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4LTR PRESS
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MIS 9
MANAGEMENT INFORMATION SYSTEMS
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MIS
MANAGEMENT INFORMATION SYSTEMS
9
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9 BRIEF CONTENTS
Endnotes 333
Index 347
Graphic Compressor/Shutterstock.com
iii
CONTENTS
Information Technologies at Walmart 15
Part 1 1-6c Porter’s Five Forces Model: Understanding the Business
Environment 16
Fundamentals of Information Systems Information Technologies at Netflix 17
Digital Innovation in Retail Industry Using
Information Technologies 18
1-7 The IT Job Market 18
1-7a CTO/CIO 19
1-7b Manager of Information Systems Services 19
ESB Professional/Shutterstock.com
3 Database Systems, Data Case Study 3-2: Data Mining Tools at Pandora Radio 70
Part 2
Case Study 4-1: Telecommuting with a New Twist 90
Case Study 4-2: Privacy and Other Legal Issues at Google 91
Data Communication, the Internet,
5 Protecting Information E-Commerce, and Global Information
Systems
Resources 92
5-1 Risks Associated with Information Technologies 93
5-1a The Costs of Cyber Crime to the U.S. Economy 93
Syda Productions/Shutterstock.com
5-1b Spyware and Adware 93
5-1c Phishing, Pharming, Baiting, Quid Pro Quo, SMiShing,
and Vishing 94
5-1d Keystroke Loggers 94
5-1e Sniffing and Spoofing 94
5-1f Computer Crime and Fraud 94
Challenges of Insiders’ Threats 95
6 Data Communication:
Identity Theft at Internal Revenue Service 96
Types of Hackers 97
5-2 Computer and Network Security: Basic Delivering Information
Safeguards 97
Anywhere and Anytime 118
Nearly All Organizations Get Hacked 98
6-1 Defining Data Communication 119
5-3 Security Threats: An Overview 99
6-1a Why Managers Need to Know About Data
5-3a Intentional Threats 99 Communication 119
Protecting Against Data Theft and Data Loss 101 GoToMeeting: Example of an E-collaboration
Social Engineering Costs Ubiquiti Networks More Tool 120
than $39 Million 102 6-2 Basic Components of a Data Communication
5-4 Security Measures and Enforcement: An System 120
Overview 103 6-2a Sender and Receiver Devices 121
5-4a Biometric Security Measures 103 6-2b Modems 121
Biometrics at Phoebe Putney Memorial Hospital 103 6-2c Communication Media 121
5-4b Nonbiometric Security Measures 104 6-3 Processing Configurations 122
5-4c Physical Security Measures 106 Google Invests in Communication Media 123
5-4d Access Controls 107 6-3a Centralized Processing 123
Lost and Stolen Laptops 108 6-3b Decentralized Processing 123
5-4e Virtual Private Networks 109 6-3c Distributed Processing 123
5-4f Data Encryption 109 6-3d Open Systems Interconnection Model 124
5-4g E-Commerce Transaction Security Measures 111 6-4 Types of Networks 125
5-4h Computer Emergency Response Team 111 6-4a Local Area Networks 125
5-5 Guidelines for a Comprehensive Security System 112 6-4b Wide Area Networks 125
Sarbanes-Oxley and Information Security 113 6-4c Metropolitan Area Networks 126
5-5a Business Continuity Planning 113 6-5 Network Topologies 127
Reviews and Discussions 115 6-5a Star Topology 127
Projects 115 6-5b Ring Topology 127
vi Contents
6-5c Bus Topology 127 7-4f Financial Institutions 155
6-5d Hierarchical Topology 128 7-4g Software Distribution 155
6-5e Mesh Topology 128 7-4h Healthcare 155
6-6 Major Networking Concepts 129 Electronic Health Records Pay Off for Kaiser
6-6a Protocols 129 Permanente 156
6-6b Transmission Control Protocol/Internet Protocol 129 7-4i Politics 156
6-6c Routing 129 The Internet in 2020 157
6-6d Routers 130 7-5 Intranets 157
6-6e Client/Server Model 131 7-5a The Internet versus Intranets 157
6-7 Wireless and Mobile Networks 133 7-5b Applications of an Intranet 158
7-6 Extranets 159
Mobile Computing and Mobile Apps 134
7-7 New Trends: The Web 2.0 and Web 3.0 Eras 160
6-7a Wireless Technologies 135
7-7a Blogs 161
6-7b Mobile Networks 135
7-7b Wikis 161
Mobile Computing in Action: The Apple iPhone 137
LinkedIn: A Professional Social Networking Site 162
6-8 Wireless Security 137
7-7c Social Networking Sites 162
Privacy and Ethical Issues of Wireless Devices 138
Social Media Applications at Walmart 163
6-9 Convergence of Voice, Video, and Data 138
7-7d Business Application of Social Networks 163
Telepresence: A New Use of Data Communication
7-7e RSS Feeds 163
and Convergence 139
7-7f Podcasting 164
Reviews and Discussions 140
Twitter: Real-time Networking with Your Followers 165
Projects 141
7-7g The Internet2 165
Are You Ready to Move On? 141
7-8 The Internet of Everything and Beyond 166
Case Study 6-1: Data Communication at Walmart 141
The Internet of Everything in Action 168
Case Study 6-2: Protecting the Security and Privacy of
Mobile Devices 142 Reviews and Discussions 169
x Contents
PART 1
1 Information Systems:
An Overview
ESB Professional/Shutterstock.com
LEARNING OBJECTIVES
After studying this chapter, you should be able to:
1-2 Explain the differences between computer literacy and information literacy.
1-9 Explain the Five Forces Model and strategies for gaining a competitive advantage.
2 PART
PARTONE:
ONE: Fundamentals of Information Systems
This chapter starts with an overview of common
uses for computers Organizations use and information
computers and
systems, explains the information systems difference between
computer literacy and to reduce costs and information literacy,
and then reviews gain a competitive transaction-processing
systems as one of the advantage in the earliest applications
marketplace.
of information systems. Next, the
chapter discusses the components of
a management information system (MIS), including data, databases,
processes, and information, and then delves into how information
systems relate to information technologies. This chapter also covers
the roles and applications of information systems and explains the
Five Forces Model used to develop strategies for gaining a competitive
advantage. Finally, the chapter reviews the IT job market and touches
on the future of information systems.
1-1 COMPUTERS AND and retail stores as well. For example, a point-of-sale
(POS) system speeds up service by reading the universal
INFORMATION SYSTEMS product codes (UPCs) on items in your shopping cart
(see Exhibit 1.1). This same system also manages store
IN DAILY LIFE inventory, and some information systems can even reor-
der stock automatically. Banks, too, use computers and
Organizations use computers and
information systems to reduce costs
and gain a competitive advantage in the Exhibit 1.1
marketplace. Throughout this book,
you will study many information sys-
tem applications. For now, you will look
at some common applications used in
daily life.
Computers and information sys-
tems are all around you. As a student,
you use computers and office suite
software and might take online classes.
Computers are often used to grade your
exam answers and generate detailed
reports comparing the performance of
each student in your class. Computers
hin255/Shutterstock.com
Scanrail1/Shutterstock.com
ciency. The information box “Smartphones Everywhere
and for Everything” highlights several popular applica-
tions of smartphones.
The Internet is used for all kinds of activities, from
shopping to learning to working. Search engines and broad-
band communication bring information to your desktop
in seconds. The Internet is also used for social purposes.
With social networking sites—such as Facebook, Twitter,
Google+, LinkedIn, and Foursquare—you can connect
Rawpixel.com/Shutterstock.com
interchangeably. Information
systems are broader in scope
than information technolo-
gies, but the two overlap
in many areas. Both are
used to help organizations
be more competitive and
promote their products and services. See the information to improve their overall efficiency and e ffectiveness.
box “A New Era of Marketing: YouTube,” which high- Information technologies offer many advantages for
lights a few such companies. improving decision making but involve some chal-
So what do all these examples mean to you? Com- lenges, too, such as security and privacy issues. The
puters and information technology will help the knowl- information box “Social Networking and the Vulner-
edge workers of the future perform more effectively and ability of Personal Information” describes one of the
productively, no matter what profession they choose. In potential challenges.
Business intelligence
features will include (BI) provides historical, current,
For the past 60 years, transaction-processing cash withdrawals by tap- and predictive views of business
systems (TPSs) have been applied to structured tasks ping smartphones to the operations and environments
such as record keeping, simple clerical operations, and ATM, the technology and gives organizations a
competitive advantage in the
inventory control. Payroll, for example, was one of the first similar to Apple Pay;
marketplace.
applications to be automated. TPSs focus on data collection withdrawals of up to
and processing, and they have provided enormous reduc- $3,000 on some ATMs; Transaction-processing
systems (TPSs) focus on
tions in costs. and allowing customers
data collection and processing; the
Computers are most beneficial in transaction- to make their credit card major reason for using them is
processing operations. These operations are repeti- and mortgage payments cost reduction.
tive, such as printing numerous checks, or involve at the ATM.14
CHAPTER 1: Information Systems: An Overview 7
Information Technologies at Domino’s Pizza
In 1960, Domino’s Pizza opened its first store. Today, there are nearly 12,000 stores, half of them outside the United States. In
2007, Domino’s started online and mobile ordering. Today, customers can order online at www.dominos.com or they can use
apps for the iPhone, Android, or Kindle Fire.15 This allows them to customize their pizzas with any combination of ingredients,
enhancing their sense of participation while also saving Domino’s the labor costs associated with phone orders. After placing
the order, the customer can track it all the way to when it is sent out for delivery, keeping an eye on an estimated delivery time.
In 2012, Domino’s surpassed $1 billion in annual sales through its Web site, proving that e lectronic sales will con-
tinue to play a large role in the company’s success. 16
However, there are some security risks associated ●● Watch for signs that the ATM of a gas pump may have
with using ATMs. ATM skimming is a worldwide problem been tampered with. This could be done by physically
costing more than $2 billion a year in fraudulent charges. touching the machine or checking on Bluetooth for
Skimmers, by using a card the size of a credit card installed unusual Wi-Fi networks.
inside the ATM or on the top of the machine, are able to ●● Cover your pin number when entering it.
record PIN numbers and other financial information of the
users. This could happen when you swiped your card at the
ATM or even at a gas station. Skimmers have been stealing 1-4 MANAGEMENT
financial information from cards with magnetic strips, as
chip-based cards are more difficult to steal from. To protect INFORMATION SYSTEMS
your financial informa-
tion while using an ATM, A management information system (MIS) is an
A management
information system (MIS) follow these steps22: organized integration of hardware and software technol-
is an organized integration ogies, data, processes, and human elements designed to
●● heck your bank
C
of hardware and software
statements regularly.
produce timely, integrated, relevant, accurate, and use-
technologies, data, processes, ful information for decision-making purposes.
and human elements designed to Usually, if you report
fraudulent charges The hardware components, which are discussed
produce timely, integrated, relevant,
accurate, and useful information for within two days your in more detail in Chapter 2, include input, output, and
decision-making purposes. bank will reimburse you memory devices and vary depending on the applica-
for anything over $50. tion and the organization. MIS software, also covered
8 PART ONE: Fundamentals of Information Systems
If an organization has defined its strategic goals,
objectives, and critical success factors, then structuring
the data component to define what type of data
is collected and in what form is usually easy.
cunaplus/Shutterstock.com
aware of critical success factors,
many problems in data collec-
tion can occur, which affects an
information system’s reliability
and effectiveness.
An information system can include a wide range of
1-5b models to support all levels of decision making. Users
should be able to query an information system and gener-
A database, the heart of an information system, is a ate a variety of reports. In addition, an information sys-
collection of all relevant data organized in a series of tem should be able to grow with the organization so users
integrated files. (You will learn more about databases in can redefine and restructure models and incorporate new
Chapter 3.) A comprehensive database is essential for information into their analyses.
the success of any information system. To create, orga-
nize, and manage databases, a database management
1-5d
system (DBMS) is used, such as Microsoft Access or
FileMaker Pro for home or small-office use. In a large Although they might seem the same, data and informa-
organization, a DBMS such as Oracle or IBM DB2 tion are different. Data consists of raw facts and by itself
might be used. is difficult to use for making decisions. Information—
Databases are also important for reducing person- the output of an information system—consists of facts
nel time needed to gather, process, and interpret data that have been analyzed by the process component and
manually. With a computerized database and a DBMS, are therefore more useful to the MIS user. For example,
data can be treated as a common resource that is easy to XYZ Company’s total sales last month were $5 million.
access and use. This number is data because it does not tell you how the
company performed. Did it meet the sales goal? Did
1-5c sales increase or decrease from the previous month?
How did the company perform against its top competi-
A database is a collection of all The purpose of an infor- tors? These questions and more can be answered by the
relevant data organized mation system’s process information that an information system provides.
in a series of integrated files. component is generating The quality of information is determined by its use-
The process component of an the most useful type of fulness to users, and its usefulness determines the suc-
information system generates the information for making cess of an information system. Information is useful if it
most useful type of information for decisions. This compo- enables decision makers to make the right decision in a
decision making, including
nent generally includes timely manner. To be useful, information must have the
transaction-processing reports and
models for decision analysis. transaction-processing following qualities:
reports and models for
Information consists of facts ●● Timeliness
decision analysis that can
that have been analyzed by the ●● Integration with other data and information
process component and is an be built into the system
output of an information system. or accessed from external ●● Consistency and accuracy
sources. ●● Relevance
10 PART ONE: Fundamentals of Information Systems
If information lacks any of these qualities, the results provides. For example, knowing which major is the fast-
are incorrect decisions, misallocation of resources, and est growing can help with decisions on hiring faculty, and
overlooked windows of opportunity. If the system c annot knowing the estimated number of students for 2025 can
give users a minimum level of confidence in its reliabil- help with planning facilities.
ity, it will not be used or users might dismiss the reports Example 2 Teletech, an international textile com-
it generates. Information must provide either a base for pany, uses a database to store data on products, sup-
users to explore different options or insight into tasks. pliers, sales personnel, costs, and so forth. The process
Another factor affecting the usefulness of informa- component of the information system conducts analysis
tion is the information system’s user interface. Because this on the data to provide the following information about
interface must be flexible and easy to use, most informa- the preceding month:
tion systems make use of graphical user interfaces (GUIs), ●● Which salesperson generated the highest sales?
with features such as menus and buttons. To be useful, ●● Which product generated the highest sales? The
information systems should also produce information in lowest sales?
different formats, including graphics (e.g., pie charts and
●● Which region generated the highest sales?
bar graphs), tables, and exception reports, which highlight
information that is outside a specified range. Supplying Again, forecasting models can be used to generate
information in a variety of formats increases the likelihood predictions for the next sales period, and these predic-
of users understanding and being able to use the informa- tions can be broken down by product, region, and sales-
tion. Note that, in addition to the formal information that person. Based on this information, many decisions could
an information system generates, users need to be able to be made, such as allocating the advertising budget to
make use of informal information—such as rumors, uncon- different products and regions.
firmed reports, and stories—when solving problems.
The ultimate goal of an information system is to gen-
erate business intelligence (BI), described earlier in this
1-6 USING INFORMATION
chapter. As you will learn throughout this book, many SYSTEMS AND INFORMATION
different tools, techniques, and types of information sys-
tem technologies are used to generate BI. TECHNOLOGIES
1-5e Information systems are designed to collect data, process
the collected data, and deliver timely, relevant, and use-
To better understand the four main components of an infor-
ful information that can be used for making decisions. To
mation system, take a look at the following two examples.
achieve this goal, an information system might use many
Example 1 A state university stores all student data
different information technologies. For example,
in a database. The collected data includes each student’s
organizations often use the Internet as a worldwide
first name, last name, age, gender, major, nationality, and
network to communicate with one another. Computer
so forth. The process component of the information sys-
networks (wired and wireless), database systems, POS
tem performs all sorts of analysis on this data. For exam-
systems, and radio-frequency identification (RFID) tags
ple, the university’s DBMS has a built-in query capability
are just a few examples of information technologies used
that can generate the following information:
to support information systems. The information box on
●● How many students are in each major? The Information Technologies at Home Depot box gives
●● Which major is the fastest growing? you an idea of how companies use information technolo-
●● What is the average age of the student body? gies to stay competitive.
●● Among the international students, which country is
home to the highest number of students? 1-6a
●● What is the ratio of male to female students in
each major?
Information is the second Information technologies
Many other types of analysis can be done. A fore- most important resource support information systems
and use the Internet, computer
casting model (part of the process component) could (after the human ele-
networks, database systems, POS
be used to generate the estimated number of students ment) in any organiza- systems, and radio-frequency
for 2025, for instance. In addition, predictions could be tion. Timely, relevant, and identification (RFID) tags.
made or improved, based on information this system accurate information is a
CHAPTER 1: Information Systems: An Overview 11
Information Technologies at The Home Depot
The Home Depot revolutionized the do-it-yourself home-improvement industry in the United States. Its stores use a POS
system for both fast customer service and improved inventory management as well as a wireless network for efficient in-
store communication.24 The Home Depot has a Web site to communicate with customers and increase sales with online
orders. It also uses RFID tags to better manage inventory and improve the efficiency of its supply chain network.
The Home Depot maintains a high-speed network connecting its stores throughout North America, and it uses a data-
warehousing application to analyze variables affecting its success—customers, competitors, products, and so forth.25 The
information system gives The Home Depot a competitive advantage by gathering, analyzing, and using information to
better serve customers and plan for customers’ needs.
In 2010, The Home Depot launched a transition to Fujitsu
U-Scan self-checkout software in its U.S. and Canadian retail stores.
The software offers retailers the flexibility to quickly make changes
Sergey Yechikov/Shutterstock.com
to their POS systems, and offers savings in labor costs.26
Other Information Technologies used in some of The Home
Depot stores include virtual and augmented reality (discussed
in Chapter 14), mobile checkout, and heat mapping to reduce
in-store congestion. This technology assists the store manager
to deploy more associates to congested area within the store.27
critical tool for enhancing a company’s competitive position information that helps decision makers in personnel carry
in the marketplace and managing the four Ms of resources: out their tasks more effectively. Web technologies have
manpower, machinery, materials, and money. played a major role in improving the efficiency and effec-
To manage these resources, different types of infor- tiveness of HR departments. For example, intranets are
mation systems have been developed. Although all have often used to provide basic HR functions, such as employ-
the major components shown in Exhibit 1.3, they vary ees checking how much vacation time they have left or
in the kind of data they collect and the analyses they looking up how much they have in their 401(k) plans.
perform. This section discusses some major types of Intranets reduce personnel costs and speed up responses
information systems, focusing on the types of data and to common employee requests. As discussed in Chapter 7,
analysis used in each. an intranet is a network within an organization that uses
A personnel information system (PIS) or human Internet protocols and technologies for collecting, stor-
resource information system (HRIS) is designed to provide ing, and disseminating useful information that supports
Vdovichenko Denis/Shutterstock.com
used for many years, Walmart uses the following information technologies
to gain a competitive advantage:
●● Telecommunications is used to link stores with the central computer
system and then to suppliers’ computers. This system creates a seam-
less connection among all parties.
●● Network technologies are used to manage inventory and implement
a just-in-time inventory system. As a result, products and services can
be offered at the lowest possible prices.
●● Walmart uses an extranet, called RetailLink, to communicate with suppliers. Suppliers are able to review product sales
records in all stores and track current sales figures and inventory levels.36 (Extranets are discussed in Chapter 7.)
●● Electronic data interchange (EDI), discussed in Chapter 11, is used to streamline the order-invoice-payment cycle,
reduce paperwork, and improve accuracy.
●● Walmart is a major user of RFID technologies, which have improved its supply chain and inventory management systems.
●● Starting in 2017, Walmart has been using virtual reality to help train its employees on topics such as management
and customer service. It is estimated that over 150,000 employees will go through the program each year.37
●● The same year, Walmart introduced robots in over 50 locations. These 2-feet-tall robots perform tasks such as checking
stock, finding mislabeled or unlabeled products, and assisting employees to fulfill orders for online customers.38
a long-term relationship between an organization and by designing its computers to look very different than PCs
its customers. and focusing on its computers’ ease of use. As another
For differentiation strategies, organizations try to example, Amazon has differentiated its Web site by using
make their products and services different from their certain information technologies, such as personalization
competitors. Apple has been successful with this strategy technologies (covered in more detail in Chapter 11) to
recommend products to customers based on their previ-
ous purchases. Amazon also uses the one-click sys-
tem for fast checkout. With this system, customers
can enter credit card numbers and addresses once
and, in subsequent visits, simply click once to make a
purchase, without having to enter information again.
With focus strategies, organizations concen-
trate on a specific market segment to achieve a
cost or differentiation advantage. Apple has also
used this strategy to target iPhones to consumer
users rather than business users. Similarly, Macin-
tosh computers are heavily marketed to creative
Peshkova/Shutterstock.com
Potential
entrants
Threat of
new entrants
Industry
competitors
Bargaining power Bargaining power
of suppliers of buyers
Suppliers Buyers
Rivalry among
existing
competitors
Threat of
substitute products
or services
Substitutes
could assist these companies in reaching their target ●● Threat of new entrants
market segments more cost effectively. ●● Rivalry among existing competitors
Remember that focus and differentiation strategies
work only up to a certain point. Customers are often will- Buyer power is high when customers have many
ing to pay more for a unique product or service or one choices and low when they have few choices. Typically,
with a specific focus. However, cost still plays a major organizations try to limit buyers’ choices by offering
role. If a product or service becomes too expensive, cus- services that make it difficult for customers to switch,
tomers might not be willing to purchase it. which is essentially using a differentiation strategy. For
example, Dell Computer was among the first to offer
computer customization options to customers, and other
1-6c
computer manufacturers followed suit. Grocery stores,
such as Sam’s Club, offer club cards that encourage cus-
Harvard Business School’s Michael Porter created a com- tomers to shop by giving them big discounts, an example
prehensive framework called the Five Forces Model of overall cost leadership strategies. Similarly, airlines
for analyzing an organization, its position in the market- and hotels offer free mileage and points when customers
place, and how informa- use their services. Information systems can make manag-
tion systems could be ing these strategies easier and more cost effective.
Michael Porter’s Five Forces Organizations use these strategies to increase
Model analyzes an organization, used to make the orga-
nization more competi- customer loyalty, thus combating the threat of new
its position in the marketplace, and
how information systems could be tive.39 The five forces, entrants or substitute products. However, certain
used to make it more competitive. shown in Exhibit 1.4, are: information technology tools, such as the Internet,
The five forces include buyer power, have evened the playing field by giving customers
supplier power, threat of substitute Buyer power
●● more access to all sorts of data, such as the various
products or services, threat of new
entrants, and rivalry among existing
●● Supplier power prices for products and services. This increases buy-
competitors. ●● hreat of substitute
T ers’ bargaining power and decreases supplier power,
products or services which is discussed next.
16 PART ONE: Fundamentals of Information Systems
Information Technologies at Netflix
Using a wide variety of devices, over 109 million Netflix subscribers in the United States and around the world
connect to the company’s Web site and watch unlimited movies and TV episodes.40 The users can also receive
DVDs through the mail. The Internet, personalization technologies, and effective inventory management tech-
niques have revolutionized rental entertainment at Netflix. Any user with an Internet connection can connect
to the Web site and watch movies and TV episodes streamed and delivered instantly to a user’s device. Netflix is
currently using Amazon Web Services (AWS), which has provided the company with a high degree of availability
and speed.41
Using data-mining and collaborative filtering technologies, Netflix’s personalization system actively searches infor-
mation to discover relationships and patterns and make recommendations based on a user’s past movie-viewing
history and questions that were answered on the
Web site. Based on these techniques, Netflix has
created CineMatch, an algorithm that recom-
mends other movies the customer might enjoy.42
The inventory system used by Netflix is fully
automated, and computers and robots play a
major role in managing CDs and DVDs by scan-
ning them as soon as they arrive, notifying the
customer that the shipment has been received,
Maxxa Satori/Shutterstock.com
and quickly making the CDs and DVDs avail
able for other customers. (Netflix owns over
89 million discs.) A machine called a “stuffer”
processes DVDs—puts the discs into the enve-
lopes, folds and closes the envelope, and applies
the sticker to the center of the envelope.43
Supplier power is high when customers have fewer for switching to another provider before the customer
options and low when customers have more options. contract is up.
Organizations might use information systems to make The threat of new entrants into the marketplace is
their products and services cheaper or to offer more ser- low when duplicating a company’s product or service
vices in order to distinguish themselves from competitors is difficult. Organizations often use focus strategies to
(another use of a differentiation strategy). Netflix, for ensure that this threat remains low. For example, devel-
example, uses information technologies to offer prod- oping a search engine that could compete successfully
ucts and services, which increases its power in the mar- with Google would be difficult. In addition, organiza-
ketplace. (For examples of how these focus strategies get tions use information technologies to increase customer
used, see the information box on Netflix.) Organizations loyalty, as mentioned previously, which reduces the
have tools other than information systems and technolo- threat of new entrants. For example, banks offer free bill
gies to increase their power. For example, drug companies paying to attract customers and keep them from switch-
obtain patents for their products to reduce competition. ing to another bank; setting up a bill-paying service at
The threat of customers choosing substitute prod- another bank takes time that most customers do not
ucts or services is high when many alternatives to an want to spend. Similarly, after customizing their home
organization’s products and services are available. Some pages with options offered by sites such as Yahoo! and
organizations add services—such as Amazon’s personal- Google, many users do not want to repeat this process
ized recommendations—to make their positions in the at a new site.
marketplace more distinctive. Other organizations use Rivalry among existing competitors is high when
fees to discourage customers from switching to a com- many competitors occupy the same marketplace
petitor, such as when cell phone companies add charges position; it is low when there are few competitors.
CHAPTER 1: Information Systems: An Overview 17
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Language: English
By JAMES STAMERS
A fried egg came floating up through the stone steps of the Medical
Center and broke on my shoe. According to my watch, it was time
for the breakfast I didn't have that morning, so I waited a moment
for the usual two rashers of bacon.
When they materialized, I hopped aside to avoid them and went
back into the building, where the elevator took me straight up to the
psychiatric floor, without asking.
"Your blood pressure, salts, minerals, vitamins, basal metabolism,
brain pattern, nervous reflexes and skin temperature control are
within accepted tolerances," it droned, opening the doors to let me
off. "You have no clinical organic disorders; you weigh a hundred
and fifty-two pounds, Earth, measure six feet one inch, and have a
clear pallid complexion and an egg on your shoe."
I walked down the corridor to Dr. Doogle Spacio-Psycho Please Enter
and went determinedly in.
"Name, please," said the blonde receptionist, tapping her nail eroder.
"Jones. Harry Jones."
"Mr. Harry K. Jones, the physicist?"
"Yes."
"Oh, no," she said, fiddling with the appointment list, "Mr. Harry K.
Jones has just had his morning appointment and left."
"I know," I said. "An important piece of clinical data has just turned
up. I have returned with an egg on my shoe."
"I think you'd better see the doctor."
I sat down to wait and took the little bottle of pills from my pocket.
"From the Galaxy to you, through Dr. Doogle, Spacio-Psycho," it said
on the label. "The last word in tranquilizers. Conservative Zen
methods only, appointments any hour, first consultation free, no
obligation, call personal transmitter DDK 51212-6790, Earth. Active
ingredients oxylatohydrobenzoic-phe-ophenophino, sugar, coloring to
100%."
The inner office door opened and Dr. Doogle smiled fatly at me from
behind his expensive desk.
"Do come in," he called, "and tell me all about it."
"It's happened again," I said, going into his office.
"Well, why not, if you feel that way? Nurse, bring me Mr. Hing-
humph's case history."
"Mr. Har-ry K. Jo-nes' film is in the transcriber, Doctor," said the
receptionist. "Mr. Jones, the physicist."
"Ah, yes, of course. Please sit down, Mr. Jones. Now what exactly is
the trouble? Hold nothing back, tell me all, reveal your intimate
thoughts."
"The main entrance just served me the breakfast that your diet
forbids," I said, sitting down.
"Plain case of wish fulfillment. Put it down to poltergeists, Mr.
Jones."
"And what exactly do you mean by that?"
"Well, now," Dr. Doogle said, drumming his fat fingers, "I don't think
we need to go into technicalities, Mr. Jones."
"Look," I said firmly. "I came to you to get a quiet night's sleep. No
more insomnia, you said, leave your problems in the laboratory, let
not the nucleii banish sleep, work hard, sleep hard, take tranquilizers
and enjoy the useful recuperation of the daily wear on body tissues,
deep dreamless sleep of the innocent."
He look at me suspiciously.
"It sounds like the sort of advice I might have given," he admitted.
"Well, at least I managed to keep my dreams in my head until I
started your treatment. I have an urgent problem to solve that
vitally affects national security. I can't have this sort of thing
happening in the middle of an experiment."
I pointed to the fried egg on my shoe and shook it off on the pile of
his green carpet.
"Yes. Well," he said, peering over the desk at it. "If you feel that
strongly, Mr. Jones, perhaps you'd better give up the diet and just
take the pills."
"I want to know how it happens," I said, and I settled firmly into the
consulting chair.
Dr. Doogle coughed professionally. "Of course, of course. You are an
intelligent man, Mr. Jones. One of our leading physical scientists.
Naturally you wish to know the precise mechanism of such
phenomena. Very commendable and entirely natural. Think no more
about it."
"Dr. Doogle, do you know what you are doing?"
"Spacio-Psycho is still in its early stages, Mr. Jones. You are really
privileged to be a pioneer, you know. We have had some most
interesting results with that new tranquilizer. I hope you're not losing
faith, Mr. Jones?"
"I accept the orthodox philosophy of Spacio-Psycho, it is only the
basic philosophy of Ch'anna or Zen, and I had the routine scientific
education, naturally."
"Ah," said Dr. Doogle with rapture, "the substratum of the universe is
no-mind, and thus all material things are in constant unimpeded
mutual solution. Ji-ji-muge, the appleness of an apple is
indistinguishable from the cupness of a cup."
"And an egg on the shoe is the breakfast I didn't have," I said.
"Here," he said. "I think those pills are sending your sleeping mind
down beyond the purely personal level of your own emotions and
subconscious cerebrations. Take these, in a little water, half an hour
before going to bed."
I stood up and walked over to the door.
"What are they?" I asked.
"Same as before, only stronger. Should send you right down to the
root of things. Pass quiet nights in no-mind, Mr. Jones, sleep beyond
the trammels of self, support yourself on the universal calm sea of
no-mind."
"If these don't work, there'll be no-fee," I told him.
I took three of the stronger pills that night, turned off the light and
lay back in bed, waiting for sleep to come and get me. The
antiseptic odor of the Medical Center recalled itself, but nothing else
happened, and I was still waiting to go to sleep when I woke up
next morning. No dreams of a breakfast I couldn't eat, no dreams at
all. I had been smelling the memory of formaldehyde and just slid
off to sleep. I could still smell it, for that matter, as if it were coming
from the slightly open bedroom window. I looked up.
"Hallo," said the tall skinny man in a doctor's coat on the window sill.
"Hallo yourself," I said. "Go away, I'm awake."
"Yes, you are. At least I assume you are. But I'm not."
I sat up and looked at him, and he obligingly turned his head to
profile against the brightness of the window. He had a sharp, beaky
face that was familiar.
"Haven't we met somewhere?" I asked.
"Certainly," he said, in a slightly affected voice.
"Well?"
"I don't know your name," he said, "but I have a very important
post-operative case at present, and you keep charging around the
ward when you're asleep. I just came over, as soon as I could get a
few hours' sleep myself, to ask you to stop doing it, if you don't
mind."
"I've done no such thing."
"You were doing it all last night, my friend."
"I was not," I said. "I spent last night here in my own bed. I didn't
even dream."
"Ah, that probably accounts for it. Tell me, do you take drugs,
tranquilizers, by any chance? We've had a lot of trouble with that.
They seem to cause a bubble in the sequence of probabilities and
things shift about. I've been taking a new one myself, while this case
is on. I suspect that although I'm dreaming you, I think, you are not
asleep at all. At least I wasn't when you made all that noise in my
ward last night."
"No, I'm awake," I said. "Very much so."
"I see. Well, I shall wake up soon myself and go back to my own
world, of course. But while I'm here, I suppose you haven't any
advanced works on post-operative hyperspace relapse?
"Pity," he said, as I shook my head.
"I suppose you have no information on the fourth octave of ultra-
uranium elements?"
He shook his head. "Didn't even know they existed," he said. "I don't
believe they do in my probable time. What are you, a physicist? Ah,"
he added, as I nodded, "I wanted to specialize in physics when I
was in college, but I went in for medicine instead."
"So did I," I said, "medicine, I mean, but I never passed
pharmacology with all those confusing extraterrestrial derivatives."
"Really?" he said interestedly. "It's my weakest subject, too. I'm a
pretty good surgeon, but an awful fool with medications. I suppose
that's how we got together. You won't come busting up the ward
again, will you?"
"I'd like to be obliging, but if I don't dream and I don't know where I
am when I'm asleep, I don't see what I can do to stop it. It's not as
if I'm really there, is it?"
He crossed his arms and frowned at me. "Look," he said. "In my
probable time, you're as much physically there as I am now in your
time here. I'll prove it. I know I'm asleep in the emergency surgeon's
room in my hospital. You know you're awake in your bedroom."
He held out his hand and walked across the floor to me.
"My name's Jones," he said.
"So's mine," I answered, shaking his solid hand. "This must be a
very vivid dream to you."
We smiled at each other, and as he turned away, I caught sight of
his reflection in the wall mirror beside my hairbrush on the cabinet.
"Good heavens!" I said. "In a mirror, you look exactly like me. Is
your name Harry Jones?"
He stopped, walked over to the mirror and moved about until he
could see me in it.
"Harold K. Jones," he said. "You've got the face I shave every
morning, but I've only just recognized you. You're me."
"I prefer to think you are me," I said.
"So you did fail that final pharmacology exam, eh? And I didn't, in
my probability. Well, well. I must admit it seemed more probable I
would fail at the time, but I passed."
"It was that tramp Kate's fault. She said yes too easily."
He coughed and looked at his fingers. "She said no to me. And, as a
matter of fact, after I passed I married her. She's my wife."
"I'm sorry. I meant nothing personal."
"You never married?"
"I never really got over Kate," I said.
"I wonder what would have happened if I had qualified and then not
married her."
"You mean what did happen—to the Harry K. Jones who passed in
pharmacology but did not marry Kate. He must be around in another
probability somewhere, the same as we are. Good heavens," I
shouted, "somewhere I may have solved the fourth octave
equation."
"You're right, Harry. And I may have found out how to get
hyperspace relapse under control."
"Harold," I said, "This is momentous! It is more probable that you-I
and I-you will make a mess of things, but there must be other
probability sequences where we are successful."
"And we can get to them," he shouted, jumping up. "Are you using
oxylatohydrobenzoic-pheophenophino?"
"Something like that."
"Three pills last thing at night?"
"Yes."
"Ever have foreign bodies materialize into your time-space?"
"Several breakfasts," I said. "The last egg was yesterday, on my
shoe."
"It was Virginia ham with me, so I stopped dieting and increased the
dosage."
"So did I," I said. "I suppose, apart from major points where a whole
probability branches off, we lead much the same lives. But eggs
don't dream. How did the ham get into your waking world?"
"Harry, really! I have a tendency to jump to conclusions, which you
must control. How do you know eggs don't dream? I would have
thought, though, that a pig was peculiarly liable to the nightmare
that it will end up as a rasher—any reasonably observant pig, that is.
But I don't think that is necessary. Obviously, we are dipping down
to a stratum where things coexist in fact, and not merely one in fact
and the other in mind, or one probability and not its twin alternative.
Now, how do I get hold of the me that solved this hyperspace
relapse business?"
"And I the ultra-uranium octave relationship," I added.
"Look out," he said. "I'm waking up. Good-by, Harry. Look after
myself...."
He flickered, paused in recovery and then faded insubstantially away.
I looked around my empty bedroom. Then, because it was time to
go to work at the laboratory, I shaved, dressed and left my
apartment, as usual.
Some high brass and politicians had been visiting the laboratory,
showing off to their females how they were important enough to
visit the top-secret bomb proving labs, and the thick perfume was
hanging in the sealed rooms like a damp curtain.
"I wish they wouldn't bring women into the unventilated labs," I
grumbled to my assistant.
"Never mind, Chief. If you can make this bomb work, they'll let you
build your own lab in the Nevada desert, with no roads to it. Have
you found the solution?"
"I'll tell you when I have," I said. "But I do have a new approach to
the problem."
And as soon as I could, I left the labs and went back to my
apartment downtown, took three pills and lay still, waiting for sleep.
I could not get the smell of that perfume in the lab out of my nose.
It was a heavy gardenia-plus-whatnot odor. I woke up in the middle
of the night with the perfume still clinging to the air. The room was
dark and I crossed my fingers as I leaned over to turn on the
bedside lamp. If mental concentration on all the possible errors in
my work was the key, the successful me should be here in the room,
snatched from his own segment of probability.
I turned on the light. There was no one else in the room.
"Hell," I said.
Perhaps it just meant he, or that me, was not asleep, or was
perversely not using tranquilizers. Or didn't that matter? No, I
controlled this alone and had gone wrong.
"Did you say something, Harry?" asked Kate, stepping out of the
bathroom and pulling the top of her nightgown into, I guess, place.
"Ooo, fancy dreaming about you. This is odd."
I sat up and covered myself protectively in the bedsheets.
"Look, Kate," I said. "I don't want to see you. I'm not your husband,
really. He's a pleasant fellow, I met him today, and he's not me. I
never became a doctor. No doubt you remember what I was doing
instead of studying."
That was a mistake, for she came and sat on the edge of the bed
and ran her fingers into my hair.
"I thought it was odd I should dream about my husband," she said.
"I'll believe you, because I don't know how I got here and you do
look like the Harry I used to know, before he went all high scientific
surgeon and no time for fun."
She curved more fully than she had when she was eighteen, but
there was neat symmetry to her sine formulae, and she still had
blonde hair. Her perfume was the same as the one in the lab I had
been smelling all day, it was now reaching me at high amperage.
So that was the key, the evocative power of smell association. I
sniffed deeply at the perfume in appreciation.
"Like it?" Kate asked, wriggling.
"Only for its scientific values," I said. "It suggests a most valuable
line of research."
"I'm in favor," she said, and pressed me to the bed.
"Your husband is coming!" I shouted, and it worked. She
disappeared. Presumably she woke up in her own probability time-
space. And no doubt Kate's reflexes by now were trained to snap her
awake and away at the suggestion that her husband was around. It
was highly improbable that Kate would alter much.
I got up to make myself some coffee. There was no point in wasting
sleep without a plan. Clearly, I had to take the pills and fix the
appropriate smell in my mind, and when I woke up I would drag the
proper slice of another probability with me. And then I would
interview the me who had solved the ultra-uranium heavy element
equation. And the bomb to end all bombs would be perfected. The
test was ready, waiting for me to say, "Let's go, boys. We know what
will happen this time."
But there was, it struck me, the difficulty of finding the right scent to
evoke the right probable me.
She began to cry. "Oh, Haroldkin," she said. "I'm so glad to see you.
I must be dreaming, because I know you're dead, but I've kept
everything just the way it was. Look—I haven't even touched your
messy desk."
"Are you sitting in a room?" I asked.
"I'm in your study, Haroldkin," she said, surprised. "Can't you see?"
"No, as a matter of fact, I can't."
"Oh! Then I can throw out all these old papers?"
"What old papers?"
"Oh, I don't know, Haroldkin," Kate said. "You made such a fuss
about failing that silly medical exam that you never let me touch
your desk when you graduated in physics."
"Physics!"
"Yes," said Kate, throwing paper after paper onto the carpet. She
made sweeping motions in the air and dumped a mass of notes into
her lap. They appeared on her fingertips, but they stayed in
existence when she dropped them on the carpet.
"How did I die?" I asked, bending down and thumbing rapidly over
the papers.
"A bomb went off," she said. "I really don't want to talk about it. But
you were so eminent, Haroldkin!"
I must have been very soft in the discrimination to have allowed that
revolting nickname, I thought, but it was clear from the papers I was
holding that I knew my physics. And there it was, printed in an issue
of the Commission's Journal that never existed in my time-space, the
whole equation I was looking for. It was so obvious when I read it
that I could not understand how I failed to think of it for myself—for
my own myself, that is.
When I looked up, this probable Kate had gone. I wanted to thank
her, but the evening would do. Meanwhile, here was the ultra-
uranium fourth octave equation.
I called the laboratory, read it off to my assistant, and told him to
get on with the test.
"Right, Chief. I'll go down myself and give you a report when I get
back."
I said fine and took the rest of the day off. It was the peak of my
career so far, and from the widow Kate's comments, it seemed as if I
had a great probable career to come. Of course, I would have to
redouble our safety precautions at the labs and it would be best if I
never went near the proving grounds. That other physicist me
probably made some error that I would avoid, being forewarned.
By evening, I decided to try to locate that probable Kate again, to
thank her, and to find out exactly how that poor me blew himself up
with a bomb. With care, I recalled the perfume and also the musty
smell of the papers, for I did not want Dr. Harold K. Jones' Kate
appearing. Then I removed all other odoriferous substances from the
bedroom, took three pills and was about to lie down to sleep when
my assistant called to report on the test.
"That you, Chief? What a success! We're made. Your name's in
lights, Chief! It was the most colossal explosion I've ever seen. It
burned the area like toast. It even smelled like toast, with a touch of
ozone and sulphur. Very strong smell...."
"Stop!" I screamed. "Stop!"
But it was too late. I could smell it clearly as he had described it.
And now the pills are working. How in the name of heaven am I
going to stay awake? Because once I fall asleep....
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