplcshouidrk drc followiry quesdons:
. Do cu!rcnt poiicies cover exisdng practicesadequatelv?Vete dv Probl''ns or
opporruniriesurcoveredduring moniroring?
. ri,i., th" plananvnm aaivities;n the futurc?Ifso' doesit neednewpolicies
orpocedures onwho will handlcthem and whar must be done?
-e"ft"ti."
. A r e. , , nt ingeri.e .rrd d i r' n e r' .o \e re J ?
This rwiv and planning rllows companitsto take a Proacriveapproachto probrem
solving,whichcu incremep.oducrivnymd inprove cusronersedce Duringsuchafevlew'
P'd6 | n r o fn a tm sysr .m s I Bu sin e ss
a n dso.etr

companiesare alerted to upcohing changesin infoimation sysremsrhar co d have a pG

found elTecron nmy businessacrivnies.An emple L the needfor heahhcde orgd;atioN
ro meet the requirementsofthe Heakh Insurmce Ponabiliq, and Accountability tut of I 99f
(HIPAA). The goal of rhis acr is ro requirehealhere organiarionsto inplemenr cosr
elTectiveproadurs for qcharying medi.al dita. Healthcre orgnizations nust enplo'
strndardelecdonicrinsacrions,codes,dd idenriffe4desisnedro enablethen to tullr"d(-
iiik" medi.al re.ordi and make it possible to use the lnrernet rather thm *pen-sive prirarc
nerworks for electron;c dara inrerchange. The resularions affed 1.5 million healrh(s
providers,7,000hospirals,and 2,000 healthcare plms. Compuies had untilApril2003 rc
conply. Now that the full derailsofHIPAA a.ebecomingcler, nany erpensareconernec
Sone fear that rhe HIPAA provisionsre too complicaredand will not neer rhe origini
objecdve of reducins nedical indNtry cosls and insread inclease.o$s and papeRork tnr
do.to.s without inproving nedical .are.
Intbrmadonsystensprofesionalsdd userssdll needro be ewareofth h;suse ofE-
sourcesrhroughout u organization. Prevenring errors and mistakes is one wy ro do o
Anorher is inplenenring in housesecu.iq-me{ures and legalpbrecdons ro dred r:
preventa dangerous rypeofmisuse:compurercrime.

COMPUT ER
CRI M E
EvengoodIS policiesmay nor be ablero predia orprnenr conpurer crime.A conpurea!
abiliry to processmillions ofpiecesofdara in lessthan a seond can help a rhiefstealda-
worrh thouands or niliions ofdollan. Conpared wnh rhe physicalddges ofrobbins .
bank or rerailstorewith a gun, a computei cr;hinal wilh $e rishr equipnent and kno*,
how car steallcge anounts ofnoney fron the privacyofa home.Compurercihe oft-
defies detrction, the amount srolen or divened caq be subsr.nrial, dd the .rine is 'cl@'

Here is a smpleof recenrcomputercrims.

. Cyberatra.la again$ corporarions aren'r under controi, nor will lhey go away s@n. Tl:
Conpuier Energnc). Rsponse Team (CERT) reponed 137,529 securiry inciden$ .
2003, and damagesatuibuted to Mydoom, ro dare rhe tute$ and hosr perv{iv wo-
atack on record, have been pesgedar $40 billion worldwide.'o
. Eachyear,netuly 700,000 peopleee viairns ofidenriry rhefr and orher forms ofcohpur-
fruud. Such a wide runge ofmerhods are usedby rhe perperruios of rhesecrimes rh.r::
nakes invsrigaiing then diI{icult. In one cue, corrupr security gerdr ar New Yo* J
Mary s depanment store were sropping curomeB d they exited the store and sreal\
rhen credit card numben otr their receiprs. In another case,clerks at Bloohinsd,l. !
connecred credit qrd scannersro handheld dnices, allowing rhem ro smepftiolr
wipe the cads md collectrhouandsof credircad nmbe$.t' A Michisatrmd pleadc:
guilty to four counts ofwire fraud and unatrthorized accessto a compurer after he c
wo acconplics used a rulnerable wireless nerwork ar a l,we's srore in Michigd r.
anernpr ro steal credit erd nunbes from the company's nair computer systemsi:
N o n h C erol i narnd orherU .5. I o$e
. ' ' ro!e,.
Fourreen nenbeB ofan kalian hacker group knoM d rhe Resenoir Dogs were ar.esrel
by rhe haliu police in whar becane known d Opention Rootkit. The group
"-:
tesponsible 6raseries ofhacking in.ident! rharconpronised more than r,0001ste*
spanning rhe gLobe,atrecting the likes of NASA, rhe U.S. Army dd Na!T, and varioE
finocial compmies in the Unired Statesmd abroad. Some member of the group rt=
working as infomarion scuriq- nanaffls h big consulting ffrms ard Internet seni*
provides,qen ftalian bnnchesof U.S. conpanies.r3
. Two California defenduts were indicted on ftaud and noneyJaundering charg* t-
sdng up one ofrhe ldsest Inrernerinveamentfraud casesin rhe United Stares. Th-
"invesrhenr club" allegedlybilked nore than $60 million from 15,000 invesioi
 Cbslt6r 14
se.uriv Pfva'v andEth'at 55uesi Inrormaton lvsrems and sa N{ret I

rate
worldwide. The clubi \(/eb she allegedlvguararteed inv$rcrs a 120 Percnt annual
rheJub nfl ei
ot r er ur nwnh no ri ' k o fl o .i n g rh ei n \s to r' ' Pri n ' i P ali N $rmenr' but
ued the tund' to
inve{ed .ny oi Lhevicrim. mo'ey. Inrerd rhe defendro auegedlv
Rica' 6 we1l d a
purchse n; ioru of dolars wofth of real esr'te in Mqico and Costa
yachtand a helicopter.''
of IT-relard
Althouqh no one really knows how peo*ive cvbercrime is' the numbr
incrolng damrriulll lhe ComPuler Lmergmo Re'pose-Team
,ecuricvlniiden^ i'
ISEI) d
Coodrrurion Cmra ( LRTi CCr i' loated 't ihe \oli$de I ngrneeringln{nure
in.Pirts
fedqallv fundertrerearchud developnenranter ar Cdnegie Mellon Univesirv
i' chars<d wirh .oord;nrrins monsdptrF du s
bureh,i'enn.il'mia. Ir '.olmunitution
*-,i.r emergencis ,nd hrlPing to fururc incidenb Ul-R I emProvee'
Prcvenr
publ i ' h' ecuri n
,* a i, r " ' *" " *i*in ' -u l n e n b i l i ri el'i.rd l e .o m p u re r ' ecuri ryi n' i denn
--p"r.'
f"rg-.*. .hanges in networked svsterns, develop information md training
4""1, .*-.r,
L oh eloo, eut . r io; , i mp ro .e' e c u i ry a r rh e i r
' n e ' " n d ' ondu('
an onS oi ng
P U bl i 'cl qd me*
o rs e c u ,i ryp ro b l e m re p o n e ro
d cE R l i n' re* d beoeen
.".p; g. l t l. . , . S . ' i rfol d
.zood, ia, ) oo. } . ^. h o .n ;n l -i s u te l a l L ma n v a { ' 0 P eMn' of' l l drra' ksounderr(red
r.@' dins t o. ec u, iq e x p e r' .\4 r,r\m o re .o i rh e ri i acl ' rh' rareexpo' edor)rl enrm' red
i s *. . i, lr " u . e n fo t e m e ' r i e ' w hv? C omprni e'doni ssl he brd
" " " ' " i - 'gen Mov conpri e' thrt
o * 1. i" . t ' *s r ilio .,l .,h e i o b N e n o s } e i i " r l ' " enl orcenenr'
won't talk rc the press Abig concern islos ofpublic ust
i"'" s*".L*-.i""[y
""acked
rhe fer ofen ornging coplcar h'len
,nd imaer nor ro nenrion

Numberol In.identtReported
w
Numberof IncidentsRePorted
120,000 Io CERT
r20.000 D atafroh
l S o!rc: C E RTWebslt eat
ww. CERT. o.g/stats/f incienE,
100.000 accessd onlvlay29 2004l
80,030

60,000
40,000

20,000

1997 1999 1999 2000 2001 2002 2003

Ya.

(Rur;ry5uN evare(how ni n l rbl e 144

Hiehliqhhof r h ern n u i C o m p u c r C ' i mea n d
rjo comPsis dd c:*'T"'"1'9'";
tn" 2ss3 .un e) re'uh. Je b*d on respots ftom
ol rhesrn r-E ncrs Federr
.i e. . T he Com pu,e r5 e u ri ry In ri ru (e .w i rh L h ep a nrci pati on
BJ , eJ uof lnv e' Li q a ri o n (F Bl rL o n Pu re rIn rru !i on5' { trad' ondu' s' hF' uryev-l hermol
ot conPurer
rh. sun* is ro rai* awarenes ofsecuritv, m welt as to deEimine the s@Pe
crine in the Unned States.
i.a"u, ..i-inals are a nw breed-bolder md more creativethan ser' wnh
".-p"t". + . l " ' e rn e r..o mP u ' e r.ri me i ' no* sl obai l ' nor i u' t on u s shd$
,r ' . ; " . , . jJ *l '
"r ot i$ nonqorenrrmage'm-
rhrr law enForcmentha ro barrlecyb*crimrnals Regardle:s
a crime Pan of what
Duter c.ine is ditrerent only bQue a comPtrrer is used lt is srill
a-" * and h*d to combat is ia dual nature-the omputer can
.o-p*..
"nique obid ofthar crime'
b. both the tool ued to conmit a crine md the
"'&*
 p."1" .r "...1 .,. !..,.- .. r E!3 ie ..ii!
| s,.e:l

@
summaryof Keyoatafrom R espondenrE
thatderectedcomp!rersecufiry
2003ComputerCrimeand b re.chesw rrhrn
rheLastT2months
5ecuritySurvey
Datatro m Ric haf dPowf
Respondentsthatacknow l edged
ti nanci at
LSo urce:
Losses
dueto securty b.eaches
200 3CSI/FBCo m put efCr im eand
SecuritySuruey,a"mpurel A veraqe dol t:.rossofthe4l % w how e.e{[i ng
se.urity lssLes & Trends,yal V tl or abtel o quanri fy
ther ti nancrat
tos* s
No I Sp ring2 00 3.1
R espondefts
thatci tedthei rl nternet
connecti on 73v,
poi ntol attack
asa tfequent

Respondni5 tiat cltedtherrintefnarsystems 'Wt

as a freqlentpointof etact
Respoidentsthat repo ed iit.usions 301n

Re3ponderls
tha! deteciedcomput;iiruseb

THECOM PUTER
A5 A TO O LTOCO M M I CRI
T ME
A comp(ter can bc $r.l asa rool b sah rcce$ !ovaluabh inform{nD ard d, lhe mcrn.:
srealthourDds d hillioN ofdolla.s It is, ferhaps.a questionof motiutn,n_nany jnj
vidualswho connir computcr relatedcrine clairn rheydo ir foi the challence,ror ior ii :
honcy. Ciedn *d frdud-{h.reb), r cr;njnal itleg.ll),gainsaccessto anorher;s
line ofcrt-
qith stolencrcdit card numbe^-is a najor concem6r rodar's
barks and ffD.ncidlin..
tutions.In gencril,.rim iDrlsleed nvo.rpabilirics k, comnir mosrcompurerc ncs. Fi..
thc crihinal nc.dsto knowhow o gaintcess to rhecompurcsy$en. Smdines olrtjn:.:
access requircsInowledgcofn idenrincriotr runbdandr pssword. Se(nd, rhecrin,L::
musrkndv hoir ro nanipularethe systcmo producerhedesircdresutt.Frequentlnacti::
conputr posword Lasbeenulked out ofan individual,a pnctice elled socialenginer
T hep r:ctlceo ftatkn 9 a c r il c at ins. O., rlt ar|jckqs sinplv go rhrough rhc garbage-dumpstcrdivins_inr jm;d,:-:
compu rerPa sswofd out or an
piecsol infonmrion rharon hdp crackthecompuftrso,oD!in* remo;e rrhe cmp..
ro gNe them non a@es.In addnior, thde arc nore rhaD2,000 \Vcb siresrhrr offe. r-:
digihl roolFfir fiec thar will let teoptc sndop, crashcomputcn. hijack conrol oi.
S ed rch ing
th ro!g hlh e qar bager or lra.hine, or retrievi copl dfverykeysftokc.
impo rtanpie
t ce sot inlofm at on lhat
Al$, wirh to.la)"ssophisticateddcskop publishiogprograhsard high .lualiryprint.:.
canh elpcfacka n o rqaniz at r on s
.om pu rers0 r b e usedt o c onv inc e .rlhes inrolvingcounrcrfeirhoney, bant chcckr,n aveletschecks,rnd $ock and Lrondci
som e 0n eat the co mpa. y( o I v e tificatesare on the rise.As a resuft,rhc U.S.'tr.asury Depirrmenr redcsigned
and prinr.:
som e on eacc ssro lne. om put er s ncw currencyLhatis much nore difficult io.outerle,r.

C y b e r t r r o r ism
Gove.nmcrt olTicialsard IS securiryspeciaiists havedocrnented a signilicur increase
lnrmer prcbesId knd scanssnrc earty2001.Therc is a grcwingconcernamorg tide..
ofl:lciars
rhat suchinrnxions arepart ofa[ organizederTorrbr .ybe;dui,rs, forcGn i",.
ligtoce scnices,or odrer groups to map potential securityhotesin .ridcal sy;enrs .
cybenetorht is soncone*ho nlnnidaresor.osc! i
S omeo ne wh o ntimid at es
sovernmenror organrz.ronh ic
or c oef vancehis or her politicJ o. socialohiecrivesbv launchingenpuretrbased arra.ksas.ii,.l
.es a qo ve rnm nt of o r gaf z al on t o
computers,nevorks, and rhc !,ftrmarion storedon rhrh.
adva nce h so rhe rpo lit c at or s ocat
oblectve E b y tru nchng c ohput ar Evcnbeforerlr Srptenbcr 11, 2001, rer.o.israfta.ks,rhe U.S.governmcnrconsid.r.r
base d.tl:cksag ain s ct om put er s , the potcnial rhreatofcvbererrorismse'iouse'ough rhit n esnbhhrd the Nadonat1nft.t,
nelworks,a nd rhe n for m aton ftucftrc ProtecrionC.nrer in Fcbiuirv 1998.Th;sti!nctionrvasrransferred
ro theHometrr::
SecuriryDeparrment'sInfornarion Analysisod tnfrastru.turet rot.rion Dire.oarc r
servers a foal poht ft. rhfearxsssmcnr.wa.nins,inverjsario,. and .esponk ft. rhrc.:.
 ni drer cnaet4' 14
5 e .!r r y Pr li .y and E l h.al s3tre5rnnform3i onsvst.m5andl he I

whnF P ro' rde'rel e' ommuni ari un' '

o , rra- lt \ J gain{our d u n rq ' .!i .i " l In h e tru ' ru r'
e n er w, banlans r d l rn d L e w J re ,,* re m \ g o \e rn m e ope?ri on'rnd emeGenrl rw i \$
nr
rhe fd(ilirie' rhrt hese r u'e q rde'Pread
sur,i.,frrl cvbe':ru.ksreainn Ptovide 'eflice"ould
rn d m + . ne di*r pr io n ' ro rh en o rmJ tu n .ri o no fo u r ' oc;ery'
$rems ire u'ro
Superui'oryConrrol rd Drrr A"quir:rion'vrem' krown a 5(a'b
. <r e l a ri c a rd g A u ri l i tre'openhg and' l ori ng ul n and,
r,.rl i tre a
-" " 1" . -ri.eeul, rh en o " o l e n e rg l { G e n e e l Ac ' ounti ngU H rce
p" , , , r. e rroon rereaed.In
^P n'
'w i rc he' r .
iirii<.i'J""i-t"..rp..ut.m., *is;"g-'."."rt'"ttu*cuirvrawsthae ontrorsvstens
cyt'.- phlsical threars Congresional auditors hare reonmended that
^f"".Sr.. ".a fortorki ngui th the
+i n. . . r - a! . - , iq O " p " " -" " , a * a " p
' " aro' imprcw
-p l e mmra' rnreg1 \u'ra
tturrry lo
orivare'e.tor rnd orher governmenr4encie< V'rm< .r"N
i l a r ionalF ner ev R e l i a b rl i ' r' C o m.i l Irry i n g ro d e el opruton$rder' unD ' rsoros.\-
C IO Lvon( o' unanr rodrv
,u ri n h- L, leno" a n o m o n rn g l o r u .- ' a n rh e' o u n' rl \
.r..-ii",' *-.lo' t'ave eiol"ed to include guards' gares'ard guns' *hich nuclear
"--a
frcilities alwayshad, aswell ascybeaecuritv "l'

ldentity Theft
piees of personal idenrifiedon identitytheft
Identitv thefi ;s a crine in which an imposter obtains kev A c r i m e i n w h i c ha n m P o ste r
in order to imPersonate
i"formarion. suchu SocialSecuritvor driver'sliense nurnbers' obtainskey piecesol Personatden
rr'" i.r..-*ion is then used to obrai" credit' netchodise' and sewicesin t licationInformatior suchasSoci:l
"r..
'.-".*name of rhe vicrin or to provide the thiefwith frlse credentials' s e c ! r i t y o f d r v e r 's t c e n sen u m
rhe
new adtr ac@unis' bers,ln order to imPersonar
Io some oes, the identirv thief ue pesooal infornation ro oPen
&counr to obrain bluk checkr'.Itr s o m e o n ee l s e . T h en f o r m a ti o ns
*,Jl.i *u'r. pl'-" *-ii". op"" **
" "t''ling to the pson s exruns t h e n u s e dt o o b t n c f e d t, m e r ch a n
- ac@ss
othc ues, the identity thiefuses pesonal infornation ro gain d i s e , a n d s e r v i c enst h e n a m eo tth e
r* runt od tun up r
,* * n. . I v p' - r lv ,h , rh i e f* i l i .h ' n g e rh em ' i l i n g addro' o an victim or lo Providlhe thiefwith
fiere e probrem rhe
huee
-t*i.i""-i*bill uefore,rrepe^on $hot rdenriF h:' been'tolcn re'lize' '<
r- * iden;iry thief to use the srolen information bequse
i',
-"a" "*i".s n h o u r a rv p e n o n ailrre racLi on
rtrr'. J. rc.r*"
'-i " r c an
ion. be m ,d e
l' , d e .o mmi " i o n ' e ;e i " d ' Io -a 0 i d enri r.-rhel i (ompl ai noi n2003.up
mrrrron
F.oma04, 000in. t 0 0 2 q n l -T C re p o rri * u e d rh d ryedei i mrre' Lhrrmorrd' n/
fi \e ves "
Am er ic J n'hr \ e be e n\ i . ri m ' o l i d e n ri ryr} e l r d u i n g rheP A r
to i n i o m rri o n i ' " ' houi der\uthng -rne D rer
{ nor } r erpopu l a rn e l h o d 8 'vehjJe"
d(nrrrv od
,r-il ,;C;-' ," '...one ati publ'c omc. 'u.h a' rhe Bue'u or votor
un hel pP roi eLt
* rrc he.r r hepen o . fi U 'o u r p e n o n J i n l o rmri o n on r form C otuumeb
t redit bureau follouing up
,il. '.i^ it **r"' rt .r'.rkjng their' 'edi repon' " ith maior
JJ .,fa;,.i' ;i r'."'un. d. ;. ." rime.not re"Jing rv p'r'orulinformxion
-,i'.
i n r e. Don' er o un' o l rri re de ma i l o r p h o n e' J L ' e ' P e' i ' l \
S oci J 5e(N ' rv number' .so
.redir c ar dr uunr n u mb e n J ,n d ' h re d d i n g b i l l ' s dorherdocumenbrhrt' on' 4n' ensrnve
'' ''-v.",ai"*
V ichisan\ote Unive6iry'' ideniry rhefr ret'n h corer' I.htt
""ai* i nto' meronrore' r on D 6rn$\
h J lol idendr-yLh e hn " w- Gu l r F o m th e rh e l io fp er' onal
-0 In rhe.$dkprJc ov
darrbne". loLenriallys mu.h ,' Percenroi identrrvrlehr diSrnare
e m olor ees or pe o p l e i m p e r' o n a i n g e m p l o l e e 'orhemti oti ryol rdenrtqrnel r" uD e' on-
rdenntre'were'(oren
,id"J i^id" i.b.. Th. *'.rch al'o 'houed rhat Lhen:ioriq ot 'ho'e
isr;turions and then fron financiai institudons '
'' - often from hefthqre'related
most
r ii+ i d e n ri rvt-h e frb ro k ei n l ate2002 w henrheD eprnmentol
In'
" , . nr "r.,^.ro a * t* o rk e r a rfi n o c i a l :u c o mpol l el edrruC ommuni ori on
..ri " ,i d e r d
'* , i*.frrud
t - ! . a,ind rcnpimcy rn. onrection with Jn identiry-Lhefi \heme i olqng,mok rhan
*irh
i n ' r der' rrra to rcrs rho6' nd' or
J0, 000\ ic , in' . lh e w o rt* a l l e g e d luve d h N ' redrr
reour, qhnh he 'old tor $tr0rpiecernrougha coconrpiraror''s
uet
lhe U. : . Con q rq ' p rs e d ' h e l d e n t' q l h e fr rnd tu' umpti on
,t i ' rh e l e d e re l Ttrde C ommi si on rl - l ( I N al gneo
ro f is it idenr ir ),r' A, i "'.
" a .' and erue the i npr' r ot rhei mpo{er' It }Lo
)" . " i. ' ' s i' " *' o re * o rerh e i r
'i " ' .' i .' ' re d i r pn'on rmsing from 3 to 2< vean'
,l.ri . r.+"r feronvpmi'hrblc b' a rerm
-'i-;J*,i"
 PamE I r r . , m i, m s lr Em ; n q, : i! . ir nd s o . e , r

THECOM PUTER
AS THEO BJ ECT
O FCRI M E
Aconpudcan alsobe the objecrofthe dinre, nrherthan rhe toolforcomr rtirg it. Ter.
ofriln ns ofdollas of.ompurerri're and resources ar srolercveryvear.Ftachtimesvrer
a c .e s i s i l lesal l yobranred,da.aorconpurerequi pmenti ssrol cnorde*r oyed, or sof t r . ar r :
illegrllr copied,thc conpurer becomesrhe obj.ct dfcdme. Thesedihes fall jnto rr-l
categories; illesalr.cessand use,dardaltefariondd desrmcrior,inturmarionandequipme:.
thefr, sfrwr. and Inrmet piracy, conputcr relaredscams,and intemationJ <,mpur;

l ttegalA c c e s sa n d Us e
Crimes involvilg illegalsysrenx.cssand us. of-'"pu,c. serv,cs .'e a concernrc F.:-
Ap erson whoe nlo y sc om put er lec h governmenrardbusinss. Shce rhc ourserofinfornri<m technology.computcn havebe::
noto gyan dspe nd st im t ear ning
plaguedby criminal hackcrs.A hackeris a prrson who.njoys ompurc rechnotos.tr:.
a no u5 rngcomp uters y s t em s .
spendsdme ledrnibgand usilg cohpurcr systehs.A crininal fiacker,alsocatleda cracker
criminathacker(crackerl is a computcrsavrypersonwho attehprsto gxh unauthoikd or illegalaccc$ro compu:::
A comp ule rsawypeG o. who sysrensto stealpasswords, corupt filesand prognms,orevcnransiir morcv.In manvo:r,
atle mplslo qa nu naut hor z edor
diminalhackersarepeoplcwhote lookingforfun andexcirenent rhechallenge ofberrj.:
tre9araccessto computefsystems.
thr slrrem. Script bunni$ arcwrnnabececkcB with hde rcchnj-l sa!1l,<ncle.
".:
downloadprosiahs call.d /,1'r-rhar aurohre dre job of breaknrsinro compuie^. rc
Wa n.a becracke 6w t h t it t t elec hni sidersxre employecs, disgrundedor olheR;se,working soloor nr conceftwirh oursid.r\ ::
ca tsawywhod own t oad pr ogf am s -
comptuhisecorpor.resFems.
scnp ts th ala uto m alet hejobof
bre akingn tocoo put er s . Catch;nsand convi.ting crimiral hacker renainsa difliculr rdk. The herhod b.hi::
rhesed;mes is oficn hrd ro determine.|ltn if rhe nethod behind rhe is hro\.
insider -ime
trackingdown rhc crininah can ral<ea l(x ofdmc. It rook lears for rhe FBr ro affesrr.::
An mp loyeed, s9r unt t edof ot her cinibal hackc.for the alleged'lhcft" ofalnost 20,000 credircardnunbem rhar had br.:
wis,wofk n9sotoor ln c onc erw t th
sent over thc llternet. Table 1,i.5 prcvidessone guidelinesto lbltow in rhc c\nt o: :
outs defs to compromse cofporate
computersccurityincident.

@
HowtoRespond
to a Security
lncidenl
I ....i,...r.i
r' Iritdt,ifier5;.r;iiMi'19
italp9-pi"rqri,iiiil'O1ry;eod:t
: i ,r,r.i.
l
Furthercomrnunrcanonsaboutthe incidenlshouLdbeguardedto ensureiitr!de.s
d0 not rntercepiinfo.malion.
 s e. u. t y P r v a r ys n d E t h . a (5 5 ! e s i nn f o r m a l i os n
y s l e masn dr h o I o"pt"rr
" **,

DataAlterationand Destruction
Data and informarion are valuble corporale assers.The inrenrional use of illegal dd de-
srucrive programs io alter or desroy data is u much a crime d desrroying rDgible goods.
The most conmon ofthese prograns are virues and worms, which ee software prognhs
that, when loaded into a computer system,will destroy, inrerrupr, o! causeerl6 in pro,
cesiry. There re more rhm 60,000 known conputer vnuses mday, with over 5,000 new
vnusesand worns being dis.overed eachyee.
A viru is a conputer progru file epable of auchins ro disks oi oiher files atrd repli-
caiing iiser repearedl)-,rlpielly withour rhe usels knowledge or permission. Some virues A programthal atlachesilsetllo
atach to ffles, so when the infeced 6le executes,the virus also decuts. Other vhusessir in
a compuer s menory and infecr files u rhe omputer opens, nodifia, or crearesrhe file.
They are often disgJsed u gamesor imageswirh clwer or atrention-gabbing drles such d
.Bos,
n1rde."Sone vhues displayslmptoms,and somevnNs damge nlesmd cohpurer
sy$ens. Conpure. viruses re writren for s*eral opeEring sysrens, induding \findom,
Macintosh. UNIX. and orhers.
\7orms are paruiric computer progrms that replicate but, unlike vhuses,do not infect
other compurer progmm files. Worns @ oeate .oFie on the sane conpurer or can send An ndependenlprogramlhat repli
the copies ro other conpures via a newoik. worms ofren sprcad via IRC (lnterner Relay cates lsown programliles !ntil it
inferuptslhe operalionof networks
Char). The Mydoon worn. also krown as Shingapi and Novalg, smned spredins in Jan-
6nd compute.syslems.
urT 2004 and quicLly beane rhe most viruleni e,meil worn evr.The wotm erivs d m
e-mailwnh an aarchnenr ihat hd variousnanes and eitensions,including.exe,.sc!,.zip,
md .pif Vlen rhe anachnent is execured,the wom stans sedding copiesof i6elf ro orher
e-nail addre$essroredin ihe infared computer.The ffrstversionofrhe virus,Mydoon.A,
wm designedto anack The sCO Group Inc. s \reb sne. A larer wrimr, dubbed
Mydoon. B, wa designedto enablesinilar denial-of+ervice anrclc asainsr Micrcsoft Corp.
's web site. The B variant also hcludes a panicularly nasty Gature in rhar ir blcks infected
computers lion accessingsitesbelonging to vendorsofaniivirus products.'' Infected e-nail
nesages err7ing the Mydoom worm havebeeninrercepted fron over 142 countries and ar
one dme @ounrd for 1 in $ery 12 e-mil messages. Thar surpases the record set by rhe
Sobig.F worm, which rppared h Augusr 2003 and ar its peak w$ found in I of nery 17
nesages.:o SCO and Microsoft, in a concened effon to discouragenal*{e crcatore,ech
olTereda $2t0,000 reward for infornation leading m rhe eresr ud corvicrion of ihose Softwarelhat is harmfutordesft!c-
responsiblefor rele*ing the Mydoon worm that targeted their Veb sites. For Microsoft. tiv,such as virusesandworms.
rh offer is part of irs $5 nillion bounry proglaln announced November 2003 ro rewtd
people for infornation relating ro worn and viru rurho6." The \feb sitc ofrhe Reordiig
Industry Alsociation of tunerie was dowtr for a week in Mrrch 2003, rhe victim ofa din
dbuted denial-of-se{ie (DDoS) attacL by rhe Mydoom.F virus."
A Trcjd horse plograrn is a malicious prosrm rhat dissuisesirselfas a usetul applierion Trojan hors
dd purposetully doessomerhingthe userdoe not exp(r. Trojans de nor virus, sinc thcy A pro9r.mlhatappedrsto
beusefut
do not rcpliaie, bui they can be ju$ asdesructive. Many pople ue rhe rerm ro refr oily bul actuaUy
masksa destructiv
ro nonreplicaiing malicious programs, rhus making a disrinction be.ween Trcjans ud
viruses.In May 2004, nss brcke on e Russiansecurity firmt Web site, srying rher a siable
porrion ofcisco Systems'Internetwork Openting Systen had bn stoln {d 16 circu-
lating on the Inlernet. IOS is th so6,are rhar @nrols much ofcis@t nerwo*ins hddware,
which nany ofthe worldt buinese md governmenrsusero run rhir crirical IT netwo <s.
There is concem thar atracken ould modifr Ciscot licensins od rsistnrion mechanisns,
neaaing that businessescould be *posed to illegally modified copies of Ciscoi sofrvde,
which might contain sometype ofbackdoor appliedor (a conpurr prosrm ihat b)"ases
security mechrnisn, or Trcjan-horse applierion rhat arrackerscould ue ro gain entry into

A logic bonb is a type of Trojan horse lhat xecute, when specific condidons oaur. togicbomb
Triggen for logic bonbs can include a chanse in a file by a panicular seriesofkelstokes or Anapplicalion
orsystem
virus
ar a specifi. time or date. In May 2004, aurhorilies in Taiwan aresred 30-vearold computer d e s i g . e dl o e x p t o d eo" r e xe cu l ea l
a specifed llme and date.
engineer\rdg Ping-an, who was accusedofceating the Peep Trojatr. Taiwm's Intrner
crine investigation rdl force, called"CIB," tuadethe arst. The exisren@ofthe PeepTrcjm
wr uncoveredwhen Taiwmese authorities discovredthe cheli ofconfidential infornarion
 Pdt6 I nr qm r r m s y 5r emnss , s iic s s a i ds o c s L !

from govemnent agencies.sclools, dd conprnies. ping an di{t nor srealthe dara hihseli.
Apparendy.wheDhe was unable ro sell hjs data_sreating ,nus. he postedir on hacker!
web sircsfor Fec. Then, hrckds fron mainldd China uied the proeran to srcdtthe
dfu
l i n g -a n f, ,,, up ro t' [e in
" e-r. pri $n. i t .ohvr(red.Moe ,i J .o;c o,. t$ , , . 8e, r. , _
.ru s r-rs , \rel obJ rw -entor.rnenr,.,nmunrry^rdl i n8rhc,e.,i me\mv, e. er iost i. 1. .
rrw \J (g e,rqB bc !' ,hepenrtti e,n.rter.rJrheR i .g.ej rcr.o,,| err,:onno $, hr pr op.
h.ve seenrhc damaseiheserhnrgsq! do.. sayspdda SoftwareCTo patrichHinojog.i
A r:ri ur n r modi fi ,,l,er.i onut a v:,u, rhari , prcdu.eJh) ,hevi ,J,. JUr h,{ or r nd h. :
A mo dife d versionol a v if ust hal is pcsonwhoanods$e dishatvirus code.Uchdges aresmal, no$anri
prod ucedb y thevir uss aut horor uspro.tu.ts$,ti
a fotn f pe rso nwh o am endst he
also derecr va.ianrs. Howevcr, if dre changcsfr largc, the varimt in.r qo u;dcrected
b.
-" ,j ' i ' ," :.1,.. N cu' rrrnr.otrhe \e,kvc.mrt $orm re,pre" Ji ason, he l, , nr
l d ,n .rv h rrh( q.,kot Jdi fi rren' rurhorrhrr pr.vi ou.rd;ri on.ot,h,r.o,..". , , "ai,
e,
J fl i ! i ru ,,o hl rrr ! nmpJr' . \(r." ) \ JppcJ.ed{p, i t q.200a.
-rd \e,.(} | ", . de. c. , . J
the rct day.Thev are rhe I 9rh md 20rh edilionsof an e-nait virus that 6rr aooearcdi:
Ie b r.rn ' 00.. I nl i kca l i e, vJri rnr\.rt,en$r \er.kL nai n. opcr,-h" .k doo; . 1
or r
chinesthq'infect, prompting rr leor one anrivirus*peft ro decl;rethe worn the work.:
a differenrvirus aurhor. Like its prcdec$o6,the new Nerstryveianrs urser na.iin--
runing vesnmsof M;c.osofrCorp.'sWindows openring systcm.)6
orm cm conpletetyhalr the operationofa comourcrs$ter
o rr.v o rk i o rdrl ,orl ,,ng(run.,t,h(p,.hterni .r,,ul d,r,l ;pJi reJ.t" o,h.,* ,e , . ; , , - .
o r" " o rn -nd-rro| mpn" h' or.rrdtrogr.rm,.)l b* kup.:ni r" deqrure,rherl "r a"r -
p o g rm.tu) n(rcrbefu yti .n.ri orr:t,g:rr -e..,r,i nctuo;rtr.en" r.q.i , . a, o; a. ". .
w o,m rnd ro rero.c.,,mp,re,' l te..nJur" . r' , qc + r h. \ L.
oi busine$lo$ bccase ofunscheduledconputer downtine.
United ParcelSenice,Inc. cm\ allow compurcrvirdsesro dirupr rhe jnfornarn h sr!
tehs rhai re keyro theopcrutionofns \0orldpon distriburionhub;; I_ouisville, Kentuct_.
.o trorl Io hunr v,,u,c.rad $o.n\ dotrn b4.4 $ !t-,r. fhc Up\ r e. , n, . . _
' h e .o mprny
\u p p o ,rg r oup._l \L.a.i i \el \moni ,,r.e,L,,N ,ndhr.tertn,e,nerneq.gro up. r , , r he. kr ,
newvirusesa'd actl quickl)-whentheydis.overa ,ew one.\fhen rhc Btasierwornhircarlr:
$is )'ear,a TSG rechni.ianane in ro work ar 4 A.M. aftersporrnrenes ofthe worm o:
m -,g rc u p . h l euor(i ngarhom,. I hi , p rempri v.rpp.,, . p,* " " ,.o W -ta p. " . , . , , _.
"
from gctting hir by the Slamner virus.rT't abte14.6listsrhe comp"re, nrci t.nrs that t-.
had rhe greatq! econohic impacr

@
Computer Incidentswith
the
GreatestWortdwideEconomic

Macinrosh@mputersale imhune to intucdonfrcn high,profil\rindows worns tik:

soBis dd Mydoom,which erploirsccuriq,flaws and.rchitelturJ shoncominssin \flindor.:
,' te rJ ,i n g {nem." nd$fs,r.appti arron,ro," u,eoroh,em,.fn.,,orru" .:ont ) r r 1. o.
\flindoM inachines. As ofea.ly2004, expqrswereumwdeofdyMacos X_sD;ificviruj
o r w o rm .h u r i r . i [el v onri r rrr.r,.r ri mt bcrorecrJ.[e,. begi r Jsetopi n g \ 4r 'co.
\
virusesmd worms.,3
F-Secu Corporadon provides cenrrallv nanased securirysoludons, and jL
The
producrsincludemtivirus. file encr}"lion, and nemork sec;liry soludonsfo. all na'or
Dt.{
i o ,fr' -fro m J(,k,op.r..rncrrJtroml ,proo.rorrandhetd..found.d,ntqsd, f - Sc. u, .
i , h e a d q u anered rn H el ,i nki .t-i nt" nd.rd tFrcdon , t-eH et,i nb \ro, k F\Lhi n s<.I J, o h-
o l T .c ,,,, N o i ,h tnreri cr.C ern rn.
' w eJ.n.JJpi n rnd,he | " ,redK .* dom: F. \ cur e
.u p p o n c db y nrvork ol rc.e and Jnrri bu,o,.In mo , ,hrn o(r.o;,,tri e ,! r cund L. -
" -,,
globe. I-Securealso providesreal-timevirus sradsticson rhe mos acrivevirusesnr tn:
world at ns web sire, @-l'd/..an/,itu, inJi.tu*til. Dfting rhe rnonrh of Noverrbrr
 andth. irdier
5..u,i, PflaryriiErh.3L 5;uesn nro,ri t oi sv.rems I chaetr14

2001, 1,418new virus definidonswcreaddedto F SccureAd Virus. ln a tvFicalnonth'

betwcen500 and 1,500enrriesnight be added,dependingon the nunber of new vnnses
discovecd.r'Table 14.7lisn rhc mosractivevirusesin Mav 2001

@
Mo5tActiveVirusesin the
Wortd- May30,2004
2 P@rn
lv32lNetsky. m fus
securV
lsource:'F
Stalisti.s ww l secure.com/
: ocryn
w32,4ltt5hy. virus in lo/st atist i.s, a..esse d May
. s e dw t h p e r m ss o n .l
3 0 , 2 0 0 4U
w32lB.gle.Z@mm

6 W32lNetsky.B@mm

? w32tNerslv.zemm

8 W32/Net6ky.o@mm

t HrnLNetety.P l

10

McAfeeSecuriryfot Comrners is a divisionofNetwork A$ociates,Inc.' $ar delives

rctailand onhrc solLrrionsdesiped to secure,protect,and oPrimizethe compurcrsor'on-
crner a"d honc ofic. McAfes rdJl dcsktoPproductsincludeprcnicr anrivitus'
",e6.
sccuriry,encryptior,and deskropopliniadon so6xarc' McA{bedel;vas softwarethmugh
m lntenretbrowscrtoprovidethcsesenices to uscrsonlinethroushiLsweb sireo// n.zfa
.,2, one ofrhe larg$t prid subscripionsireson rhe lntcrnetwith over2 million activepaid
*bscLibets.McAfeepxxides r real-rimemp ofwhete the lare$virusesarc infectingcom
putcn rvorldwidcat ,rp;//r.tu.afee @nl,;tusbfo/d?fd"l'4 Gcefisurc 14 2) The sirealso
providessotuvre for senning vour omput* for virusesand riPs on how to rcnove a
virus.roTablc 14.8providcssometips for aloiding vnuscsandwdrns.

@
GtobatVirusInfection-
Numberol InlectedComputers
*i{q @crq+sg-qd *r.dr&1!gq+- dl per MiltionCitizens
'*
l s o u f c e M c A i e eS e c ufl y,'Wo r td
Yn0.Map http://us n.afee.com/
virusInfa/delault asp. Cour\esY a

*.,*i!t@ .lt .d,Ea!, .gl

 Pet 5 | ,b m r r 5 F a r 5 ,s!:i..;:i. ! o.,rt

@ I l l s L a ..r rlvi u qorrw dF onyoLrconprte al o.ol ri gure,rros.ai !l l dow 1 . odds,

Howto AvoidViruses
and
? . L ro d " r"vol rarnv' .Lc5olw cre e9-(dry.V orFrl an500vtrJse,.reorsrove
"aedr
monih,so yoLneedto reman c!rrent to be prote.ted.Yousho!LddownLoad at least
th e p fo d uctsvi russi gnaturefi tes
Y oumayaLsoneedto updatethe produc f s
s c a n n i ng
engi neasw ett.

3. Backupyourf!les,"gqtarty, yourtiLes,youcan repiEcethem

li a litus Later.deslroys
w rh y o .. bacLJo cooy l oL s" oud ,roreyorr b.crup(oov r d .ocaLror dw ayior
v o L rw o .lfi
, es,F' el e' aol \l ot o1your.omoLl a-.

1 . D on o to penanyfi Lesal tached

l o an e mai Lfroman !nknow nsuspci ous.o.
untfustworthysource.

5 . 0o not openanylitesdtiachedto an e-m.il unts6you knowwhatit is, evenif j! appears

l o c o re l ron a l r el o or < oneone
vouInow .V snyv ruse"-ppl :.are
i hense t ! e,dno
s p re !dL lroLghe-na L

6 E x e rc i se
caLti on
w hendow nl oadi ng
i i Lesfroml henternet.E nsurethatl he sou. .se
tegiimateandrepltabte.Beforeyoudowntoad, ver fythat the sirehasan antivrus
p ro g ra mthatchecksi l si i Les.l fyou' reuncert.i i ,dontdow ntoadthe f iLeat aLt or
downloadthe tite lo a removabledlskandtest itwith you.ownantivrus soitware

U s i n gA ntivir u sPr o g r a m s
As a resultof thc increasingthreatofv;uses and worns, nost conprter use* and orgrr .
zarionshalr iNrallcd dtivirus prog.ms on rheir conpurc$. Such soft*Ie runs in r:.
backgroundro protectyourconpurerf.omdangeslurLingonrheInternetandotherpo$i- :
Pr oqr amor ut itr yt ha tp re v e n ts sourcesofinfecredfiles.Sone antivirussolivareis evcncapableofrepeirirg commonr :. .
v rus esandr ec ov ers fro mth e mI infectionsautonatiolly, r'ithour interruprnrgyour rvork. Thr Late$virus definirionsi::
rneynrecra comp!re..
downloadedrutomtically rvhenyou connecrro the lnternet,ensuringrhat your PC 5 p,:
rcction s current.To sJaguardrourPCandprcvenrirfion sprrdinglirusesb )-ourtlie.:,
and corvorkers, someantivin$ soliv& scansand clernsboth inconing and outgoinge,n:
mesages.Tablc 14.9lisa someof the hosr popuh anrivnussofMarc.

Ptatiiriri! ..

PC -c l tt
n
 se .!f:y.Pr !a.r ri dFrh.aL ssu ftsi ai I cb3l te 14

Ant v rus soitwafeshoutdbe used

Propo useofantivirussoftwaterequiresthe toltowingsteps;

'L INtuI dhtiriM
fudle and w it ofun Maty of theseprogrms autonaticallv check
for vnuseseachine vou boot tp your compurerorinsenadisLor CD, and sone cver
nonir orall r m r i l rn d l ' l l eu s .m i * i o n ' J a J , o P yi ngo1' er,r;on'
2. U dE Mtirr'! tufuhe a/ir. NewvirusesarccrearcdrLlthedne'andaDri*ussoftware
suppliersare constantlyupdatingrhe; sofoare ro detec and takeactionagainstthese

3 . Sca,dll d;sh!d"d CD' belift .apJ,i,s ot rakni"g ptostdu Jion then Hltling on dsks or
CDs, vnusesoften move besveensystemslfyou catl' docunenr or pmgren lLleson
dnks or CDs belveencomputer at schoolot workand you honc svsrem,alwavsson

a. I^td lofuar ohufnn a wkt pmtage t rare w.b ofd h,otut ohlln!
'ite 'olta'lre
Evensofnvarepublishenca! unknowinglydisribute viruses on rheir program disk or
softwaredownlosls.Most scantheir own lstens, but viruses ndysril remain
5. Fonm cateful tlauxtoadi"s !rani*. If you download software fron the Intetnet ot a
bulledn board, chck your co-puter for riruses immediateLyafter completing the

6. IJ rou d"t t a rins, tahe;nnediate act;on. Early detection often rllows vou to remove r
irus before n doesany seriou danage.
Despiteereful precautions, virusescanstill cruseproblemsThey can eludevirurscan-
ning softwareby lurking alnmt anivhe'e in a ssien. Futue anrivirusprogramsmav
incorporare"nature-based models"rhat checkforunusualor unfdniljar compurercode.The
advantageof this type of virus prosram is the abiliry to detect nm viruses that are not pan
of an mtivirus database.
Hox, or false,virusesareanotherproblemCrimiml hackensonetimeswatn the public
ofa new and dmsrating virusrhat doesn'texistro dearci:ar' Companiessohetimesspend
hundredsof houn warningemployeesand taking prevenrivaction aganst i nonexsrcnr
ri.u. Securiryspecialis$reconmendthatIS penonnelestablisha fornal paranoiapolicvto
rhwdn virus panic anons sullible end user. Such policiesshouLdstres rhat beforeusen
foruard an e-mailalen to coleasuesand hisherups, rheyshouldsendit to the help dcskor
lhe securityteam.The corporateintnncr qn be usedro exPla;nthe difGrcbcebetw.cn rcal
vnu* and fakes,and it can provide linls to lfeh sites to ser rhe record straight
 Pst 5 | ir o m r .isr stm 5 n Bu sr e ssa ndso.ett

I n f o r m a tioann dEqu ip m e nT
t h e tt
Dara and informarionare asetsor soodsrh.t cu .]so be srolen.Individualswho ;llesalh
acccs sysrems often do so td stealdar! and informarion.To obrtn illegdlacce$,cdminal
hackcrsrequire idenrification nuhbds and pdwords. Some Ginin.ls ry difTerenridemi-
fication runben and paswordr undl rher find ones rhar work. Using pdsord sniffer F
arorher approach.A p*sword snitrer ;s a small plosr.n Hdden in a networL or a compure'
Asma tt p rog ramhiddenna net systemrhatecords identifi.dbn nuDbes and pdswords.In afew days,r pssword snife'
wofkora comPu t ers y s lemlhat cd recordhund.edror thousands ofidenrificadonnumbesandpaswords.us;nsapdsword
record side ntaicat r on
num ber s
snifler, a.rininal hacker can gain accessto conpurers md networl$ to stealdata ud infor
nadon, invadepr acy,plant vnuses,and dnrupt comprter opeErions.A hackersecrelh
in$alledsniffersoliwarein 14 Kinko's storesin New York Citv rhat,tldwedh;o ro aDruE
r< u r\e , n ame\Ma p,.' $, ,d" ro Jc.e..rnd fl cn openbrr\ rcoun' , ne.The h; 'k. ,
"n
wascaughiwhenhe usedoneofrhe stoler paswordsto lccessx compurerwithcoToMyPC
softmre, which lea ind;viduk remotely acces the;r own .onpuds from ehwhere. I hi
GoToMyPC subsctiberhappenedto be home ar the rine and suddenlysaw rhe curor or
his computermovearoundrhescreenmd filesopenar ifby lhenselves.Tohis amemcnr
he then srwan accountbeingopcnedin his nme ar a onlinepaynent omsfer serice.rl
In rddnion to theft of dataand soli.rare,all g'pesofconputer systensand equipmenr
havc becn stolen from offices. Cohpuref rheft is now secondonly to autonobile theli, r,
cordingto receniU.S. dne statisdcs. Ir rhe Unired Kingdon more rhan30 percentof 3ll
reponcd thefn are compute!relaEd. Pdnres, deskropcomputers.md sonners are olier
rargers.Portableconpdterssuchar laprops(and rhe daraand informadonstoredin rhem
areespecially easyfor thievesto rake.In sone cascs.the daraend informarionsored in rhe-
systensue nore valuablethan rhe equipncrt. \fithour adequateprotectn,nand securin
nedsues,equipnent canas;lybesrolen.Accordilg to rhe Brigadoonsoftmre 2003 Com-
puterTheft SuNey,over 1.6 nillion conpurersweresiolenin the United Stites;n rhe fr:
threeye.rs.Bsed on rhe responses ofrh 676 panicipmts in the suney, 48 percenrofthr
devias $olen werel+top conpurers,27 pcrccnrweredesLrop.omputerr, aid l3 percen:
wse $he forh ofPDA. Unfonunatcly,the ovemhelning najorirr of lheli vicrims (ss
percent)did nor encryptproprihry dataon rhesednices.rl

To lig hl co mpu terc r im e m any

co hPa ne s used vc est hal d s abt e
lh e d sk d riva ndtoc kt he c om pur er

lSou fceCo
: !rtesy ofKensnglon

Softwareand InternetSoftwarePiracy
[,achtine you usca word processing progrm or a..e\ssoli{are on a nerwo.k,you arerakins
advanrase ofsomeoneelse'sinrellectualpropeny.Like booksand movies-orher inrellecru
propenieFsofMarc is prorectedby copyright1aws.Olien, peoplewho would nqer rhin;
ofplagiarizinganorherauthor'swrnten work haveno qualmsabourusingandcopyingsoi
{are p.ograns ther hve not paid for. Such illesal duplicaros are calied prarrc rhe ac o:
illeglly duplicating softmre is callcd softwae pincy.
The act ol ittegattyd!pt cating Technically, software purchascr are granted rhe right onlv to use the soliware und.:
cenaincondirions;theydonl reallyownthesoftware.Licensesva*fron progranto progru
and mav authorizeaslew u one comDureror one individualto usethe softwre or asnan'
 socufry Pfiva.y.aidEthicat ssues i Inrormaton sysiems3nd the lncmd I crtspt t14

a! severalhundied networl usersto sharethe aPPlcarion acros rhe network. Makins addi
donal @pies, oi loading the sofrwre onro mo.e thm one nachine' may violate .opvright
law and be @nsideredpincy.
k is estinared that rhe softmte indusly losesberween$11 ard $ 12 billion in revenue
to softw*e pnacy amully. Halfthe los cones fron Asia, whe.e ChiM and Indonesia are
rhe bigge$ offndeB. In westem Europe, annual Picy loses nnge betwen $2 5 md $3
billion dollas. Although the rate ofsoftwm piracy is quire high in biin America and Centml
Eurooe. those softwte narkea are so smatl that the dollar loses m considenblv lower.
About $2 billion iD annul pnacy loses come fron Norih Amerie. Continuins edu'ation
and enforcement efforts are making a ditrerene, however' In rhe United States,for exanple,
rhe level ofpnacy {6 reducd fron 48 percent in 1989 to 25 Percentin 2002.13
Internet soft*rc pincy occur when rcftmre is illegally downloaded fron the Internet. Internel5oftYrarePiraay
Ittgallydownloadingsoitwaref rom
h is the mosr rapidly opanding t)"e ofsoftware piracy and the nost difrcult fom to combat.
The sane purchcing rules apply ro online softwte purchasesas for raditional purchaser'
Interner piracy can rake sseral forms, including the following:
. Pinre \reb sites rhar mke soltware auilable for liee or in *chmge for uploaded

. Inrerner au.tion siteslhat otrer counrerfeit software,which infringer copyrighrs

. PeFro-per nerworks, which enableunauthorired nansfer ofcopyrighted progom!
Penaltiesfor soliware pnacy can be soerc. If the copyrisht owner bridgs a civil acdon
aginsr soneone, the owner en seekto stop rhe peron from using its softmre inmediarelv
and can also request nonetary danages. The opyright owner nav then choosebetween
ompensation 6r actu,l damages-which includes the uount it has lo$ becauseof rhe
per$n's infringemeDt, aswell u my pro0n anributable to rhe infringen.nr-nd staiurorv
deases, which en be as much o $150.000 for each progran copied. In addition, thr-
lf
gou".n-"n,.," p,o..*.".oftwre Pinies in cidin l coun for copvrightinfringement
ionvict.d, they could be fined up to $250,000 or sentenad to jail for up ro five vem, or

Scams
Computer-Related
People have lost hudreds of thousmds of doliare on real estate, travel' srock' md other
busines scams.Todav, many of thesescms are being perpemred with comPuters Using
rlt Interner, son utisa offer get-rich-quick schenes involving bogus real etate deals' tout
.free"
vrerions with huge hidden costs.comnit banl fnud, offer fake telephone loneries,
sell wonhles penny stoclc, ard prcnote lllegal ra-avoidua schems
over the oast fry vears.oedit cud customen of uriou banks have been rargeredbv
rcm anists tlyiog to ger personal information neded ro use their credit cudr' The setn
wor[s by sending customen an e-nail including a link thar seemsto direct user to rheir
bank's web sire.bnc at the site, ihey de gtetd with a pop-up bor asking rhem for rheh
full debn card nunbes, their peBonal identifiotio. ntnbers, and their credit ctud expih-
don dates.The probien is thar ihe Web siie cusromersare directed to a Ele site opented
15As discmred previoustp rhis fun of
by soneone trying ro gain acess to !h infornation
s;& k ..[led ?hih;ns. Ttr tuti-Phishing \forking Grcup reaived repons of more tha
1,100unique phishingcmpdgns in Apdl 2004, a 178 perent inaeasefron the prwious
monih.r6 A 2004 study by rhe Gartner Consulting Group sweyed 5,000 adult Interner
user and found t-\at roughiy 6 percent reported giving up ffnmcial data or orher personal
infornadon afrer beins dram inro phishing scans. The tesdts suggestthat u nanv a 30
nillion adufs have *perienced a phishing anack and that 1.78 million adula could have
6llen victim to the scams. The 6 percent succgs rate is more than enough to enure a
continurior of suchscarns.rT
The U.S. Iederal Trade Conmission (ITC) filed zuit asinst a companv that promotes
creationofa firni web sireover the phone and then chtges the victins' phone bills without
their authorization. The ompany olls small businessesand getssoneone to agreero a 15-
day uial olTer to look rt a \reb site designedfor riat Susines. Unbeknownst to the sm3ll
bsinss, rhe look at rhe sire results in a $29 95 addition to the firn\ nonthlv relephone
pe t 5 iBu. nes s aids. . e r y
| "t - . ' - s y r r . m s

bill. Often the chtges on thephonebillapperras"MlS IntServ,"which peopleoftennistake

for Internetrcces charges. The scan h* beengoing on for yean and argets buineses rll
aoos rhe Unired Sl.tes.rs
Hcre is a lisr ofdps to help you avoidbecominga son vtctm.
Doni agreeto anlthing in ahigh-pressure mcetingor semina..Insiston havingdme !o
rhink it overand to discus thingswirh your spouse,your parloer,or evenyour las er
Ifa conpml' won'r give you the tine you needto checkit out and think thingsov{
you dont wot to do business with it. A good dealnow will be a good dealtomotos:
rhe only rcasonfor rushingyou is ifrhe conpany hm soncrhins ro h;de.
Dontjudge a conpany basedon appearanc*.Fhhy wcb sirescanbe deatedlnd pu:
up on the Net in a marrerof days.Aliet. fe* *eeks of taking money,a sitecrn vmish
wnhour a race in just a Gw minutes.You may find that the perlict noney naking
opponuoity otreredon a \0eb sitewasa noney maler for the crook and a moneyior:

Avoid anyplaorhat peysconnissionssimplyfor re.ruitingadditionald;st.ibutorsYou

primarysoure ofincone shouldbeyour own produc sales.Ifrhc earningsarenot nadt
prinarily by salesof goodsor s.dccs ro colsumersor salesby distributos undd vou
you nay be dealingwith an ilcgal pynnid.
Bewareofshills, peoplepaid by a companyro lie ebotrrhow much they'veeernedd:
how easyrhe plan ws to operate.Checkwith an independentsourcero nake sure&a:
you arcn't havi.g the wool pulledoveryour eyes.
Bewareofa compmy'sdaim ihar ir an setyou uP in a profrtrblehome-boedbusin-*
but that you mut firt pay up front ro attenda seminr and buy cxpensivematerialr
Freqrenrly,seninarsarehigh presuresalcspitches,and tht naterial issogeneralthr r:

Ifyou m nrreresred in strting a honc-basdbus;.ss, get a compleredescriPtion01d.

work involved betore you sendary morey. You may find thar what you a.e askedto dr
alier you pay is far different from whet was srated in the ad. You should nwer have r'
pay for a job descriptiooor fot neededmterials.
Ger in wrning rhc refund,buy'back,and cocellation policiesofany conpany you de-
{nh. Do nor depcndon oEl piohiss.
Do your honework. Check with your stateamorneygeneralmd thc National Fr:ui
Infornation Centerbeforegettinginvolved,especiallywhen the claimsabouta prcdu.:
or potentialearningsseen too good ro be tru.
Ifyou ncedad ceaboutan Inrernetor onliDesoli.itaiion,or if)-ou wa.t io iePoria possibl:
scd, uscrhe Online ReporringForn or OnUneQuestion& SussestionFoin falturs o.
the Web site for the Nadonal lraud Information Centet at httt://liaud.ory, or coll rhe NFIC
hotline at l-800-876-7060.

l n t e r n a tio n aCo
l m o u teCr
r im e
Conputer crimen aho an internaiion'l issue,and n beconesmoreonpl**he" n c.or<
botden.As alreadynenrioned,the softwareindustrylosesabout$I I ro$12billion in.evenut
to soliwarepiracymnully, wirh abour$9 bill;on ofihat occudns ou6;detheUniied Srare '
with rheincrexein electoniccmh andtuorlstrmsfer,someareconcernedthatterrori!!!
internationaldrue dealem,and orhet criminalsde sing informadonsystensto laund<
llegally obtained funds. Compuler A$ociates Inrernarional d*eloped sofmare called Clo'
erl'arhfor GlobelConpliancefor customers in thefrmnce,bankiog,andinsurmeindusrna
to eliminate noney launderins and liaud. Companies thar are required to complv with lq'
islationsucho the USA Parrioi A and SarbaneeoxlerAct may lack the resourccs ani
procesesro do so.The softwue autonatesmanuaitncking and auditingprocesses that *
requiredby reguiatoryagencies dd hclpscompanie!hmdle frequenrlychangingreponic5
regulations. The applicationon drill into a conpaols tdsaciions and automadcall)' den:
fnud or orherillegalacdviriesbascdon built-in business rulesand predictiveaulysis Su:
pecred fnud coes are idenrified and pssed on to the appropriate personnel for acrion a-
thwan cininals and help companiesavoidpayingfines.{u
 se.if ry, Fr!a.y and ErhtraL

CRI M E
COM PUTER. RELATED
PREVENTING
prevention and
Becauseof increued comprter use todan greater enphxis k plaad on tie
.i-e Although all stateshave p*red computer cine legisladon'
1"".'i." .r
--p".- laws are nor efTecd"e beque companies do nor alwavs activelv detect
somebelievethat ihese
crime, securiry is inadequate, and convicted criminals ue not severelv
md ounue computer
*'ir"a. n.***, Ar *er the United States,privareuses' onpmies' enplovees'md
i"iii" .m"id' individual and group effons to cLrrbconputer crine' and recenr
-.
effons have rnc with -"r.;"e
sone succss.

C r im ePr ev e n t i obny S t a t ea n dF e d e r aAg

I e n cie s
cininals' including
Srateand federal agencieshave begun aggresive attackr on conpurer
U*.., .f'att ln 1986, Congressenrcted the Computer Fnud dd Abus-Acl
".i-i"a "g* of Defese
*nJ o""i.f'--"nt basedon the vicrin's dold loss The Depdmeni
-"ra** E m e rg e n .lR e ' p o n ' el e a mrcfR rr' $hrchrsP ond' ro nrruork
"l ,o . uppo- ' ' F . t o. p ' '.*
" ,i o r' .y ' rm ' i o e me rg ' n grhreJb Lr$ entorrment enci e\dre
* * r ir y U- " . *'
- a effons ro stop crininal hacken, and manv sntes are now pssing nq'
also inoeasing then
repon'
co m er ehen. i;bilL,o h .l p e l i m;n a r .o rP u re' ri' m e ' R et' nrcourr(se' dd P ol i t'
,"-i'l"n .how rhaLhwmake'' are readvto inrroddcenewerrnd roughel
--0,*,.''." s o e e l ra re ' h re p * ' e d l a * ' i n rn rremP rroourl ' w sP ammrng
-.pu, . - , ai. . t . q; l"Li^r"
i". !*-"r". , i o n 1," M,) 200J require' rhd utuolnired commercirl
"" 'n
.--J r l. *" i*r ,a ., ra b rl r' AD V:" r J . rh eb e si nni nsofrhe {bi ecr l i ne rnd ' onu:n
-**a
made
micharLm ln Septembe!2003 lesillarioowr approvedrn Crlito'nir tha'
ulg:: rhl'
i,,r'" '..."a .*","n* oj""r", r. ad'prdnopt-intore'mJilJ-dknF'nc
-oot-our
l .e rd u n s o l i c i te.od mme rc 'i l e-maj l homLal rrornraot ror Larr-ornra
l e gllar ion.ir i' il' eg aro

CrimeP reve n t i obnYC o r P o r a t i on s

have.designed
Companies are also taking crime-fighting etrons serioudv Mmv busheses
re rc p'oe't rheir'orporedru md sprems'
D,ordure',nd,pe.iali,edhrdwareand 'ofi"
dsice' qn be u'ed ro encodedatr
ipecirlird hrdure md sofiw:re suchI encryprion
Ar discused in Chaprer 7' encryption
i.forrnation o h.lp prsent unauthorizd use
"id en orisinJl elec(onic me*ase i oa form Lhr's be sder(rood
i.,1. t.."'.r--*'i'i
ergorrrhm
[v the inrcndedrecipienn A kev i" a uriable ulue thr! i5 rophed urnS 'n
""1" t*t to produce encrypad rext or to derypr ocrypted
I tr..t .l
'.tdr. "l;"* ". """ncrypted of compudng pover tor ther
Encq"rion n*hods rcLy on rhe limiations
power oen rhe mosrd+er-
etrecri'eneis-ifbrcakinga coderequhe roo mu'h 'omputing
toencodcandoecoqe
mned.ode sacken uill nor be rucce*tul The lengthorthe kry u'ed
me<sase\ detemine' $r 'rrenglh ofrhe encrl"(ion alSo'irhm
nerworkruch a pubtickeyinfrastructurelPXll
PLtblicLev irFa6Fucture rPKl) enablesuers ofan u{ecuted publ'c A means usersoran
toenabte unse_
daLa rhrogh rhe use oia public and aprw*e
rhe Internetro 'e.urely:nd privatelvexchange c u r e dp u b tc n e t w o f k su cha s th e
rhrough a rrused auihonrv rKr rr rne
mroeftphic kev pai, rhat is obta;nedand 'hred !nternolto sec!rety and PrlvateLv
* ,he lnLernetfor rurnenricatins ! meisrge 'ender or rncrnLins a e x c h a n gd a l a t h r o u ghr h e u seo r a
-i'l'.1--"" "l.i"a kel roen.odeendoeode me*age" One kevofrhepr;r' the mesage pubLicanda PrivatecryPrographc
ne,:aee.PKIue' cwo
nvone rc \end.rhat k e y p a i f t h a l 5 o b t a l n e da n dsh a r e d
re.ei'ii. public ker. i' readill a'riL:ble ro rhe publn and is u<edb; t h r o ! g h a t r u s t e da u th o r tv
mesege recei'err prw're kev E kcP(
indnrduel encryptedmesages.The "eond kq rhe
irs o$ner ber ihe P'rvareRev (o
secretrnd i knoun onl; by tne mesage re'eiver'
Knowing an
zmar me,,"ee-onvea enrodedme*agesblk inro rhe originel meluge
rn encoded ms'ase ro rhrt individual
iddividual, D;bli. kevdo$ noLenablelou ro decrvpr
 P.ri 5 | nrdnardr sFrms n Eu3,.esandso. d/

Using biomericr is anotherway ro protect ihponanr dxta and infonnadon slsrcms.

Biometrie involvesrhe ncasurehenrof one ofa peruont tnits. wherhcrph),sicalorbchat
T h eme asure menotf onot a ioral.Biomeric techniquesconparea pcrson'sunique chancte.isricagainsta sroredscrro
pe fso nslr6rts,whe lherphy sc at
dercrdifTeren.es belweenrhen. Bionerric sysemscanscanfingeryrin6,tr.es, handprnns.
irises,and retinai imagesro preventunaudorized a@essto importanr darard comourcr
re .o u r.e ..V or ,,f rhei rrrereJn.,rg @ rpo,r' eL\ch I i n fi ngd
t,,, I rc.hnut. S. I o owcJ
b)' hcc recognition.Fingerpiinrrcanshir ihe hiddle groundbetweenpricedd eftcdvcness.
Iris and retinal but rhey .re moie exDensive md involvc more

ln June2004, rh. U.S. DepanmcntofHomeland Secuiry awardeda $10 billio!. fiye-

ycarcontkr ro globalmdagement consultingand rechnol{,Sr sericcs cohpanvAcceniur
ro oversee rhe creariorofr cdtuprehensive bo.deFconrrolsystem.lnc svstem.knownasthe
U ri r.d s rrn V ,.i rorJnd l mni g,trri on\rl r, l rdrLror te. hnotog\.or I :.V Fir enr po, .
a conbinedon ofbiomerri. technolosies to ideiriFvniiors. Radio-frequen._a, idenrification.
voice dnd facial-recognition, rerinal or iriesennilg, dd digiral-fingerprind ng s,$rensare
all be;ngresredand evalured for indusion in the proqram.A visiior to rhe Unired Sars
n g h rh ere qui nd ro urdereodi gj rJ fi nS rTri nri nS .r .
" " ^ut" ' " i n t ;,.,, t .. t o- ", ", . -
ro rp l l r ro-, vi ,r. Or,e i a rhc t n,red5rj c.. ,h. \,.,ror qoutd D ,$enrr \ r 1r , ic, d
rhat is e.coded with the digital fingerprinr to an ihhigrarion o*icial and undergo a
scconddisil.l finscprint s.anro ensurea march.The dlta can be insrandyc.o${efcrcnced
-g .:n r r tu ubdc.onr" i ni ag di gi ,rl dr.ri pror. ofl n.qn rercri n\..,i m,rJ.. r nd d F

Flngerprintauthenticaron devices
pfovidese cu rq in th e PC
.vifon men b
l y u sin glinger prnt
ntormation nste6dof passwords.

As employees hove from one posirioDro anotherar a company,rheycanbuild up acces.

ro mulriplc systehs becausesecdty procedues often fail to revoke arces privileges. k i:
clearlynot appropriatefor peoplewho havechangedpositionsand responsibitities to *il
haveaccessro systensthey no longer ue. To avoid this problcm, many organizations are
.reatingrole-bsedsystemacceslisrs$ rharonly peoplenlling a parti.ular ob funcrion(J
J
acce$ a spcctrr. sysrem.
Cime fightinsproccdures usuall)-
requireeddnionalconrolsonrheinformadonsysrem
B e l o red e .Sni agandi mpl em.nrngconrrol ,.,rgrr.za' ron'm,r .on.i derrh. r1 p* or . on
purcr-relared dime rh.r midt occur, rhc consequences of the* uines, ud the osr anj
.onplexiry of neededconftols.In nosr cces, organizations con.luderhar rhc tnde{rr h.-
deen crine and the addirionJ costandcomplexityweighsin favorofbe$erq6ren conirol!
Havitrgloowledgeofsomeofrhe nerhodsuscdto .ohmjt crine is alsohelpti nrprevcntinr.
d e re c ri n g .,nJrnel opi rrg.l " rem,.e,i nrnr ro,nmpurer. me {rr Trbl . tr. t r , '. . . n.
conpaniesa.tua y hirc forner dninals to thwaft orhcr crininah. l ablc t4.t I provides:
s.r of useful guidelines to protecr your conpurer fion cridnal hacke6.
Add,dlete,or.hange inputsio the computereystem. 'Deleterecordsofabsencs frornclassin a stiideol5

y dev e l .pc o m p u l epr .o g ra ms

lV odlfor i h a tc o mmi t C hange a bai k s programforcal cutati ng
i ntefestto m ake
i t depost rounded amountsn i hecr mi natsacco!n t .

A . t ero 1 od ! L fed d l . l e eL c e db v' l ' F C hl ge" s' Ldert. grad"ton C (oA .

l nms u c ha w a ya sto commi l

0per at et heco h p u te .s y s te Accessa reslncted9ove.nmentcomputersystem.

Diverior misusevaUdoutputfrom the computersysldm Slealdiscardedpfintoutsof cuslomerf eco.dslrom

Steatcomputerreso!rces,inctudinghardwre,soilware, vdta i " qdr op - of d of ,d " p 09 d1 * :rro, r p! \ i19

andt m e on c o m p !te .e q u rp m e n t

produclsto.sale overthe Internet.

Oflerwo.lhLess 5en.le-maltrequestingmoneytof worlhL5shairgrowth

lex ec l ti v e st. p re v e nre

B t ac k m a t te a s o
e f h a .mfut E avesdropon organi z.ti on
sw l feLess
netw orktocap t ! r e
competti vedataorscandatous nformati on.

B , ac lnai . onp d 1 )l o p rF v etL

r o ,so L o rp J e - ba' Fd Planttogicbombandsendtetlerthreatening
lo set it off
untesspaidconside|able
srm.

@
CommonMethodsUsedto
lnstatLslfonguserauthentication
andencryption on youffirew.lt.
capabiLities C ommi lC omputerCr im eE
aL
E veithol qhthefunb ef or pot enl
e te sst e c u .i i yp a tc h e s ,w h i a
I ns t at t t hta chreotteraval abl eat thevendors .ompurer cnmesappeaBr oeo
ti mi l tess, m et hod5
theact!aL used
to .ommi crit mc.rctim it ed
Disabtequesiaccountsand the
n! tl useraccouts that let lnlnrdrsaccess
ne rorl. w ll'oll d oddo d.

Do nol p.ovde ove.ffendlytoginprocduresfor femoteusersle.g.,an organl-

zaton that lsed the wo.d wolcomeo.theirinll at togonscreenfoundlhey had
dif f ic ultpyro s e c u ti nagh a c k e rl .

{e-ma,t,i(e translerp.oiocol anddomai. nameservedits

Givean appticaiion
oM dedicatedseruar.

Res t f icpt h y s i c a ta c c e s sthtoes e rv e ra n cdo nfi g!ret sothatbreaki ng

l nl oone
seryerwont compromise lhe wholentwork.

Consder n s ta tti ncga l l e rl D

Internet
I ns t at t a .o rp o ra te fi re w a l l b e tw e e n y o urcorporatenetw orkahdthe

I n5t at t a n tv i fusso ftw a re andregutarldow

o n a ttc o mp a l e .s y ntoad
vendor

Condur re o L l r l q \p c L ri ,r" J d i l ..
@
H owto P rote.tY ourCor por at e
V er if y anedre rcs ef.e q l e n td a tab a c k !p sfo r cfi ti catdata- D atal rom C ri mi na tHacker s
 P'. | ,",- ,,""' ,,' "". n Bu .n c+ r id r o et
"

Compdies arc alsojoining roserher to lishr crine. The Softwre publisher's Arsociarion
(SPA) wa $ or;ginal uripiracy orsaizatioo, foned md financed by nany ofrhe lage
softwarc publishe$. Microsoft ffnaned rhe fo.marion of a secondantipiracy organiarion,
ihe Buine$ sofrmre Alliance (BSA). The BSA, rhrotgh i"tense puhfiliry, has become the
nore p.oninenr organiaiion. Orher sofr$?re compmies, ircludingApple, Adobe, Hsleii
Pe.kard,and IBM, now contibure ro the BSA.
The BsinessSofrvareAll;ane reqlired RedBull Nonh Amerca, lnc., ro Dayg105,000
ro' e u l ec L i n r rha.i r hadmrreopi es ofA dobe.Mi ,,o,o6.andrymure..ofi qar epr oer an.
o n i ,. c o mo u,eF,hrn i , hrd ti ten.c,ro ,uppon.R edB u i , bded i n C ermJr) o d m ; r ke6
, a o n J c o h o l i energy
. dri nt ,n morerhrn -0 ounrri s. I he ,oti Mre i ntri nqem enr
s^ r
p o re d rh ro u gh, ql l ro rhe B \q horl i ne.snd rhenB S \ rnorney.ronu.red R e dBu . t he
conpany cooperatedwirh the BSA and volunra.ity @nducted a self{udir. To avoid simiid
prcbtems,all compdies should dnfr policiesmd inplemeDr pro@duresto mainrain s
effecrive softwde noasenenr prog.an.{,

U s i n gI n tr u sio nDe te ctioSo

n ftwa r e
intrusion
detection
system An intrusiotr der.don slstem (IDS) monitos sysren and nrwork resonces md notj66
IDsl Derworksecudrypersonnelwher ir senses a possibleinrrusion_Examplesofsuspiciousac,
Softwarethat monilors systemand ,i v i ri e ,i n (ru derepe' ,.J hrtedtogi nr emp^.
nelwork resourcesandnollt es nel- " ,,fmp,. ro do" " toad;pbg* - , o J . e". , .
work secuntype.sonfet when it
and acce$ ro a sFrem ar unusual hours. Such activiries eenerare alarms rhat are caotured ."
sensesa possibte nlrusion. l o g fi ]... In rru,i onderf.ri on.yrem. ,end r Jarm. oi ," n t, .-." i t o, prgfr. r o n( Rn I
rr u ,,rv rq ,onne.w hrn rheyde,eianappas6,s" " .1 1 o.u,r,ety. m,;) i D s , f , e, 1, . . , r ,
provide fatsealarms thar result in wored ellort. If rhc aitack is ral, rhen detwork securid
peBdnnel nusi make a decision abour what to do to resisrthe atrack. Anv delav in resoons
i n . c a * . rh eprob,bi l i q oi dmeS . ti om , hr kerj rrack.u,e ot rn tD i p,o" id. . n. h. ,
l ry e r,,i p ro re Lri oni heevenr rhrrm rnrrudersrr. puuhe ot(ehe.uri ryhter\_ pr . $o, d.
se.uriq'procedures, and corponre firmll.
The following srory is ifuq bur rhe cohpany\ nane hd been chansed ro prorec! iF
idenrjry. The ABCXYZ compary enploys more rhan 25 IDS senso( ac;$ i$ Mildwid.
ne*olk, embling ir ro monitor 90 peicenr of rhe company's inrernal network traffic. The
rena;ning 10 percenr cones from hs engineeing l.bs and rehore sals offi.es, which de nor
nonitored becauseof a lack ofresources.The .ohpmy's rDS wo.ked very wel in providins
an edly warDing ofd ;mpending sQL slammer atgck. The slanner worh had eniered
the nerworkvia a serverin one ofthe engineerinslabs.The pe6on monnorins ihe rDS
noticedourbound$amc consistentwirh sQL Slamner at abour7:30 A.M. He contacred
nemork opentioqs srcup by e,rnail and followed up with a phone call and a voice maij
nesmge. Unfonumtely, rhe openrions group gersso nany e-nait that ifa nessageis nor
hishljshred s URGENT, rhe nesage may be missed.Thar is encily whar happen;d_d.
e nail alen wcn'tead, and the voice mesage lent renieved in rime to bioi[ the anach
A few hours later, the ABCXYZ compdy found i$etf dejlins wirh a m!$ive nunber of
reports ofnetwork and serer problems.as
A firn called Inrernet Seoriry Systens (ISS) nmages security for orher orquiatior
,l ro u s h , \ecuri ryIn(,den,rrerenuonseN i .e.The ampanyj ID S sde Je,;e d r o , F .
oflra J0 ot rhe moilrnic.t rhreN. indudihB worm dDr go rtier Mi, roroJis;rrwde nc
ihose thar explon Apache \Veb sefrers and other progrms. en m a a.k is derecred,ih.
senice auronadc,lly hlocks ir wirhout .quiring hunan invenrion. Tahing the manuat in
tenention srep out ofthe pro@s enabtesa fdd .esponseand ninimias d@a*e fron a
h rJ e ,. fo e n.oD ge, u.romenro rdopr i r, rerui re.I5Sgumnteedup ro $10. 000in *h
ifthe preventionsenic failed.{

U s i n gM an a g eSe
d cu r itySe r vicePr o vid e r slM SSpsl
Keeping trP wiih complter oiminals and wiih new regularions<an be dauntins for or
g :n i z a ri o roC,al
. er. are .on,u l v pokJngud proJdng. rryi ng,o brcrh de, e. uaF
defenses of.ohpanies. Also,suchrecentlesisladons HIpAA, rheSarbanes,Oxiey Acr, anri
rhe USAPat.ior Acr requiresbuincses io proverhat lhey aresecurins.heirdad. For no{
small and midsired organizations,the levd ofin-houe network securiry *penise neededto
prorecrrheir businessoperationscar be quite costlyto acquiremd maintain.As a result,
nany ue outsourcing theh neaaork security opemtions to nmaged securig' 6rvice managed securityserYice
prcviders (MSSPs) suchasCounterpme, Guardent, lnrernet Security Services,Riptech, ard providerlMsSPl
Symanrec.MSSPsrnonnor, nanage, and mainiain network securiry for both hardwue and Ano19anizationrhal
monlors,man-
ages,andmantal ns
ne t wofsecu
k
software.These conpmie provide a valuablesewice for lS depannenrs drowning in reans
rly hardwar
andsoftwarelof ts
ofalens and falsealarns coming Iion virtual private networks (VPNs)r antivirus, firewall,
inrusion deieciion systens and othet securiq, nonioring systems. ln addirion, some
provide vulnenbility scanning and V/eb blockingi ffltering .apabiliies.
MenillLynch&Co. deided rooursourenuch ofits ndwork securityto VerisignInc.,
including the namgenenr of its 300*ome lirwall ad inrusion deiecrion ne$ork security
d*ices. "It's all about being rhe best thar you posibly cm be," srys David Bauer,chief
information security and privacy offier for Menill Lynch & Co. "on $e inirusion detection
piece, we havea lot of network activities, r a lor ofconpanies do, but now weie going ro
ger malysis ofall our acti'iry in context with what elseis going on in the world. It's not jus
about dara;ir's abour inrelligence. Ard with intelligence,you can rnakeheter decisions."
VeriSign hu such intelligence becausen moages nerwork security dwic* for hundreds of
companies; it seesattaclao<uring on ihe Inrernerud with;d its custonen networkr.So,
VeriSign cao pur atecls into context to decide whether an atta& is randon or targeted,
sophisdcatedor unsophnricated. This derermination then guidesVeriSign to tale the mosi
appropriate action for its cusroners.a5

InternetLawsfor LibeLand Protectionof Decency

To help parens connol what rhen children seeon lhe Internei, some compdies provide
sofiwre calledfheing sofuare ro help screenInterna content. Mmy of rhesescreening
progrms alsopreventchildrenfron sendingpenoml informarionover e'nail or though
chat groups.This stopschildrenFon broadc*ting their nane, address, phonenumber,or
otherpenonalinbrnation overthe Inerner. The two approaches usedarefiftering,*hch
blocla certain\ eb sites,and nting, which placesa eting on web sites.Aeording ro the
2004 Interner Filter Reviw, rhe 6ve rop+ated liltering softwte packagesare, in order,
ConEnfrotect, Cybe6itter,Ner Nanny, CyberPatrol,md FilterPack.ad
The Inrernet Conient RaringAssocinion (ICRA) is a nonprofit organiation whose
rnehbe$ in.lde Inrernetindusrryleader suchasAnerio online, Bell South,BritishTele-
a m . I B V . V : . r o. o ft. I U \e ,. a n d \e n /o n Is ' p e c i fi ,goJ.:re ro prore.rcl i l drenfrcn
porentially hamlil naterial. w}ne also safeguarding liee speechon the Inrener. Usins
the ICRA ratiry rystern, \feb authon fill out an online quesrionnairedescrib;ngrhe conrcnr ICRAratingsystem
of their site whar is and isn't present. The broad ropic overed arc the following: chat Systemto prolect indlvid!tslrom
harmlut or objectionabte lnternel
capabiliries, thelanguageuedon the sne,the nudityand s*ul ontent ofa site,the violence
c o n l e n t , w hl e s a l g u afdn g th e l r e e
depicted on the sne, and otier reas such asalcohol, drugs, gmbling, and suicide. B*ed on
the authore' responses,ICRA then generatesa content label (a shon pieceofonputer code)
that the authon add ro theh site. Internet user (and patents) can then sei ihen browser ro
allow or disallow acces ro \reb snesbasedon the objective ratins informaiion dedded in
rhe content label ud rheir own subjectire prcferences.Reliance on Web site authots to do
rheir own rating hd its wealneses, rhough. \reb site authos cm lie when compledng the
ICR,A questionnaire so rhat their site receivesa content label that doesn'r accuratelyreflect
the site\ content. In addition, many hate groups and soually *piicit snesdoni have an
ICRA nring, so they will not be blockedunles a browserh set to block all unratedsites.
Also, thk option would block our so many aceptable sites thar it ould nake \reb surfing
useless.Iorthesereasons, at rhis rime,sitelabelingis at bes aconplementto otherffhering

The Childrcn s Internet Protection Acr (CIPA) is a federallaw passedin Deenbr 2000
that requned federally funded librties to use sone forh ofPrevention measur Guch s
Interner filten) ro blo& acces to obscencmarerial and orher naterial consideredhunful ro
ninon. Opponens ofrhe law fearedthat it nansfercdpoweroverrhe educationprccesro
privare so6rare conpanies thar daclop rhe lnrernet fflter and define rvhich siresare ro be
blocked.In June 2003. in a ruling on the consol;&tedeses ats. MuLnonah Co"fl,
".
 trformaronSynems i Eusine55aidSociely

ConlentProtectisa f tiering
sotlwareprog.am that htpsbtock
unwantedliternet contntf rom
childrenand youngad!tls.
lSource:Courlesyol Contentwatch

Lib4ry, et zl. nd U.S. !. Aneicdn LibMry,*tutiatian, !h Suprene Couft upheld the la"
but tuled rhat librdians can disablethe softwarc enftelv on reoues and thar oarronsdo nor
h r\r,o p ro vrdedreaonw hl rheyuur,.rreurbl o.ked fhe r;l i ng ei ,oi Tptre .( h{ pauot u
would not hwe ro idenri6. $emselves to iequesr unblockins. some obseNersbeliqe rhar
rhe count rulins left unclear th u.blockins rulcs witl respectto children.aT
The Child Online ProrecrionAct is a federal law p{sed in I 998 tha! made ir a crimc tbr
my foFplofir \fleb site io display materiai rhat is "hrmfii ro m;nors." COPA coveisvrntei
narerial, srill images.video, audio, and eveninteracrivedialosueabour hunan sduali6.
Volarors ue punishedwith six monthsin prisor ad/or finesof up !o $50,000.43]'hclas
wd pur on hold for saer.l yem during a courr chalenge on behalfofart;s$, booksrores,s
online sextherapisr,a grnecological informarionWeb site,dd othe6. The Amerien Cnii
Libenis Uoion (ACLU) argued rhe law would make criminJs of dyone who offered
or explicirmarcridto.duks.InJue 2004, lhe SupremeCourr ruledrhat "thereis potenrir '6
for extraordinary harm and a seriou chill upon protecred speech" ;frhe law rales effccr.,
Marerial rhar is indecenr but flor obsceneis proiecred by lhe Fhsr Anndmenr ro rhe U.s.
Consiiruiion, which sratsrhat Congres sh nake no law abridging rhe freedon ofspe.h
Adults ma)-seeor buy ir, bur cl dren nay noi Ai a pracdcal marer, rhis r$ftiction is rcF
dimcult to enforce on rhe Inrerner, where nost \reb snesand chat roons are availabh r
adulis and children alike. Coogres has repeatedlyffied ro ffnd a wry ro shield youngsrF
fron "h&mtul neterial" wibour runninsafoul ofthe Fi.srAnendmenr. ln lune 2001.rh.
stPrene Coud;o,{CrUa R.,a upheld a lowr @urr injuncdon ag.insi enforcehenroa

\firh rhe inceased popula.iq. ofnerrorks and ihe Internet, libel becomesan inponur
legatissue.A publisher, suchasa newspaper,on be suedfor libel, which involvs publishii!
a ftiften statenent that is damaging ro a person'sreputation. cener.lly, a bookstore onnol
beheldliablefor *atenenr madejn newspapes oi otherpubli@rionsn seus.Online senic(
such r ConpuSene md Anerica Online, nay exercisesone conr.ol over who purs info.
mador on rhei. seryicebut nay not havedirecr ontrol over the cootent ofwhar is publishc
 se.uf ry, Pr!3cy aid Elh GL ssueE n nlorhal on synems and rhe rternei

by orhen on then sewice. So, on online serices be suedfor libel for onterr dpt someone
else publishes on then senice? Do online senices more closely resenble a nospaper or a
bookstore?This iegal issueh* nor beenconpletely resolved,but sone coun cmeshavebeen
decided.The Cabfu, Inc. r. ConpuSene caseruled r},at ConpuSere was similar to a book
sror and not liihle for content put on i6 seNi.e by othea. In this case,the judge stared,
' ile CompuSenemay declineto erry a givenpublicationaltogether,in realiry,onceir
does decide ro erty a siven publicarion, n wi have lirde or no ednorial ontrol over thar
publietion\ conrent." This cme ser a leg.l precedent that hm been applied in sinilar,

Conpanies should be awr that publishing Internet content to the world may subjecr
then ro different ounrries' lam in the sane my that qponiDs physical products dos.A
Decmber 2003 ruling by the High Coun ofAunalia found that astoq'publishedby Dow
Jones & Co. on r U.S.-hosted $/eb site was grounds for a defamadon lamuit in Autralia.
The suit wasbroughtby anAu"ralim overrhe Internetverion ofm aniclein DowJones's
Banoni nagd,ne. The individual filed the suit in the SupremeCourr ofhis home staie of
Vctoria in Auralia, saying tlut rhe aniclet appeararceon the Intern* enabled it to be
ccesed by people in Vicroria, rherebyde6ning hin wherc he is best known. "The tots of
libel and slanderare ommitted wher md where comorehension of the defmatorv naner
occur," agreedthe AustralianHigh Coun, citing soeral precedena.5o
Golocation tools natch the user'sIP addres with ouside information ro deternine rhe
actual geographiclocation of rhe online user where rhe customer's computer signal entem
ihe Internet. This enablessoneone ro ideniify rhe uer's actuallocation within approxinarely
50 niles. As such tools beone broadly available,Internet pubtisher will be able to limit the
reach of their published speechto avoid potential lesal risks. Use of such technology may
also result in a division of the global Internet irto sepure conrenregions, with rerders in
B@il, lapd, dd ihe Uniied states all .eceivingvari,tions of the sane infornation fron the

Individuals, too, nust be aetul whar they pos on the Internet to avoid libel charges.
There havebeenma"y coes ofdisgrunded forner enployeesbeing suedby their forner
employees for mate.ialpostedon the Internet.

Pr ev ent ing
C r i m eo n t h s I n t e r n e t
Ar mentioned in Chapter 7, Internet secuiiry an include flrewalls md r number ofnethods
to securefinacial tmsactions. A firryall o hdude borh hardware md software rhat acr
* a barier betweenan organization's information systemsand the outside world. A number
ofsptems havebeen developedto safeguardagainstcine on ihe Internet.
To help prwe"t crime on rhe Internet, the following stepscan be taken:
1. Develop effective Inrernet usageud recuriry policies for all enployes.
2. Use a stand-alonefirevall (hardwareand sofrwarc)with network monitoring @Fabilitiq.
3. Deploy inrrusion detection systens, monnor them, ard folto- up on theh ,lams.
4. Monitor nanagers ud enployees to nake sure that rhey are using the Inrernet {or busi'

5. Use Internet security specialiststo perforn audits of all Intemet and nerwork activiries.
Even wirh thesepreaurions, conpurer md nerworks can nwer be conpletely protected
againstcrime. One ofthe bigsesrthrets is from emplolces. Although ffrewalls provide good
perimeter control to prevent crime f.om the ourside,proetures md protection neasuresm
neededro prctrcr againstconputer cri-e by e-ployes. P*swords, identifiotion ntnbes,
and tighter ontrcl of employeesand managemalso help prevent Internet-dated crine.
Mohegan Sun, a casino in Connrcricut owned by the Mohegan Tribe, operatesa large
nerwork with a number of critical systens that tnck irs more tho 2.5 million cutome.s,
their winnings. dd their creditworthines, a well asloyalry progrm poina that en be used
to purchse item at the casino and its shops. The *ino is rying out ow softmre from
Intrusic,Inc..in anarrenpt to derecrillegalbehaviorofrogueenployees.Inuusic'sZephon
sfrwre aM\%s omnunications beween uen and the conputer nework, looking for
violarions ofwhar ir caltsthe "physics ofnetworkl or tundoental lawsthat govern the way
put 6 nromrd sF r m s I Eu 5 r e sia r d s.:pt!
|

legitinatenetworktnfficlooks.The esino alreadyemplolsperineterdefenseproducasuch

asffrsalls and inmsion detectionsystems,but it is increasinglyconcernedabout insider
rhreatsor orernal conpromise* r resultoffast-moringworms Dd viruses"

PRtVAeY
lS5UE5
ns involvespri'acy. ln 1890, U5
-Anorhern'poftant so.ial issucin infornation syst
supremeCourtlu$ice Louis Brandeissraledlhar the "right to be left alone"is one oi th<
rnost"comprehensive ofrighrs and rhe nost valuedby civilird man." Basielll-,the issueoi
privacydeaGwith this right to be leli aloneor to be withdrawn lion publ;c vlew. \fnh
nfornarion slstens, privlcy dealswith rhe collectiondd usc or nisuse of dara.Data ii
constant\ beingcollectedfd sroredon eachofus. This detais ofrendkrriburedoveresil.
accesednctworls and without our krowledgeor onsent. Concrns of privary resardins
this detamusr bc addre$ed.
\rith today's computers, the ridr m privacy is m especiaLLy challenging problem. More
datamd nrformarionareprodrcedand usedrodal rhano* before.Whersomeoneis born.
trkesccrrainhighschoolexans,stutsworking,enrollsinacolegecourse,apPliesforadrnei!
license,purc.hascs o car, seryesin the milirary, getsnarried, buys insurance,gersa libran
card,appliesfor a chrrgecardor loan,buysa house,or merelvpurch*es cerrainprodunr
data;s collectedand storedsomewherein computcrdatabues.Readthe "Informatior Sw
rems@work" specialfearurero learo nore abour privacy issresusociated with furdamen tJ
medicaland DNA dataof individuals.A dlfficult question!o answeris, "wllo owns !hi!
infitmation and howledge?" Ifa public or privateorganizationspendstinc md resourcer
o obtaindataon you, doesthe orgdiadon ow! rhedara,and canit userhedarah anl*a'
irdesires?GovernncrrlegisladooaoswenthesequesrioDs to someextdntfor federalagencies.
but rhe questionsremainunansered fb. privateorganizarions.

P ri v ac ya n d t h e F e d e r a lG o v e r n m e n t
The U.s. federJgovenmentispuhapsthe lrrgestcollecrorof&ta. Closeto 4 billion recor&
existon individuals,colleced bv rbout 100 federalagencies rangingfton rhe Bureauo:
Aicohol.Tobaao. and Fire*hs to the VerennsAdminis$ation.other d.ia collector ;n
clude state and local goverrhenLs and profit and rorprofit organiznions of all types and
sizes.In .e.ent rears,a rumber ofactions by the federalgoveronenthavecaued concer:
for the privacyof individuals'data.
ln response to the Septcnbef 11 rerrcristeth.ks, thc U.S. DePanmentof Defenseand
ihc DefenseAdvanced RcscarchProjeca Agencr (DARPA) launched the Total lnfornatior
Awarenes (TtA) prosrm ro condu* recmh on technolosy s ue for large{cJe informario.
garheringmd malysis.The prog.atus inrentws ro access a oix ofgdvernnenr,hrelligence.
md comnscial databases to mine electronictrmsactions,such asairline iicl<erpurchs'-
and terorisr threaa.InJuly 2003.the Scnare.
ard car rentalsto lookfor porerrialterrcrisLs
concerncd abour the l.& of llnits on the sourcesof such dara sarhrins, roted to on...
fundingfor'l lA. Sinceits inceprion,TIA had druwbcriticismfron Privrcy.ightsidvocat6
who fcaredir would allow authoririesro rummasethough the electronictransactions oi
nillions of law'abidingU.S. cirizensin an eliort to uncoverrhe rcdvities of suspccte!
UK SioBank Rabes Privacy ls3ues strong fterest in the banks dat.base,mght eventuatty obtain
the medcal informatlon. Clrrenily, n the UK thereare no laws
Ihe Eiobankis a 45 nritton 180mitton U.S.dotlarslprcject
thatpreveftdlscnmrnation byins!fersafd emptoyers.
Cedlcated to cottecting geneticmedicat,and tifestyledata irom
l,1anypractcaLqLrestonsrmain,but ihe Biobankprqecls
a00.000 m ddte-aqed peopte in the UnitedKngdom.The qoaL!s
Leaders s3ylhal the plblic has atreadyexprcssed wrdesuppoft.
:o enable scieniists to p npoint specificfacto.srnvolved 1ncetr
Theyhaveidentified manypeoptewho wantto pa.tcipateand be
n
ia drse:ses, lttimatety teading to new and better treatnients
partof devetopmenls n a beltertfe.
/otunteeEchosenat ndom witLb askedto donateDNAand
3 .sw e radet ailedques to n n a l re o n th e i .h e atfe s ty
L th dThei r
a nte
,realthwitLbe fotLowed for decadesto hetpd scoverlh rotesof Di6cussionOuestions
tenesand the envl.onment in devetopngcancer,heartdEease L Wiat arethemostconkoversiataspects proiecl-l
ol lhe Biobank
r.d other ttnesses. Uliimatety, doctorscouLd usethedatabasesto impactsot theseconce.nson
2. Whata.e the potenti.tnegauve
ljscover a nN treatnrent that witLwork on anyone wth a ceftrn the Biobankproject'?
;et of genetc traits.The inio.matlons true tLLre may not be
'e:tized for some 30yeaE Criticat Thinking0uestiong
Houve.,belorea s ngtepjeceofdatahasbeencotlected, the
3 magnihaiyoua.ethemembe.ofapubuc.eLatlonsl rm h red
.lK Bobankhas becomeembrcltedn contfoversy overits qoats.
to improvethe pubt.s mpressionof the Biobankprolectand
ls costs its undedying scence.and ts possrbititytor conrrnercrat
ove.comethe afgumentsof ts strongestcriiics.Whatspecifrc
acuonswould yourccommendbetakenbytheadmi. st.at.rs
Crt cs ol lhe p.otectclaimthatlhere s ho evdenceto suggeEt
wth ihe B obankprcJect
and scentsts associated to wn ovef
:.at lnvesUng mittionsot poundsn the genebankwoutdbe as
renelcaLas spendngit of wett-targeted pubticheatthrnr|anvs
4. What additionatactons mghi peopteouisidelhe Biobank
:. prevenlltness.Theyfear that the databalecoLrtdeffectvety
someofthepnvacy
prqecttaketo atteviate concemcl
tre.omea pe.manentmedicalrap sheet,analoqolsto biotogicat
redit repo.isthatcautdhalrft a percons chitdren, g.andchtdren,
SOURCES,Kevln FrslBtse,BeholdBloBank,
Davies,' rld-lrhlr./d,Augusr
lrd otherretalves.l.n Gibson,a memberof Parlamentwiirn '1,2003, Ptutl,"UK Prepares
M.blo lfworld.coh:s.anei toopenworlds
3.t:ns govemingLabourpad]/and chairmanof the House0l Latqest Bioba^k," Pth-lf Wa d, Narembet 1!, 2003, wwbio lMarld cbnl
:cmr.ons SciencendTe.hnoLagy Committee, saidhe has con' Pai Naqan, Siobank Debaie H*ts Up fhe scientisl, Apit a, zaB,
w bnned.ehtrat can PatNagan,llKBiobankRevealsErhicsFramewo.k,
:e.nsihat industrysecto.s sLrch
as ins!Ence, whrch coutdhavea ' Ire 5.,!,16( Sepiembe. 23, 2003, M.bianedcentraL.bn
PaIt 6 iis.p m n Bu \n e + a n d o!P t,
| "r r m a

Alsolauched in .esponse to September1l terrorisratrcks, the Matrix systenletsstares

shale crinin,l, prison, and vehiclc nrformarion md crosreference it wirh databus held bv
Seisint.Seisintis a providtr of i!tormation productsthat enableorganizations to extracl
usetulknowledgefio- hugemouna ofdata. Its producr arccreatedby inresfting supcl
conpurer technolo$', tens of billions of data records on individualsand busineses, and
patent-pending datalinking methods.5r The infornation conrainedwithin Matrir includs
.;"it.oun ...o.d', informario!, od addres lisroriesgoingbachs hr r
'ot".."sistraftn
30 yeas. Currentpanicipantsin rhe prcject includeConnecticur,Ilorida, Michisan, No'
York, ohio, Pennsylvania, rnd Utah. Severalorher sratesconsidcredthe ptognn before
J ro p ;i n go u r .. i ' i rg.onar n' ,b" ur pri vrryo- rtr. l ors rerm.o\r\'
Alhough prn rcy conems promprcd Congressto Lill both the cIAPPS II and TIA pro
gruns, sovernmenrcorputB lre srill scaniing a vast anay of datrbasesfor cluesabout
crininal or terrorisracliviry,accordingro the GeneralAeounring ofhce (CAO)' the invs-
tigativearm of Congress. The U.S. governmehtis mnaging 199 datamining efforq 36 oi
which collectposonalinformadonfrom rhc privatesector'while dataminingcu bea uselul
rool for lhe sove.nnenr.'tafegu*ds shouldbe put io placero cnsurethet infornarion isn t
abused,"saidNualao'Connor Kelly, chiefprivac,v olTicerat thc Deparnent ofHoneland
Scurny.SenarofDaniel Akaka of Hrwrii said he has *ked the (lAO to examnresom.
proiectsmore dosely."The fidu"l governncntcoll.as ad usesAmeriod pcrsonalinlor
narion ard sharesit with other dgencicsro an stonishing degre,raisingseriousPrivacr
conerns,"Ah.ki saidina srarement.55 A growinsnumbetofprivac,vadvocates saytheMatrir
d rr,b r. .e cm. ro h.. srLrrl rre for rh. l L{ dl a.mi ri ns program' rrpp ed br \ '

MosrcompadiesddcomPutervendorsarewaryofhding the fedoalgovcrnnentdicr.

Internctprivacystandards. A group calledthe OnLinePrivacyAllianceis dcvelopinga vol
untarvcodeofconducr lr isba&ed bycompaniessuchasApPleConpurcr, Al &T, Boeing'
Dell. Doubleclick, cBav,IBM, Microsoft,Time !{rarncr,Ver;zonComnuni@ri.ns, rn.
YJool 1'he alliance'sguidelinescall on cornpanies to rorifi user when thcy arecollect;ng
date at Vcb sites to gain onsent for atl uscsoftha! datr, to providefor the crbrcement or
privacv policies, and to have a clear proces in piace for receivilgand addre$ingusercom
plaints. Thc alliances policy c6 be lond uuu ?itdrydli4,c.tsh6.urcer/?Psuidet,E:
^1

The riuropeanUnion hasalreadypased a datr protectiondirecrilc rhat tequiresfirmj

rraNponihgdataacrossndional bourdariesro haveccrtainpriwcyproceduresin plece.l hts
d;ective allecs vnruallvany conpanydoing busincssin Europe,and it is driving much oi
rhe ancntion bting givenro privacyin rhe Unired Smtcs.

Privacyat Work
The right to privacyitwotk is Jso.n inPortant issueCunendv. rie righrsofworLenrvhc
wanr rheir Drivacvand rhe intercsftofcomPaniesrhar demdd ro know more abotrrrh.i:
cmployees arenr corllict. Reccntly,companiesrhat havebeennoliioring haveiscd rh'r
employees concerns.For aanple, worken nay find that thI arebeingclosellmoniror.i
via conpurertechnologr.'fhesecomputer-nonitoringqtrems tie dirccrlyinto worksrario n!
specializcd computerprogramson tn& everl kwstoke nade by a u*r' This rypeofsvrtm
can determirewhat workersaredoing whiie ar the kevbo.rd.'l-hesy$emalsoknowswh..
rhe workcr is not usingdre keybo*d or conputet syren. Thesesystenxcanestimatewhe:
r p e n o n' . o " i ng " nd how rn" 11bn,k he or ' h. n r" ki ng \e..I. . ro ay m , n1 "or lr '
considcrrhk ddsesupenisionvery dchumanizinS

E - M a i lPr
. iva cy
E-hail alsoraisessomcinrerestinglsuesabourwork privac,vFederallaw permnsenpLorc:
m monirore-maiLsenrard receivedby cmployees- Funhcrnore, e-nail ne$agesthat ha\.
ban erusedfrom hard disksmal be reniNed and usedin lavsuirsbecruserhe lawsol dii
docuhents.on the otherhand
covervdenandthat conpa"ie. prodtcc all rele",nt business
rhe uscofe'-.il mong publi. officidlsmay vn,hte "open meering"hws l her lews.whicr
 Se .u n ty Pf va.y andE th.atl ssi es n nl ofmatonS ystemsand
the Inl emet

apply ro many loc.i, state, and federal agencies.pr4ent public omci.ls fron meerins in
private about mafte.s that affct rhe saie or local dea.

E mait h.s changedhowworkers

a n d m a n a g e r cs o m m u nca l ei n th e
s a m eb ! i t d i n go r a r o u . d l h e w o r l d
E-malt however can be monitored
a n d n r e r c e p t e d . A s wr o h th e r
setuices suchascett!tarphof es-
t h e c o n v e n i e n coef e - m a I m l st b e
balancew d i t h t h e p o l e n ti aol t

lsource:o Garyconne./PhotoEdit.l

Privacyandthe Internet
Sone peopleassumerhat thereis no privacyon the Internetand rhat you useit at your own
risk. Othen believerhat conpmies with Web site should havestrict privacy proceduresdd
be accountablefor privacy innsion. Regardlesofyour view, the potentiel for privacy invasion
on ihe Inrernetishuge.Peoplemting to invadeyourprivacycouldbeanyonefron ciminal
hackersto narketing companiesto corporatebosses. Your peronal md profesionalinfor
mtion can be seizedon the lnternet without your kno{led8e or consent. E-nail is a prime
tuget, s discussedpreviously. Sendingan e-nail nesage is ljke having an open conversation
in a luge roon people can listen to your messages.\(hen you visit a Web site on the
Interner,infortuatlonaboutyouandyourcompurercm be captured.\Whenthis information
is conbined wlth other infornadon, conpanies an know wha! )-ou rcad,what products vou
buy, and what your inierests are. Ac@rding ro an execudve of ar Internet sofr*are
mo ni' or ingc oapu y . " l i , a m* k e ri n gp e r' o n. d re am.'
Most pmple who buy products on the \fleb say n s very inponant for a site to have a
polic)' explaining how personal infomation k used, and the policy statement mu$ make
pople feel omfortable and be *tremely dea about what informtion is collecredand what
will and will not be done whh h. How*ei, nany \reb siresstill do not proninently display
rhir privacy policy o. inplehent practi.es completely consisrentwith rhar policy. The real
issuethat Interner ue r needto be con ened with is, vhat do conrent providen rlet with
rheir personal infornadon? If a site requesisihar you provide your name and addres, you
haveoery .ight to kno* *hy md whrt will bedone with ir. lfyou buy somerhingand proride
a shipping address,will it be sold to other retailers?Yr your e-nail addres be sold to r firn
rhat createsa list ofacrive Inrcrnet shoppers?And ifso, yor should realir that it's no ditrerent
thm the lists compiled fron rhe orden you plae whh cataiog retailer. You have the right
to be taken offany mailing list.
A porenrialsoludonto sone @nsume.pduq @ncers isthe screening technolog called
the Pladom for Prnzcy Prferencs (P3P) being proposed to shield usen from sites that Pbtform for Privacy
dont proride rhe lwel of privacy protection rhey desire.Insead offorcing uses ro find and Preferences[P3Pl
read rhrough the privacy policy for erch sne they P3P softwarein a @mpuier's browser A sfieening technotogyrhatshields
"isit, ! s e E f r o m We bs l e s t ha td o nt p r o -
will download the privacy policy fron erch site, scanir, ard nodfy the uset if the policy does
videthe tevetot privacyprotecran
not matchhis or her preferences. (Ofcoure, unethicalmarketerscan p6t a pria.y policy
that does not accmrely reflect the mnner in which rhe dara h rreared.)The \arodd wide
\reb Consoniun. m international indusrry group whose ne-bers include App1e, Com-
merceOne, Eri6son, dd Microsoft,is supponingrhe doelopnent ofP3P. Version1.0 of
ihe P3P wrs releded in April 2002 and en be found at uaw.a3.o/g/TRlP3P.
 Pdt5 fr o fm a r o isF h r s r Bu sn e 5 sa id 5!.crv
|

'1heChiLdren'sOnline Privicy Pdection Ad (COPPA)u'u pased bv Congres in Oc

tober 1998.This act wasdirccredat Web sircsc$ering to children,nquiring rhem to po!:
conprehensiveprivacypolicics on rheirsitesandroobtainparcnralconsent bctore!hev'ollc':
anypersonalnformarnrn from childrcnundcr 13 ofrse. web snt opcrarorswho viohl:
-vears
the rulc could be liablefor cn'il pcnakiesofuP to $l1,000 Penioladon.'?
In April2003, oficials atJunkbustenCorpo rior heLda pres conference in which rhc'
discussrdthcn dec;sionto fiLea conplaintwirh rhe FedcraiTrade Comnission agalnsteB:'
lnc. because ofprivacy concerns.The basisofrLe .ompLanrr sEs that lunkbutrds thoush:
rhat theLewasasignificanthconsistencybetweeneBay's shortversion ofrheirPriva'l poli;'
prcsenredro thc visitor and a more dttriled polio A.cordins t{, Junkbusres the prn"'
poLicysmnary statesthar eBaywill turn oler personJdara!o drtsidc igenciesonl,vwb"
absoluelvnccesa.y.However,the norc detailedpolicyslatesthdt eB.Iw;lltun ovcr su'i
informationar im dncretionand sithour a *trant or mbpoena lunLbusles alsoclaime:
fiar euaydoesnt tell usersrhar$e;edril addre$esnighr be urdbl orhes !osPd then
and rhat despnecfforrso prorccidataonLincar rhe lreb sitc, thereis a substantialtisk :r
any privateand financialinfornatior regiseredon eBav eBaysPok$Peoplc rejecledJL'lr
b"stcn' comendons,poi"tingour rhat eBayhrs a privacv srarcmert, plusr surnrnaw. r ch:::
oudin;rg priva.y, dd a !-AQlink addre$ingPrivrcyis$!er''"

F a i r n e ssin In to r m a tio Use

n
Sellingin1brnarbntoothercomparicscanber Lucrative that n.ny comPanies will contin':
ro sron rnd sell tht data thel collecL
on customers, emPlovtts' .Dd others V/hen i\ th
'
irbrndtion sto.agednd use tit rnd rctonable to rhc indivitlualswhose datr is srored ar:
@ sold?Do individuJs havea right to hrow aboutdatasroredabout them and to decide"h::
T he Rightt o K no w a n dth e datak sroredand us.d?As showr h TabLe14 12, rhesequedoN can be brokcn dom mrr
A bit it y t oDc ad e fiur nues tbat shouldbe rddtsed, knowledge,control,hoti.c, rnd consenr'

C. r r . o l .s h o u L d i n d i v l d u a l s h a v e th e abti i vtocorrectefforsi ncorporatedatabassvstems?Th sisPossblewt hm ost

ofqanizatons,althoughit can bediiflcuti n somecases-

Federa IP r iv a c yL a wsa n d Re g u la t io n s
In rhe pastfew decadersignificantlawshavebeenptsed fegrding an indiYidlal s dght :'
privacl Othen rclarer<,buinesspriva.y righrsar,l rhe frir useofdata and informarion
ThePrivacyActof '1974
The maior pieceofleg;larion on privacyis the PrivacvAd of 1974 (PA7'i), enaded b'
Congresduring CcnLdFold'sPresidlcy1'A7'irppliesonlv to ccnainfederalagenciesTl:
acr,*hich s about r 5 pageslong,is struightfotuardand easyto urdertand The purposcc:
rhk ad is roprcvidecerrainsaleguards for individualsagainstarinvasionof personalprivr'-
bv requiring{ideralagencies Gxceptasorhenviseprovidedbv law) to do thc following:
 securtyPfvacy,andEthcatlssues
n nrofmalonsystems
aid rhe nt*ml I Ci.pior 1l

r Permir individuals to derermine what records penaining ro them

ruinLrined. u.ed,or di.seninatedby su.h agen.ie'
. Permi. individuals.o pr*ent records pertaining to them from being
availablefot another outoose without their on*".
r Perrnit individuals to gdn accessto information penaining to thern in federal agency
rcords, ro havea copy ofall or any ponion thereol ud to orect or amend such records
r Ensure that they ollecr, maintain, ur, or dissemimrc dy record ofidcnriiable personal
information in a mdner thai etrurcs ihat such a.iion is for a necesary ad lartul
purpose, that the informetion is cuient dd accurate for its iniended use, and that
adequatesafegurds *e provided to pr*ent misuseofsuch information
. Permir exemprions from fiis acr only in cdes whcrc thcrc is an imporrdt ptblic need
for such exenptioa, x determined by a specific la*nal<ing rurhoriq
. Be s$jeci io civil suit for dy damagesihat occur as a result of willful or intentional
action that viobtes any indiaiduh rights under this act
PA74, which applies ro all federai agenciesuept rhe CIA and law enforcemot agencies,
also esiablisheda Priva.y Study Commission to study disting databdes dd to recomnend
rulesand lcgislation for considerurionby Congres. PA74 alsoreqft.s iraining for all federal
employeeswho intenct with a "sysrem of records" under rhe acr. Most of thc training is
conducted by the Civil Sewice Commission and rhe Department ofDefense. Arother in-
reresting aspar of PA74 concerns the use of Social Security numberFfederal, state, :ld
local governnents and agenciescrnnot disoininate agairut aly individtral for not disclosing
or rcponinghis orher SocialSecuritynunber.
Acl
Gramm-Le..h-Btitey
This rcr wu pused in 1999 ud requned all finucial insritutions to prora and secure
cusromer' nonpublic daa fron unauthorized rcces or ue. Under terns of this act, it wa
suncd that all customer approve of the finucial institutions' colectins od sioring iheir
personalinfornation. The insilurions were required to conracr rhen cutonem md inform
then ofrhis facr. Customels were requird to wrile separateletters to eachoftheir individual
financial instirutions and state in wriring that they wanted .o opt out oftle data collection
and storageprocess.Most people were over*elned with rhe mas, nailings the)- received
Iiom their ffnancial institutions md simply discaded them without der mdestanding rheir

USAPatriotAct
As disosed proiously, rhe 200 I Uniring and StrengtheningAmerie by Providhg Appro-
priare Tmls tuquired to lnterept and Obstuct Tenorism Act (USA Petriot Act) wa pcsed
in responsero rhe Seprenbe. I I ierorism acis. Proponenrsaue thai ir givd necess,rynM
power to both donestic law enforcemenr md internadonal intelligene agencies.Critio
arguerhat the law removesmmy ofthe checlc and balancesthat poiouly allowedthe cours
ro ensurelaw enforcenenr agcnci.s did not rbuse their powrs. For *mple, under this acr,
lnrerner serie providers and tdephone compmies mut rurn over curomer idormaiion,
including numbcr elled. wirhout a coun order ifthe FBI chim rhat the recordsarerelsmt
to e terorism investigation. Also, the compmy is forbidden to disclose rhat the FBI is
conducdng an inve,tigation. Only time will tell ho* this act will be applied in the turure.
Unde! the USA P.$iot Act, Wachovia Corporadon, like aI nnanciel serice, conpanies,
is required ro check lisrs provided by the Treasury Depannent against its own cusroher
databaseto detect peoplewho night be tunneling noney to iero.ist orgdiarions. To svoid
unauhorized disclosure of cu$omer data, Wachovia har a designaiedperson within its se-
curit)' operationschargedwirh tie job. "You want to havea processthai d individual ove$eer
od is acountable for," saysBill langley, rhe bmk s chiefompliance ofrcer.5'
OtherFedratPrivacyLaws
In addition to theseacrs,other piecesof federallegisladonrelateto pr;vacy.A fdmllaw
tharw6 pa$edin I 992bms unsolicited9x advenisements. This lawva uphldin a 1995
roling by rhe Ninth U.S. Circuit Coun ofAppeals,which oncluded rhat the law is a re-
sonable my to preventthe shift'nsof adverdsing cosrsto cusromrs. Table 14.13lis$
additionallawsrelatedro orivo.
 F ar Cr edlR e p o rrl nAc
g ro r r9 7 0 IF C R A I R eguL.l es
operati ons
of cfedt repo.tnq bureau s,nclud
'g I o / r h F t o l l ! r o 6 o - d r '. _ 6 0 . . i i o n oL r o

T axRef o. mAc io l 1 ? 7 6 R e s t f c l s c a l l e c to n a n d u s e o f c e f i a i n n f o r m a t i anb y th e

n t e f . a l R e v e a ! e5 e r y i c e

F lec t r an
c F u n d sT .a n s feAd
r of 1979 0,t ."t54.61pa- bt|(. o .orpa,",..". / ""-
t . o n L ct ! . d s t r a n s f e rs F t e h s , n c t l d . 9 c o n s u m e fI g h tj
a n d La b i t t y f o f b a n k d bt c a r d s

R 9htt o F na n c i a tP fi l a cAyc lo i 1 9 7 8 R e s h i c t sq o v e r n m e n a
t c . e s s l o c e d . i n r e c o . d she l d b y

Freedomof nfo.matloiA.r ol 1970 G ! a f . n t e e s a c c e s sl . f n d v i d ! a t s i o p e r s o i a l d a ta co l ,

t e c t e da b o u t l h e m a n d a b o u t g o v e r n m e n r a c l i v tes n

R e s h c t s c o t l e c t i o na n d u s e o f d a t a b y i e d e r a l t y l u n d e d
e d ! . a t i o . a l i n s i i t u t i o n s n c t u d n q s p e c i l i c a t o n s fo fi h e
t y p e o l d . t a c o l t e c t e da c . e s s b y p a r e n t sa n d s t ! d e n i s
t o l h e d a t a a n d t i m i t a to n s o n d s c t o s u r e

Com pllerl,l a tc h i nagn dP ri v .c y Acot l l ? 8 8 c c el!e- berr6p LoF d sSF- -5

c o m p u t e . l i t e s {e . g . l o v e r r y e t i g i bl l t y f o f i e d e r at

V deoP r iv .c y A cot l 1 9 8 8 P r e v e n l s. e l a i t s t o r e sf f o m d i s c t o s i n gv d e o r e n t a Lr e c.r c:

T elephoie
C o n s u m ePr .o te c tl oAnc to f 1 9 9 1 L mrts tetemarkeiefs pfact ces

R e g l l a t e sc o m p ! n e s a n d o r g a n i z aot n s t h a t p r o v id ew ..
l e s s . o m m u f i c a l o h s s e r u . e s , n c U d i n gc e t t u t a fp h o n e s

c om pulerA b u s eAme n d me nA
l sc to f 19 9 4 P r o h i b i l st f a n s m s s o n s o f h a r m l u Lc o m p u t e rp r o g r a m s
and code nct!d n9 v ruses

G r am mLea c hBt L e yA d o f 1 9 9 9 R e q ! . e s a t t f l n a n o a t n s t t u t i o n st o p r o t e . t a n d s e c!.e cL s

t o m e r s i o f p u b tc d a t af r o m ! n a u t h o r i z e da c c e s so . !sc

USAParriorAcroi 2001 R e q u l r e sl . l e r n e t s e r v c e p . o v d e r s a n d t e l e p h o neco m p a -

r e si o t u r n o v e r c ! s l o m . f f o r m a t i o n , i n c l u d i n gnr m b e fs
c a t l e d ,w i t h o u ta c o u d o r d e r i t h F B c l i h s l h a tth e
records are relevant to a tefrorlsm nvesi qtion

@
Fe der atP r iv a. yLa w ea n d T h e i r S tate P r iv a c yL a wsa n d Re g u L a t io n 5
5tarclcgisL urcshNc bcur consirleringrnd prssingprlr.+ lcgisldrnlrd,nr i! fa,-.crrf
aod potcnLiallvnuc burdrnnne n) bu\inessdun cxrrnrg fcLlc l lrgillation.-Ihe r..
soci.l S.corit! nunMrs, rcces !) niedicil t]t dsclome of mlisted telep-
'ccofds,
nunbcrs, Llt Jlrinl ofdeJir re|om bvcf.dn bur.r,tr, rlk dbdosuk ofb:fk a f.fn
ilrn.i.J inli)rnuri,nr.rn.l rhc ut ofcrnnnDl 0lcs Je sorneolthe i*ues hcine corsn:.
br $te legnlators.-fhesesGreproposrLs .oL d hrk rn drr mou\ el&cr o f coD p.!ri.i :
d0 t,nsineswirhin rheir bordes.
. lr Geo'giarnd C.lilbni.. Liu\;res\!rre pmhibtrcdiiom .lis..rdlrg r..ordr (ontrLf
pe*on.l inionarion wtrhouLshrcrLJing.
erasing,or nodi6'lng rh. do.dner. &, n
$c sensitircdatr unrcadablt.
 securrvpnva.vandELhnaL
55ues and*" *'"'"
onsvstem5
i rnrofmat | *p*"n

. Iederal "opt oua' regulations force consunere to take action if thev don't waat rhe
onoanv to sellor shareinfornadon aboutrhen ln Verdonr' California'NN Mdico'
od bu' i ne* e'mur get
," d Nonh f l, k or. h o " -e r. o p r-i r" i rh ed e ' a u Jr' ' on' umer'
bermissionto shee their dara.
. i" identifi thiwes, Calibrnia dlow hs residena to "fre*"
" "o"n,..-"*".. "e"inst
their ffedit reports to pr*enr lenden from accesing ihe files and smnting credit'
Coisume$ who take this step& given a specialpxsord to unfreee the acouna when
rhey want to apply for nw loms or credit ords.
Such stat.by{Ete and even ounty-by-countv excePdons ro the federal law greadv
complicatefinancialreco.dkeepingand datasharing.

CorporatePrivacyPolicies
L venr r ouqhor lr . v l a t.fo ,p ri q re o rg M i a ri o n < re n oLvel renri ' ri vemo{orgbP rrron'
u. ^ , " i. r ii* . , o i ' r* e ' o d fa ;' n e * .T trq reali zel hrt i n% i on( ofpn' Jq ' rn hun
^v
-"
tr'.i. br**', t"- i*tone6, abd dranadcallv redua revenue md profits Conside'
"*"y company.Ifthe onpanvsold confidentialfinancialinfor
anajor intetnadonal credit card
natioo miliions ofcusromers ro orh.r conpanies' the res'ls could be disast'ousIn a
"n roenues could be reduceddranaticallv Thus' nost
naaer of days, the firm s busines and
orsanizations maintain pri?cy policies, even thoqh th+ are nor reqdred b- law.sone
cmpmie even have a privacy bill of righrs that specifis how rhe P'ivacv of emplovtrl
clients, ar,t cutom*s wiil be protected Corporate privacv policies should addres a cur
onu's knowledge, ontrcl, notice, and consent over the storage and ue ofinbrnation'
Th ev nav h o h a . a .re * ro p ri ' ,re d a raa r d w hen t rev be u' ed
" lr o. o' er " ftc e rn e " ,' e n e l vd ,fi icuJr.h:Jtenge i n i mpl emenri ng dara-
ll" l, i*, i. " . 1 ' " -p -i ..
collecrion and dissemimtion proceses and policies because of the nuhitde of differing
o u nr r y o, r . gior al. ta ru re .. fo r e rm p l e . A u ra l a re qu:r$rcmP ani e'rc de{rcv a{ omtr
data (including backup files) or nalceit anonynou onceitt no longerneededFnms that
rrmsfer customer and personnel data out ofEurope murt @nPlI with EuroPed pri\"icv
laws that allow customers and employees to accessdara aboui them and let theh deternine
how dlar info.neiion can be used.
A e@d d, r abr' e d e rg n p mc ti (e i . ro ^ s :g n a ' i ngl e uni qre i denul l erro ea' h
.* r.- - " , h^ r 'inele d * c ri b i n g al l rel ari onshi rio'th rhe' ompant
- . ' r ' , , -.h ' e .o rd uw omer prn ao prel erence'
a ., o*J lln. bu. ine* u ri ,.. fh a ' * 1 . rh e o .g r;a ti o n cr aoph .
omistently throughout all databases. Iailure to do so can expose the orsani4tion ro legd
risks-side from upserting cLrstonen who opred out ofsone collection Practics A$in'
the I 999 Gnmm'Leach-Biiley Financial Serices Modernizarion Act requned all financial
,e d ic einnlUr ion' to o mmu n ,c l re rh e i td ro p n \a q al e' udhonor' uromerpreference'

lndividuatEfforteto ProtectPrivacy
AlthoLrsh numerous stateand federal laws deal wirh priwcv. privacv laws do not completelv
protect individual privacy. In addition, nor all conPanies have privacv policies As a result'
p-pl" r"Lhg.aps to increastheir own Privacvprotecrion Sone ofthe stepsrhat
-""y
individurls cm-. tal<eto protect peronal privacy include the following:
. Find o* tuhatk stoleddbaut you in uisnag databans Call the major credit bureausto get
a opy of your credit report.You can obtain one free ifvou havebeendeniedcredit in
*" i*t ed a.y,. rr'. compades are Equifa (8 00-685'11Ir ' auu eqaifu con)'
-apr
Transunion (s00-916-ss0o, uuu tldwn;on can)' and Experian (888-397-3742'
uuw.uperiax.con) Yot co alsosubnn a Freedomof Informiion Act requestto a
federal agencythat you suspectmay haveinfornation srored on vou'
. Be mrcfet tukn lou rhdre ;nfonatiot abott Toanelf Dot shre informtion unlssit is
absoluiely necesaly. E"ery rine you give informarion about vourrlf thrcugh a! 800'
8s8. or 900 call, your privrcy ;s at risk Be vigilant in insisdng thar vour doctor' bank'
or filancial insriution nor shareinformadonabout/ou with other without vourwnten
 pdt5 n ' r m n :is/:tn 3 n Elsi..' 3 n d so..r,
|

Be?rca.nu toProte.tlourPr,,ry' You .an get an u.lisred phone numberand ask r:

p h o * --p," ' robl o.k.al ' er l D * ren' l rom real ' ngvou pror num ber 'lf
\ en
. h rg e y" ' ' rddre* .J.n r fi ' ou, ch,ng-.' " ddre* br r rrth' re t \ P'^r r l
youcan the pe"pleandcompanies thatyou wart ro havev{ruinervddrtss Desrtu-
""tifi
copiesofyo,rr chaigectd biLk and shrednonthly sratenenisbeforedisPosingofrh'-
in the garbase. Be carefulaboutse"dingpersonale-nail messages overacorporatee-m:
Yo"."n g.r help in avoidingjunk mail and telenarkeringcallsbv visri:;
'1.r"-. "Lo
[e Dnect MarketingAs"cinionwe! slrcar uwa the-dnaag. Go b the Veb sitea::
o o k u rJ. | ( on.Jner H el f R emo' e\,ne fron I i * '
whez parchai"g aryhing fon a \Yeb sitt' nate suu that 1n nJigedd Yur oel1t ;t:
,"*A"", p^'*i,a', ."a ptsonat inJnrnanon Do tor do busincsswith a site unles vo-
know rhat it handlescreditcardin1brmadonsecurelv(rvithNetscapeNavigetor'look rr:
a solidblue key in a snall blue rectangler wirh Microsoft Explorer,look for the worr
"secure\vb Sire").Do nor providepersonalinformationwithour re\i*ving ihe sr: '

THEWORKENVI RO NM ENT
The useofcomPuteFbuedinformationsystenshaschoged the makarp ofrhe wokiorr'
Jobsrh.t requi'; Is lreracy haveincreased, and mnv leswskillcdposnionsharc becr elir
inated.Corporateprograms, suchasreengineeLing andcodtinuousimprovemeni brDg\ tj
,h e r L h ea n.e,n ,\,.. a b r.i ae' p,o.e .r' ,re r. tJ uredrno i nrormar "r 'v't er
:n .e e r" .e rrt\
J r rhem,rl -epcope:r' ol red rn rhee 1 " e' ' " l l he reno' ed
" U ." " '
i ' " ta ot." -p,," ,,. n" o ogy,.o rnl orn" i o r 1 ' en' l'r ' of r -
-,. .t' . g,o" ' .g
up nundous avenuesio Profe$ioralsand nonProfessionns ofall backgounds Enhart':
telecornmunicatio".hasbeenthe impeus for new tvpcsofbusincssand hascteatedgloil
narkcts in indusrriesorce limned to domesticnuLets. Eventhc simPlestidks hrlc be"
rJ e d b r.,,mpurer' maki ne.\e.rou l :r* l JJe ' roorhi rg ' rocrpro ' rng ar J 'llo" -
p e o p l e * " rai .b' ri ' re' ' op,n.i oa e rr' el " ' r rl e\" r ' l oLe { " onP L r e 'bdo:
-,,' . ^
is d-p i".ost rnd becomecasie.to use,mot worker wiLLbenefitfron r:'
--oo*nt,
increue,l productivityand elnciencyprovidedbv computersYr, despircrhesincrease!:'
p ro d u .tr i rrard.ff.i cno n' orml nn' l ' ren' .' r Fe' ' \' r' on" rn'

H e a l thCo n ce r n s
Oqanizadonscanindesc employeeeflectivencsbYprvingattention!o the hcal!h'orcerli
in ;dav\ work en onnen!. Ior somePoplc,working conput"s can e*' occur'
-id'
ofconrrol, in'o'rPeren'e' dnorion r:
donal stress. Auieli{ aboutjob nNecurity,lo$
'nd beconrei:
just a few of the fear workers nighr qPericnc. In some c$es' rhe {res mtv
swererha! workes day saborage compurer sysrems rnd equiPm'lr' Monitoling mPlo'-
srres nav alen companiesro Potential problens T'aining and counseling cu olier hc:
rhe enployeeand deterProblcms
C.-p.,., physicalhcakh * wcll. smim, spmins,ardonitis, md orl:'
"* -"y.n-,
o rc h l .m . r- " ' n' i o, e rh:r r,uperer" r rl l o- :pJtror ' l rl l n e' rnJ roo'r r '11iJ
-. :
ro rl * ..o mpenrrron.hi m' ordi rrg r\. Jov l r nrrur' n\edn' l he'"n r ot
- "' ' ( l'-
n ," ,,: on. i . rhe.erype o h.:J h probl .t i ' a' h:gl ' a' $2 bi l l on" rrull'
repetitivemotiondisorder -re l ,rn c Loaoni ti vemori ondi urder' uhth.rrbe.,u edbl " or\i ng* rth'om pr t ' \ "
IrepetiiivestressinjurY;RSll L'oards"ad orha equipmenr,have incrcasedgreadv Also calledrepetitivestre$ injun
An n j!.yth al ca n be c aus edbY (RSl), the problens can i"clude rend{rnids,lennisclbow,the irabilitv to hold objects a::
wo rkin gw th com put erk eYboaf ds sharp pain in the lLngen Also connon k carpal runnel s1ndrcne (CTS) which n e'
of th" p"th*"v for nenc that tmvel rhrcush dt wrisi (rhe aipal iunn''
"gg."'",io"
carp6ltunnetsYndromelcTSl CiS in"olvcs*rist pa;", a feelinsof dnsling and nunbness,and dimcult' gnsPins d:
The aggravaton of the Palhwaylof holdi"g objeca.It maybe causedbra n{mber offacrors,suchasstres,lackofexercit' s:
netuesthal tavelrhfough the wr sl
 se.uftyPrlacyardEth.atssuesI Rrormalon aidrhed{mr
Systems I Ch.pt r 14

tie repelitivenodon oftypingon acompurerkeyboard. Decisionson wotkets'compensation

relared ro repelitive sress injuries havebeen nade both for and again$ enployees.
Orher wotkrelared health haards involve emissionsfron inproperlv naintained ud
ued equipment.Sone st"diesshowthat poorlymainrainedlaserprintersmay release orcne
into the air; othersdisputethe claim. Nunerous studieson rhe inpacr ofemissionsfrom
displal-screenshare also resulted in conflicting theories.Although sone medical authoriries
believe thar long+erm e*posure can caue cacer. studies are nor conclusiveat this tine. In
any case,many organizationsa.e developing consefladve md cautious policies.
Mosrcomputermanufacturenpublishtechn;calinformadonon radiarionenissionsfrom
their screens,and nany compmie pay closeattention to this informaiion. San Francisco
w* one of the fint cities to propose a video dhplay terninal fr'DT) bill. The bill requires
conpanieswilh 15 or more employeewho spendat ieastfour hous a day working wirh
conpurer screersto sive 15-minutebreaksevery2 houn. In addition,adjustable chansand
worksrations are required if employees then.
'equest
The \rorld Healh Organization Cfi/HO), U.S. Food and Drug Administrarion (FDA),
and the U. s. ceneral Accounting Offre (GAO) havealso anallted health daraon cell phone
use, bur rhey cannot definitiveiv saywhether cell phones poseany health risk. \flHO sates
rhat gaps in knowledge need furrher reserch to beaer uses health risks. k *pects that it
wiLl hke until 2006 for rhe required rcsearchto be conpleted md evaluated,and the final
resultspublished. At this poinr, \vHO sraresrha adio frequency absorbing over or other
absorbentdevicesor nobile phonescanootbejustifiedon healthgrounds.The FDAstates
rhat while high lerels of exposureto ndio frequenciescan produce biological damage,it is
nor knowo wherher lower levelssuch c rhosc asociated with cell phones on oue ad'ene
heJth erTects.60 A GAO repon on the porentialheath hazardsofcell phonesha concluded
thet researchconducted by the United States dd intermtional organiations shows that
radio-frequencv enersi emitredby cell phonesdoesn'tproduceadveneheahhef{lcs. But,
the repon noted,"'l heren not e.ough infornation io condudetheyposeno risk." Lxpera
reconmendthar ifconsumen areconcerncd,rheyshouldusea "hands-free" setupsuchasa

In addition to the posible health risks from radio-frequencyexposure,cell phone usehas

Gikd a efet/ issu+d inceased risk of traffic accidentsasvehicle operatorebecomedis-
tncted hy talking on their cell phones (or operating their laptop computers, cd navigaiion
systens,or otherconputer devicet whiledrivins.As a result,sone stateshavemadeit illegal
to opente a cell phone while driving.

Av oidingHea t t ha n dE n v i r o n m e n ta
PrI o b le m s
Mmy computerreiatedhealthproblens areminor and causedby a poorly designedwork
enlironnent. The.omputer screennay behud ro read,with glareand poor contnst.Desls
od chairsnay alsobe uncomfonable. Keyboardsand conputer screensmay be fixed in place
or difficult to nove. The huddous activities associaredwirh these unfrvorable conditions
m collectively refened to as aar* rtr.*ior. Although rheseproblems may not be of najor
concernro casualusetsof cohputer rystems,continuedstressors s&h d repeiitivemotion,
awlvwd posrure,and eyesrrainmay causenore seriousand long-terminjffies. Ifnothing
else,theseproblens can severelylinit productivity and perfbrnance.

R s e a r c h a ss h o w n t ha l
developn9 cert6 n ergonomcatty
c o r . e c th a b l s c a nr e d u ce l h er i sko f
R S w h nu s n g e c o h p ul e r .
1 5 o u r c eC: o u r t e s oy f B a tt,l .c.J
 Pd ts I nt r m t t r s y s r . m .nEus nes s a n d s . . . t l

T h . !u dy ol de.i gn,ngrnJ po. ri oni ngcompu.erequi pm.rrro i mprovewor kerpr o

ducdvin' and mirinir worker inj$ies, calLedersonohics, has susgesred a nunbtr oI
Thesl!d yo f de sig nn9 andpos iton- approaches ro reducingrhese heaithproblens.The objecriveisto have"no Pain'cohPuting
ingcomp ute req uipm ent f or The slopeofrhc keyboard,the positioningard designof displaysceens,and the placement
emptoyehealthand safety
and designofconputer tablesand chair havebeencarefullystudied.!-lexibiliryis a naior
componentofergononio and m inponmt featureofconPuter dwies Peoplecone ir.
many sizes,havediffering prcferences, and requnediffern!Positioningofequipnent ior
besrresuhs.Sone people,forexample,entto placerhekeyboardin their lapsrothenpretir
iron asolidrable.Becaueofthesejndiidual differencs,conpuler designers arearrenptin:
to developrytens that providea greardealofflaibiliry.ln facr,the revolutiomrydesignoi
Apple s iMac.onpurer cameaboutthroughconcernsfor user' confon
Many uses feel that the ergononicsof usinga norebook.omputer is a problem Alier
usingore for a coupleofhoun on thc;lap, theyconplain ofheadachesand that theirwffr
havc begun to hurt. This is probably becausethey sat in u awkwrd position bending thei:
ne&s md holding then arns in an unnaru.alPosition.Althorigh the built-in keyboardr:
ffnefor shon periods,anyonewho will be usinst norebookforlong periodsshouldconsider
plugginsa noniror intd a dockingsradonand usinga wirclcs keyboardand nousc *hile
sltting confonably at : propcrdesk.
In addnionro stepsralen by @mpanies,individualscan alsoreduceRSI and develop;
benerwork environnent.A rumber of ercellentideasen be fouod at the U.S. Departmen:
of labols Occuparionalsafery& Health Adtuinistration\feb site throughthe Computr
\forlshrions link * uau.osha.gor/SLl C/etnob/.onPuaruofh$atiant/inlu htnl and zr
rhe Crpal Tunnel syndrome Web p^ge et uau c\?kce mn. Here is a brief s o:

. Mainiain good pos$.e and positioning lhe top of the nonitor should be at ot iusr
beloweyelevel.\ riss andhadsshould be in line wirh forearms.Ieet sho dbeflaror

. In addition ro cood equipnent, good postureand work habnscan eliminateor reduce

rhe poEniial ofRSl.
. Don r;gnore pain or discomfort.Mmv workcrsignoreearlysignsof RSl, aidasaiesulr
the problen becomcsmuch worse and more difrcuh to reat
. Usesretchingdd strengthening Often, suchderciscscanprflent RSI
exerciscs.
. F;.d agood physicianwho is fmiliar with RSI and waysro rrearit.
. Aftd reatmenr, star! back slowly and pace you.rlt Manv Peoplewho are teated to:
RSI stm backro work too soonrnd iniure themselves agnt
We hrve investigaredhow computen nav be harmful to your health, htt the conpure.
en alrc be usedto help prevtnt and treatgeneralhcalthproblens.As discusedin Put3 or
businessinfornarioD s)srehs, we haveseenhow conputers can be ued to assistdoctors an:
other nedical profesionals by diagnosnrgmedical problems ard suggestingpotential trer
ments.Peoplecan alsodseconputersto ger nedical irfornation. SpeciJnedical soft$r:
for penonal computerscan help people get nedical inforn.rion and dererminc wh$er th-
re e .r.. .e e" do.ror A $.JLh ol i nl ormrri oni ' rl ' o ai hbl eonrhel nr.rner onat ar ieo. r
nedical topics.Table 14.14liststhe top rcn nost usef healh \ eb s;tsec.ordingio rh.
Medi@l L;biarvAssociarion.
 @
Medi cal Topi cs
on th e I nt er nel

Departmenrlor Nealthand
fuman Seryce5 Centercior
Disea5eConlrol and Preveilion

..':..]]
Amencan Acadmy
01Fam,ly
Pntsca ns

US De pa rtmen
ol rllea hand
Hqma nSe ryices 0nc ol e
D seasePrevenlionandNealth

U S Ce itE fo rHlv nlor m ar on'

' ..t... .
:a: . : :.. .. : '

E THICAL
ISSUES
IN INFO RM ATI OSYSTEM
N S
Ar you ve seenlhroughourthcbookin our "EthicalandSocierallssucs"boxes.ethical;ssues
d*l with wharissenerall,v considered right orw.ons. SomelS profc$ionalsbellevethat rheir
field ollir manvopponunitiesfor unethicalbehavior.Lhyrlso bclieve$at unerhicalbe-
haviocm be reduccdby top levelmanigetrdevelophg,discussing, rnd enli,rcingcodesof
erhics.IDlbrnarionsvstensptufesnmaharcusu.lly morc sarisfiedwiththeirjobswheDrop
managemcnr sffcssesethi.al behavnr.
Accordingto one view ofbusinesserhics,thc "old corta.f' ofbusiie$, rhe ody re
sponsibiliryofbusincssis to ns sockholden and owncs. Accordingo anorhervicw, the
''socialcontrocf of business, businessesare resporsiblero sodeq'.Ar one poinr or dother
in rheir operatiors,bminesses may haveenplovedone or both philosophies.
 | s y s r emns EF * = . id so.er/
"r . - - d ""

Vdious organizedons and a$ociationspromoreethicall/responsible

ue ofinformario:
syaemsand have d*eloped codes ofethics.These incLude
organizations the following:
r The Associationof Infornarion TechnologrProfesionak (AITP), formedy rhe Da:
ProcessingManasementArsociarion (DPMA)
. The Association for Computing Machinely (ACM)
. The InslituteofElectricaland ElecronicsEngineen(IEEE)
. Conputef Piofessionals (CPSR)
for SocialResponsibilir,v

The A IT PCo d eo f E t h ic s
The AITP hs developed a codeofethics,srm&rds ofconducr,and enforcenentproedurs
to AITP menbers (seFigure14 3). In general,the codeoi
that give broadresponsibiLit;es
ethicsis an obligationof wery AITP nenber in rhe followingaeasr
I Obligation to nanaeenent
. Oblicalion ro felow AITP nembes
. ObLiCaionio socieq'
. Oblication to colle8eor lnivesiry
. Obligationto lhe enplorr
. Obligation ro @udti-v
For eachareaof obligation,studards ofconducr describerhe specificdudesand te-
@ sponsibilitiesof AITP nemben. In rddition, enforcenentproceduresstipulatelhat an'
AITP Codeof Ethics complainiagainsran AITP nember musrbe in writing, signedby the individualnakirg rhe
ol AITP- complaint,properlynotarized,and subminedby cerdfiedor regisrered mail. Chargesanc
lsource:Courlesy
conpLaintsnaybe;nitiated by anvAITP menber in goodstanding.

itrat halea. oblgalon to nra.agenrenl,therer.r'a lsna pronloterne

,idcrsta.diig.l lnl0rmalionpro.ess ng rnethodsand ..oced!res to manageme.l
lsrg elery res!!,cc ar my conrmsao

Th alrh ale af ob ! at o. lo m v n, oir nem be r s t h r e i o r e s h a r u p h o d l h e h g h

i.lea ls.r lA- lPas olt r . . d r t ir - oAs s o. ialonB ! a v / s F r r l h e r s h a . o o p e r a l e w | r
niy fe or! membersand sha feal lh-arn\! th honoslya.d respecl al a t res

Thal have an ob qalon to so.ery an.l t Lpad c pale tc the bsl oi nr! abi lv n th.
dss.rnrnral.n ol krowcolre perta r ng lc the llenerardcle o.rne.t a.d
!nd,"61a.d nS of Ffornalon pro.ess.!r Fltther rsha nDl lse kro$cc19e.r a
conf deftral nalurelo frnl rer n'ryp.isom lnlercsl.n(' .hal !oatelieprv3cvand
.onfdentralry oi nlornalon e.lrlsled lo nre ofto lvh.h mav ga n a..ess

Tha r h av eanob gat ont . m y O olegeor Uf l e r s 1 v l l r e r e t c r e s f a l l p h D i d t s

ellr.5 aNd. r or alp|n. pies

Tiratlhale ar obllalo.lc ml empo!.r !d.se lrlst lrod theretore sira

endeavorto d echage lh s oblgatof to the bestol nv a! llv to glarn rlv empiovers
.re resr sand t o. dr s e hm ar f r . r \ r s ei! an d f r o n e s l !

Thal lhave a. ob gario io m/ ciln1rJr,thercDre . Nv persona. Dlsness ano

so .a .cf t ac t s ls ha ! ph. . l v . alor and s h a n o n o r t n ! s 3 " o i r t eo t n i v
't r o " f

accept theseob qal ons .3 d p-'rsoFa respo.srb v and as a menLrerol ih s assoc atron
lsha iacl !e ! d scha.ge lrreseotr galons afd d.dcare mv5el l.i trratr_ft
 onsv.lem5andthe nkmet
5..!rry Frrarv aidElh.aL 55uesn nrormat I chaet'r 14

Clo n d u ct
TheACMCod eo f P r o t e s s i o n a
The ACM hasdevelopedr numberof specificprofesionalresponsibilities. Tbesereponsi-
bilitics include the foilowing:
. Srive to achievethe highest quality. effecdveness,and dignity in both the proces and
ptoductsof profesionalwork
. Acqui.eand manndn Profassional comPetence
. Know a.d respecrexisringlawspertainingto professional work
. Cc . eptr al o ov d c rP D ro pi a rep ro re * ro r,lre r;*
. Give cohprehensiveand thoroughevalutions ofcomputer sysrensand their impacts,
includingaalysis ofposible risls
. Hono..onracrs, agreemenrs, xnd assignedresPonsibilities
. inprove public undeNtandingofcotuPutingdd ils consequences
. Accessconptrring and comnunicadonresources onlI whenauthorizedto do so
The mishmdlingofthe socialissues discu$ed;nthis chaprer-includins vastedd nis-
rakcs,cri-., privacv,health.ud ethics<an dqastatean organiadon. The pteventionof
theseproblemsand recoveryfrom then arcimportantaspec$ofmanaginginfbrnadon and
informationsysremsc cririql corporaressets lncreoinglv' organiadonsare recognizing
rharpeoplede rhe mostimporrantconponentofa compuerb*ed;formation svsen ad
rh.t long-tern @nperirive advdtase can be 6urd in a well-uained, morivated'and
knowledgeableworkf orce
 r l0 fm a to n Sy:t.m s i Bu s nessand50..1!

SUMMARY

Pr:i11ciple agal nstcomp!te.s.netw orksandthe nfo. m aton sLo. : :

them.A crl mi nal ha.ke.atsocatteda.rrcler , isacom F,:
Poticiesandproceduresmustbeestabtished
to avoid
saw y perconw ho attempl E10 ga n !nal ihonzed . r : : :
computerwasteandmistakes. accessto compLrtersy5temsto steatpasswof ds cor t up: : :
h". and p.og.aqrsand eventransl efn' ronay. Scr ipibLr nn: :: '
o p. 6 \..r. "oooo
oog. ona d o . bi w ani abe crcckefsw th ti tttatechncatsawy nside, : : :
" .d o ." " " "
Com p! t erm i s ta k e sfe ta teto e ..o r5 ,IaL L rfeand s, otherpfob emptoyeesd 59runi tedo. otherw se.w or kr ngsot o : '
t o L rtp !tth a trs n c o rre cat ndw thoutvatue
t em st 1. at. e E L rlrn conce.tw th ol tsj de.sto comprom5e co. por at esyst e- :
r o, 6o' o o .r o I1 g o " , C omp!tefcri mestargetcori poter5yst em sand . : : -
or P O a. o l" oooal" ttegataccessto computersystemsby cr m r n: h: . '
^
m s t ak eslm p o s eu n n e c s s a .lhy i g hc o s tsfo r an l nfcfmaion atterati onand desl rLrcti ofof dataand pro gr am sby ' _- : : :
ands mptethftofcompLrtef.eso!.ces . Avr !sa s pr . : :
r " " o ao ,c s o o p o ' .w a ." o r " n r" l o D oo
nt egr aton o f S .o m p o n e i l s te a dn g to d !Pl catl onol effo.ts l hat attachesl tE etfto otherpfogramsA wof m iLr icl. _: : :
an ndependent pro9f.m. .eptc.t ng ts own pr o9. : r : ;
and ov ef ca p a c i tyl.n e ffl c i e i t p fo c e d !.e s at5o w aste l S
!nti tl tdestfoysothe.systenTsandpro gr . nr sor I nt e. :
: r Jt
r es our c esa,sd oth o !q h tte s ds l s p o s a to!sf e i u treso!.cesand
ope.!t on cf compLrte. syE temE and nel (, or ksf 4alw: ': : :
e c o mp l te .t i n e fo . g a me sa n dp e rsonaL
n- r is r sof processrng
napp ro p af te p ro c e s s
n g n s l .L r.t
o n s generalte.nr { or so{tw afethat i s harmf!l af dest . ! . : : -
t obs
o f S o u l p u t,a n d p o o f s y stemsdesrgnatl Tfoj anhorseprograms a matc ous p.ogr amt hat d 59- : i'
ent iy .m ls h a fd tl n !t _
. au5c om p L rtemf i s ta k e sMo . rel h a n h a tto f atl e-marlmes tsel i asausefutapptcatonandp!.poE ef ut t ydoes50m: E
o " .pe., oq bo b d" 9
s agesar e s p a m,w rrc h re p re s e n rs a w a s re n peopteero.I ' exptode' orexec!l eata speci ^
l edl meanddat e Av. . :
andc om pL rte r.n n d e tw o rkf e s 0 !rc e s _
o e/ a. g r" ra ,e . .o ." g. a modl fed ve.si onof . v r!! th.t s prod lcedby t he , :
^d " d " bl ' a!thor o.anothe.pe.sofbyamendng theo r lginat v. ! ! : : r i
m pt em entn g m o n l i o rn g a i d re ve w n g eftectve pol c,es
p .a ctces l horough A p.ssw o.dsn fff i s a snraLtprogramh dd en n a net *: _ :
aid pr oc ed u re sC. a .e fu tp .o 9 .3 rn m i n g
t es iinq,lt e xb te n e tw o fk n te rc o .n e c ti o n5, and . qo.ous compLrter sy5remthat records dentfcat on num be: : : :
bac k Lrprp o c e d !re sc a n h e i pa n a l o rm a lo n systempi event
r rnma n yk i n d so f m Eta k e sC. o mpanl es shoutd B ecause of nc.e:sedcomp!ter!se, qr oat efem pi: ! : :
andf ec ov ef.o
ptacedon the p.eventon a.d detecton ot com pLr t er :_ -:
dev et opm a n l a l s a i d tfa n n g p ro g ra m sl o a l o d w asi eand
m Ls t ak esC o mp a n yp o tc e s s h o L rl sdp e cfy c. ter a l of new A .t!l r!s softw a.es l sed l o dete.tthe p.esenceol i' : : :
tool sl o w ofms,andtogi cbombe l Jseofanntr!sondet ect on: : :
r es our c epu rc h a s e as n d !s e L d e v e to p epd.ocessi nq
helpg! r a. da g an s t h ,a s tea n d mrs ta k e s I D S l pfovdesanol hertayefof prote.tl onn t he event i': :
l ntr!der gets past the o!Ler se.!fty (. yer s- passf . : ': :
sec!ri typfocedu.esandcofporatefi .ew a t tll m on t o: : : :
Prlnciple tem and netw orkreso!fcesand nol i l i e Enet wor ks. :
Computercrime area
endrapidtygrowing
i5aseriou5 pe.soni elw hen t sensesn possi btent. ! sion lla. ! : _:
attention.
of concernrequiringmanagement and m ds zed o.ganzal ons afe ol l sour cng lhe . nE: : '
securi tyopefatons to managedse.uri tyser aicepr . : : -
a .o g- o onp i . o^ o ^ o .1 a ..b6 r o vc.o../,h
"d ' .6 " d-" i "i
t he num be f o i T -re ta te ds e c !fty i n c d e fts s Increasri q sec!r ty hafdw a.eandsofl w are
d. am at lc a tL ys x fo l db e tw e e n2 0 0 0E n d2 0 0 3 S oftw areand nternetpracy may repf esenlt he - : :
S om ec f i me 5!5 e c o mp !te fsa s i o o ts{ e g , to i .an putate commoncomputerc. me t rs st ni atedt hat t he s. r : - :
r ec or dsc, o u n te rfe mi t o n e ya n dd o c !me n tsconrmt fraudv a ndl stry tosesnearty$12 bl Lon n rev enle eacn t a: :
t et ec on- r m cuant o n sti n k s a n drn a k e!n :l i h orLzedetectroflc softw a.epi .:cy C omputefscamsh.ve .o : t nd, v, d! ar : i
t f ans f er so f mo n e y l .l d e n ti l yl h e ft s a c .me n w h ch an companes l hol sandsol dottarsC ompl te.c. m e 5 ; l: : : '
m pos t efob tan 5 k e y p e c e so f p e fs o n a td enl fi caton nfo-
m at ion n ord e fto mp e rs o n a te 5 0 rn e o neetse.The nfo.ma' Manyorqanzatons and peopl ehetp pr eveni. . m : -
I on s t henu s e di o o b taI c .e dL ,m e rc h !n di se. 3nd servces cfl me,amongthemstate3ndl ederatage f ces,co. pof - 1: :
Lnt he nai. e o ' th e v i c ti m .o . to p ro vd e th e thl el w th fatse and ndl vLd!ats S ecLrrtymeas!res,suc has! sngpass\ ": _: :
dentfi caton nl mbers, and data ncfyp on,
t het pt o ! - : :
A c y berL e fro rsi st s o me o n e w h on t m d atesorcoercesa aganst i tteqatcompLrte.access.espe.alLywhens! pp: . :
n a d v .fc eh s o r he. pol ti cato.
gov ef nm e notf o fg a n l 2 a ti oto by effecti vecontr.t p.o.ed!.es. P Lrbtckey nt r asl. t . : :
o.l o b 6 .lr .e . o o' o o a o ,1 6 oo^d a.t (P KI enabtes!se.s oi an Lrnsec!rd pLrb t lc
net wor ks! . : .
 r f i;r j' ::d!t'aL ssu.! r i l orn;t.n:.i 3l .msard re nrefl .er
!e' !' l!

th e n l e . nett o s ec Lr r eL a ny dp r v .te l ye x c h .n g ed a tath ' c!qh th.i r consentbel orehendE ach nd !i dual has the r 9 r r tI o
rh e!j e c f a p! bt lcanda p r v a tec ry p tc !ra o hc k e vp a r th : rtLs know and the ab tty to decde P tatformfof P ' l vecvP'ef er
i b ta n e dand 5ha. edt h.o !g h a t.rs l e d a !th o ' tv T h e !s e of er.esl P 3P l sascfeei nql echnol ogvthatsheLds!s eEt r onr
gn" e" W ebstesthal dont prol rdethetevetoip.vacypi ol ecton t hey
.h .fa cl e . s t c s : ! c h asr .l re tn a o rv o l c .p a i l e ' n s a n ol nef
w a yto p r . lec tlm po. t . n td a taa n di n fo .m a to n s v s l ' m s ! ' !s
sca n nng s of iwar e dei t i e s i rn d re mo v e s0 a n a g i n gc onl Principle
p l te r p . og. . lr s . Law e n fo r.e m e n ta g e n c i c s:rme d wth must be
Jobs,equipment. end workingconditions
n e w L eg. Lt c ot s enac t c db y C o .!.e s s n o w ,.l rre tv p L rrsl e
designedto avoidnegativeheattheffects.
Atthoughm os t c om p a ne s L rs ed a l a l l e s fo r i e gti mate
computefshavechafqedthe make!p 01the w ofkr' f'e ano
u sl ti 3 b t epur pos es op p o fl u n te s r0 . n v a 5 i o no r p n vacv evenel l ml ..tadsomel obs.b!t thevhaveatsoexpafd edand
:b o !n d. P . lv ac ys s Les a fe E .o n .e .n w th q o v e rn n -re n tagen en. chedemptoyment 0ppori Lrn t es n manvw .ys Lo r npll
. e s e nr aL ! s e, . o. po .3 to n s , ..d l h e L n te fn e lT h e C h I afs and retai eddevces affect empl ovee. emoton at and
physl catheatth.espeoatty by ca!si nqrepetl ve sl res: nlLr r ) 7
!si n g th e nler netT he P ri l a .v A .t o f 1 9 7 4w th th e s !ppo' t somccf(csbl .mecomp!tf ev5tenrsfo' emssonso{
IR SI
o f o th e rf . der al t aw5 es t.b tE h e ss tra i g h tfo tu :rda fd e a5' tv ozoneand el e.tromaqnet c fadl aton The' e 5 no con ct ! slve
rn d e rs t . f dabt e. eq! . e me i ts fo . d a i a c o tte c 0t n !s e ' n0 di rtaconnectnq cettpl rone!se and .ancef:rrow eve fheavv
q e tu e'as a
d stf b !lion by lc def ata q e i . e s fe d e fa l .w i l s o cetl phone!se.s mayw sh to use handskee phon eset s
l a ti o n wldem or at g! de l .e fo . p rl v a c rv q h ts' n d c l rvt e s bv
a
U secf ceLtphocesw h l e dri vnq hasbeent nkedl ' rn' r 'ased
p r v.te o. g. n z atans Th e u s A P a tri o lAc t. p a s s e d l u sri v
!e e n s alt . t he s ept e mb e fl l te ..o fs i a l ta .k e re q! ' e: The stl dy of desqn ng and post onrngcompul erequ p
.te rn e t s er v ic epr ovde .s a n d te l e p h o n ec o mp a ' e s to tLr" ment. cai l eC ergananE ha. s!qge:ted a ' !mber ot
.!e . c!s t om er nlof m a tL o i ,i c tu d n g n u mb e ' sc a tte dw rth app.caches to red!c ng theseheaLthpfobtemsE rqonom ic
.!i a . o! r t or de. if t i e F B .[a me th a t th e re c o rdsafe desgnpfi ncpteE hetptored!ceharmf!l effects' nd n "ea5e
' " !' systemThesl opeot r ' kev
the eff c e.cy ol an Li fcfmati on
i o 'b .l der t o di5. t . 5et h .L th e F B I s .o n d L r.tn g a n rn v e stl ga' oi dl sptaysc' eens a ndt he
board the posl ti oi i ngand desLgn
t o n . O nLyl m e w t t t et i h o ' .!th s a c t w l L b e ' o p l e d n the pta.ementand desl gn01 computeftabte5and ' ha 's af e
f n ai c at
'rt!.e T he G r am m Le :.h Btte v A c t .e q ! re s ' l t eE sentat l oi good heatth R s preventon i n' L!dskeeplng
n 5 it!L ionst o ! ' ot e. t a f d :e .!re .u s i ' me rs n o n p u D t rc 0ata
5 act t qood postl fe not qnonnq pal n or probi eme part or mng
'ro m !nalt honz edac c e .! o . !s e l J rd e rte ' m s o f th st.et.hLi gai d 5tfenql hen ng exe.. ses and seeknq p'opf
!r a ss! m ed t hat at t c!s to d re rsa p p fo v eo f th e fl n ancal t.eal ment A ttho!qhtheyca. ca!se neqat!e hFaLlh'onse
t c ot t e. lln!a n ds l o r.q l treI p e ' s 0 n a tn f' rmaIr0n
i strl Lrons q!ences ni ofmatl o.l ysl ems.an atsobe !sed to provr de a
So m e s Laless Lr p p L e mejnetd .' a t p .o te c tc n ' a n d I m I w eaLth01i nl ormatan on heatthLopi csthfoLr!hthe I nt ef nel
i h e l r l !fi s d r' t o ns A
t.!a te of qanz at lois a c tv tl e s w th L i
b !s n es ss hout ddev e L oap c te a re n d l h o f0 L rq p h o l c y a o0uI
E l hl cs detefmne generatl vacceptedand d sco ! f aqed
rrva cy . ght s lof . ! s lom e rs . n c t!d n g d :ta b i rs e a " e s sThat actl vt e. w thi na companyand5oci ty at trfge Fth
' aL 'om
!..tl cys ho! LdaLs oadd re 5 sth e frg h tso f e m p to y e e sn c l !di i g pl ter !sers defne a.ceptabl ep.actces rnofe st' clt v I nan
.i e ctr oi c m on t or nq s y .te msa .d e m' I F a fn F " l i i ntor theyaco' onsdef
l u5t rel f3 n ng i fom .ommni ng cfi mes
ma tonu5ef o. pf , v acygr h ts e m p h a s re 5 k n o tl te d qceo nl ' O1 the el fe.tsotthel . S a.t v l i es,i n.tLrdn! nte' nelLrsageon
fo ti ., andc on5' " nt f or p e o Pl ep ro lL e di n d ' ta b a c e s!ndvrd
ol herpeopl eandofqai rzati onsTheA ssoci aion l of Com plt
ra ts s hout dh. lv ek r ow te d g eo f th e d a tath ri s s to fe da b0ut rngMachl nry andtheA ssocati onof Informati on Techno{ogy
i .e m and hv e t he : rbl ty l o c o .fe c l e ' f0 rc n ' o fDo' aIe P rofessooal shavedevetoped gLrrdelne5.nda c' de e$Lcs'
rrta b as es y s t enr si. n fo .ma to n o n i n d i vd !a L sl c to b e !sed 'l
l vl anyl S p.ofessronats l ol n compl tef ' etated :qco calr ons
t.r o therpur pos est he s ei n d i vd L ra ts s h o !tdb e a s k e di o g v
andaqreeto ab de by detatedeth caLc0deg
 r *t " I n ro ..,,o ,s y .' " ' s i nBl sn e $and
so.erJ,

CHAPTER 14: SELF-ASSESSMENT TEST

Policis md proedures nust be established to avoid

conpurer wNte dd mistaks.
c. criminal hacker or cracker
I A ll l\ p o G ,i o a .l ,. n a n a s e ,.." rd u r r. h:' e r re.p.ni
d. social engineer
biliry ro seethat the potenrialconsequences ofIS useare
fullyconsideredand addressed. T.ue o. False? 8. A logicbomb is atypeofTrcjan hds thar de.urs.-.j
2. CompurcFrclated wsre and m;stakesde major .ausesof spe.ifi. .ondnionso..ur. True or lalse?
co-puter p.oblens, .onribuing ro unnecesarilyhigh 9. A progm capableof anachingto disksor other ht* ;t
replioting itself repeatedly, typically wnhour -<
3. The fint stepto pr*ent conpurecrelatedwasre* to, knowledgeot permission,is alled a:
a. esablishpoliciesand procedures regudingefiicient
a.qunition,use,and disposalofsystemsmd doices
b. imp ' .m rrr p o l i .i ., ,n d p ' o c e d u re.ro mi ni mi /e
w*te and nistales according to the busines
10. A(An) - is a modified verion ofa vrus r--:: :
c. monnor routinepracticcsdd rakecorrecdveacron
producedby thevnus'sauthororanotherpenonamec*:g
ifnecessary
the originalviruscode.
d. .eview exisribg policies and pro.edures and
11. Halfthe lossfron softMre pincy .omesfrom Aria -
determinewhetherrheyareadequate -
Computer crime is a serious and apidly gtowing rea of 12. Phishingis a compureiscm rhat seensto direct us::. :
@rcern rquiring mdagement attention. their banks \reb site but actuallycaptureskey pen:z
infornetion abotrri$ victims.True or False?
4. The number of securityproblens repofted to CERT
beseen 2000 dd 2003: Jobs, equiprnent, and mrking conditions nust be desigx
to avoid negative health effects.
a. increased
sixfold
b. decreued50 percenr 13. CTS, or -, is the aggravationof rhepathrs:. r
neres that travel through the wrist.
11. l here h po.i ri veev;den.e threxce* i veu. eof . e JpL.- :
increasesrhe risk ofbrain cancer.True or False?
5. - is rhe fastestand nosr perrui"e worm atnck
15. The stdy ofdesigningand posilioningcompute.e::-
on record,with damages estinaredat $40 b;llon.
menrroi mprorew orker produc,ii'q rndm inim i/ e" : L-
6. - is a cime in which an imposter obrains key
iniuriesn called
piecesofperonal identificationinfornation, suchasSocial
Securityor driver'slicensenumhers,in ordertoimperson-
CHA?TER 14: SELF-ASSESSMENT
TEST ANSWER*(
7. A personwho enjoysconputer technologyand spendstime (1)True(2)costs, profits(3)a (4) a (5)Mydooh (6) Id:::
lerning and usingconputersysrem is calleda: theft (7) b (8) True (9) d (10)varimt (11)True (r2, r.x
rlJ) .arpaltunnel ll4' Ial'er l<) e'eonur,6
'yndrome

KEY TER,MS

program686
antivirus ICRAratingsystem695 managed securityserviceprovrde'
biometrics692 identitytheit
681 tM5SPt695
carpait!nnetsyndrome(CTSI706 insider682 password sniffe.688
c.iminaIhackerlcracked682 Internetsoitwarepiracy689 PLatformfor PrivacyPreferences
cyberterrorrst
680 intrusiondetection
system{ DSI694 lP3Pt701
dumpster divng 680 togicbomb683 pubtickeyinfrastructurelPKll69'
efgonomics 708 matware683 moton disorderlrepeiit.:
repetitive
hacker682 stressinj!ry,RSI)706
 s st u e si i r r r m a t o n l l s r e m s 3 n d l hnet e m e t I
s e. u. it rPf v a. y ,3 n d E t h . a Chaptd 14

682
scriptbunnies Trojanhorse683 vir!s 683
680
socialengineering va.iant684 worm683
softwarepiracy688

REIrIEW SUESTIONS

1. V&at is rhe CAPPS II Prognn 1ild what wa! its PurPose? 10. vt*t arc tlie pena.ltiesfor caPyight in0ingenenr? How
2. Giv two rccenr qamPlc.s of comPuter mbekes cautng can a softwe uer be guilty of this crimei
seriota repercusions. I L ldenri! ar leur fire rips ro iollow to a'oid beoming r
3. Idernifr four broad aaions that car be reken to prevent viclim ofa onputer scam
comDurd westc and mistdkes. 12, Wha! is hiometrils, end how can it b usd to Pro.ecr
4, \i/ r *ar rhe odginal intent of the Hertth lnsurare
Pormbiliryrd A, counrubiliryAci rHItt { r? 13. at ir r}!e differcncc between aniivirus software and an
5. Cive r"o mples of rccent,rEjor @mPU'ercrime,. ift rurion detcdon q,stem?
6, at is e cyben rrorisr? wh*t evidene is there of 14. What is th Children's lmeillet Protection Ac|2
in.rcisld cybfl eirorismafliviry? 15. Vhat is crgorcmiG? How tu it bc apptied ro o6cc
7. at i idntiry rhft?\qhat arioirs.1t you t4keto rcdtce
the likelihood that you will be a vicrim of this crinc? 16, What 6peci0cactions crn you ele to avoid RSI?
8. \trlnr is a virus? at is aworm? How ue rhcy different? 17. I?lat is a code ofethics? Give an rmple
9. Ouiline measures /ou should take ro Protect vourself
.again$ virurcs ad .]\,orms

DISCUSSION SUESTIONS

How doesthe CAN-SPAM Act alTectthosewho sendout 7. Inagine that you are t nanager in a snall busines orga-
spam?How nighr ir aflect rhosewho receivespam? nizaiion.ldenri!, rhreegoodreuonswhy your firn should
Oudine o approach,includingspeciffctechniques(e.s , hi ,edM\st.M)ourhi nkofanl eron' uhy th i. m av
dunpster diving, phishins, social engineering) rhat vou
codJ employto gain pesonaldataabourthe membersof Cornpare and conaast the use of rhe ICRA rating svsten
and Internet 6lten for protecting ninors fron viewing
Idenrifi and describe the differenr clases of computer inappropriate material on the Inierne!
criminals. wlrat do you think notivates each? 9. Duiing-2002, a nunber of corpomtionswere forced to
Imagine that you are a hacker and havedweloped a Trojo resate earningsbecauserhey had used unerhical accounr-
hone prcgram. V/hat ractic night you use to get unsur ine eracrices.Briefly discussthc eftenr to which you ihink
pectingvictimsto load the progrmonto then conPurert rhit tr*. p-ble-' **" causedby a failure in the firn's
Yourmarkeringdepannenthas justopeneda website ard accountinq infornation systems.
is rcquesdngvisiton m registerar the site m entera pro- 10 Usins infornation presented ihis chapteron fede'al Pri-
'n federal law regulates tie
vacy legislation, identifr which
mo r ionr lonr eq " h e re rh ec h m.e ro fw i n n :n ga p i ze ate
betterrhanone in three.Visiron nut providethe infor following aret and siiuadons: cros-checking lRs md
madon necessaryto contaci then plus fill our a briefsutev S oc' al5e,ui t nre' ,o veri t rherc.uraq ofi nl ormlion
about the use of your company\ products. what data custoner liability for debit cards, individuals' righi ro
privacy issuesnay arise? aeessdau contained in federalagencyfil*' rhe IRS obtan-
Briefly discussrhe potential for cybenerorisn to ause a ing personalinfornation, rhe governmnt obtaining find-
major disruption in our deily life wlrat te sone likelv ciat records,md enployen' ac@ssto universig' trunscrrpts
targen of a cybenerorist? What son of acrion couto a I I . Briefly discus the dillerence beween acdng noniiy and
c,vbenerroristtaLe againstthesetdgets? acring legaily. Give an exmple of acting legally and v*
PROBLEM-SOLVING EXER,CISES

Acccssdrc Wcb sitc of orc oI dre ddvirus soiiware rhevi rusdaraforrhcprsrfcw vcar. Thencut andpa, ::.,
providers.Getstrtisd.son rhe nuhbs ofvirusts and rheir graphfrom cxerciseI ilm roff repoit.
. , ^r ir o. . r { , .r' 1 ,: ' , r,.1 ,' l --r,rfl -,..,nu' ,ne J. Ji Jfi ,| .| ,o rl . \.hr* r.,,l rhefu\, (.!
'h ":
, r ) ^u . p, .J J .h \' .l l a " . t ,,,, W.b sne you .hose in exercnel Sharevour repor: -:
' th ' h .
Using vour wor.l processingmtirvare,write a faw brer Lcqucsrm cstrmrc of the nunbs of viturs fi,r th. ,
paragrephs surnnarizingthe tenJs vou seefron revrewrng

TEAM ACTIVITIES

1. Visit your local library and intenis thc librarims about 2. Have ech rneober of,vour tean {ces ter diffelenr $
rheir experiencewirh dre usc oflnrernet fi]ter. \vllrt soft- anJ ,JIMJ,ve thor l l ndi ns.i n ,em,' of , heev. r . : -i
si re5
ware is uscd?who is iesponsible for qpdatidg the llst of ofdata privacl policy statemenrs:Did the site havesuc :
sitesolT limits io hinors? vtar l*el 3nd kinds of com, policy? \(u it easy to nnd? wd ir compleie dd er.. :
plaints are hade about the usedf rhn technolog).?Do some underrand? Did 1ou find oy siresusing rhe PiP $ndi-!
parons insist ihat the filter should be rehoved? OveBll, or ICRA rating nethod?
what is the libarian's opinion ofthe ue oflnterner lilters?
Vrite a brief papersunnriz;ng ihe inrdis.

WEB EXERCISES

l Searchthe \{'eb fo a site thr pnrides soft$areio delecr 3 . !.chclor is a top sccrcteiecrroric eav*dropping ',, ,
and tenove spvware.\\rrite a shoit repon fbr vour nanagcd bv thc U.S. Nrtional SecuritrAgen.r tr:
insructor sumnrarizlnglour tirdings. caprb)eof interceptnrgand decypting almost :r', . .
). Do research on lhe \(eb ro fird evidcnccofu incrcs or donic nrssxgesrnr anlvhe. in the world. Ii mI -: ,
decremein the amount of spam.To wh.r is rhc chans. bern in oprntn,n aseatlyar the 1970s.bur i! *dn r ,
anriburedi Wire a bLief nemo ro your iNrrucror LheI 990sthdrjournjlis$ wereableto confirm its exrr. ,
dr " , liI ng ' o u ,' o , r.e ..rd ,,m n r :, n B\o* rdi .,g. rnd gtn nright into ns dpabilities. Ilo \feb resea:r
find ort nore about this systehand ns capabilirie\.\ - ,
a pxngiaph or tso amtuarizingyour findings.

CAREER, EXER,CISES

L Conprftr fornsics is r relatively nes bur g.owing Ueld, duction ofrecoverede-mil mcsagcsand othcr clccrr
wh;ch inrclves the rlisc,vcr,v ofompurerrelared 4idence ,,| e .I dr..ord..I ornpur.rrorcr.i -rool, r r , dn'e'r . r
rlJJlr.l,e l- r l; , n . "r r t ler * r J er . e . t o . e . i r g usedqrcNivclv by l.w cnforccncnr,nilitxry. inrelli!.-.:
p<xoc,ls. fts ffndlngs rray be presenredin a courr oflaw. agcncics, ard busnrcsscs.
Do reserch to identila drr c:.:,
Casesinvohingrradesec.ers, con mercial d isputes.enrploy' ricDccand rrainiDglccesan to becone r cenifierl.
n,r, Jr.rr m r n, r , . n. T, , len, r o r 1J l ; o r l ne.. puter forensicsspccialisr.Y/ould you consider$r :. .
'
aid pss,nal injurv ca. be won or lostsolelywith rhe int.o- posible careerficld?why orwhy not?
 i :! I rtonr.:.r:y.r:rtri i i :ri r nsrr' J C h'pte' 14
5e!r fr ":' ! Ji Lj::
"

\ ' : c "' rnd opcratior of thisvcb snc. How would vou coni]rn
\ nJ, rlkc ' n g o F, , '. ior " N r h' Fh nc \
Vr L liJ in connrnrncc rvith allofdreni
r ' ' ,' r' o' r,'lcr' rl .lr' or I lir r ' o' ^J r r ! '
ofthc l.ws res a N thrl mighr aPpll to rlre d'$gn
'"d

VIDEO QUESTIONS

Boonc6' dd iom you driv.r's li.cnse' .long wiih '

V/atch lhe video clip Controversial Digital
6c.6r sccu v uk? \vhY or wh,vftn?
r.$f.r rhescau.strcdsi
2. Are rhercany l.ws thrt tcstricra dub fton d--
llibuiins rhe inlbrmrrion it collccc rbout vou to
estrblnhment
1. \fould vou be comfonablc rvnh a busines
aboui 1ou
coll.cting u<l storing idonibidg inftrmrrion

depLoyed C ambi i dgeMassach!setts-based 0stakeunveLt ed

Casc one A natvzer
rtsS martR l sk in Mav2004 Thi snrodeti andan at _
nq
Workingto Reducthe Number of softwate yss l ool scans.omp!te. code w ntten l n the C C + + ';nd
/ o_
Vutnerabitities o\..onq.oq6 to l d^. no otdood 'Lr!|
D Oo t" o( ""
esl s the - o." i .,.,q
Exploitng p.ogramnrns Itaws lcalted vul'erablli?i use! a pfoces5caLted s/rl ra,atsrs w h chatl ow devt0per
s s
g a rn a c c e s sto h e tw o rk s
o. i ma rvme" ns lv wn. l h a c k e rc to denl l fyand eti mi ate probtems as thev are w nr nq Ine
on s to d a v Ex a m p l e o
s f c o mmo nl v q'
c o mp ri e rs and , appt r c at
cD de Ths proect' re appfoach s opposedto
o v e r{ to w rn
E v a L rd a ted ' arr eo
. x p l o te dvLr t n. abit Ltnc ie 5l L rd be L rl { ' dvnamc anatyss toots.w hi ch !rseautomatednp!t
testsr o
b ro k e n a c c e s sc o i tro L
o.;a me ter sf or m ais t . ng r' o rE a n d meas!rethe responseof fl nl shedapplcati onE
The S ma
tti e s i n c re a s e rf'
d m l7l n
T h en !mb e r of . epor t edv u t.e ra b R i E kA naLyzer produ.lcompares b narv code l the zefosa nd
to C a rfl e g l e -M e l i s
' n C ER T
199 5to 3 78r i n 2003,ac co rdn g ofesthatarel hefo{rndati onol attcompLtef Languages lt 0sn
n g ty th e re h a c b e en a
C oo rd l .a t ionCent er Not s u rp n ! l dsl akecl atabaseof aboLrt 400 secLrfl and
tv code retra blt lt v
dfa ma ti cn c . eas ein lhe nu mb e ro f s e c !' ty b fe a ' h ' s i hat t st {Law sby tvpe o' ra ik
be .!l es l t can gene.-te.eports
So ftw ar edev eLoperasn d th e r c u s to m e rss e e m to them by sevefi ty.A remedatl on mod!te mafks
err0neo! s
o l c o s ti yd e v e to p m e n t a n d d e p to v
5iL rckn a i endles sc v c Le .ode .nd s!qqest5says to l t/ .odl ' g m 5tdl ' es
b y th e fe te a s eo i p a i c n e s10
m e n to l fa! Lt ys of t war ef otto w e d n A D, ' a 0 -, " pop",
t x n e w l vd s c ov er ed v ! lie.a b i tl ti c sa n d th e n s c ra mb trrgov , o!fceC odeA natvel sa su t of softw arep'od
th at ducedFo.l l fl S
u se r . t o ns t at lt he p a tc h e sl d e a l i vIa s t e n o u g h uctsthattei scompani es compareC + +andJavacodeto a t isi
"n A
cra cke f5d o nott ak eadv a n l a goet In e m of mofethan50l ]v!l ne.abi ti tLes pubti shed bvsoftw arequalt v
Ze ro - d: y at t ac k sar eh a c k e ra tta c kth s a tta k ea d v a n taqe ThesLri teaLso nct!desacapa
ma K e rsc a f management.ompanyC rqtat
0 1o fo o r.m m inqv ut ner a bi ti e s b e fo ' e tt!' ra fe
s o
bi l l tythatstLowpfols ecttesteE and q{ratl ty
as5!ran' el esm s
, .r.n ti v them 3nd dev et o pp a tc h e Eto c a fre c tth e ' n F o ftu LncLLr0rigs m!
l o tesl the softw afei !st be{ ore depl ovri eai
b !t
. ate l y th ef ehav ent y et be e n a n y n ' ra l o rz e ro _ d a v a tts c ks tatnq a hackefusi ngeveryk ck i n tl re book to c0mprom r se
ma L l ci o!hac s k ef sa. e qe ttn g b e i i e ra n d i a s te fa t e x p to rl rng i nerpensi veA 25' pe r son
the ;ofi w are l he soi tw ares not
o n eo f th e mn ' i v ru L ent
f ta w s5 !m m ef 20035 B La s i e rw o ' m . ofoi ecti e:m usi n!lthe secufi l )7 ptattofmw o!td pav3f'! nd
b a re tv a mo n th a fte'
a n d w d e s p. eadev ef ,hil th e In te rn e t $l S ' 0.OOo pLusan annual $1000 subscri ptl onto getthe i at est
M cfo so l tr et eas ed a pat c hl o ' th e s o ftw a retl a w I e x p t0 treo
.Lrleswhen they come .lLrr
n co n t.3s t J, anLr ar200 y 35 S O LS l a mme rw o | rn to o k e ghl U nti kemanuaiaudi t5and code ' evrew sthar are I
me
w a s n r sl
mo n th 5to appeafaf t ert h e v u L n e ra b l l l ttyi a rg e te d consl mnq and l mted Ln scope, an al tomated app'oacn
T heieadt im e f o r !s e | 5 to a p p l y fi x e s s s h r n k l nq sotl w'r e
dl scL o s ed. acceterates s l i i vto del ver secLrre
l he i ndu5l .)/'abi
Fo rt! r at et yt,her e r s : s ma tl b u t g ' o w L n g
q r' !p 0r son checks w hen eve'
S ol tw aredveLopers now can fLrn se' !' l l y
wa fe ve ndor coff e. ingt oo L sd e s i g n e to d h e tp c o mp a n e srd en the code base as I nev
theyw ant-ard aqai nsta5 ml ch of
s ta g ea n dt'
lL fva n dfix f laws n t he ap p L i c a i i odne v e L o p m e n L
th e a p p trc a ti afe
o ns
e l i mn a tes of t war ev uLne raubtl e sb e fo re
 4 W hai measl rescan a softw arebuyert aket o e. s' ' '
Dis c us s ioonu e s ti o n s
codeol a s ot t w. r e p': '':
quatty ol the Lrndertyi ng
L W hy s th e re .o n c e fn o v e . th e s h .i n kn g t me betw een a.d Lnsta{ ti ith?
g s olt war e'
befo.epu.cha5l nq
dent lrc a t o i o f a s o ftw a fev !L .e .a bi rya ndthe ta!ndr 0t
an at t a c ke rp tot n g th a tv L rtn e ratibty ?
dooa S OU R C E S :P autR obeds.'S ecufecodnqA l i rac s r l nv es tF_
i teifes
I I o d6 o ao6
a puteNottd May24 2AA! wwcanPLtetuadd can Jaklnat\ );': '
lt : t lc a n a l y ss o l e f d y n a r c a n a tv s ? Why do soi tw a' e tit! Laun.he3 Toots tor seclritv TenLnq dudnq App oele ::
c;ntuteruo d,Aettl5 2oa4 M rchputeTD.td.catn ) n\tas\{ - '
dev et o p e rs e mP to yb o thm e i h o d s ?
Approa.hroFodryYoufSorrware,E Se.D.itlPl.net Aptl5 zat! " '

T Sddna. GrownqThreat Conputetuarld Derenhet11

Cr it ic al hi n k i n g0 u e s ti o n s
ja c to rsn q h t.a !s e a s o ttw rfev endorr' ::" J
3. W hat 'e
t he q! a tty o f th ' L ri d e rtjnr q c o d eo i i i s p' oducts?

case Two senstl ve nl orffi at.nat.sk C 0s!^rorr vt hat nadi :

dow ntoad nqdataonW ebs!rfi nqacl vtv . spywa. eF- : :
EewareSpyware! may capt!fe !sef l og n and passw ordn f of m at r oi. :
benl qnadw afe proq.am may p.ov de a.omm ! n . . r : :
A d\ \ , af es a n ys o l t!\' a re t n n w h .h :dve 5 nq ban_
a p p tl .a o '_:
w ay that co!td be hi j ackedfo. Lrptoad ng m of e f ; ' :
nef 5a. e d s p t.y e d ,rh i teth e p ro g .!m s fL r nnng i hF aLri hors
!ers rne sol tw areor sendl ngsenst ve datato compet lt o. s
of t hes eap p Lc a tl o n sn c L L rd e I o n a tc o de| r:t
a d d
p o p -!p $ ri ndow' el
orth'
s ough U nfortunatetythe c!f.ent genefato n oJ an1! '- : -
ads .wh c h c a nb e!l e w e dth .o !q h
s c .e e n The devetoFe' ol fLrew attsoftw aredoesnotc0ntrotornar et mspv'r : _r :
a ba. lhat a p p e a rso n a c o mp u l e f 1:'.:
:d v e rt s i n gi e e b ased cn how many tvel y. ndeed,mos(Lrsersarenl even aw! . eihalr r r e\
t he appt c a to n ,s p :l d a n
hetpsrecovfthe !ni Lti heyel a.tnol c nq stod svst empe. f . 'r : _: -
Lni ecl ed
! s s 15v ew th e a d sT h 5 a d d rlo n a tp a v m e nt
c o s tand hotddow ni he odd .ompute.behavcr 0nce a E ystems inf ecled. : '
a! t hor s p .o g fa mmn q d e l e to p me n t svsl. _
ontyw ayto.emove the p.obl em s l o reb uLdihe
scrat.h,a ted ousandt me cons!m nq p. oces5
B lt ad w a .c a n n .tu d el d d L i o n act o decattedspl ' rare
a "p " do" '
on t o t h f d p a .t e s . w th o l t th e L s e r5 e xploI " ns_anl or 0uesti ons
D i scussi on
k no( t edq eA l th o !g hs p y l v a res n 0 t tte g at,cornp!l e'se' ! I A nLrmbe. of softw .reappt,cat on5a. e av: LabLe :: ''
f iiy and p fi v a c ya d l o c a te s n .t!d rg tn e Etectron c P ' vacv [rareto hel pconp!ter !sers sear.hr of and r 'm : : :
lnf o. m . t . r C e n te r.d e n o !n .e l s u e e T h ei rcoqcefn sw th pectedspyw a.eprogfams s l i possLblet hat a pL' : :
t he ! s es o f th e rl o rm a tl o n L f.t a d wa.e ai d spvw are spyw a.eco!l d att.act!ns!spectnq u5e. Eby pr : _ : :
p. ov ' def .cs L te cat n dth e t. c k o f c o .tro tl s e rs have ol e' w hat l.ee spywaref en'rovatsolt!'rafe?
t hos epr o ,rd e rs fe e d th e m. 2 D oa W ebsearchon spyw areandLdent f yspec 1c: : :
S py w a rea n da d w a reb o tl re n te ra c 0 m p!tersvsi emw nen recommended andremov espywa. F
to l dent,ty
a ! s e. op e n sa n a tta c h m e not . c tl c k so n a w eb pagei hrt
at lo! 6 a p fo g .a n rl o b e e N e c l i e do n th e systemrl !hoLt tl re C ri ti catThi nki ngou.sti ons
Lr s e.s k n o w te d g eB o thm a k es m i ta rmo df cat onsto a svs
q" o4 do|ea e ar ddl o 3 Y o! a.e shorton i unds andakenda pFr oachesL:
o'l
an cppori Lrn ty l o w o.k for a compa nvcr eat ing! r : :
s er vc es a n drn s ta Lntg a n de x e .u tn q a p p t.at ons Th s p' o
fofspyw are dow ntaad5. H e hasben. ece! r n!cr : : '
s e i .a c k .g a n d s e ndn! of data and
c es s ! s ! a tty l n v o L v eth
rhl sl vD .keve.ycouptew eeks i \4ake
ol a t st of t r ': : " '
s t als t . s v i aa s e rv fL n s t.tte o d n th e L rse.5P C endl he l se
and p.!:cy factors you w ol td .o nsde. rn :!:: :
c l lhe ! se r s l n te fn e tc o rn e c tl o nn l h e backg' o!nd E ven I y
l rhetherof not to take on 1n s opp0f lLr n
t ho! qht h e n a mem a yi n d l c a tel t, s p v w a fei s not ttegatH ow -
4. W o!l dyoutakea i ob hetpng compa nes t o dowr L': : ':
ev ef , ltr a s e sc e .t:i np rl v a c ys s !e s T h es p vw aremav ncl Lrde
w .fe? W hyo. w hYnot?
s ! r v elt LEn cpe.o q ra m s k e y to g g e .s fe m oi e .ontfot toots
and lr oia n h o Ee : l h a t r!n n th e b a c kgr.!ndw th' Lrt the
us ef s k n o w l e C g ed o w fto a drg n fo fm a t l onon W eb' surrng
ac tv t es a n du p to E dfl g .d v e rts n q n th e backgr' !ndl 0r Lrse

. t , ! tty o rg a nz :t o n sv l e w e is p \rw areas n!rsai ceInaI

'
was bes t h a rd l e db y d e s k i o ps L rp p o d g fol ps. B ut the kev
: s ! e s n t s y s te mo e rfo fma .c el rf p .o d !c trvtv s.pp nS pop
Lps t s th e u fe a s yfe e tn gth a rth e s ep ra gran' rs haveope' ed
an una! th o rre d .o m rn !n .:t o . .h a n net that co!Ld pLri
 svsremsafd rhe rnrerner
Se.uaiy Prya.y, aid Eth cal lseles in lnrormat'n

D e.sonatl nformati thaton cyberstaLkers mi ghtfl ad usetL rI n

t
Thxee s
t thei .vi cti msA cvberstal kertrue i denti can
tY
i he pursLriof
provderso'
Cfberetatking be ;onceatedby usi nqd ffe.entl nternetservi ce
bvadootlqf di f efentscreennamesl ' /ofe devi orrs cyberstat k'
and are
unfortunately,statkershavediscoveredthe Intefnei e.s m" y empl oyanonvmousremarLe' s maki no t atl b ut
to e x e i c o n i ro o
t v e'
! s n g t a s snot herm eanst h ro u g hw h i c h to determi nethe i ' !e deni tv
mprrssi bl e 0r
u s e o f e m a t me s-
ei ;i cti m s . Cy ber s iat k i ni ngc L L rd th
e E
g e b o a .ds ,ns t antm es s a g rfgW e bs i te s c h a t fo o m ' -and
Feetno bol d i n the I ctoak of anonvmty cvbersi atKer s
c om m uni c aot n me th o d sto s ta L kc o m e o n e
t h e r e te c t r onic nct ude
mav send unsotci tede ma l messages w hchcan
I t is a n a to qous t o phv s ic asl ta tk i n gi n th a t L t i rc o ' p o ra te s orthreatenl ng content They may c reate ne ws
a n d .l e ar' hate,obscene
persi ste n tbehav ior st hat i n s tL t a p p re h e n s o f qfoup of messageboardpostngs abo!rt the Mchm 0r sr ar
e rsta tk ingm ay be a pre c u rs o lro m o re s e rl o u sa c tl o ns vi ci m s pe' sona ont r ne
i u.ors rnev mi v eve" ass!me the
P hy sc at v iolence
in cl u d i n q o{ suLtvi i
ng he vl ctims
a c fi m e i n m a n yp ta c es' i sucl asi ncLtro" ml r" rthepu' pose
Cyl e rs t at llngis nowc o n s i d e ' e d re!!rtati anposinq detarts actuaL
l \dhel herf orl aLsel about t he
o ' c o u n try0 n e
anda s a cr im e,it s def lnt io nv a r e s b y to c a te * tl nq un* untedcontacts { rom othe' s l n addi
l 5 " th e
. v r " *, a tk i n g l ro m a re c e n ts tu d l ? " i l i nl onti"ne "
a ha.assment i he vrd! m
ton, mav ncl ude serdi nq
". "r"i
e dae"tl " " r"h"
" , 'eor r F ma i o -' " a te d d rg ' rr' l e L
o uc 'r" e coni puterv rusesor eLect.onil unk c mai Ll spammi ngl
;n i c co m m unic at iondevi c e sto a n n o va ta fm o f th re a te na

ll',ljiiiii'"
%ijJ;::j:;:"j':i;'i""J o'*'*'oo, Di5cussionQueslions
a cv0e-
Sa fe i yEd i e y c e N ea sma nv
e s tl ma te th ath
, Cy ber A nge ts
and fe 1 D o vou know anvonew ho has beena vrctrm0l
s i denti i w
J, hatwas
as 400 .equests lor hetp each week f'om ryberstatkng vrc stai ker?W tho!t feveati the
ng P erson
TheUS th:t 0ercons expefi ence?
, ' -.,".* "." r nr " m O O O , ep o rte d c a s e s e a c h y e a r
De o a rtm ent th a t th e re
ot J us tc e es t i m a te g ma y b e a s m a nY 2. \4hai do you think motivatesa cvberstatkei?
onlinev ic tr is e a c hv e a ' W h i te 9 0 p e r' e n t o l th e
a s4 7 5 .0 00
c y b e rs ta lE
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Verton Dan,"EuropeBaltte5Ins'derc EUCybef
Turned-llackers,
.ap Say., CanputeTortd,july 31, ?003,accessedat w@com 33. t , " . , . o . . . ,cc o r 4 o P a gd :cl "q c d _ . -
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p. reaold dro. l t. 200
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Cra.ks Downoi ntefnetFraud
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21 Legard Davd, MicrosoflOrrers$250000 Rewardin MvDoomB B u t S e e sL i m t e dl m p a c ft o r A d u l t s t h e A me r i ca n cvL L :: -
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48 T e n o . , o " ! o - o a . t d ^ , ( " . " q " . d , o d"s
2 2. Rosencrance Linda "R AA Ste olf_Line,vrus Btamed Comp,l_ secrian 231, at.essed at http,//.asetawlp tindtaw can a'
eNarld, Match23,2AA4, a.ce..ed a\ w|| canputeMorto.an _
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NewsFactar Netwark t ay 2a Z|AL, accessed :r w,tr March7 2003accessed at trry conpLterwarldt.n
51. F o b e s P a u l , M d h e g aSn u nw o n l C a m bl eo n n sd e r T- "
25 Roberrs,Paur New Bagetu A \io5 at Few Wotds canputer' lDc News Setoire, Apr l 3A,200t,,accessedat w. conp t + - :
world, Matcn 26,2AAt!,accessedat wwcanputetuattd cam _
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lhe f S l f p s C d - p r r 52 V e r l o n , O a"nS e n a t e V o t e 6 t o K t l F u n d 5 l o r An l i te r r o r D 3 t3
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27 . Brewn Bob, 'Worldpo Hetp oesk Hetps Prevenl V rus
Aracks, cbnputeMortd,Apt| 19 2nnA,accessed at wcon' can/abautos/tna.' '
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24. Cohen,Petef Macs and vtruses-Afe user5 as sate as They at, BeEsren, Bran 'sevenStale nfo Slore15a PolentRepo: : :
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PersonalData thlarnalianweek,January23.2004,accessedal
"CetLPhoneFacis,consumerInformationon WirelessPhones
w. infot n aIion week.cam.
57 ''TheChildrens OntinePrlvacyProteclionAcl," EtectronicPrv6ry p ovdeobylhe Eeoera o aun(!t on( comruni(a_
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2444. celtphones/qa.htnl(22 accessed0n october 16,2004
58. Sullivan,Brian,"!pdal, EBay,AmazonHit wth Complainrs
lrom
PtwcyGtoups, CanputeNa d, APr122,2A$,acce5sed ar ww.
Etfortsto BuitdE-Government
and an lnformationSocitv
inHungary

C o mmu nc :t on betw eencrtrzens and thei r gove.nmenthas atw aysbeenan im por ia- :
g o a t S ta te:g enci esand i nsti tutons m!st ens!fe openaccessi o document and s t or - :
a n dp .o vd e l nl ofmaton aboutprograms, servi ces,
andpoti ci es. Thi s;nl ormaon t m ! st c:
ti m e ty ,a c c !.ate,compl eteandupdatedreg!tartyandhastobef.eetyand m m eda( e,
a v a i ta b L M
e o defncomm!ni cati on technotogy andthea ppl c:t on of nternetser vcesc.
s u p p o rls u c hgovefnmeftateffo.ts and hetpestabl she government and an lnlor m ar . -
s o c i e l yT
. h e seefi ortsare evenmo.e i mportantn the former C ommunrst c olnt r e5 -
Ea s te fnE !ro pe,w hefethe . t zen to-gove.nmenl communcatl onhad to be . ebuit ta. l
th e g o v e rn m ents haveh;ghe.obl gatl onsto l osethe i nfarmati on gap.Thesecounifa:
a ts o h a v eto pfonrotel he use of hi gh-i echsoLutonsto hetp bri dqethe " inf or m at . -
d v i d e , k e e p pacew i th the .est of i he w orLd,and start to bl i l d the fol nda t ionsol r i.

A fl r ti v ingunde.S ovet nftuencefor 40 years H !nga.yhadthe fi rsi free m ult ipar i-

p a rti a m e n t ary etecti onsIn A pri t 1990.The new N ati onalA ssembti es and the coat ir . -
g o v e fn m e n ts l ormedafterthe etectonscomni i ttedthemsetves to the estabts hm enta. :
s ta bti z a tl o nol the potti cat,economi c, and tegatfo!ndati onsb.oughtaboLrbi y t he sys
te m c c h a n g eThefew as-andsti ttl s a tot to do,buti he qaprs nar.ow i ng,as shown: .
th e s p re a do f tetecommunl cati ons technotogy U n on (E U 1l
i n the E uropean

peopl el
P honet nesl per1,000
1990 l 9t5 2402
USA 550 630
E! 422 4?2 51:6

Be fo .ethechanges, comm!ni cati on w as underpoti catcontrot l n an el f or tt o avo:

f.e e d i s s e mn ati onof l nformal i onand makesu.e i i ctosel yfol tow edthe offl clalview A:
H u n g a rys ta ri edi o movetow ardthe W este.nw orl d and a free markeieconom y, cor
mu n i c a ti o n -phone ti nesandntefnetcoi necti ons-became JocaL poi ntsforde vet opm e. r
B y 1 9 9 7 a, v a sl maj ori l yof the prevoustystate-ow ned compani es and asseishad bee-
p ri v a i i z eadndw ere soLdto l nternati onatnvestorsthat competed for l he businesses.
T h eH u n q ari an qovernmeni w as oneoi the eartyadoptersof nternetconr m unlcal c-
a n d s o tu ti o n s.n 1991,t esrabl shedthe Inl erD epartmentat C ommi tteeof lif o. m ar r cs
a n dth e C o o fdi naton Offi ceat the P . me Mi ni sters0l l ce.Thesetw o offi cesc oor dinat e.
o ffi c i a te ffo rts for and betw eendepartmentsand agenci es.n 1995,the gove. im e":
p u b ti s h e a d S trategytor nformati cs, w h ch tai dout countryw l de comri l uni c at ion
ef f of t s
ln 1999 the governmentprbli.hed \he Hunga.ianReplyto the Challengesol the lnfor-
n a ti o n S o c i ety,w hcl di scussed the technoLogi cat background and requi re m enls of a-
l n fo rma to n basedsocety. H unqaryatsoj o ned N A To n i 999, w hi chw as a m ajt r ac,
k n o w te d g m ent of l he country' seffortsto rebui l dts potl ti calsystemand esl .b t isha f . e:
s o ce ty .T h e ni n 2001 theE u.opeanC ommi ssi onpubl shedl heeE urope+Act ionPI an-
c o n j u n c ti o n w i th
C entral andE astE !ropeancountri es.The goatofthi sptanwast oJost e.
th e d e v e l o p ment of an i nl ormati onsocety i n i he countresthat w ere j oi nlngt he ELI
i n c tu d i n gH ungary. Thatsameyear,the pri memi n sl er' sofl ce Launched l ung a. y s f ir sr
e -gov er nm ent por ta l ,e K o rm a n y z a t.hpuro , v i d i n gci i i zensand busi nesses w i th a user-
fri e ndlyent r y poin t l o g o v e fn me n ti n fo rma l i o nand srvi ces.In 2002, the l 4j ni stry
s C o mmu n i c a tl o nt sH M I w a s c reated3nd assumedresponsi bi l i ty
o f nf or r nailc and for
d e v et oom ent s o c i e tvh o m th e o ff ce of the Gove.nment.
of t he i n fo rm a ti o n To estabtsh
w i d erinv ot v em enth t, e l n te rmn i s te ri aCt o m m i tte e o n nformati on S oci etyw 3sformedto
co or dinat e pr oqr a msw i th p ro fe s s ro n aoL.g a n i z a ti ons, busnesses,and economi cparl _
n e r s .T he nier m in l s te ri aCto m m i tte ae L s oo v e rs e es the formaton andannLrat renew al of
Hungarianinformationsocierystategy lhttp://english.itktb.hu/Engine.asplt. A. al May 1,
2 0 04,Nungar ybec a mea fu ttm e m b e ro f th e EU .R e centstati sti cs on IntefnetusageE hol ' r
th e gr owt hof H! ng a ry ' si n fo rma ti o sn o c l e tyl,n c o mpari son w i th the U ni tedS tatesand
the EU overatti

NLm be. ofl. t er nerL s e rsl p e rr,0 0 0p e o p re l \L n b erol l nterret hostsl pe- 1.000
peopte)
1992 1997 2002 1997 2002
USA l8 150 538 USA 56 382
EU 3 56 2A1 EU 12 t!0
1 19 158 Fungary 320

T he Hungar ia gn o v e rn me nat l s oe s ta b l i s h esde veratpfogramsi o promotethe ot

' rse
co m p! t er sandc r e a te do p p o ri u n iei s fo rc ti z e n s to!sethemi n educati on andi n everyday
tfe. Higher educ a ti oi n s ti tu to n s w e re a m o n g th fi rstto obtai nhl gh speedInternetac-
ce s s and
, it s oonbe c a mei u L l yn te g ra l e dl n toth e E u .opean academi comm!ni
c ty A t thi s
ti me,aLtHunga. ia sn c h o o tsh .v e In te rn ect o n n e c tions. S i udntsandi eache.sl rnpfi mary
high s c h o o t,c o L te g ea,n d c o n ti n u i n qe d ucati onlget i ax reU elw hen buyi ng
e d Lr c at lon,
co f lr put er sdigit
, at d e v i c easn, ds o l tw a reT. h eS U Ln e t {schoot' netl program3ts0s' rpp0ds
re s ear c h.c ont er e n c easn d E m i n a rsd, e v e to p e fs, contentpfovi ders,and sma| t ctass
roor.s. The tottowng siatisl cs showthe growth of PC !sage overa decade,

Nuhber ol PC5lper 1,000peoptel

1992 1997 2002
U5A 218 149 659
EU 97 191 310
1? 58 108

T helnt er netEb e c o mn g ri o re a n dm o res v .i ta b Le as a comm!ni i yseryi ce al t overthe

P
co unt r y . os tof f ice s E
, c h o o l b
s , u s s ta ti o n sc, h u rc hes, hospi ti
tats, bfafi es,
and a netw ork
o f com m unit y c eni e rso fl e r a c c e s sfo rfre e o rfo r a l tat rai e H ungari ans even i nventeda
s y m b o tto d e n ti fyIn ternet access poi ntsand recommended

@
tra ilics ignc ont anl n ga n @

" E - qov e. nm e ni st n o t o L dg o v e rn m e n p t tu sth e InternelE -government s the useol

n ew t ec hnot oglet s
o tra n s fo rm Eu ro p e
5 p u b ti ca d m i nl strati and
ons to i mprove radi cattv
th e wdv lf ev wo .^ w i l h .n e i - c J s to me s . o e I_ey ci l i rens, enl e-p-ses o' othe-
F
a dm inis t r at ions .u .i h e rmo ree, -g o v rn m e ni s
t n o wa keyveh ctefor the mptemenl .l i on
a nd ac hiev em en i o f h i g h e rp o L i c y
o b j e c ti v e s s
,"ta tes the C ommi ss
on of the E uropean
224 p ! r .t b | /o o ,".
""

Discussion
0ueslions
1. Whyis it imponent
for governmentsto introduce andappLy high-tech
sotltionsto
promote progr.ms, andpoticies?
services,
2. Whatleatures3rlmplementedin yo!r stateor tocalgovernment
s Webportat?

CriticatThinkingQuestions
3. Howctsnaccessto information
transfofnra socLety?
4. Besides
e-qovernment efforts,
whatareoihefetments ofaninform.tlon
socety?
a..ePd.e tstin8 Corducting ol rests lpplietior softFrc Progms thar produrd by rhefinancjalM1s re
help usensolrcprticulJ @mpu.nrg

a@untingMIS ,Aninbnatior t6ren .uemld d.ding hdse { cH) A

rhat providesaggregrteinfornadon on uitlncticlosic unit (AIU) Poftion of suE, princ nevork fi{ connecb iI
.@uns palablei accouns receiKbl, Ihe CPU that pcdortu hathemarical U.S.iinr.i:i insnutionsro on.rnother
patroll, dd mmt oihd rppli.arions. al.uhtiotr and mLs logical by vay of the FederalReseeeBord or

.c@unting rysEnr Sysctu rhat

irclude brdgd, rounts reanabh, AIIANET Prcjd nftd br the U.s brLlore One ofthe Indnfr! high
payoll, set namsenenr,$d gcndd Deparmenrof Dddre (DoD) in 196, speed,
long-dinmc.ommunicarions
s both an dpdinenr in reliable
ncNorkinganda meansto InrkDoDdd
uoonB patabl sFtm S)iten rh{ hilnrt, Be2rch contra(o6,in.ludinga ha.tretrd ctainils the proces of
incrdsd an oiniarion s condolorq LrBenumberoaunivesnies doing nfing rYith @nclLdonsdd workidg
pur.haing,introres cashflow,in.reass mirnarytundedresearch ba.krErdto thesupponingfL6.
fro$Ebiljg, rnd providesnore cllcdive
mnagenni of .utonr liibilnies. .nificirl ineligne (AI) A ftld in b$dwid.h The nnff offFgmnci$
wni.h rhe conpurs q'$en rakeson th. tharancl..tionic signaloccupies
on a
a.ordb rftirrble srrtcD Srrem thar ch.r.(eristia of hunar int.lligenc io givedrBNnissioomediun.
hdrges rhe c6h flo{ of de conpdy bf nimic or duplicareihe tundionsofrhe
keef ing imck of the noney oved ih. bieh phesins srsrm Mdhod of
@mpanr on cnrgd for goo& \old rn,l conpurriad procesing nr whi.h
.nifici.l in@[igd.. sFtns leople, busine$ trnsrctiom areddumulled
prc.cdud, hrdwre, sofMre, dah, dnd oYd r pdod oftime rnd prep{ed for
ad h6. DSS A DSSconcenednith knodedseneded to d*lop c.mtuer proesing asasinBlenft or barh
situitionsor decnionstharconc up only sj'sens and m.hins! drt demonsrate
a iew tin6 duing th.lift ofrh bd.t|@L t$ An *mnDdon that
thc .hd-teriric! of inrellieence.
comParesconrPurer
s)4teN op.hring
rsldng direcdy An rpprcr.h o gathtr- undq dE sn conditionr.
dph. tsing T6dng an in.onplere or ing dah rharsk useN,$akeholde6, and
ady vcBionofthe sy$em. b6t pred6 The nos .f6cini rnd
orhq manasssabourwh{ rhei Nst aid
eflectivelrdys ro .ohphe a buinBs
exp(t lion the ne* or nddited srsem.
d.log rignal A co.ri.uous, cusiru
dd mrnagndr b'fuction
bt tsdn8 l$ting a complck
pr@ina systm SFen lhat .onrol: "
utiYirs progm Proghn or utilig, nable slscn b) ed usc6.
iove{ne.s in .apnalequiphentand
lhlt prvcns Yiru!srnd re@ves lioD
manaBesdepreciationtor mdinum qx biom.uics The ncsur.nsnt oftr
theh if the).i.fect a conputer.
pesont drir, wh.rher phlri@l or
applet Smallprogmmsnbedded nr \v.b
agdclrcnou @dnu'ietios
ComDuDications nr whi.h thc ieivq bit Binarydigir 0or l
rpplicnion no*.lft Dngnms thr gts the nesag. ninues, hour, or dats
showrditionshiF 2mongapfliqrio.s or bot A soliwre rool tht serchd thc
Veb for infomrtion, prod!.c, pri6,
afrribdt ,{ .hrHrerisiic of ar enriry.
applioiion prcsrm int .f.c (API)
audit liil Docunertrtion rhat dlo{I hnitutormiog De.ision naking
Incfrce lh{ allo{s applietions ro mtr
rhe dior to rrce rryoutpur fioh rhe rpproachlhn olienconsnGofnonbe
useo1the opcnring t'*en.
conPuiersy$cn brk b de source offsinsids offth. top ofrhnheads."
.pplicdion reni.. pididr (ASP) A
conpary lhatpovidG\oftwre, e.d ufl bridg. A deviceuRd to conncd so or
support,andthe .onPuu hrdwre on auditing An:ltzing rhefinancial.ondi- nore fttwdrkl tnatue rhesoe
w[d,,o tun thc s.fsre &on the Nis rion olan orginizationanddeiermining .ohhudi.Iions trorool.
vh{hq nmncial siaknens and Rporh
bro.dbud Telecomnunicaions in dat uvd $rcugh rhcMnl lthe arral inplcnen.iFtoaprogrms. Thi\ t.dr
$ hicha vide bandof &equencies
n hr torl icsponsibilir lor building rh.
Ntlable o 0ansmninbmarion, b$t sof.nic posible! .lso olled 1',1
CASE rcp6i@ry A dadbse ofslsen
rllowidgmoreidoiDarion to bemne
mntedin . givenmouni oftine. ds.ripions,paramee^,and
choie sbge The third sage ofdai
budg{ tusdion pme$ing sionm&ing, whichreqund$lccting
mny of et.log muagendr 3oftfrre
sFtem sy$emtharautomares
Sof6v.re ihat automatesthe ploc$ ot
the rdk\ requir.d to amas budgerdtrs,
.rening i real{be inren.rivc .rtdog di.krtu.f d.u Dftsarhdcd bsed
distibu(en to uses,ddcoDsolidns
anddeliveingcuromjzed@nrenrto l on ih. Wcb siteslou rnn and rhe nctu

h$ lioe Ihe phrsiQl{ning tut

cD'rccordubl. (cD-R) dis An di.dt/sdr An fthn(tue nr Fbich
con.ectsrhe.onpurer t6rem
opriol dn. that.an besriften on only muliiplc..nputer phfoms rtu
dedicrEdtu \peciallu.crio.s su.h i\
bs ncsorli A typc of ropologvthI dahbrsendrg.mcm, priftin8, on
coNainscoml,ue^ rnd conPurer CD{esiitabl. (CD-R\V) dis. An nudicatjons,rnd ptughn duuon.
d*i.6 on a singlelineierLhdcvi n opticd dn. thr xllowspercnrl
.dnputer useAto rePh.ctheildnks .locksped A series
ol elccrod.
con.(d dnccdr to the bu an.ldn
vnh high{dpacitl CDs thI cn bc puls-aptudu&dat. pied*qmindEt
.onnunicte dne.dyrith rll othel
thr rfe.. m.llineq.le time.
devics on the .edrorlj oneol thc nos
PoPulrrryPcsot Pe6onal@nPur.r ennal proc$ing mn (CPU) The clscd shops IS dcpa(nenBin {hich
par of rheonprt( dratcoisissof onlt iurhorird oPdIdfdNn rhe
thrccssociaedelenens: t
busins ontinuirt plmning
Idendi.aion ol rhebrsindsprce$es xiihndi./logi. unn, .heontul unii
dldsit Acomputerenvnonn.nt thar
firt mNtbereiored iirt in thccvent
includsnoh\, cltic.l senice,
of a disaserlnd spe.ill.iion of what link, darasonge
@nt.lizdproBsing lro.e$nrg tele.ommuni.itions
icdonsshouldbstaksnindwhoshould
rlrernatircin wlich all pro.e$idg dcvic.s,ind drelikerals c,llld i Jlrlt
hke rhen io re$oreoperations.
0..!6 in r singleloation or h.ilnv.
dlmmd-bsd ser ibbrfa.e A user
busines intcuignc The pro.es of
diff.d. .uthority (cA) A ru$ed inrerli.. thrt reqftes tha rxr
g{hsin8.nough of the righrintarnd-
drnd pant th2r nsucsdignal conmi.ds begiredro dE comPutr ro
tionin a rimelhdndmdusbhfom
and M.lytne it to haw a Positive
impr.r on brsinss $rategt,h.ri.s, or .rtiffq.ion l)roes lin tesiing skills olmlnie.ions The tdsnnsion of
a.d knovl.dge rh Esults in a ndic- a sign,lbl Nal'of Rned ium h.m a
nEnr br the (rti$ins rurhoiry Lhr
buinsstcbshs (B2B)
sts dr iDdividul is.rpatrleolpsform
ecommre Afomof e.onm{a comhuni.atiotr proro@l A $rnddd
ins d pdtnular kind ofjob.
in whi.h thepadciptrnt arc r.of rulesrhI.ontml a tlecomnuni
.tdg modcl Reprrnhrion ol
cha.getheorics(haridentitiesrhs
busilsro-osmd (B2C) ohnmiadons softFde SoliMrc
phs$ oichansernd thebN war to
e@nmre A fom of.conmsc that provi&s d nunber ofimpoftant
in *hnh .usonss d$l dnecdl wnh functions in tr hesork, suchrs eror
rvoidingrn/
rheorgrnizarion, .ldi.t r B6ic buildingblockof .lecking rnd drta se.uriiy
of upper.asc
infornarion,consisting
le(en, low16. lte6, runreic digi., dmpad dis rad-only n.mory
blr (B) lishrbis tharrossbe' (CD-RoM) A coDxro. ldrn ol
rp(eni a singlech2rrcterol dara. opticil discon lhi.h d!ta, oncenhr
chat room A licilis that cmbles No bn Ecorded,annd bc nodined.
d.h n.mory A ttpe ofhigh.ped
or nore Poplc to encage in inftnctirc
menory dat a proce$or an 2.c\s ompeiitiYc .(hut'ge ,4.ignifiarr
''convesarionioverthe lnrernet.
moE npi.lly rhd main fenory. and(idal\r l.dg{n berefitb r
chi.f prcs!,lm{ laf A group of .onpanr oYer .onPc!!on.
6pal tlsd rFdaon. {CIS) The '.
sldlLedlS prcftssionals who d$isn ind
aggEvfion of ihe pathQl aor nen es
 people,dd podud thd { on' .ount rint.ligne The $ePstn
@np.iitiv int.Uisnce orc 6Pecr
6surd to colh(, maniPulde,noE, o,guiz*ion rak6 to Protd inloma-
of buine$ inEllig.nc fimnedo infor
rnd poc$ drd ino infomdion. ion soughtb "hosik indligene
nadon ibout @nP.ito$ .nd th. iBlr
t]l[ kndwledee.ffecs seg', bdns,
conpu&Pintgr.td Mufr.tuing
Usins..npuEri o linh theonPo c@tiv e.lFi. The inve$igarion of
nen$ ofthe ProdudionPro$ into an ns appo,ches to exndq Problens
@nptitiv lo..l dchdge.dris
(CLEC) A compan/ that is allo{.d to
dimind h.&er (cE ker) A
conpde vi$ lh LECS,sdchs a wre
on(]@n Y @nhl A ndhod of onPureFsanl Pe6on who atemPts
l$, etellite, or Gble seflice proYider'
derling with a situarion in rYhich$o or to gain dndthoriz.d or illeS:l ,ass to

@npil{ A sPdalsoftwre Proghn noE peoPleneedio rcc$ the rde

th* converts the Pognmnrs source E.ord in a dtabde r rhcsme tine
oitic.ldn ltris The unbidedrd
.ode into the nrchinelaryuase
@nrm.r'toen$m.r (c2c) creful qusioning ofwhnher sr.kn
innruciionscodlntingof binarydigis
c.omnrc. Afom ofe@nndce in elemenEde relad in the mo* ellrc

.omPld itrtroction rct @nPutina which the pafticipm$ rc individuat,

(CrSO A.ompud chipd6isn ihat wnh one sring a de buyd $d the
.ri.ic.l patl Activnieslh$ ifdeldl'ed,
ph.er asndt micrdode in$rudons
vorld deLI rhe entire Plolect.
into rhe cental proce$or 6 po$ible
@trtent rt.Ding A nethod for
diti.rl suc@ f:@a (csF l&tos
cotupud litda.y Knovledge of rmsfsing nulinedii fihs ovd the
thd aie dsnr t. de su<6s ofa
.onputer s),$emsand .quiPnent and Inrmet sothr thedah $Rf, ofvoice
fMction'1 rr ola. oaniz*iod.
ft waysthq' tunction; it *re$es and pidures p1at6nore oi les conrin
equipnenr {nd ddn$ (hrdME) uoush wthotrt a bErtr, or very fs of dNepl.tfom dfllopnnt
prcsrds ud innru.ioN Goltwre), theq enablsusb b brose la nl.s D.velopmnttechniquctharallows
datrba\es,md teleonnuniotions Pognmmss to dNelot Posnnt that
ConranrlY can run otr comPuters$tu hNing
@mpud nturk Thc commuica_ cortinou idProv.mot
dillerenrhadwrre andoPenting
rions n.dir, dsi.6, rnd softwde secki4 srys ro inPr.t the busnes
p,ocsa to add valueo Produm ind
conputertarcN rnd/ordsice\' c.t?toghphY Ths Proce$ot .onvs
.ng 2 n $age r secret.odeano
comPoc. Progrms sequeNesot .ontrol uit lart of the CPU lhat 'nro
chdgins dre cncoded n6sse hrk to
rntru.rcns ior the conluro :equennrllyicce$esPognm rnnruc_
donr dsoder theni rndcoordinares
coFPut.. sF&m dchitchft lhe thenow ofda! in andout oftheAt-U, cultu Sd ofmajorundd$a'tinss
$ructure, or .onfiguEtior, ofrh. the registes, pinary $rage, dd sen dd ssunpiions shard bt a giouP
hardwrreconPonensol 1 .onputer mo vtilous ourPur
seconda4'$orage
trtomr rclnionthiP mu.gm6.
(cRM) sy$em Strn Ih* hlPsa
@mPuer s'5td Pl.dorm The @oLi A Gt nl. th{ @ InteiDet companrnors al1astodsof
conbimdon of a Pafricuhr hardware conpanycanP|[e on the hrrd disk cu$oncr en@untcsi including
.onliguEdrn rnd sytns softM. of a compur.rs$en ro tncL user mrketing and adveitisil8, s,les.
cusond sRi.e ifcr thc sale,and
sftw progEtr to rcdn totar cu$onen.
oDPlt..ided oProNor Paitolthe @nputerthrt
nginding (CASE) Tools ttu auro speedsprdesjngby executing sp{ifi c
gtdnall A singlc Web snclhrt ofia(
mte nrary of rhe6k rcqunedina q,ps ol in$rudons whilethecFU mul Producb and s.flices I one
q$tr dselopnent eHirn dd enforc vork on anoiher Ptoesing rtivirY
adh{edc o the SDLC
@3t.enEr DivisionMrhina @nf rny ctdturorid Soneone who i.rini
6nputrsis..d muf.ctuins ihd do$ nor d!recdygenenR rsenue. drb or @ercesa govennenr or
(CAM) A sl$td that di1e.4 contols
An aPPlorh oganiarion ro .dvrn.e his or hcr
nsufrcnuing equiPmenr' ost/bqefft d.lt-ir
rhr lnt the cos6ddbneitsofeach l,ohnal or soci.l objectiyd bt
proPosedt6tem. orce lhet are laun.hiq @nPuter bsed lttaclc
conPuE b*d iofordrtion
'Ystn again$conPutr, neMork, ando
(CBI$ A snrsle$ of hrldMrc, soli exprc$edh noneiarY te.ds, .ll the
wdq d:tabser,tele@nnunicfioN, cons re comPsed wnh all th benefis infornalidn sored dn then
.lah Raw fac6, such r d enploye! dda mmipd..ion The prods ol urrofrhe dadbse andoth{
nd dd nunber of hou^ vorLcd in tellbrning andothd dita
.alcularions
aweek,invlntorypatrnumben, ots:lcs fti.sbrmdo d1Gd to businss
d.E-flow dia8rm (D!D) A model.f
obje.6,asscirtions,r.d dctivities
thar
dah adminisn.to. A nonte.hni..l dah llmipu|'tion lusqge (DML) d6qih$ how dah cm flow beNn
for deiiningadd
positionrelponsible 'I[e commndr rhd de usd to mri anddound wiousobt.s.
inplementing.onsntotpdnciples for prlatethedatain r drtrbase.
d.a-flow lin. Airo$ dur show the
d.u m.ft Arubnof id{i dnectionof dar: elehcntnDrtnent.
daE rdel}sis Mdipuldtion of the
dad.r.lized ptucsting Procesing
m1l6cd dae so th* n i Nablc for dt
dah mhing An inLthrion-drahsn aliemarivc h $ hi.h proce$ingd.vids
d$elopmentrean menbes { ho are
toolrhf involvGthe rutolrared ee placedrt vriols lcnote loations
priti.ipatitrg i. st$ems rnrlF6.
dncoveryof patiems dd relarionships
decision reom A rcon thl suppotu
drb dmup The procssoflooung
dc.ision m.kin8, wirh rhe dc.ision
for dd fring ir@nsisrenciesto cnstre
drh mod.l A ditrgrm ol dataeDrities mkc6 nr thesamebuilding,.ombir-
tha! drb n a..urare rnd @mflere.
wnh
ing h.e ro-fr.everbalinteraction
dzt..olledion The piocs ofoptur @hnolosr to mhe the neding DoE
ing md gshding all datd ncf$aq to dat. pkpdnion, or dat.
onv.6ion Involv$ nlling sureall
liles dd da.ibrsesaF rerdy rd be lsed d..iion tuctre A prognnhing
d.bcomnuications A speci,lizcd $nh d6v.ompurersofnvrEdd *ructurc th* alowsthe compud b
suberof tel.onnnnicrtions thri bnnch, .lependingon cetuin @ndi-
refes to the el-roni. colledion, rioN. Nonallv, d.rc re onll,do
dat reduddry Duplication ofdrtd
ptudsing, drd distibution olddh-
iypicall) beNeed .onPurer slscm
decirion ddppod slr@m (DSs) An
d.ta rtordg TIE proe$ ot trPdning orginizi colle.ion of peoPle,prce
dab.ordion The proce* of oneor horo ddtibrss wnh nes duB, softwire,datibases, rd dcvices
reenrring misketedor hnscdned dak usedro srppoit problelHpecinc
th{was 6und duing dta ednins
d,lt. sbre R.prcsenta.io.
ofr*ongc

d.t. d.ffnition langlag (DDL) A d.cisior-n,Ling phd. lhe 6Nfrt

.olldtior of iN!rudiotu dd .onnr olproblemsolving,in.ludingdre
dlb *,re[ous. A daEhar rhdt
andru\dio d.tne anddesribeddi $ags: inrdlligcnc,dsig., rnd choi.c
collecsbusid* informdionfnn
dd dat. rel2tionships
in aspecilic
mdlsourcesin the.ntdpiise,covering ddi@bdlin A.onmuni.dons lin
all rspccf ofthe onpmy: pce$es, rhaiproridB a.otrant connction
dad didion.rr A debiLd desdption Producb,dd cu$oner. bcseen Mo poinri no swirchingo'
ofall rhc d{a usd inlhei?dbae diiling is neded,and th Mo dNices
d.trbs An orgini^d colle.don ol

d.tr ditirg The proe$ ofch-Ling

datafor qliditl dd conpletere$. d.lphi approach A decisiotrmaking
dabb$.dmini.batoi(DBA) A
approdch in $hich grouPde.ision
skilledIs profesion:lvho dir.c6 il1
d.u.ntry lrees\ br {hich hunan mikdr lre geographictrl\ dnpcsedl
ddrble dah i @nvstedinto r icln iies rciriedto an org2nizrti.n\
drisapprorh cn.oorrges diveriq
i,rong ErouP hrnlres ird lb$en
.rdtiriry ando,iCinrlthinling ir
drab* .ppma.h to dra
d.@input Pro.e$thari.aolvertld-
|fumnr An lpPrcr.h whercbl i
fedns m&hineE dabled{a into the
poolofrthrcd dsa is sharedb,
dnmd ft pon tupotr developsdro
nuliple rppliation piogra'ns.
grvecetuin inbrmtion e a Pe$ni
&ta int grity The desiecto shich dE
.laube mand.syst m
da6 in 2ny one lile is accurare.
(DBMS) A grcup ofpo8lmB .h*
d.nial-of'Fnie (Dos) au.k An
d.t! itn The specificElue ot ad mmipulrtcthedanbaseandpblided
atuk id whic[ Ihe {hcld bks
ntstua hMan the datab$e md rh.
conmandofhdv.o.rPuter on rhe
 I ob""'"Y

l sns and s6 themb noodthe did us stor'g dai.. (DASD) d.i[-dom repod Repoit providing
nrget \veb siE vith lequess ror dr6 Dfli& usedfor direct ?cs of inedingly deailed iah about a
and oiher snall hskr, prevertjng the
trger nachinefom:ding legitinae
dirct 6nvdio. (.lso qtldPla4r dmp'd divitrg Sedching [housi
ot dtrct atow\ sopping th old #e gIbisc for impoont pied of
drign rpoi Thc pirurr resuhol sysen and sdiing tne nN q.td on infomdion rhn dn hclp dack an
slsens dsign, rRectidg ihe drnions orgDiationt conplten or be lsd o
nade andprepriing rhevry 16rst$ems conYineson.onat thecomPrnyo
dird obsn tion \tdrching the giv. someon@s ro the @mpute6.
qisring!ys.n i. rclionbyoneor more
d..iF siag! The eond $ase of nenbes of the a!al).n tefi. drtunic wb p.g.s \Veb pas6
decnion mrking, in * hi.h slteinarive onainins vari.ble infomadon rh*
soludons!o rhe ploblen de d{eloPed dbstd r@v.ry Actions rhrr nus be de built in iespons to r spcificv.b
slcn ro resbre conpdter opennons
d6krop omputr A dadvely small, andservi.csintheeventof,disst.r.
thar
inqpensive,singleuser@npdter .-otmda Ant busid*s bansicrion
dbibtsb.diation The eliminaion df *sued .l.chnndt be@en prties
iNsnediateorganiationsbeMent!. suchs cohpdies (busnE$ro
dtr@e .ondok Ruls and Pioa- produer rnd the @nsum.r blsimt, conpdGs dd.onsunere
dlns to pevenr probletr befor thet (busine${o-consmer), consunem
disL nift.iry A proe$ of$oing
an<roiner onsumen (cons@etso-
drE rhat provids an erlt opy that
consumq),busin* andihe public
didosu @dgr Usr intdle tha! protcs s6 tuUYin rhe {ent of dab
se.tor dd coNunen and rhe publi.
Jlows ddsion malretsro.sily acc$
and manipulat the DSS and !o ue
commonbusindsreim md ph6es. dilte. lming The us of tele@m
{'mre sliY@ sofMde thr
nuni.aiions o qtend the cla$rmh.
suPPo4s@rdog nmaln.nn prcoucr
dign r c.niffet An arehheht ro
'n disaibut d d.bbs. A databse in @nfigunrion, shoppingor ftcilitig,
e n.il n$s,ge or dra mbedded in a
vhich rhe d{a mry be spreadacrc$ econD{e t@nsc!o! Pro.e$'ng,
\tcb pdgeth{ vdfi$ the identiq. ofa
seral sn,lld drobdB @nne(ed vir dd \neb &fiic daia mdrsis.
telecommunicarionsdevid.
e@hmrce tu..tion Prc..sing
digitd.onpue.m.r. bput devie
distributcdpocsing Proftssing rcftmrc Sofme that p.oid- th"
ued with a PC b re.ord dd sore
,ltermrive in wlich conpuG^ de basicconnecrionbe*eerpriticipanB
img.s dd video in disnd 1brm.
h the *conmse (ononr, enrbling
pl{ed at remoteloations hut
disitsr.ign r A sign,l repacnt.d by codnec@dto edh oihd via a neNork. connuniaiions beMeenladi.B
pnnds, tgrdlds of thet cchnic.l
docunt prcdrdion The proe$ of
disii.l ,isn.tu. Pncryptio. rchni Senera!$ ourPut recod ud rePorts.
gueu*d o E fy theidentityof a .@mnicftsibiliir Ddenindion
nessgesenderldr prging online docmoration Tdt tlm desdbc ofvhdhd the pioFa nik6 n@nciil
the prcsrm tuncdons to help ihe usr sns $d whdher predidat ben.fiB
dpdate &e compftr srrn. ofset the co* and nme neded to
digibr tub3dibd lio (DSL) A
tel(omnunn{ions t.lnolog/ ihr don.i, 0) The,llombl. valud for
deliys hish band{idrh inform{ion daraarriblis. (2) The ft2 oftnov aononi. oido qmtitr {EOQ) The
ro hon$ and snal businsss ovr ledseaddre$edb' lhe expsr s)6em. qumtity lhar should be r@rdded io
ordinary copper telephonevirs, nininiz. totil inventort 6ss.
doodn qprt TlE individu.-l or
digiir wsain. dis[ (DvD) Sronse grcup who h$ the dpdtis or know .Fetiwdss A nedure ofde *rnl
ndium sed ro sorc digial vido ol ledgeone is rrying ro caprurein the b which a srsn rhi*s is goalsrit
an be.onPud b/ dividinsrhesods
r.ru.ll) ,chieved lr- rhe roral of the
di.aa.$ R.tiiovil ndlod in domizirs Rducingihe nmbd of
rhi.h l?a d be criered wnhour the
ned b Ead rnd dissrd oihd dfud.
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producd dividedbr whar is .onsuned. sortd rl!. th{ holdsccdit dd inldr
mario., elecdonic.sh, owner identili-
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ofbillinsvhpby thc billerpo$s.n oks ro *euc m in*rudion dd soi.
ima. ofFur satemenron rhe 1ntrnel mpMot Giving enPlole! and
ed alds you by enail thd Iour bill rheirna.ase6 moie rspoNibility rnd
ddutiv. 3uppot.Ft.n (FlS)
aurhoritl to mke decnions,take cer
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l.6oni. a.h An anount ofnonI hddwaE, sofMrq d:@, po..du6,
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* csh for ecomm{e ddsdiions ncrt?tion. The convesiod ot a *ecutiv6 vii\in rh. organiation,
nesagejnro . sedeicode.
.l{troni. &a int rchdg (EDI) dpa.LhL stons da.r songe
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appli.adon conmuniarion of darain r'$tr dselopment prcject in {hnh provide addirionil songe spfitt.
$andrrdforDat,pernitti.g th. r.iPi' rhe pimry eifort n unde@ken by i
sPit 3'.tm qstem dat g'ws 1
ent to pdfom the fundions of2 $dd- @nbinalionofbusinssnan.sc and ^
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riotr and rct like an expdr in a pni'
cldo c docunot didibudon entrpiirc d.unodlidg Daia
Poes that involve tanspodng modeli.s donc at de lsel of the entir
qpn v#n oh.[ A colkction of
dcumenrFlud s sa6 EPorc,
sofsaE pack4es dd iools usedto
policy manurk, dd rdvenising
..@prir 6ora planirs (ERI)
brochur$-over @nnuicriions
q{d A st of inr8tied progtams
dplamtion h.ilit Componert of d
capible ofnanaging a compady\ viiJ
bsinds operarions for d entiremulti expedsr.Rn that allovs a uer or ddi-
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sire,glob.l oaniadon. sion mker to undeBtdd how the
fordfl {here m.nulacturen, suppliers,
flpeit sy*en anived 2i .erttn con.lu'
ud competitosbuyandsU goods,
tiadenarlet inlbinttioa dd run .ddpii. sp[.rc of intrEd@
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kto.ibl. MdLup Lsguzg
of the firn in ib int.ra.tionwith is
eltuni. tundr tufr (EFD A ooul-) Mdkup hnsuse for \teb
ddrnen$ @ntdninsnru.tltd
slsreh oftrsferring mong' liob one
dtity Gendalnf,d cls ofpcople, informdon, includingwods,piciures,
bank acounr dincdy to rnoths with-
plaes, or rhings for which dda is
our rny PaPermong chdging hands,
@llected,sored, dd nainined.
dtdn l.udning Auditing pslomed
dtudic rc@libs Gnriling) The
dift.r s,]e fom businessro consuntr .n.ity synbol Rcptsnhtion ofenhs
r sourceor dstindion of r dah
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otig-rlnion'iip GR) di,gl.m es of a onPany s inlmet with i$
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ldoni. stoppitra can A nodet
synbols to show the orgrniation of
omnor4' scd bj, mary e commda
si,6 to nak th nens sel(d for .nd elrtiotrhips besen dita.
ftuihility a.lr.is Aisesm.nt ol the
purchde,alloFinssloPPosto view
erAonomis the sdd) ofddigning Khni.:I, econonic, legal,opehrioml
whrt is in their.dr, addnewirens ro dd sheduh fdihiliiy of a plojed.
andpositioningcomputer equiPmenr
it, andGmoYnens h.f n.
for enplorce heJtl and $fetl.
fcdbr.k Ourput rhri is Ned to n.t
.L6oric $fttu didributio!
ddi{riv6 rgid
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by a problemor oppotuniq suchrs d
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edori a d{toHte mergeli or . ns
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ing lh{ the solMft b. downloaded conbin*iod of chdctes that
6nto then conPure^ over a n.rwork. 4.Ptiotr rcPot RPon autom.tic dsdibs s spd ofa busindsobjed
,lly producedwhe. a siMtion is
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ffle &rr An archiedure in vhich the
nuniorions to dd ftom conPurr
applicdion ed dabbae 6ide on onc '
Srid .hd Table rhat showsGl*ion-
hos compdkr, c.lled rhe fil *rd. slips mons $e vaio6 dpss ofa
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Fil Tnnsfr Prcbol (Fn) A
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porocol lhai d6.dbs . fih hnsfd gdd ohputiry The !s of2 coll{-
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rine thus,lhe ful{uphx channd n [k
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frcn on conPurr to doths. to work in a .oordieled mrnner to
tuzy logi. A sP.ci,l researchriea in sohea connon pnblen.
6nal d.lution A ddriled inw$sa- @mpu,er !.ienc lhar alos shada,of
rion ofrhe propos,lsoffed bj' the vcn- g1al and des nor reguir. derrthing ro gmlP onsetuu D(ision mLing bj'
dos rmining after the plinitury a goup thar is appointedand given the
be sinPle black or whie, res/m, or
Esponsibiliry ofhaking the fitu1 6.1-

fldcisl MIS An infoiturion srsEn gm. th.o.y U: of intormation

that provids findcirl infomarion o grcup con.du lpprosh De.nion-
sl tens b dewlop comperirive$hte
aUfinancial ndrger wirhin an gie lot people,organiations, or sen naling rppbach rhat fo(6 nehbss
id rhe group io rcacha unminous

ffr'lll A d{ice thar siB bNen an

Gmn .hd A saphical ool sod 6r
inrernil netuork nd lhe Inrrnet, plmning, moniroring, md oordinat sroup suPPor sylem (GSS)
liniting r..es into od out of d sofiwft aPPliation lhat onsnb of
neMo bdd on rce$ policies. mct.lenens in a DSS,plN soirMc
gar.*I A nsork point th,t acs as b provide effectivesuppdit in srcup
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rivead%nhseindlding (l) ivdry ed ro rutomat fimnci,lreporirg dd
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sub$iidE producs and sfln6, (4) the g.n.r.l-PurPc.omPotd
and urng .onP&r sr'$ems.
bag,inins power ofbuyn, id (5) rhe CompuieN Ned for r wide wiety of
baaining powr of supplieB.
commDiariotu chamel thar .d
fl$h m.mory Asilicon conpurr chip gddi. dgo.ithm An approdh to
t@sDir dataln irhd dndion, bur
lhat, unlike Rn]1,|,is nonvolatiledd sotvins rae, compl* Probhhs in
LeP3 its nenory *iEn ile pNd is which I numbd ofelaed opeations or
nodels chang. $d floh until rheb6t lddhdd @nput r Asingleusr
conpuft thar Prcvidesese of
ntt o{uiz:tio.,l ohct@ poftbiliti bc.useofits smll rize.
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r$emblin& $oring, n.nipuldil& nd vfiich us digi,al circuitt rh* 6sis6 in
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aduing f,cihhs ro qpidly and efiici-
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sisah..a (CHd Billions ofq,cles pd asisene when a us n hrvins dim-
culq' udesmdins vhd h hapFning
foeetins Predictingfrue evens ro or vh2r !,Pe oi 6pons is dP4ed.
tod-Gking d.lr!i' The proces of
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forud .h.inidg The Prcss of
sning wnh rhe fac6 dd working l@isti6 Connonly a@ped
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ihe hierdchyunril thq redh then somon els. -lae inhnnation is lhen
sed b obbin dcdir, ndchandise, drd
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hic..rcly ofdrh Bits, .hrh.tds, ptuvidc lhe ihiel wnh fals qedeotials.
nelds,recods,fiks, rnddftbr*.
if-tlEn rai.m6s Rulesrhrt sngges iosid. An enrployee,disgtunded ol
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thd de {nishtforyard drd requne witn oubides to comprcmnecorporare
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hon pageA.over pagefd, \|eb site iNtrll.tio! The poces of physiL.lly
drarhasgraphi6,rnles,andtext. inpld.nbtio. stag A sbge of pldcingihecompucrequipmenton rhe
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[o. si@ A duplia!e,operatiomlhard-
wde sysen or immediateacs b onc itudr ne$.ging A nEdrod fi{
thbugh d spccirlizd\ddor. indemnol hecLup Makioc a backup all{,s No or norc individuds to
coD' of all fihs .hsg.d duins the h$ conmu.icit o.line usingthcIdtcincL
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brcwserklrow hov o tbmr tet 6 d ins.itotional DSS A DSSth2r hrndles
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DSSis nserl
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hub A phc ofonvdgcnce whde d{a sd&jduors the {ay i num2. exPdt
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n fonddcd our i! oneor nore oths dks b pcdorn fi fdch-insructlon
inforlltic ,\:pridlikd qnem .lut a.d decodeinrru.i.n ncpsol the
.onbinesti.dnionaldisciplines, su.h
huno reeuc MIS An information 6 sienceandmedicine, with .onput.r
syscn dr$ is concernedvnh rtivnies inegr.@d d.Elopm{t
rclitcd to emplots and porehti,l dvimnmc.s {IDE ) Dwdopncnt
emploleesot an organiarion, .lso infomddn A olldior of fa( appnrh rhr.ohbins Lhrools
organizd in su.h r rmy thdt thcv have fteded fbr prog@ning wnh d ptog-
addniotul!.lue bgond theulueofrhe imning languageinro one integrtrted
hr.6rid nsork A rest* topologt
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infdrnatioo cdd A srppot tunc idr.gatd snic6 diiul ntFork
rion rhatproyides
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lryp.rnedi. T@k thr.onnft $ mining, ippliation dselopncnr, ting voice.ndd2t1mnnuni.ariotu
&taon veb prg$, allowinguse^to do.uhdtration,equipmentsele.rion onto a singlelinevia digni!innsmhs
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rm.e, andooublesnooting.
intgrdiod t{ing T6ting all related
HD..t xt Mdlorp Ingr sFice dit
infor.rion -4 mini.tre
(HTML) l he sandard pasede\.tip-
tnD lfgMgc lor veb pis$. int.llatual prcp.rty Musi., booll,
infomtion sFt D 0S) A sr of invcndons, paintings,
andothrspe.ial
idsEhd conponenath{ colkd, itmsprotdcd by parn6,copyLigh6,
nanjpuhre,roE, anddns.minare dara
ICRA ntingry$d Stnen to proc{
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indiyidu:ls&on hrhfin or obtdion- in&lisna sbs Thc fi(t suge of
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dblel'rcdret content, while $Lgudl- d(nion makine,in whichtdenrirl
insrhe frc spech igh6 ofothqs. infornation sysems lid.<y prcblehsor opponunitigare
(.ovledge of how ddmdd inlorma-
iddtity ihfr A ftine in Fhjch an
rion.re usedbI individu,ls,golps,
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intellignt rgdr l'ngrrd ard i Jau A! obJd-onenkd tfugnm0 ng
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.rn helptrudu.. theblggd PaF$
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ledg.a.qtrndflod exFrien.(, hiidLe gbup NIo usesrd b.netih trod Jre
joint applioton dvdopnnt
sollt P'oblchs
compl* siLur(ion\.
whenim|onarr $hmltior n mnY OAD) Ptu.6s fordtrbLolled,onrnd
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ing,deG,nin. *h{ F imPo(inr, rerd
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quicklyrnd cof e.dvro a.$ snuron,
togcthert. rndra *nting $tems, .omplrer to.htrngclo{ ntun.tio.s or
undebtandvnualinuger,proc$2nd
proposcposible\oludons,trnddcline mcs b snudioN batd on feedbeki
mripuldte synrbol\,be.reativcild
the requldnenrsof r ncwor nrodilicd
inug$rtiqx usehuristi.s
legal fesihilirt Detsmindrion of
intrn.latrdi.ing Audiingtenarned
iu$'in-dn 0IT) inYnbry rvi,.rherlar$ or reellanonsnay prt
bv irdivid!2|\ qnhin rheolSinizitnn
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intrnarion.l A net$ork th2t mamg.ne.t jn xhi.h nrvenrory
dd
'esork
links ry$etu bedven.oo n.r es. ndtcrialsrre dcliverdlun beforerhey
rPr.du.I linkina Dah minipuhtiod |hat
aE usedin manula.(uring
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frelt ex.hanerng'ntornra0on.

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i.n$andrd
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Intcmd *nicc proYider {lSP) An} crllt rviilabletrtth( begi!ninEofca.b loc.l schdgc c.rrir (LEC) A Publi.
.onpanl th ptuvidesindividuals
or te[phonecomprl in rheUnned
orgmi4lio.s vih n.e$ o th. ScrA tha' provid!\.rvi.e ro hon.s
lnowl.dge AI.earend d.l under isd businessvithi. i. dcflr.d
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lnerner soi{d pimcy lllegrlLl wa)'! thxr nrfomrtio. .an be mric td ,M?dt nftn I.LATA)
do rloadingsofturc iron dt uscfulbsuppo( i sF.ifi. tisko' Etr JL
logi. bonb An 4pli.{ion or s!{. )
viNdesign.d to "extbdc or e{e.utl
in...nt ,{n internalntt$orkbrsedon tnowledg dquisition f..ility Pft r trrp..ifled rimc ind d{e
'w.b Lechnologi$ dratallovsP.oPle of th. dpeii s)aLcn drarprovid.scon
wirhinan organtition to exchange venietr,nd cfll.ient mern\ ot.aPo' logild.ria. D.\.tip on.trh(
i.fooarion rnd workon trqt.s irg trnd{oring :11drc.onuonenn .f fu..tionil ft,tuircne.s of r sr{.n

intusior dddion sysm (rDs) long-distu.e driiq A nidnxn\rl

Sofc'ir (hs slsrein trnd knoFldgbar A componcmofii l.ng.linir.e thone proeideirrh r\
'nonno.
ne$ ork tu\orr.esand norili.snesork uPc( t6En rhrl noresall'el$!.t Af&'I, sp ( or Nlcl.
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$ed b),the!ap.( v{em lookup iablB I ibles.onttnng dr.i
relarionships
thr se d{eioptddd sed bv
invdtory-@ntol .y$.m st{en tlrl kno*ldge engin{ ,Anindtmua .onpdo prosnmsio sinplit:nd
updtrtesthe .onrpueizcd inventofr in dr
rho |is inining or experien.e
re.ordsb ftll..t d,eeri.r qurntnron design,development, nnpkmennnon,
hrndofca.h rc.k kccPngunir. ard Lnrintcmn.eottrn capcitslste'n
 businss vnh d hici l*el of cu*ond proceserperfons Ihen it dduies an
l@p $udre A PtuSnnnidg
ntu.orc vith No conmonb ued
$rudurs Iu loops:do unriLand do- sofnvart dEt allovr
m..kd Fgmnbtion The identit.t- niddMe
wlile. In the do uniil $ructurc, rhe
iionofsp*ificna es to E'8et them diffqent t6ems ro.ommunic{e and
loopis doneuntil a ertrin condid.n is
wirh advernsingnsses drsfs das back and foith.
nei In the do whil. srudurc, ihe looP
n donevhile r cquin condnionexis$ m*Lding MIS tnfomaion qien MIPS Millionsof idtuctions Per
.bri s+pons mdagerial dciivniesin
m.chid ctdc The nNrudior Ph&
podud dNelopment,dissibution,
followed bl de *e.ution Ph*e mi$ion{riti.rl 3y$N SFens rh*
piicing de.isions, rnd Prono.omr
phr r pivo$lole in o d$aniation's
d.gn.tic dirk Connon senddY
.onlnued oPsari.nsandgod
$oBgenedium, with bi$ .Presented
ma$Yly p.nlll Prceing A ford
ol nuldproc$ing thdtsPeeds PiGe$
n.hil @Imrcc (n{omno&)
magtr.tr. 6pc conmon sdndary ing by linLing hundds or thoNnds
Tnnsa.rions conductedrnlavherc,
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nagndo-oPtic.l (Mo) dil A hYbrid
beNen a magnticdnk dd an oPtic.l nod.l bs. Fa( ofa DsS that Povids
m.t ridl ..qurd.nB Plming de.isio! males acce$o a H'et-v oi
(MRP) A st of iNentory{oniol
nodlsmd a*iss then iddecnion
n.infid @nP!6 LaiS!, Povdful echniqus that help coordinde thoui
conpu@ often sharcdbI hundredsol andsofinventorynemsvhen the
denandoloneiten isdependni on the nod.l mdrgdnt 3oftwr.
Solivde that coordin.t$ the ue or

mrirtddc. td A sPe.ialtS Ean msli.E (MHz) Millionsof9.l6

Fsponsible nodi&ing, nxins,rnd
6r nodn A d$ice rhrt (uslates dag
upddng *i!ting sofMie fron digi$1rornalogandanalogto
mdu-drivd s'5td Slrteh in Fhich
mat-o.'buydei,ion The d(nion ue6 sinplr pick wha! theY*!nt m do
i.gaiding whe.herto obRin rhe rcces ftom r liv oit]remrivs no bringsg. Finri$ageofthe
ary loftwE fon intem,l or extdn.l problen lolving Pb.e$, in vhich
m.@ bg A sPecidH IML ag, not decnion mrkes $lufte the
viibie od thednPhyedWebPage, thr
m.ltu Sotu:E dat is htumtul or @ntaitr ketvords rcPr.snnng Your
dBiiudive, such a vnuss rnd woms sites.ontenr,vbi.h sedh eqines lse Modret kw A ht?othesis that *aGs
ro build inddes poining to tou \(eb thatEnsisior densnies on a rngle ch'P
nanagd $u.itY s.rice Proai&r
i ill double dery I 8 nonths.
(MssP) An o$anizaion rh{ mon!
tos, ninag$, rnd nainrnns nesolk ntr-s.sh msi! A ool that Mr3 A sEnddd 6rm{ for conpresF
scuiry hrdw{e rnd sofsdc for ns submisk rroids to sfld,]individul inb a snall nk
ing a lound sequence
searchngircs and retums rhe resulis
Fon all searchengincs queried mulddin.nsional oqdiz.ioml
tuagdnt informrtion ctstd rtuctu stuctue thd may ncoF
(MIS) An oanftd colcdion ot mtrcpolitm d.. nesork (MAN) A Poraiessebl nudurs d rhe \ame
p.ople,proedures,s.ltwi.e,danbses, rel{omnunicadonsneNork tn2t
2nd d*ices nsedro Ptuvidercftne .onne.s use6 and rhen compute6
inlornirion io mnageistnd d(nion wnhin. geograPhi.:l arealagcr dan multiirndion daie A dYicerhr
rhr covsed by a L"cN but snrller rhrn .an conbiner Pinter, fd nachine
rhe arel coveredbY a rFIN, suchai t sdner, rnd coPl' nachine inro one
mdufadrirg r6oua Plmning
dt y or c d k g e o n P s .
(MR.P1I) An intsmred' comPanJ'_
{ide srsem brrd on neNork sch.- mi.ro@de FEdnnd,ehnaRrl
psPle t. run ther
dulingrhit enablcs cn uns and logical oPcntions thar the
 I cl@dy

brltipldd A dryice dd allovs n.m!rcupr Online disusion soups iohediarct, withodt th. delayof
scr,l ieleconmu.ietions sishalsto thar focuson spd6c bpi6. ruumulating @serio.s inro a b1tch.
b sosnifr.d ovd a singleonnuni-
etions mediun at the sn dn.- @din l ghlp e.l q!. Decision- oFn drr.be!. @mctivitt
mking appro.ch rhat en@u.ges (ODBC) studdds rhai de tlar
mdtipMitrg The simulon@u ft.db{k frcm individual srcup soliwa! @ be ued with er ODBC-
d.curion of wo o! morc in$rudio.s menbis, dd rhetnal dcnion is md.
br vodns, sinilr to th. way public
op@ shoF IS deprdents in which
Nftit ,tiry Capabiliry ihat rllos 1 p@ple, suchs pogramms and
sq to run oot tho on. aPPliotion roroFniiotul Potog?. A noc[- q{tm analysts,de,llowed to run the
up, or nodd, thd includB ourpur 0d ompurN, in additiod o auihorird
input specificatioo od 6ornan.
dcic.[svi..
A ddic. th{ m bc ued
b dow.Joadmusic&on th.lnkmd mrproslfucdd.ilon De.isi6n op.n-sdE $fr't. SofNac thd is
thd dc,ls wiih unuud or reptional lieel).auilabl. to dtbn. in a forn that

nrrurd lrgulg. Pcding

Procsing that ,Ios th conpuer b objet{.idEd drabd. Datrbde oFntiry rtEtd (OS) A st of
utrde66nd and @.r to $aimdts and rhat sbres borh d.e od iG procssing comPud Prosr,m that contuls rhe
onmnds nrde i. I "mtural lansu conpukr hadwre ud ac6 d an
interfacewnh applicaiion poglrru,
ob,.d-oii.!ed d,.t ba.
nd pB vde The prefelied i@.gddt rr.td (OODBMS) ,{. opartionrl Goibility Meour of
app@&h for 6nl{jng ompding grcup of prog@s that nmipultt m wl.iher de pbjdt en bc pur inb
prcjd rnd deshinins e@ronic obj.d-oftncd dahbe sd povide a
us inedae dd conndion to othd
opdtior.l potog?e A tunctionins
D.twort Conncd.d @nputs dd potoq?e th.r &e$e &l data fi16,
@npucr equipnen!in l buildins, obje.t{ridEd .dits input dab, n,l6 nffimry
''Nllm.iddopnor
@und rh @!nq , or dobd lh. (OOSD) Appoach to srsem dse computations
a.d conpadso.s,and
world b enableeletbnic lopment dai @mbin6 rhe losic ofthe
srsEbs dflelopne( li& q.le viih rhe
p.wd ofobj.d-oii.ncd modelingdd opti.d db. A rigid disc ofpldtic onto
!.tul|( opdiog rr{d (NOS) whi.h dae is @rded b/ spsial lde6
Sr.rebs soliv& rh* .onrols rhe thai phiui6ly bun pi6 in lh dnc.
compud sr$em and devic$ on. otiGt-clitionrr &bbc
ncNork md alows thcn to d.ughlt rrrt6 (oRDBMS) A opti..l pmesoE Conpuier chips
.oimuici. wiih .ach oihd. DBMS capableof mnipulatins audio, dat u* lidt q*s iGed of .l(sical
video, dd grrphiol data. curent b rePEFni brts.
n.tmrL ropolog r.giol nod.l thai
desc'ibeshov ne*o {s d s@dured oE-tlerL.|f.oft*E!. E*ring optimiz.tior nod.l A prce$ to 6nd
softwe posrm thar is purchded. the bc$ $ludon, btrally ih. on. thd
vill b$ help &e or8diadon nee is
n turk-ae.h.d rbFs. (NAs) or-d.md onp iry (or-d.n{d
sroe! ddi.s dut a@.h !o a net-oi. buin6. lt irlonpnting)
i.$sd ofto a sinsle@npure. C,ntdins for @mput! Bourc$ b ord.r diydrt n Prccs thar
Epidly Espond to an oaniations s optucs the baic dae to
"eeded
r.tmrk-'D{.Ad6t rcftmrc prcces a osbne! o!de!.
sofsd. lhat enabLsa on a
'dd ord.! pMirysytu Sysetr
ne@ork d d6l@p to nonitor th. 6. onlin. .ndytiol prcdinS
of individuai @nputeB ud sha.ed (Or-AI) Sofree dd a1los ue6 ro ihar pro6s ordr .nry, sl6
hadmrc Guchd pdnt6), s@ for cxploredau from a nunber ofdifFrent @nfisuedon, shipnenr pldnins,
vnds, rnd dsur. .onplid.. with shipmenterecuiion, inEnbry cotuol,
invoicing,.Kom& rclfionship
onlin. lMdior pMing hanagenenr, od outing dd
eu.l n.tmrt A @npuer srsEh (OLTP) Cohpurliad p4ssins in
that on sinulae the tundioni.g of a which eachtmsdion is prcsed
 errningsrne, varioNdedu.tion\,dd dru e.rniesxe .ombin.d,sumrury
org.niution A lornal colle.tior ot
etrrblnled iituls are crird h the drn re.ords
p.ople ind ods
'e$uices rtLerdun.ilc rtd liom slcmeiol
ro Komtli\h i seroigoar\'
pcreptiY s'5cn A q$en drl drx, drd $ne dt2 rtibu cs ft
orguiational chdg The rcsponses trrproxinates the \"r I hunnn sc.s, re|eIcd in morcdrn ont drlaeDrnt
ihai de ns.dery for forproft sd to improvcdaoha\.Peifornrn.c
nonpronrorganization\ to Plan6r-
pron.l da n4{o& (PA}0 A Pl.trorm for lrimcy Prfrd.cs
inrplcnenr,rnd handle.hrnge.
Nnvork dit sutPoi{s.he intcrcon (P3l) A $reeningt!.hnologydra(
o.gdiz.rioml .ultorc Thc oalor nccdon.f nrfonntriiontechnoLogY shictdsussnlion Web snesth2rdon't
Mdenhndingsandssrnfriods tor tr vithin a,rngcofS:l lid or so pro'ide.helevclof Privr.r Protedn,n
bNines, a.orpontion, or an
pcroml produdivitYsoftwre
sof6\a'e thlr entrbleslseN ro in+rot plo.cr A tvpeofhKl-.oPIouiPr
orguiational ledni.S Adiprarions rhcn per.n?l effecrikncs,increaing devi.eusedfor gefer:l dcsignqo
to rs rcndition\or rlreraooftot theanounrofNork rhq ando rnd ns
poin 6"Jutiot ststen An ev:lu'
olgmftnonil pracn.d overnnc
ion Frocesin$hi.tr e2.hNrlLratn,n
organi?.tional sluclue pcreonal sphqe of influde SPhre facor is drigied a $ighi in P.r.enr
Organiationalsubr ts znd Lhesry ofinfuen.c th*swd rhe nrtds ol rn rgc poir$,bded o. inPoftn.e Tlen
thcyrelm io ihe ovehll organizroor. ea.hpoposedsr{.m it sr:luatedin
rernxofrhn ii.d andBivenI score
ourput lroducdon of usetulinlorna pBonaliation I he tbce$ ot
rargilg tom 0.o l00 l hes.orcs.re
tion,6urlt in the nm ofdocmdns RiloringVeb pxCFs to \tt.illcilll
tduled, rnd dresynen \rirh the grerte*
hrger individ ntrl .on$r nrer '

oosonrcitrg Contacrn wnh ou6id. ple-in approach Slow]I reP[.n]8

poinlof{alc (Pos) dcYie Tennn,r
ptufe$jon:l sefljce\ id neer \Pt.ili. @np.nefs of ihe old trEnr vnh usedrn retuiLoterlionsro en&tsales
dror ofthenei onc j his pro.es is
inf.rmion inio lhe comPuterqEn
rcpeared uniil rhe
for eachtrPPlicition
p,ging lt .e$ of$uPPnlg Pr.gris nNsysen isrunnirgev.4 iPPhotun Poinlto'Point Prcbcol (PPP) A
or Prd ol progntu beNecnmenrory .nd pdbLnringis e{F.r.di aho.:llcd comnmi.In,ns poro.ol rhil trns
rnd oneor dore diskdcvices ni6 ptr L.6 overdcPhonelin.s

pdall! rtd-dp Runingborh thc old phirling Bogusmess+csPurPftcdll policy-b*ed s@mg. m...gEmenr
rnd d.w s)rtns for a tdiodofinc ion a leeirimatciNtiurion to Pry Aut.m{ion of rcmge usilg Prfl iodY
dd compdingthe ootPurof Ens peson:l nfoLmridn liom.unomer
synemcloscltvnhrhtotrtputofJreold bv.onvincinSthen ro go to r'lpoof
.]stcn; ant di &crencesrc lecon.ilcd podhle conp { ConPu@ smlll
vlen urs r.oniorablc lh* the cnoueho becnicd 4sir.
ncwsy$en is{ortin8.ore.dy, the old phr'sial d6lgn SPecili.Iion ol thc
chr r.tdistics ot the slfren .omPo prcdictiYe anattris A for m ot dar.
ncn6 ne.esrryrotut drelogi.rldesign ninirg tLtrt.onbineshntoricJ diQ
pdc*o.d sifier A smll Prcgrd trnh snrlrttions ibout trtuft
hiddenh a ndwoft or2.dmPutr condnjonsIo Predidourconcsoi
srsen th{ recod\ identifiction pilor sqa-up Runningthenssvncn fven6 su.l is futureProducrsdcsof
nunbem2hdpase016 for.n. groupof 6er dhd dar:li rheprobabiliqthrt r.b'omer rdl

par.[ A ninorchangt to comcta

problcnorm2k d snall e.hancmenl pipliniry A form ofCl'UoPd{ion preliminty dah.tion ,qn inni.l
It n usuilltan rddniono d dnting in *hich thet aremuliipLe*.udon r$esrnentNhosePurpose isto dismiss
phrYsnr a singlcnrchint clde. begin\rftctrll
rh. ur$nntcdpiotostrls:
popos.lsharebeo subnnled
paymll joun.l A rPoii dDt.onos\ pirl Adot.loloro. a Photoim"g.
emfloreei nds, the r.d whs or i point of liBhton ! disPhvsciedr. pinEr/ftey Afidd orolnel& thd
enployocs worksdduringthc {ek, thc record
udiquelynlenriiies
pldned daa .eds.tancY A Nar ot
h.us Notud, the trt nG, r Pdnrm
orgdiznrg JrQ nr whi.h rhe logidl
fa.l.r for ovcilime Pry, eirninF\,
dlrbise de\ignis.here.lsoaDr.ertlr
 I Glosslt

prindrr dor. (min ndo.y; prcgmnhg lif. .y.L A si6 of qudity The abiiitr ofa podrct
ndory) rdof rhecohpuei thd $eps ind planned nlviria developed (indudins ssns) to ner or seed
holds piosnn innuctions dd dab. to ndimir the likelihood ofdryelop'

qudliry .ondl
priht bm.l d.[dg. (PB!
-4n -4 poc$ that ensuies
on-premisewithins sj6ren ownedor prcjd dadli! D*e the enrjF thai $e nnishedprodud nee6 ihe
lesed b] r prinre enterpriseth{ inteF projed n ,o be @nplded dd
.onna6 i6 relephonesrnd pbvide:
q@tioimir6 A nahod of sarheins
acce$ro rhe Public telePhonesy$en.
phjdt nilBtone
A .driGl dre 6r das when lhe daE sours at spEad
problm rclving A prca$ thar so$ lhe.onpletion ofa najor pan ollhe ov* a wide gsgraphic rea.
bel,ord d(nion mking to indude thc
ndio-A.q@.y idnti6qtion
prci.l o.gaiatiod rhdft @rID) A echnoloe/ thar enploys r
prd.dl|c The snegi6, poli.i6, srrudu.e enered on major prcdu.b nicrochif whh an anenm thd
neihods, rnd rul$ for usins a c8r5. bnadcsts its uniqu. iddtifid and

ph.s A st ol logicrlll, chtd t6ks psid 3.lt.dul Dtailed deqiprion

pslbrmed to achievea defind m<lom atrs nmo.r (f,AM) A
fom ofnemot in whi.h ituructions
projdting Data mdipulado. rhat or dda cm be iempoqil) $ord.
proe$ slmbol Repremtion ofa eliminaEscolmm ln a bbk.
functior rhai n pdohed. npid appliadon de.lophdt
prcp.i.bry 6ftIl@A oneof,a-ldnd ([AD) A sr.remsdeve]opmdr
prcding Convdting or @N- piosid Inr a spsific appliotion, approacl thI enplorr rook, e.[ni,
foftingdrE inro usetutoulPlh. usutly dev.loP.d and ovned br a qd*, dd meihodologiesdesigndto
spcd,ppliedon dselopm.ni.
p.oduct onffgmtior loftre
Softtu ued b) bu)dsio blild rhe prcbtt?ing An nqsive approachto r..d-ody nedory (ROM) ,4
pDdu( ther n edonline. lhe q'sem dddopheft pre$, nonstarile foln of nmory.

Pr6ductivity A nersur ofthe ourpui pdlic Lcy irfmrutu ela ) A rc@iving rFtm Sj'sefl tlar creres r
actri*ed divided by lhe inpur quired. neans to emble a6 ofan unsccued remrd of *peted r..eiFs.
public ncsolk such 6 rhe Intemc to
profit cotd Deparment wirhin r. cord A @Idion of daed dab
se.urelyand privately ex.ldge data
orgdiat'on thar sacks rord erpen$s
lhoush lhe useofrPublicandaPdur
crtptognphic [9- pai th{ i obbined
redu.l itutution *t compuring
and slded throueh a rNrd ,!thoiq,.
Pesru Erd!.tion and Rdis (Rrsc) A @nPurer chip d6ign b6ed
Tehniquc (PER!) A fornalikd prblic n.tsuL s.rid on educins rh numbd of nicro@de
Sl.rehs rhar
aPpioachror dstoPins a pioj&t gNe Penomr comPdrerue( 3Gs to in$MtioN buih a chiproe
'db microcod.
eseniialsetof.ohmon
vst databsd dd orhs sFic6,
usril/ lor an iniriat fe plus lsge ft$.
proarum.d .L.irion D{bion made
using a rule, procedue, or quetitative peL6e rcduddt *ny of ind.pdd.nt/
ordd pre*ing ttu
Srscm thd helps pfthsins dpart, i@psiv. dnl! SAID) Merhodof
me.6 onpl.rc rheir lansrdioN soring datr thai generees*@ bits of
progmhd Sprcialistrgponsihle lor
data fioh sntins ddr, allowing rhe
boditins or daeloping poslus to
sI:ren b creater'!.con$iuction rup"
saiis6'userqdirehehts. pu.l6inA pft *ing
u$rction so that ifa hard drive fails, th. srskn
6rrtd S)arm thar inciud inven,
prcgming l,ngurg6 S4 of
tor] @nrol, Pnhde ods Poesing,
kelaods, s)hbok, anda srsrn of
l@iving, tud c@uns paj'able. Enginerins {pro6 rcdaign) TlE
rd6 lirr coNruding sbrnenr bI
6di@l dsign of bGinss prce$$,
*hich hunatr on .ohmuricde pah t.hndloF/ Automti. rls organiational $tudures, information
insrudions to be secuted by a nissior of infornaiion dd rhe rysetu, od vrlu$ of ihe oiganiaion
InErnsnthd thrn oaking 6qs ro achierea bErkhrcugli in buine$
sdch for i wnh $eir bovss.
 dNi..s plicedin ring oI cncLi there sen layort A .echnique thdr allorK
registr lligh{ped {oagc ds in the "
cFU usedro tenponril) holdsnall n no .enual .oordidrtingcon Put.li r dsisrer to qui.ldl rnd em.ienrt
unnsol proBramibtu.tions rnd data nesages rc rouEd rroud .he ring dsign thefqurci hyour,andldrns
innediaely betoE, duing, and alid frcm one dryid or conputet to

3dipt bunier varD$.ld.k is {nh

reldtion l modd A dacbat model rcbotiB Meclanior or.onrPuter hds tc.hnicil \awr {ho download
dcvicesthn pcrlormusl{l requningtr ProgmFs.iPs drardrcmrc the
thn dddibs dah in $ hichalldac
highdegreeofprecni.n or tharare job of buking inb..npuGA
ele.ms lie phad in Mo_dimeNional
dbles, calledz&tuN, tb* de the tedidusor haado6 for hund! .!i/dJ
srch nguc A rarch tod
losi.,i cquivalentof liles.
routd A d$ ice or sofnvne in d
s@nd,ry rbr.s. lprnm.nr
rcls signjficant Pognnr ch2.gc onpud thatdd{minc the n*t
*orag.) Dn i.6 dut sorc h$r
thI ofte. requirescha.s- in rhe nesork point to which r dam Packer
anrounsof drE, insfu crion5,dd
do.undn{ion of the olimic shouldbeforu cd oMrd iB
informationnrorependnendt thrn
reord.r point (ROP) A aii.al allo$edwnh mn| menory'
i.lenory quantitylcver. rcuting sr6@m Syscm thar det.r
saurc sock6 lj/r (ssl) A
nines fie bcs FrI b sct ProducB
repditiw notion dbordd (rcPditiv. .onnunicarn,ns Prorocolu\L{ to
Gon onel@rion ro anorher.
dr$ injurJ RsD An injurYtbm.rd
be crsd b vdkinsenh comPurer ruI. Acondniond$atement dml lnrk
seleding DaramdiPuhtion rhat
kefords drd dhd equipndt gnm.dnditions to d.oonsor
elimimrcsross a{ordng to edln
replicred datlha$ A datrb^. in"t
holds r drplic{e Ft of frequently Ncd mfc hlibor princiPls AFr ol
slcnE ha.Ldp Cfeling bactuP
pdnciples$r ddE$ lhe e.onrm{a
noti.e,choic,rnd coticsof onll.itain tiles.
darapriya.rissresof
rcpoi layou. Techniqueth2t slloNs
semistu.turcd or mtruc.ur.d
desienesto diagramrnd formr
probletu More ..mPld Prcblsmsii
3ales@nffguhtion systd PLoces
whichihe tulxtiofshiF mong the
drt eDsuresthir Ihe prcducts and
..qust for naintn.ne fom A foft pie..sol d{a aE noi .lxq. c1ed,de
serics oideredre Ntiicienrto
2uthdrizing modiicalionof Plogtans objedivs dru ndy bein rrt'iellof1;rm6, and
rcconplirhi]t $bhdt
rhc drta is oft.n diflicuk o ndriPul2re
dd will sorl well Ioeethd
rcqudt fo. propcal (RFP) -4docu
nent thrt spsifiesin dcnil requned s'tbffcins mod.l A model tld {ill
sequeft. studrc A ProFmm'ne
cou,es suchash{dvr. and findrgood hu not neessilt the
sru.ruF in whi.h, Jrer $rfting the
be$ ptublen soluion
sequen.e.Prognnrming s.temen6 iE
rquirem$t' dal'6is De@inimtion sql.[ility The $iliq ofthe comPdkr dcctrtedoneJrer anotheiurlilall rh.
ofuser, mleholds, ,nd olganiatioml b handlern indeasingnunber of shtenens in ihe \cquencehrve been
@ncuiienrsers snoothlt *(utd. Thentheriognnr eithddds
01continue!on .o anorhcrsequence
resd Proedus SinPlned Prcd- rbduLfedibiliry Derrminalionol
ss ro rc$ .n aPplic{ion fiom wh{e whdh{ thc prciect dn be comrLred *qu.ntiil re$ tuti*J n{hod in
amountot nne
in r reasonablc Yhi.h dita mu{ be acce$edin dre
orderin {hich ir n sored
raum on invs@.d (ROI) onc 3.hduled repon Report Podued
ndure ofls ralue that inv{igaF rhc periodic.lll, or on r shedul, such s seqEdtial aas domg ddice
addniomlproib or benelitsth{ are dailI, Ndkly, or monthly (SASD) Dviceusedto s.quenri,llY
Seneatcdasa Per.entrgeoftheiNes ad$ second:ryiorige dni.
nenr in IS tc.hnoLofl *hedJing eystm Strem rh2t d.teF
nines the b.$ rimero PiickuP or sd.l une rntrna Prctocol (SUP)
rev.nE @nt. Divinrn Nirhin tr delireigoodsrnd aNic6 A @nnuication\ Prorocolthri
conPml, thrt ti{l6 srlesor rcvenues. dansnrn\Prckebovertclcpho.eline!
sch.M A d$criPion olthe entne
.ibg nsorL A tf pe of @pologl
that.onttns comPuanaid ohPuef
 (lld*ay
I

,.F A @npud ddigned lor a 3ofr$3 The conpuo progrms tnar tic Wb pdgr w.b pag6 that
't
spdfic Bs[, such d n Mork or governtheoperarion
oarhe@nPurt. alm'r @noin the sn inLrnation.

sofrwr bug A defat id 2 conpftr sadstic.t sdplhg sdeciing a

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lophcnt phse inrclvin8thenudy of depatnenfto initirt. sFems
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exisringsfr.ms andwork proce$est,
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q6ems d*elopmenr, inYolvins the
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onetuansnissiod deviceio be@nnec
sp*iali?s in an,llzing rnd designing thcy areopera.ing s intendd.
tcd ro oiher transmision devices.

6ysem softFdc The stofProgram

rm.t.ical nurtiprGing {sMP)
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nedmd considered jn lisht ofthc gods
tchnolog/ infEtrudure All thc

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fecific 'nto
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CBIS (.onputer baed inforftaion st*m), CTO (.hiefte.hnoloer omcer,75

CTS(iipel d'nnelsrndrcme),706, 708
CBT (.onputeFbred uri.ing), 667, 5?, .ulture,orginizrtio l, t4 56
c$ctive, inportrDce ol 284
CDN1,{ (Code Divi{ion Mlliiplc Ac.6s), cu{oms(s). stu u}, CrM ksbnd
257 Elitlonship dmasnent)
cD,R (CD-rcor.lable)
dis6,r 06 ryn.hrcnou,24l 244
CD-ROM (conprcr dis. cad{rly ncnor,v) baElining porverot 44. 66
m'nt.(,1$h nchorrr,102
cD R'i(r (cD{sftablc) dnc, 106, 107, Privr.].invd.n.t, 382 :t3:l
623 rdnntrg, 63 {6, i6,1
.ell phons, 1t,l rt5, 3r6. 5?,dt,.elluhr
rmsnrissionitelecomnuni.ations compeino$ ivalry nong, 63, 66
.euulr iir$rissioi, 249-250. Str,t0 cel
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cenrdized proe$hg,27l conf uetlotriltJiolosy,
i39

cFo {chiefnnmcitrl omcer, 7t

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D
CCI (conpur.Fsenenred im18e) DdsD (dn{ ace$ $orrse), 102
'nlarcd nisuLes,679178

contei(sreaning,314,122
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connuni.rtions, 245 246

h.ll-dupi*,245-246

.hif prcgrmmer tam, 636

/benenrrnxhis, 629
ctcs (onpl* iNducri.i ei
c-connerce
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CIM (c.hptricrintegnred
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C1SSI (ceirifi.l Iniornition SFt ns vo.lsation.and,12.1
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5rJ0-531
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e-conn.K and,35:1,377
crednrl]otringagd,ci6,65
.nne. Jzrlra rerodsmise.uritr
m(hous6,219 221
CMM (Crpabilitr Mrtuiry Model), 580,
prtvention,6'] 693 appli.nions,ll7 320
t3l-532
CMS (conrcni hm:genenr sr:km), 3l 2

c()Bot_, r72, t7.i, 211, 212, t27, 646, .rerring/'nodlliing, 203 ll0
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.ms plrtlormdevelopnieii, enPowdhdtand,52

640
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coM ourpur nicrcflm) ddlcei .ui!-shiPinduLry,43,2t3

numbq o1con.utr.nt uscr ind, 2li

olmnl bae ufr inteilie, r4G147 CSA l.itiol succ$sf2ctort,t6t, t96
CSMA/CD (Cricr Sdr Mulriple Acas
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 I Indd

reso.s !o leftn about, t94

e ntil, 23,14,tr3-ar6,700 1o1. Se abo
downsrem mn2genent, 50
soliwE, 162,t64 r6t, 167 enbeddcdopdting syrrenr, 154 156
spe.i:l-purpose,2 I t DRAM (dynanic R 4,\'I),93, r00
day?rion, 330 331,691
sysem,acqriiing,640 641 end-ser +rftn .levelopnent,t74
DSL (Digi.:lsubsriberLine),213.257,
D&Ar(.Ltrbse.dninnteo6), 74, 19t, 219,2a4,303304
2ta 2t4 DSS(dc.nion supportsr,rren),2G3 1, rpplioiio. sot@rc, 169-170
DIMS! (dahb6e b?ffsneni syrent, 480 -486
28, 195,199-201,204,20G2t7, 3oftve, 14t, 15.4,157,169-170
237-238 spheicof inllu..ce,145
DDI r (datadefinnionldsurss), 203 210 $oftge,l07i 103-109
D1? (deskoppubtLhi.s)soliBre,162
drenqr, proi{iion of 6t5 397
dee.tliad l)r@$ing,273 .nrMsj thEfu ofns,61,66
decision..ta ,r, DSS(&ci5ion support DVDS (digit.l veMiile disls), 102, 106, envno.renel hsu6,707 709
1t 6,t 2 3 , 6 7 5 EOQ Gcononic oidd qurnnty), 470
m.king,455,4tgt8, ,i87 489 E?RoM (e6ahle progrmnlble md only
nonprogDnned, 456 -4t7
Progrnmed 4)oz1/
E ER (eniiy-reLnonshipdiig]s), 201,202,
204,592,594
sgononig, 30,3t, 707-709
d.ode ituductions,
92-9, FRP (enerpriseGource plarning), 2t-27,
4A9,5675tA
rpplicationr,36J
370 rdlatrss/disadlatass o( 413--14I
descibed,2r25,343 396
dsign. 5?z/, rstetu desisn
hddwarcand,89-90, 91, 97
nulrige nodel ol 3t2 lt4
MIS and,459,472
pa)mentstsm, 374-373
dsktop6npure6, 122,123 ovcfl i*, 398-3t0, 43P.41
phnhng s.di tu4 23
DfDs (dah-floi diahnt,192, t93-t94
srasstd, sntegis for,38!386 pemti.g/corcting, 621
sy$emsdselopmnt md, t66 t67 Mndowsx!md,ltl
t{hnolor' i.ilrtructue, 370 174
goodinkBclive,620621 $S (dedtive supportsrsd), 491-494

fthica1i$ucs,33-35, 709-7r I
(:mems,64,112'111 tmsa.tion proe$ing sofNsre,
E{ihc (asution tihc), 93
371374

EDI (ektuonic drtr intdchmge), a'4,

2AO2a1,2a6,3tt 3t2, 406,4 t34t4,
decutive i.fomation syseh, 23
420,435426, 429, 431, 13a
*pandable ronge dcvic6. r07
DDRs(s.nt dre raorde6), l3
.duarion, 15-16. -td ,6, cffifications
onGion (plunse),644 dcsdibed,
29-3r, 513,t19-533
s)6!enshell,
52r, t28, t29

disacr covery, 108,410,411,4t4,

621424 described,20, 326-327
opeEtionsomponent m4 72
mmgenenr onsulting nrm md, 36
orguialiond slsams44 51,72 sFttu dcvcloFhentand, t66-t67
lFr (ektoni. tundstmslir), 231 232
disribuftdpbcsins, 271
DML (dae nmipLtl.ion Lngurge),2l l F
bill pbdrncnt, 169
document.tion.5.. a!, rcpotr
businc$(e-bu5ine$),
24 frins:, in infonaiion uq 702
f.dibilitr ralFa, 537-533

docment disriburion, 276

wr rcePa.e, &5
nbq-optic abG, 24c248
mmagenmr (emrn:genenr, 24 25
procurnent(e-Fm.uEnenr, 24
ft trnins (e{rnind, 16l-364 .ompE*,otr urrn6 ,)
Dos (.leni,lolade) raclc,34,371,
633. 5i, ul, rttrcLsj se.urity soaMiedktiibution,276
 I

tile serE(t. .tz. zlj, sefreis

HTTP (H)"erTxr Tnn.fcr lrobcol), 371,
374
fflen.ncs, chdrder renictiotu 6r, 14t
numan6ourc n2nagcnent,36, 194,
655 (goup suppo( s}renr, 23, .i36 -49r,
573 HVAC (hearing,vennng,..d
tore*ing, 437 -438 CUJ (gp[ical userinterEe), r47, 2 ] L S,. aiHo.dnio.ing)qrtenq 125
Mrs,1(2,465467
tingerprini
stens, r 4, 373,t 14,692
fte\dl! 3t, 214, 32J, 3a0-a31, 691
H
hacke(,632,637,692,717 I
handbcldonpure^, 116,122-123,316,
363 ICRA (lnternd C;ntcnt Rdns Asoci.tion)
hmdwriling reognirio., I l6

FMS(ilcnblenmua&ruting3y$en),471 lD& (inregnted dcrlopnenr

rcid/writehadr,104
fortgreun,l posrms, 148 IDS (Iniruion DeteclionSysen), 519, 694
6ttdwtt. 5.. allat?a|). A?*
a.quiring,hom IS vendos,6:12
634 IM (instantnssaging), 19, lr4, 315 316,
439
inrgeG), S,. dl', gnphiq $fti"rc
tdn l, 224, t01 , 516, 624, 673419. 5e conpon.nb,92 93
descibed,lT-13, 97
e{nnere ind,:170371 hplenentrtion sbgc, 456
c-comrerceand,377-373 fun.tions,
connon, 146 in(encntJ b2ctups,623
ov..i6voa,329,38G332 idusry $rocrure, ahering, 64
inFur/oNprd*ics, 109,1I3 inren . .nsine, 524 t2t
.e$ft b ldn rbour, 90
nrloroidon. Sfil, IS (infomatio.

prmso(,2 _252
FTP(Iile TmnslefP6mol),l14,317
tunction,l requirenei$, 593
h{thcarcindu$9, 36, I17, 532
daiaban:rd, 219,223,230 th6ry, Snrnon s fundinenftl l2* ol
DSSS rnd,27,432-433 246,234
e{ om m e r e i n d , 3 5 7
G i.frare.l rqnsnision, 249 250
G:Ar G.llnh dsenide),t6 oigmiarion,l sftuctureand, t3
PotubleconPu.esind, 123
ndio-fEque.q .niF a.d. t3
regulaijons
md, 673 otganEion,l sysensand,.435l
productivirt 14 68
Gbps(billions
.fbnr p.r second),
244 sotikr. dd l4Gl47

ledss srren, 432-413 virtu,l r2li.ysy$ds and, 536

purPose.onPure6, 122 workenvnonnenr.nd, 70G707

crco Girbrs in, garbas.ouo, 3 insunnceindurt, 69, 153

CIS (geognphicinloinaion rrren), 480 integded 3pplicationprkres, 168

hieidchi.d neMrLi 263

higl r sru.turedprohlen.,,31
sekn,g3n.lysis,
431
suppoftiDg,r4.4-l4t BMD (nd mountcddispLy),30 31, t34
GPS(globJpositloning srellire),121,283.
4 t3
Craphidsoftlft, 162, l 6t- 166, 167 intermiio.al neNo*' 261 262
HTMr (HperTexr Mdkup Linguxgel
30t - 3ll , 4 3 5 , 6 7 7
compulng,101,102,
tt6 appli.ations,313
3lt
 I lrd.:

473
applid! r*id Pronles,
d&bdtnd,217-219 .akft, owri$of,70 77
longnisan@sdieq 2t3-254

l-TO-2Giner T.pe OPen),103

cthisl isues m4 33 3t K

mnagmentnsu6 d,32li M
onnena.d onPuting rd, 62 kiloblt,9s
Lioskr.65, I 14 S., d&dATMS {2utomtd
p166, 314,320 322
picyand,33-3t,701 702 M & i n t o s h , 9 lt,o l , l t 0 , l t 3 l t t
rffns to ledn $ou! 296 acquisnionfrcniry, 52t
sedritymd. 33 15,670 71l
*flie^peed nsu6,323 329 progmmminglan@s6tnd 174
srk6 d{eloPnentrnd, t6ct67

vituJ o2nizitions and, t4

Internd ExploE bro*ser' 5.2 d&, brows'6
ndn n.mory. .t . z1J,menory
ndnamn$, lt7, 211,218,64t
L
dsdibsl, 20,32G327 langurgeditreMes,4l4 linLingPCsto,271 276
ninlgencnt 6tuu1d.s firN md, 36 lANs (losl iteaneNo a),75, 117,23t
inyenrory{n(ol sy".n, 17,49 t0 lt7 302. Sd zl, nesorla
424 S., ,&, JIT (is.in{ine)
419--420, desibed, 26e261 nake oduy decision,614
e onnerce fd, 416-417419
Ae llrdw* dd 70 *p.n s)5r.ns andi 128
GSSand,490-491 onsulnngfirmt 36
MIS dd, 469-470,478-479 nobile.onnercedd, 362
ponableconPures ud, 123
MANS (metoPolitu del ndorkl 261
I!(InteinetProtcol),241242,2t1,272, switchingdevics and,27r 272 23t
297,471 nmul&uing MlS, 467--472
IS (infornadon sY$end s,',&, hptop onpuaq 34, I 23 narket. .t . .ld niftding
L,ATA(loalaccs tnd ftnsPoftda),252 bsket .ulFn, 224
dhPnen6 ol tt_21 rsnentdon, 224' 166
onputdiad,l6-17
d 6cibc d, 4, 1136 LCDS{liquidcD.$ldnphF) 12,r19' S" .dkding .td zr, mrker
tunctjons,9?ic,l, 7G77 e-coDnercerd,366 167
inistuctuE, disParitiesi., 414 Mrs,472476
oiguiadon.l, t6

peMivene$ol 4 t LEC (loql.rchuge ctrier)' 252 25J sach ensines.nd, 375

legrcyrF.ms,438,@6
thre prim.ryeryonsibilitidof,73
leAishnon,414-431, 677 673. 690 .Bsitly paftllc!Pmcsing,100 101
ISDN (tntegatedSeIies Disit l Ntuorkl, 695497,702 7Ot nfthemtic,l (drhnetic) bodcls 14
211,256-269, 234 n-o.mere (nobile@Imei) 22,373
ISPS(IntemaSNicc lmvid.s), 272, ncdicnio. .uiglnent qatns, I 17
3O2aO4,312,4r)
l-tine (ituductionrine),93
I\rR (int.trclvevoiceBPons) 112
IXCS{interdchange arics), lt2 rinux, 149 1t0,1t2-15t, 177,r79 615, nemory. Sd z&, RAM (6don 3cs
634
dlt$rsd ud, 214,216
+odnsaind,374
J
jAD (joint 2pplicdon d*dopnent) ProgFmning l.nguge. ed 173 ch.lddisn6,98 100
Stu Ofrc. ind, 167-163
t73-574
Jft,3 10 , t 1t , 53t , 639, e3 emputcr,3t-36 fmctions,t& 100
appleh,174,307,309 310 inturnarion sFr.n! 3t-16 ffiment,147-148
desdibd, U4, 309
eliMe rd, l t4, 174-175
JIT(lN.inrine) inventoDapPloeh,470, $or4c c.Priry, 93
555-556
,y$eh uniB r.d, 93
jobG).sd /', arer oPPortunnns
design,201,613-617
 I

menu-divm sy$enn 620 ilc foftas, 107,120-121,157,130

inrllelul p(pea), issu6:nd,
379-380
sh.ri'rgwebsi.es,32l opc.4ouresor.wae,177-179,634
opeftdngst$ens,
145-152,154-116
me!iopolit.n 5eflies, 283
MICR (mneti. inkchrn ter ftmgnni.D)
N openrion:l fe6ibilitt', 543
mi0oproason. s,, /L, cPUs (centu?l opentionsomponenr, 72

NAS (neNorl ituched $onse), 107, 103

mtunl hnguagr ptu..$sing,30, 514-516
hicowrvc.onn{niaionr 243-249 opdniztion nodel,457 -4t8
oQL (objed qurylrsurse), 229
miliiary ol,enrions,7, 19, 421, t56 5t7
A l . n d , 5 1 l , tl3 , tl8 tl9 ..t.t ryf.di 4I3-416
rerwo:].(l.s.?dba
't4fn ry4 prcc6singsF.n\ 413
e-olmeremd,I1, at7
clr$iB'ine, by sy$en type,9 10
sedrity isucs and, 676, 673
i.terconn<lnrg,26t 272
s o h w a r e . i d ,l t4 , 1 7 6
linli.g lG ro,275 276
I i t u a r d l l } ( Jsktu r n d .I ) -nanagenentsofrmr., 274-275 OSI (open Sy$enslnteronndion) nodel,
Mlrs (oillions of iisruclions per s(oDd), 261,266
sGrchinsdcvic6,271-272
94, 97, 13
MIs (mmgennr inlormtion sy$em),
26 27,2a,400.45A4aO
DSSSand,.onpdnon ol .134 d e v i c s , 1 0 91 1 3 , l l 3 1 2 1
neumlnsorlc, t16-513,t32 oqrnizrtionJsrstetuand,43 tl
nssgouPs,314,319 320
humin rsource,47e-479 pmductivity and,63
NGI (N*t CenentionInternd),293
nm uteturing,467472 sliw&dd l4Gl47
n tkan\E,472476 outourcing,32, 60,61,72,57t 577,603
mi5sio.crnisl syrens,564 nonin:l smuFie.hniqu.,433
MMDS (MulticbrnelMultipoint
NOS (neNorL openting s'3tn), 274
Disdiburior Syrftn), 269, 23t
noreboolemfuaG I 23.5.2zr, hptop
MMS (nodel nmasemnr soaNm) 23,
Pll (llatli,rh aorPriE.r Frcferener, 70r
MO (trnsn.to-optid) dnl., 106
nobilecommere,362 163
PANS(peenalarer.wo*t, 2t9, 28t
o

ab le,2 502 51, 2t 9 -orintcd &ftbiscs,229

-oiented desisn,613-619
250-252
special-purpo*, -oieni.d ptuglihning laneug6,
174, t7t p2yrollstens, 1t, 72,231 232,403,
'oiientdl s){rem dcvelopmen! 430J31,646
(oosD),t35 536
no.itos, 12,113 ll9, l27 dfiion,l ditrbrse mmagenent
ratuicion proesing .nd, 25
Moores hw, 95-96, 105 sysem (oRDSMS), 229
l$X (privarebnncheichdnsF), 271,285,
MP3 loin & r07 ,r 20 121, 1t 7, 380 OCR (oFtical .lfticer ecognn'on), I 13
321
MPE/X(MrltipiogiammingL\eutirewnh ODBC (op.n d.taba* conne.tivny),
ICMCIA (Pe6onalConNrer Memory
integnredPOStx),154 22U229 Cad Intermtionrl Asocirtion),106 107
MPTQM (Mrin Prepntion Tottrl Qurlity
PDA (Pe6orul Digir:l Asishh), 121,
ofahe$elf soa[nJe, 159 rr4 t56,242
MRP (n2tri:l kquiftnenb phnnins),470
Mtu'lr (muf?.tuins BoLrc plinning). oLAP (online in,lyticrl procsiry), 227
470 OL,!D (organi.ligh.cftntingdiode),
MSSIS(naiaeedsecuritr seniceroviden), tL 9 ,L20 bard i.lornltion syscns, 67 nt
694 595 O|T? (oiliie fan.atior prc.esi'rg), 219, d m b *s r d , 2 l 5 2 1 6
muhlfuncrioD ddices,121 221,402303
multipkuserdrabss, 207 OMR (opric.l m2rk r@gnition), lU mesurenent system,652
on demxndconputing, 6062, 571 577
multiprocesing,
100,101
informrtion sewics, 166

|ernden, $onge. .t , /, semndrry(ortrge

 pr@s6. &, zlo CPUS(dfal Focssjng R
pmdndivir/ soft*qre,145, 160 162
spheftofinflocne, l4t RAD (apid .pplieiio. dsclopmdd, 568,
PERT (Prcgm lqlurion md Rdie conngmiion sftvm, 372 573-574
nd,o,314,321324,343.Se tLt RE D
(dio'licquencyidsritaiiod)
pldnaeutica] i.dudy, L 156,318, R-AID(rcdundat rny ofind.pdd.nt
481482, t57 inpmving diiiing, 6t indpelsre drslc), lM, I08
,tu$s6 md,22t,229-230 RA (mdon ncnory), 89,118,
srstem d.'tlopncnt $d, tt7, sub$itu&, rllar of, 64, 66 t t , t ) ! . t . r t u-cs
'n n o r y
t59-560 cach.n.mory md, 99 100

23,329,380,690
phishing, ndhm.noryad,107

lntdner,314,320422

rcdundacy, pLnneddah, 2Ol

PHP {!}?efre* PEpr@s$r), 310 rce.Aiaeti,n9,56, 57-58, 577
piogmning liG cycle,617
d6ign, 14,201,613,61tuU
rgnldions. Sa zr, lislrtion
genenrion6
o[ l7]-176 rcl.tion.] dabb* modd, 201, 202,
HMs (peM.al i.aormationImag4), 166 203 206

PKI (publicket infrstructur), 691

mu.ccmnr, 162, t32-t84 r.petitirc @tion di$d.n, 706
Epon(s).Sz ua, doohdaiion
reous Pal2bL,427
poift {aludior stdd, 610 .couts reivabL, 429--430

policy'basd $dage onag.hdr, lO9 ?ROM (Fosrm$le rcad-only

p.p W 2^, r57, 1oa, 329, 4J5. *. d!:o

poebk conputeB,122,14-124 g.n ftrin8,21l-212

ptut @ts.Se .tsoqr'ft?tutoab

ldrs a.A, 460-463,47747a

3ch.dded,27, 461462
lMennt conPai$,36 rFrn aftlysb, 598-199
P?? (Poinlto-Poinr Pbrdol), 302, 304 nonopchnonr,)/z
r.q!6r for mdntnoe aorn, 643
prlimimry*aluition, 628 rcqunencns mrtii, t95-597
domin soii*ft, r78 reelurion,113,l19, 120,127
pimary $onge 92, 5rzzru nenory nsork dicd, 281
pubhhingmmpdi6, 36
plinct,a3-a5,327,329,670711.*. .La pwh$ orderpr@sing sy$cns,
42442t retrncompdi6, 14,36,66,363 364
purchding nnsdion proasing ttdq
in%io.s o1332-331 4U427
sru tdo.r.qucncy rc.nunauonr,)d
RFID trgsdd, 270 6t, rre,220,26y270, 357, 40A,
prcblemslYine,4tt, 456,4t7 -4t8, 417420,426,538,614
4a2 4a3 RFP (reqcs lor pmpdd), t't, 62tu27

procs(6). &.,ra pr@sing

a ichn6, ue ofrh. tem, 475
ightsizing..taz&, dowizing
QBE (Qury by-Exdpl.l 2u
NSC (icdued insrocrion id onplting),
97,154
pocsing. liY zl', Pmcs6 rcbotic,322,5 13-514.t18-519
chuderEiis, 94 93 ROI (rd$ on invgtneor, 67, 68-70, 629
sy$.msdrelopmsi dd, t30-t8l
intenctive,619-620 ROM (Md$lt mdory), L lot
Quictcn,l4l, 162,161,207,325 ROP (rordd poind, 470
mtunl ldglagc, 30,514 t16
RsI (repditive
nres injuryl,706,707,"03 desribed,12{12t,263 264
nle , 2 3 5 rpkdrhect softwaG162,164,167

*Pen sy{cns .nd, 523 524 oLA:P,227 sQL (Slucrured QueryLmgurge),173,

RUP (Ritional Unilled lroces), 573 2t1,2)2
sSL(secuaScnet byer), 374 376

s.fc hlrb.r pin.iples, 333

s.ls conligumtionsy$eni 4lgl7 inprovingexising,6t

SANS(storagear.i ncMolkl 107, 108 .hreatol 64,a6
subsiitule,
SASDGequcntialacce$songe), 102 Shannonl turd.m enlal lav of i nfomrtion {ocL ndret, 16,62,66, 142
$te[ne! 248 249. S.?r!, GPs (globd
e-.onnec and,l5l, 363,367 369,
382
rahbilitr, l2t, r49, r14,2rt, t65 exe.urion 96tcbr 413-419
san., ompureFftl2ted, 63t 690 planningsy.iens,417413
shoppine..t . a!, e connerc Sft ight-ThrcughPrccsins, 57

rneduleG).t.zl',s.hcdulingryreh onltne,314,
322,373

s.heduledreFoi6 27, 461--462

s.hedulingr)6ten,423,417,469 470,47t.

subnotebookonput ts, 123

SCMGupplychain @nagenenr,4950,
7 r,15 6 35 7 SUP (SeialLineInternetPrcto.ol),302, suPdcdhputes,
r22, r26

$lpFli.s, bargrining
loweroi 64,66
SDLC {s}Ilem d*dopnmr lile ocle), suppllchainmo.gement(SCM),4950,
t63 5' , 5A1,t35 71,356 357
SDI-l (Sup{ Digital Uneii Tape),r 03
SDRAMGyncbionoadynmic RAM),98, MrminE rechnolog/,437
1 02 SMP(s,vmnesielnuilitmc$ing), 101
*fch engi.es, 307 308,375 SNMP(SinpleNeNork ManaFment switching d. ics, 271-272
scondary$or.ge,r02 103,104 107 ry!en{s). S.. zr, s)&ens de5i8n
seuri.y. S. r{, tstrudipriucyi terorisn dalysis,13, t58 ttt,570,589 t9t
ndck and,33-34,328,371,633
.urhenticationrnd,327
cqTtogrphy rnd, lr0-3ll
mcrypiionand,t3{Ll3r, 69r
d1 alt{aion, 633-636 ddsilied by qpe ud spnse of
finsdldnt sy$en6,14,378,5r4, 692
nrftls dd, 3t, 274,327,330 3]1,
devlopnent,nultiorgrnizfiional, hddftrc ind, 90-93
IDS(lnuusion-Detdion Sstn)md, \14 t79 inplenentatio.,33,632,63f4t,
lrt,694 570
overis, 33 31,670 711 inYesridon,
slobalsupportLr, 180 13, 570,536 139
pssmdq l49j 327,633 brues/ftnd.,l7Gr80 naintenr.e, 13, 64t-650,t70
phishingmd, 23,329,J80,690 oP.n*ource, 177-179,634
slstm, dsign of, 621-621 ov e n i e w o t , l 4 01 9 1

V/cbs esrd,37i to l*n.bout, r,i2

rersons perfornmc.bcasuEmeii,6t2
worl cnvno.nent ard, 706 709
aces to, 14t
'e.ourcs,
vis,33,65(H51
soucedaftautonrio., I l0 lll $fr'Iq141,14t 143
semistuctued
prcbL6, 433 ipan, 1 1 7 , 3 8 1 , 6 7 3 , 6 7 4 tyP6,9-10,122-126
spdtial
dataiechnology, 230

112,146
comPurB, s$t.tu design..t .,!, desiSn!sFems
rlternatfts,62G263
scr.(t. S,, ,&, clie.r/..f,rr rrchitdnrei sphereof innuen.e,144-145
split-6e d;dibution, 3t5 adution,628 630
 I Ildd 76r

3-D lntemd si@,314,124

V
spsi0c.tioN, freing, 63Mrl I-D vodds, S{ zl', irtut lirt
s/sdr d*lopmenr. lz zid 3t Emdsi8.l

lif. cyd.s(sDLC),t68 52,534,531 top-doM lPprorn, 63-639 278 280,314,

-onft rcncing,
touch+Ditive s(]l!d!, 116 320-322,449
suG, f2dod lf.di.s, t77-186 TrS (rmedion pr@$ins sl$m),
web-b6ed, t6ct67 398450, 419, 167.9. alro.6*r1o^s on thcIntcmct.314,323 124

dat$6c a eru, 230

TQM (tot.l quditr Irnrsddd, t9-60 r.,din/, 29-31, )31537

T tEdition.l approach,to d2a mn1gcmcnt,
194 199
TAM G{hnology lcpdc nodd), 59
tfuedion(s). sa,6, TPS (rludion vnu(s), 34,3I5, 331,6l6, tl8
'f -drnr r*.n, 216-217,2U
TCO Gohl cst oaowndship),70, 629
TCP (Trnni$ion Contol lrotocol), 299, pbcdsing+plieriohi 412423 -ddectionuriliri.s, 156-lt8
a2a proa$ing qclei 407-403 jecov.ryudlitics,156-lt7
TCP/IP (ThNnision C,ruol lrcocol/ tmNbord.r dae lld, 262, 281
26t, 285,299
Inun.t Protocol),

.lo.uertrtion, 637

Nisred-pairabl., 246-247 pro8nmning 1m8!.9s, 17!174

+n$led rchtion'hip man4cmer!,
167 md d2e conver8ene,255

U {sgniiio. d*ic$, 111 112

rel@s.Sz z/J, LEC (lool exchdg. cdGr) UDDI 0Jnikft, Dilcov.ry Dffiiption ftspoNe d*ics, l2l
vorP (mic o$ rnrdnd rbrocoD, 2t5,
.ppliqtions,27t 233 2a4,a20-32t,608
muthoriz.d lhErn.t sit6, 331-332 VPNS(virtu2lptift nftrkl,127, 339,
695
LND( l t0, rt3, rz, 174,216,260,309,
379,623
tftsnision mcdiaqp6,246 260
srsens, (aunin& 54M41
w
tannntoa* 2/ /-zt. !(/3C (World Wid. !/cb CoNoniumJ,4l t
U?C b! @de5I 16, 403, 4o9 w,ge rd s:],rr admininatiod, 47t
V4N: (*irles zh neMtu), 26I, 266,
235, 491. .tz ,l', ntuorks
wAP (wil$ appliation protool), 302,
URL! (Unifod Reurc. lnaors), 299, 362
Frhinalio-hsr dchirduE, 263 305,37) , 344, 145, 6V 'i(/ATS ({ide &s elepho.e Eaier,255
rcionsn,286, 494, 646, ?CO,5.. dto
'W.b brd!.6.Ja /, bbwr
AIu d,tl0 , t t 7, t 18 ue{r. S& ,,]'a Gr inedies Veb logs(blogs),114,317
319,371
eepm.. docuh.nt, 6,15
omduction :oftune, t72
d^b\^6 nn" 197, 22r 222 dd4enation, 637
dilaftr phming sd,62t prcp.qion, 641 642 r.diaing/idding 371
pn qcr md i b/ r - 1/ r
Yiffi, pbiding, 207 203 Vcb sd.6, 304,309,371-372,694..t .
dd inGdicG). .tz zl" GUI Gaphisl nsr

dsdbed, 14Gr47,535
buildi. d:frc ro, 33t
sPefr $rens rd, 52t t26 d*elopne.(ools, 371-372
hsring $nie! 38,L38t
n.inaining/inpoving,38t-386

thcli, of informion, 683. .ta zl, scuriry tumc daa ualris ef*de, 374
Vt-Fi tandtd, 20-263, a16 sofve znA,115, 152 1t4, t57,
r68-169,489
x
i(ML (ExeNbL MtrLup t4gllgpl,
sph6eofinn{6ce, 145
to6-a07,3@,ar2, 3la, 426
conptria9, 24t-242, 2r7 25L )(P (dn@ p6grmning), 573
267169,244
mobilc .l2a *sic, 257-2tt \qo.U Vid. \rcb, 20, 304, 30t-31t Sa
,&, \{.b Fg!s! \?.b 3is
mrd procsing ot@., 162-1@, .ppliqriotu, 313-31t z
167-t68 sodric !(cb ud 219
 I

Conpurerl!$ciatcs Int.rnitionrl, 277,

5t3, t7:1, t84,690 !BT ,3 l2
G

Con ldnon Co'n'nuni,i.ns, 275

rDS (El..rooic I)ae sy$emr, :7, )73, Grnncr R.serch Croup, 62, 70, t76

CoDri'renclAirlines,91, 367
continent,l lechnolog/ Cioup, 9I
Goper'l-iF md RubbcrCoipoiitiotr, Eli Lilly,153 Crtsuy C.nput.r, 66, 106, 32t, 37t
274 274

C l i p . n E t r p E $ ,2 1 ,3 7 )
CenenlElsric,3t0, t32
Enbarc.dem Describe,lN., t34 Ceie(l Eleiil. Povfl Sy*ems,309 310
F.MC:Clorpontion,10,i, 103, 109
cox l Nurrn.e ttoldinSs,32 ceDenl Morors, 66, 263, ltt, 423

cvs,ltS C.nsyn Corponiioi, i46

lPA (F.nvnon'nentd Pstection Asen.) ), Gsrgir lrdtu.e oaTe.nnobs]-, 121
7 t, 1 2i

D
DaihlctcLn ler,2l9, t3J Gld.osnithKin., 152,:153
Clob,l I lerfth.atu !,\.hange, 365
DARPA (DefenseAalmad Reserr.h
rrojec.&flr.}), tl7,694 Ex(lon Colt .r2tion, 6,10

( ioldmr lndu*i:l Group, 20

coodye?r'1ft & Rubbci Comp.Dr,62,

DcLnscD.prnnenr (UDired
strtet, 297, Coosle,307,,r12,'r16, 319, J75, 380
at1 ,t75 ,1n 3
F
Dell(lonputsr,13,66, 127,Lt6,700 Curdhn CompurerSupport,622
BusinesApplicnon feformn..
Cioryonrion?nd, 95
fl
dipo*l progam.,127
IBI (Fed.ralBueau oaInvstigrtion), 197, Hd.l<e's&k Uniyeritl lledi.?l Cend, 606
e-.onnec xnd.361.36.i,372 22r , 313, 679, 632, 70:l
Jordu ldu.riion Inniativc?id, l0l FC:c (Feder,lComnunidtions
nrusicdevnesand,lzl conmission), ttl,32t
rDA (Iood and Drug Adminis rtion),ll7,
De ltrAidn s, 1 1- 11, 64, 61,
t l8 .1 2 :1,
tt3,616.707 Hrilcl-Da! ii$n M.6 (lomprr, 7l - 420
redenl Rcscir Bank, 282 Hitrii\ EnteruinmenqTl
Dcnr.hc,qiserMmagemertTe.hnologlr, Icdlx, 20, ii, r r3, 3t4 3tt, l:3,
,10r102,40t,416,423,469.t:lt Hiflad Unirenit), lt,,lt
DHr,1 54 37 3

Dis.orerlinan.i?lS{vlce\ tl lidelig Nrtionil Finatrcitl,626

lleetBoson Finaici.l C-iprxtion, 632

Henhey FoodsGrpontion, 7l

FordMo6rConpm),66, 179 Hewlen Pr.Lad. t0, 66, 39, 433. 606, 63,1
BnsinssApplicdon Pe nrmance
C orpoB ti on.nd,9t

CD R\(/ &ives, 107

F-Seure (lorp.mtion, 634 63t
FTC (Fe'lsrl Tr2de Gmnnsion), 277, dispos:lpmgams,127

E J8 1 , 492,631,610 i 91
e conne(e rd, :lt4
r u jitsu, I l l , l 19, rtJ,516 inrell..tual Fbpeity ann , 179

Er{n,m (lheni.,l Gnprn}, :133 lnndrxpc$ Fln ci:l NeMrt, 42 J.rdr Eduation hniriv. ?nd, 301
eBtrI,76,312.,122.
323.lt:1, J7l, 70l mn2geneni soa.lrrc, 275
 I r"do

musicd*ias md, 121

L
lNtituE of!16rica1 and Elfttunic
Engi.es (IEEE), 261, 267-263
sofM.md,9Z 150, 1t3 1t4, lt6, rn 4 1 ,89,95,
t0r,t08,r24,267,301 Lrud Pubconpmy, 462
130 lntm:l Rrcnue Serice (Unitd Sh6l
I{cberyicsmd,3l3 557,641

Hnton Horels,134, 19! 19t,323,56t

Hitachi Data Slxtens Colpodio., 103

Holland Americl Ciuise Lins, 213
lSM , ] n . , 4 2 2
Hone Depot, 399, t02, 6ll-613 ISO (lnt.mttional Olgmiarion 6r
Stand{diuiion), 175,261,530, t3l
IsS {]nrrnerSeuiry Synehs),694
Hoiel Conhonwelrh, It ITU (Internarional Teleommunictions
Ls Almcs NadonalLboEtoD., 97, 103
!.we & PanncbWondwide,437

J
tl)Irns Robetuon,Irc.,650
Hr?.rion SolutioN, 227, 617
Jatu*n lhdmcutiq 152
rltldai Moroi Conpany, 2:19 M
J,D.Edyards&Co.,229,441,t02 McAfeSecuity, 63t, 636

I
IBM (lnremtionJ Bsins Macninet, McDonalds, 267, 399-,100
taz. 579,62a,626,6a4,646,700
BuinN Appliedontefomin.c
Corpoqtionmd,9t

Jon6 t?ng t?Sill., 14l-142 Mrmthon Oil CorpoErion,276

daahss and,l9t, 202,207,2ll
214, 2t9, 223, 229 230 J.?,MorgarCh$e& Conpany,211, 232, Mrket lsighi Corpoqiio., 37t
disposalprosms, 127 634
Junlbuten Co|PoBrion,702
Honhercc md, 3t:r, 173-374 .lupn r Media Metix, 329 Mdtercb4 313,377,t80 t8r

hmdneu onpurer ud, 123 MCI, 252-254,234, 575

K M.do He,lth Online, 19
inreledu:l propeq ud, 379
job oppofrmiri6 ar, 77, 316
(zis{ Pellrumre He.lth Plm,lDc.,675
Jordd &lucrion InithriYe md, 301
LCD disphys,I 19
L.dninS Soluriotu, 161

h'nriProe:in8 md, 101

outeurcing md, 62, t76
Ment. Coryonrion, 369
M*lift lnmry.hted, 6t9 {60

KellnNur2 o c,nnor, 700 MertFR^N, Srsen, 54t

sliwie m4 146,150-1t4,157,161, KcFot. SFi.ni 33t-336 Micha.l Angelot Coumci Foo4, 417-413
t79, t30 Mido6ofiCorpontion,18,579,674,
Kku'Mdamunc,
4t3-35t
T)nddl terleEtud,42 Busine$Applic.tion lerft mmce
(od.ls64,112l13,lr9, 450,164,t76
G of$Eined silicor by, 96 CorPortionud,9t
\qb seriG md, 3r 3
tDc, rnc.,68,4t4 dabbrs md, 162,202,201,207,
IKEA,293 2t2,2t4, 221, 224,502
IMC (Ini.nition,l Maufrduring KPMGPrtMrkwicl, 530 e-connerc md, 353
Coeontion),66G667
Infovorld Medi. croup, 295 &npr (Jcne Doushnut,71,423 JoidanEducrio. Innirdvemd, 301
.NlT Frmsort, 312,t67
 lo{:l Scrice (Unitcd Slaret, 16, 60, 11t,

V nr x lB d .5 7 ) ts 4 t3 5 ,6 3 t6 4 1 1
VNrl S0dio.NFT,164,640
\ ( ( t t 0 i c s . n d ,3 1 3 NSF (N"rional S.iend Foundrtion),293
?ngmrech Soli*al, 626

\{indows opeoting synem,13,

Picmte ouse<aooper. Deloit 3.
1 4 9 1 5 2 ,ItGl5 3 , l7 l 1 7 4 ,l7 r '
2 1 1 , 2 1 6 ,2 7 6 ,6 2 3 ,6 4 3
Primeri.r Lile Insnmnlt, 153

Ohio Sere Univcsiry, 127

Pmctr & (imbL, 54, 60, 72, 113, 271,
.ua,467
Open Sou(e I',iriariv., 177
Moh*n Sun Casi|o, 64r, 697 i93
Oncle, 136, 202, 207, ?14, 219, 224, 4tl, Psvidena Vrhingon l$umn.e
Mohcular (compxny),29t

lurdnc Univedtv,229 230

Mon*er..om, 76, 296, 301, 316
Moon. Michrel, 66r, 6a'2 77
Cenilied lotissional,
E Buin6.suite,220

ORDBMSSrnd, ?2t

VeLrseNi.esand,113 Quen Mary2 (QM2),a3

Q!i.[en t ans,]n..,loa
MRI Rril EsBft Soluiions,l il, 142 Qves Conmuniaion, 2tl-?t4s
Ntucller,Robtrt, 221 222

Ouiji4Johi,447 448 R
I,lyProdu.n{d'isr..on, 37t ()wns 3. Minor.22'1 225
Rtrriotul SofNrc, 573, 534
Retrl:ren.L rle.l !,$c Seflies, 537

P tud Bull Nort! Anericr, 694

NAS^ (Nrioml A(omutics rnd sPi.c Corpo.ion,t60, 617

Regis
Adminismtion), 126, 210, 30t. :113, RU (r.ie od riltr Pmenr
t 3 14, 67 1 ,6 ts
Itr*{ Ad'enrist Hosf ml, 293 Rcl.rivity Tc.s nologies,648 649
R.lirnt?hrrnaeuticis,ttT
PxrneBi ip Ameia, 20 Resear.h ln Motion,439
NdionNdc J'xurn.., 5 tg Re{omtionHrdNrie, 514 tl5

363, 380
I'C l\tu11,
l'cdce, Hil?ry, 6al, 665
NlC clorpontio., 106, ll9, l2l
Poplcsot, 116, 416, 413, 4'11,@2 R,pin, Sill.t02
Ner2l,hoie (conFan)r, 321
refryM.iuf2.nting,219

Ne6.rpe clonnunioionn 219, 376 Roy,i B.nL of Crbadtr,a'47

Ncsork Applia.cs, 71
Ne,wodr Asodfts, 635
NenvorLSoludons,300
N$v Y.rk sro.l!lr.hrnse,16t, t66
l'ion.er Hi Bed l ntermtio.,l, 644
SABRErescnitionsy$cn,6t 66, 187,4ll
NickD/Nettutiigs, 129 SABRE(SuReillr.. andAurctuied
Busins ReporinsEnginel465
Strfo Coeorrnon,410
S n Luke!Hedth S)(ten.7l
NorthBnnucalthde Ncoork, 136 _137
Sansuns,6j,ll9,156
lon Cis Mciah Se^ i.!s, 196
Norhrup Grumm4 tt7 S.idir hborar.ris, tl6
lo{er, NldRel,49,61 6'1,67
 I

Unimirr of Mnphii 7l
Srom Maszines, tol 5Ot
Univ.dry ofMiani, 7l
sr!. Ctuz Opekions, I t3 SullivI Stred !al<ery, ,l
sAP, 3, 26, 47, 436, 440, 579, 634 Sumib@ Mitsui !rk, 34 31 UPS(Unire.lPaal Sflice), 133,3t4-ltt,
SrpiensIniern{ion.1, 69 Sun Mido,ystm, 91, 97, 101, t79, 622 374,40r, 435,469,53r, 6a2,684
S,4SCorpohtion,194,222,508,j62 ben IMk. for CpU $eed, 9t
SIC C,municanos, 2t3 254 Jordd Educdon tniti.iiv. ad,30l
eaM md 1t3,174,179
webk ased,313
v
veisig.,37,{,376,695
Schl@betg.isen4 260 SutErHirh, 2t, 291,621 Verircr Comuniarions,2t3-254,257,
SCO Grclp, 179, 68:l
Sorisl Drug En6cn ft Agency,2t5
s Jne, tao, 2o2, 207, 2t4, 224
saip!6 IBridtion of Ocanoshphy, I 8 Syhbol Tcbnologies,263
scs,373
Sagar Tr!.olog', t32
selN Rebnct, .nd co.,322,t75
SIC (kuiries ad Ex.lugc C,hni$ion),
223,367,466
T \tftu:l CaQohte Meig.nmr SFten,
SEGA,tl-48 Tdrli., Kzuobq392 t4
vnaIntmrional,23,376,373,380,t57
SEI (Soli*re EngineeringInfiur), 176, visu.l SFns C.Aoration,534
58rra2,679
TD !/aerlDus cbup, 515

TEPCO (rol9o Eldc Poftr

Sdme Stftd Pmducions, 169

Tlinl OuBid., 65
w
Shadal Anbnodre
Vac[ovia Corp.r.tion, 703
tndutry Corpoerion,

sldait, Anduhntu, THq 343 w,LMd, 50,66,270,28r,a22,363,a66,

279
shelloil,84 3t Timc rvms, 25r , 253, 7OO
T-Mobile,2t3 w:lt Direy Conpdy, 432, t37
TopGdcr Coll%i{e Challmge,74

To6hiba,
l04, 106,r12, 123,156 V/ebAgenc''konp../), 327
SighMid (onpany), 222 Tod Srsren ScFic6, 109

Torrh limcial cbup, 32 vclh Frgo BrnL 63,242,232,3l 2

sotslft Peraornfua Sysrns, 7l Thrctocity,66,201,30t, :134

Truhs$, -Alb@ht eon,270

SonyCorpontion,106,I 12,r 23,148,t I l
'IvA (Idnsee Vrlly Anthodty),
tB, 6,44
TwentietnCeno't Fd Hone
Sontlwe$ M.r:] Fi.nhids, 420
Sp.al l/id a C&L (@Dpry), 77 Tyndrl lcderal Cre.lit Union, .42--{3 VisglsonL Mlrget, 29t
Vildnr, Haihld, Allen & Diion llp,
109
Spile Bmadhrd Stsrem, 269 U \finbel),, Alli\on, cong & Coo, 2t t
Spti^., 121,252J54,234, 3A3,a2j, y8, uBs,{06
462 UCAID (Univcsitr Corpontion 6r
sPss,222 Advfced l.ahd D{elophent) 298
UCC (Unifom C.de C.uncil), I t 6

She D,-Fnnmr (Unird sots), t97

Unive$iry of Californi4 104, t39
U.iy.6i.t of Denve., 31,77
x .{1hod,76,296,293--299,1o5,30a,
Xc.l Eneln/, 461 ZNd, Aan' a62
X.tor, 147,473 311316,322,321,359,371,175,674, Znviris,PdicL, 608
Xign C.rpoBtion, 369 675,7Do
Y,la cbtrp,436
YoPhit, 12
Yom, Amit, 492
Jcry\ 136
Youns,