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It's not business as usual anymore . . .

Why? Because digital firms are emerging. Businesses can no longer survive today without becoming digital. That's why you need the Laudons' Management Information Systems: Managing the Digital Firm, seventh edition, an indispensable text for anyone who wants to succeed in the e-business world.

What is the Digital Firm?

It's a firm where any piece of information required for business decisions is available at any time and anywhere in the organization. It's a firm where all the significant business relationships are digitally enabled. The Laudons will show you how to organize, manage, communicate, and lead as more firms go digital in the coming years.


The Laudons' Management Information Systems is the world's top-selling MIS text. Here you'll find opportunities to build the skills and acquire the knowledge you'll need to use information systems successfully in your business career.


If you want to know how to take maximum advantage of the latest technology and business trends, the Laudons are the place to start. Along with MIS foundation concepts, you'll find the most up-to-the-minute coverage of leading-edge topics, such as: digital firms, e-commerce, e-business, the wireless Web, enterprise systems, customer relationship management, supply chain management, application service providers, on-line storage services, optical networks, broadband access, peer-to-peer computing, business-to-business exchanges, scalability, and high-availability computing.

The Laudon Management-Organisation-TechnologyFramework

You'll need a framework to help you understand and analyze business problems and information systems as you move into the business world. The Laudons' Management-Organization-Technology framework is a well respected methodology in the field of Management Information Systems. You'll see it emphasized in cases, in-text explanations, and projects throughout the text.

The Laudons' Management Information Systems, seventh edition, is a text that not only offers you the most current and well-respected insights into the MIS field but a companion you'll want to use over and over again in your current courses and future career.

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Product Details

  • ISBN-13: 9780130330666
  • Publisher: Pearson
  • Publication date: 7/1/1901
  • Edition description: Older Edition
  • Edition number: 7
  • Pages: 549
  • Product dimensions: 8.76 (w) x 11.22 (h) x 1.19 (d)

Table of Contents

Part 1 Organizations, Management, and the Networked Enterprise 1
Chapter 1 Managing the Digital Firm 2
1.1 Why Information Systems? 4
1.2 Contemporary Approaches to Information Systems 14
1.3 Toward the Digital Firm: The New Role of Information Systems in Organizations 16
1.4 Learning to Use Information Systems: New Opportunities with Technology 25
Management Wrap-Up 31
Summary 31
Key Terms 32
Review Questions 32
Group Project 33
Tools for Interactive Learning 33
Case Study: Can GE Remake Itself as a Digital Firm? 33
Chapter 2 Information Systems in the Enterprise 36
2.1 Key System Applications in the Organization 38
2.2 Systems from a Functional Perspective 46
2.3 Integrating Functions and Business Processes: Enterprise Systems and Industrial Networks 50
Management Wrap-Up 61
Summary 61
Key Terms 62
Review Questions 63
Group Project 63
Tools for Interactive Learning 63
Case Study: Ownes-Corning's Enterprise System Struggle 64
Chapter 3 Information Systems, Organizations, Management, and Strategy 66
3.1 Organizations and Information Systems 68
3.2 The Changing Role of Information Systems in Organizations 74
3.3 Managers, Decision Making, and Information Systems 79
3.4 Information Systems and Business Strategy 85
Management Wrap-Up 97
Summary 97
Key Terms 98
Review Questions 98
Group Project 99
Tools for Interactive Learning 99
Case Study: Rand McNally Maps Out a Trip to a Digital Future 99
Chapter 4 The Digital Firm: Electronic Commerce and Electronic Business 102
4.1 Electronic Commerce, Electronic Business, and the Emerging Digital Firm 104
4.2 Electronic Commerce 110
4.3 Electronic Business and the Digital Firm 122
4.4 Management Challenges and Opportunities 129
Management Wrap-Up 132
Summary 133
Key Terms 134
Review Questions 134
Group Project 134
Tools for Interactive Learning 135
Case Study: Poster Child for Failure? 135
Part I Project Analyzing Business Processes for an Enterprise System 138
Part 2 Information Technology Infrastructure 139
Chapter 5 Managing Hardware Assets 140
5.1 Computer Hardware and Information Technology Infrastructure 142
5.2 Storage, Input, and Output Technology 148
5.3 Categories of Computers and Computer Systems 156
5.4 Managing Hardware Assets 160
Management Wrap-Up 164
Summary 165
Key Terms 166
Review Questions 166
Group Project 167
Tools for Interactive Learning 167
Case Study: Managing Technology Assets Pays Off for American Home Products 167
Chapter 6 Managing Software Assets 170
6.1 What Is Software? 172
6.2 System Software 173
6.3 Application Software 180
6.4 Contemporary Tools for Software Development 189
6.5 Managing Software Assets 194
Management Wrap-Up 198
Summary 199
Key Terms 200
Review Questions 200
Group Project 200
Tools for Interactive Learning 201
Case Study: Sunburst Hotels International Turns to an Application Service Provider 201
Chapter 7 Managing Data Resources 204
7.1 Organizing Data in a Traditional File Environment 206
7.2 The Database Approach to Data Management 209
7.3 Creating a Database Environment 217
7.4 Database Trends 220
Management Wrap-Up 228
Summary 229
Key Terms 229
Review Questions 230
Group Project 230
Tools for Interactive Learning 230
Case Study: Ford and Firestone's Tire Recalls: The Costliest Information Gap in History 231
Chapter 8 Telecommunications and Networks 234
8.1 The Telecommunications Revolution 236
8.2 Components and Functions of a Telecommunications System 237
8.3 Communications Networks 245
8.4 Electronic Commerce and Electronic Business Technologies 251
Management Wrap-Up 256
Summary 257
Key Terms 258
Review Questions 258
Group Project 258
Tools for Interactive Learning 258
Case Study: Monitoring Employees on Networks: Unethical or Good Business? 259
Chapter 9 The Internet and the New Information Technology Infrastructure 262
9.1 The New Information Technology (IT) Infrastructure for the Digital Firm 264
9.2 The Internet: Information Technology Infrastructure for the Digital Firm 267
9.3 The World Wide Web 273
9.4 Support Technology for Electronic Commerce and Electronic Business 284
9.5 Management Issues and Decisions 288
Management Wrap-Up 292
Summary 292
Key Terms 293
Review Questions 293
Group Project 294
Tools for Interactive Learning 294
Case Study: General Motors Drives down the Information Highway 294
Part II Project Creating a New Internet Business 298
Part 3 Building Information Systems in the Digital Firm 301
Chapter 10 Redesigning the Organization with Information Systems 302
10.1 Systems as Planned Organizational Change 305
10.2 Business Process Reengineering and Total Quality Management (TQM) 311
10.3 Overview of Systems Development 316
10.4 Alternative System-building Approaches 320
Management Wrap-Up 331
Summary 331
Key Terms 332
Review Questions 333
Group Project 333
Tools for Interactive Learning 333
Case Study: Under Construction: A New System for Toromont Industries 334
Chapter 11 Understanding the Business Value of Systems and Managing Change 336
11.1 Understanding the Business Value of Information Systems 338
11.2 The Importance of Change Management in Information System Success and Failure 348
11.3 Managing Implementation 355
Management Wrap-Up 361
Summary 362
Key Terms 362
Review Questions 362
Group Project 363
Tools for Interactive Learning 363
Case Study: Hershey's Enterprise System Creates Halloween Tricks 363
Part III Project Redesigning Business Processes for Healthlite Yogurt Company 366
Part 4 Management and Organizational Support Systems for the Digital Firm 369
Chapter 12 Managing Knowledge: Knowledge Work and Artificial Intelligence 370
12.1 Knowledge Management in the Organization 372
12.2 Information and Knowledge Work Systems 375
12.3 Artificial Intelligence 383
12.4 Other Intelligent Techniques 391
Management Wrap-Up 398
Summary 398
Key Terms 399
Review Questions 399
Group Project 400
Tools for Interactive Learning 400
Case Study: Hill & Knowlton Looks for a New Knoledge Management System 400
Chapter 13 Enhancing Management Decision Making 402
13.1 Decision-Support Systems (DSS) 404
13.2 Group Decision-support Systems (GDSS) 414
13.3 Executive Support in the Enterprise 420
Management Wrap-Up 425
Summary 426
Key Terms 426
Review Questions 426
Group Project 427
Tools for Interactive Learning 427
Case Study: Merck-Medco Finds the Right Prescription to Combat Fever 427
Part IV Project Designing an Enterprise Information Portal 430
Part 5 Managing Information Systems in the Digital Firm 431
Chapter 14 Information Systems Security and Control 432
14.1 System Vulnerability and Abuse 434
14.2 Creating a Control Environment 441
14.3 Ensuring System Quality 451
Management Wrap-Up 460
Summary 460
Key Terms 461
Review Questions 461
Group Project 462
Tools for Interactive Learning 462
Case Study: Did the FAA Fly Off Course? 462
Chapter 15 Ethical and Social Impact of Information Systems 466
15.1 Understanding Ethical and Social Issues Related to Systems 468
15.2 Ethics in an Information Society 471
15.3 The Moral Dimensions of Information Systems 474
Management Wrap-Up 494
Summary 494
Key Terms 495
Review Questions 495
Group Project 495
Tools for Interactive Learning 495
Case Study: Web Site Privacy: How Much Should We Worry? 496
Chapter 16 Managing International Information Systems 498
16.1 The Growth of International Information Systems 500
16.2 Organizing International Information Systems 505
16.3 Managing Global Systems 507
16.4 Technology Issues and Opportunities for Global Value Chains 511
Management Wrap-Up 518
Summary 518
Key Terms 519
Review Questions 519
Group Project 519
Tools for Interactive Learning 520
Case Study:'s Quest for a Global Web Presence 520
Part V Project Assessing the Total Cost of Ownership (TCO) of a Web Site 522
International Case Studies 525
Case Study 1 Ginormous Life Insurance Company
Case Study 2 From Analysis to Evaluation--The Example of Cuparla
Case Study 3 Citibank Asia Pacific: Managing Information Technology Consolidation, Change and New Challenges
Case Study 4 Enerline Restorations, Inc.: Stay with an ASP?
References 1
Indexes 1
Photo and Screen-Shot Credits 1
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Management Information Systems: Managing the Digital Firm (Seventh Edition) is based on the premise that information systems knowledge is essential for creating competitive firms, managing global corporations, and providing useful products and services to customers. This book provides an introduction to management information systems that undergraduate and MBA students will find vital to their professional success.


The growth of the Internet, globalization of trade, and the rise of information economies, have recast the role of information systems in business and management. The Internet is becoming the foundation for new business models, new business processes, and new ways of distributing knowledge. Companies can use the Internet and networking technology to conduct more of their work electronically, seamlessly linking factories, offices, and sales forces around the globe. Leading-edge firms such as Cisco Systems, Dell Computer, and Procter & Gamble are extending these networks to suppliers, customers, and other groups outside the organization so they can react instantly to customer demands and market shifts. Cisco Systems corporate managers can use information systems to "virtually close" their books at any time, generating consolidated financial statements based on up-to-the-minute figures on orders, discounts, revenue, product margins, and staffing expenses. Executives can constantly analyze performance at all levels of the organization. This digital integration both within the firm and without, from the warehouse to the executivesuite, from suppliers to customers, is changing how we organize and manage a business firm. Ultimately these changes are leading to fully digital firms where all internal business processes and relationships with customers and suppliers are digitally enabled. In digital firms, information to support business decisions is available any time and anywhere in the organization. Accordingly, we have changed the subtitle of this text to Managing the Digital Firm.


This edition more fully explores the digital integration of the firm and the use of the Internet to enable business processes digitally for electronic commerce and electronic business. The text provides a complete set of tools for integrating the Internet and multimedia technology into the MIS course and for promoting active problem solving. The following features and content reflect this new direction:


Chapter 1 introduces and defines the emerging digital firm, using examples of leading-edge companies such as Cisco Systems and General Electric. Chapter 3 explains how information systems and business strategy have changed as a result of digital firm technology, and Chapter 13 describes digital firm applications of decision-support systems and executive support systems. The entire text details the management, organization, and technology issues surrounding the digital integration of the firm and the formation of industry-wide networks and global supply chains.


Chapter 2 provides detailed treatment of customer relationship management, supply chain management, enterprise systems, and the digital integration of business processes. Subsequent chapters include additional descriptions, discussions, and case studies of these topics, emphasizing the importance of integrating information across business processes and electronically linking the firm to suppliers, customers, and other business partners. "Before and after" snapshots throughout the text illustrate how firms have changed their business processes using digital technology. (The "Before-After" diagram in Chapter 4 showing changes in procurement using is one example.)


The Internet, electronic commerce, and electronic business are introduced in Chapter 1 and integrated throughout the text and the entire learning package. The text now features two full chapters on these topics. Chapter 4, The Digital Firm: Electronic Commerce and Electronic Business, discusses electronic commerce, Internet business models, e-business, and the management and organizational transformations driving the move toward digital firms. Chapter 9, The Internet and the New Information Technology Infrastructure, describes the underlying technology, capabilities, and benefits of the Internet, with new coverage of the wireless Web, m-commerce, and digital firm infrastructure. Every chapter contains a Window On box or a case study devoted to electronic commerce, electronic business, or digital firm issues, as well as in-text descriptions of how Internet technology is changing a particular aspect of information systems.


This edition is more problem-solving- and project-oriented than earlier editions, with new active hands-on learning projects to help students make text concepts more meaningful.

New Comprehensive Projects
We have added five new, longer comprehensive projects, each concluding a Part section of the text. These projects require students to apply text concepts to demanding problems that they might encounter as firms become more digitally integrated and Internet enabled. These projects include:

  • Analyzing business processes for an enterprise system (Part I Project)
  • Creating a new Internet business (Part II Project)
  • Redesigning business processes (Part III Project)
  • Designing an enterprise information portal (Part IV Project)
  • Analyzing the total cost of ownership (TCO) of a Web site (Part V Project)

New Hands-on Application Exercises
Each chapter now features a hands-on Application Software Exercise in which students can develop a solution using spreadsheet, database, expert system, CASE, or electronic presentation software. Some of these exercises require students to use these application software tools in conjunction with Web activities. The Application Exercises give students the opportunity to apply their software skills and text concepts to management problem solving. The complete application exercises are included in each chapter and also on the Laudon Web site along with required data files. The Application Exercises include business problems such as:

  • Developing a Web page for a business (Chapter 6 and Chapter 15)
  • Developing a hotel reservation database and management reporting system (Chapter 2)
  • Developing a spreadsheet application for information technology risk assessment (Chapter 14)

New Management Decision Problems
We have added a Management Decision Problem to each chapter to encourage students to apply what they have learned to a real-world management decision-making scenario. These problems can be used for practical group or individual learning both in and outside of the classroom. The problems require students to make decisions based on real-world MIS issues such as:

  • Analyzing enterprise process integration (Chapter 2)
  • Measuring the effectiveness of Web advertising (Chapter 4)
  • Monitoring how much time employees spend on the Web (Chapter 15)


In addition to the new digital firm coverage we have already described, this edition includes up-to-date treatment of topics such as:

  • M-commerce and the wireless Web (Chapter 9)
  • Optical networks and broadband access (Chapter 8)
  • Application service providers and on-line storage service providers (Chapters 5 and 6)
  • Peer-to-peer computing (Chapter 5)
  • B2B exchanges (Chapter 4)
  • Scalability and high-availability computing (Chapters 5, 9, and 14)
  • Middleware and enterprise application integration software (Chapter 6)
  • Application development for e-commerce (Chapter 10)
  • XML (Chapter 6)
  • Web-enabled databases and elements of SQL (Chapter 7)


Part One is concerned with the organizational foundations of systems, their strategic role, and the organizational and management changes driving electronic commerce, electronic business, and the emerging digital firm. It provides an extensive introduction to real-world systems, focusing on their relationship to organizations, management, and business processes.

Part Two provides the technical foundation for understanding information systems, describing the hardware, software, data storage, and telecommunications technologies that comprise the organization's information technology infrastructure. Part Two concludes by describing how all of these information technologies work together with the Internet to create a new infrastructure for the digital integration of the enterprise.

Part Three focuses on the process of redesigning organizations using information systems, including reengineering of critical business processes and development of Web applications. We see systems analysis and design as an exercise in organizational design, one that requires great sensitivity to the right tools and techniques, quality assurance, and change management.

Part Four describes the role of information systems in capturing and distributing organizational knowledge and in enhancing management decision making across the enterprise. It shows how knowledge management, work group collaboration, and individual and group decision making can be supported by the use of knowledge work, group collaboration, artificial intelligence, decision-support, and executive support systems.

Part Five concludes the text by examining the special management challenges and opportunities created by the pervasiveness and power of contemporary information systems and the global connectivity of the Internet: ensuring security and control, understanding the ethical and social consequences of systems, and developing global systems. Throughout the text, emphasis is placed on using information technology to redesign the organization's products, services, procedures, jobs, and management structures; numerous examples are drawn from multinational systems and global business environments.


Each chapter contains the following:

  • A detailed outline at the beginning to provide an overview
  • An opening vignette describing a real-world organization to establish the theme and importance of the chapter
  • A diagram analyzing the opening vignette in terms of the management, organization, and technology model used throughout the text
  • A list of learning objectives
  • Management Challenges related to the chapter theme
  • Marginal glosses of key terms in the text
  • An Internet Connection icon directing students to related material on the Internet
  • A Management Decision Problem presenting a real-world management decision scenario
  • An Application Software Exercise requiring students to use application software tools to develop solutions to real-world business problems based on chapter concepts
  • A Management Wrap-Up tying together the key management, organization, and technology issues for the chapter, with questions for discussion
  • A chapter summary keyed to the learning objectives A list of key terms that the student can use to review concepts
  • Review questions for students to test their comprehension of chapter material
  • A group project to develop teamwork and presentation skills
  • A Tools for Interactive Learning section showing specifically how the chapter can be integrated with the Laudon Web site and optional CDROM edition of the text
  • A chapter-ending case study that illustrates important themes


This text will be accompanied by a Companion Web site that is supported by MyPHLIP. MyPHLIP stands for Prentice Hall's Learning on the Internet Partnership. This enhancement will bring your students a richer Web experience.

Features of this new site include the ability for you to customize your home page, real-time news headlines, In the News (IS-related news articles summarized by a selected team of professors and supported by exercises and activities), and Internet Exercises that are continually added to the site. These exercises encourage students' critical thinking skills as they explore business resources on the Internet and take learning MIS on the Internet to the next level.

Further enhancements have been made to the Laudon & Laudon Web site to provide a wide array of capabilities for interactive learning and management problem solving that have been carefully prepared for use with the text. They include:

Electronic Commerce Projects for Every Chapter

On the Web site are Web-based Electronic Commerce exercises for each chapter. Students can use interactive software at various company Web sites and other Web tools to solve specific business problems related to chapter concepts.

Interactive Study Guide and Internet Connections for Each Chapter

For each chapter of the text, the Web site features an Interactive Study Guide and Internet Connection exercise.

  • The on-line Interactive Study Guide helps students review and test their mastery of chapter concepts with a series of multiple-choice, true-false, and essay questions.
  • Internet Connections noted by icons in the chapter margins direct students to exercises and projects on the Laudon Web site related to organizations and concepts in that chapter.

Additional Case Studies

The Web site contains additional case studies with hyperlinks to the Web sites of the organizations they discuss.

International Resources

Links to Web sites of non-U.S. countries are provided for users interested in more international material.


Management Information Systems: Managing the Digital Firm (Seventh Edition) has many unique features designed to create an active, dynamic learning environment.


An integrated framework portrays information systems as being composed of management, organization, and technology elements. This framework is used throughout the text to describe and analyze information systems and information system problems.


Real-world examples drawn from business and public organizations are used throughout to illustrate text concepts. More than 100 companies in the United States and nearly 100 organizations in Canada, Europe, Australia, Asia, and Africa are discussed.

Each chapter opens with a vignette illustrating the themes of the chapter by showing how a real-world organization meets a business challenge using information systems. Each chapter also contains two or three Window On boxes (Window on Management, Window on Organizations, Window on Technology) that present real-world examples illustrating the management, organization, and technology issues in the chapter. Each Window On box concludes with a section called To Think About containing questions for students to apply chapter concepts to management problem solving. The themes for each box are:

Window on Management
Management problems raised by systems and their solution; management strategies and plans; careers and experiences of managers using systems.

Window on Technology
Hardware, software, telecommunications, data storage, standards, and systems-building methodologies.

Window on Organizations
Activities of private and public organizations using information systems; experiences of people working with systems.


Management Wrap-Up sections at the end of each chapter summarize key issues using the authors' management, organization, and technology framework for analyzing information systems.


In addition to a full chapter on managing international information systems (Chapter 16), all chapters of the text are illustrated with real-world examples from nearly one-hundred corporations in Canada, Europe, Asia, Latin America, Africa, Australia, and the Middle East. Each chapter contains at least one Window On box, case study or opening vignette drawn from a non-U.S. firm, and often more. The text concludes with four major international case studies contributed by leading MIS experts in Canada, Europe, and Singapore—Len Fertuck, University of Toronto (Canada); Gerhard Schwabe, University of Koblenz (Germany); Boon Siong Neo and Christina Soh, Nanyang Technological University (Singapore); and Scott Schneberger and Jane Movold, University of Western Ontario (Canada).


A diamond-shaped symbol identifies in-text discussions and specially designated chapter-opening vignettes, Window On boxes, and chapter-ending case studies that highlight the experiences and challenges of small businesses and entrepreneurs using information systems.


Management Information Systems: Managing the Digital Firm (Seventh Edition) In addition to the new Comprehensive Projects, Management Decision Problems, and hands-on Application Exercises, the text contains many other features that encourage students to learn actively and to engage in management problem solving.

Group Projects
At the end of each chapter is a group project that encourages students to develop teamwork and oral and written presentation skills. The group projects have been enhanced in this edition to make even better use of the Internet. For instance, students might be asked to work in small groups to evaluate the Web sites of two competing businesses or to develop a corporate ethics code on privacy that considers e-mail privacy and the monitoring of employees using networks.

Management Challenges Section
Each chapter begins with several challenges relating to the chapter topic that managers are likely to encounter. These challenges are multifaceted and sometimes pose dilemmas. They make excellent springboards for class discussion. Some of these Management Challenges are: finding the right Internet business model; overcoming the organizational obstacles to building a database environment; and agreeing on quality standards for information systems.

Case Studies
Each chapter concludes with a case study based on a real-world organization. These cases help students synthesize chapter concepts and apply this new knowledge to concrete problems and scenarios. Major international case studies and electronic case studies at the Laudon & Laudon Web site provide additional opportunities for management problem solving.


An interactive CD-ROM multimedia version of the text is available to be packaged with the text. In addition to the full text and bullet-text summaries by chapter, the CD-ROM features interactive exercises, simulations, audio/video overviews explaining key concepts, on-line quizzes, hyperlinks to the exercises on the Laudon Web site, technology updates, and more. Students can use the CDROM as an interactive supplement or as an alternative to the traditional text.

A Tools for Interactive Learning section concluding each chapter shows students how they can extend their knowledge of each chapter with projects and exercises on the Laudon Web site and the CD-ROM multimedia edition.



Most of the support materials described below are now conveniently provided for adopters on the Instructor's Resource CD-ROM. The CD includes the Instructor's Resource Manual, Test Item File, Windows PH Test Manager, PowerPoint slides, and the helpful lecture tool "Image Library."


The Image Library is a wonderful resource to help instructors create vibrant lecture presentations. Just about every figure and photo found in the text is provided and organized by chapter for your convenience. These images and lecture notes can be easily imported into Microsoft PowerPoint to create new presentations or to add to existing sets.

INSTRUCTOR'S MANUAL (0-13-061298-7)

The Instructor's Manual, written by Dr. Anne Nelson of High Point University, features not only answers to review, discussion, case study, and group project questions, but also an in-depth lecture outline, teaching objectives, key terms, teaching suggestions, and Internet resources. This supplement can be downloaded from the secure faculty section of the Laudon/Laudon Web site, and is also available on the Instructor's Resource CD-ROM.

TEST ITEM FILE (0-13-061 157-3)

The Test Item File is a comprehensive collection of true-false, multiple-choice, fill-in-the-blank, and essay questions, written by Dr. Lisa Miller of the University of Central Oklahoma. The questions are rated by difficulty level and answers are referenced by section. An electronic version of the Test Item File is available as the Windows PH Test Manager on the Instructor's Resource CD-ROM.


Electronic color slides, created by Dr. Edward Fisher of Central Michigan University, are available in Microsoft PowerPoint, Version 97. The slides illuminate and build upon key concepts in the text. Both students and faculty can download the PowerPoints from the Web site, and the PowerPoints are also provided on the Instructor's Resource CD-ROM within Image Library.


Prentice Hall MIS Video, Volume I (0-13-027199-3)
The first video in the Prentice Hall MIS Video Library includes custom clips created exclusively for Prentice Hall featuring real companies such as Andersen Consulting, Lands' End, Lotus Development Corporation, Oracle Corporation, and Pillsbury Company.

Prentice Hall MIS Video, Volume 2 (0-13-027929-3)
These video clips highlight real-world corporations and organizations and illustrate key concepts found in the text.


The Laudon/Laudon text is once again supported by an excellent Web site at that truly reinforces and enhances text material with Electronic Commerce Projects, hands-on Application Exercises, Internet Exercises, an Interactive Study Guide, International Resources, and PowerPoint slides. The Web site also features a secure password-protected faculty area from which instructors can download the Instructor's Manual and find suggested answers to the Internet Connections and E-Commerce Projects. The site also has an improved online syllabus tool to help professors add their own personal syllabus to the site in minutes.

Please see its complete description found earlier in this preface.


Gold Level Customer Support available exclusively to adopters of Prentice Hall courses, is provided free-of-charge upon adoption and provides you with priority assistance, training discounts, and dedicated technical support.

Prentice Hall's abundant on-line content, combined with Blackboard's popular tools and interface, result in robust Web-based courses that are easy to implement, manage, and use—taking your courses to new heights in student interaction and learning.

CourseCompass is a dynamic, interactive on-line course management tool powered exclusively for Pearson Education by Blackboard. This exciting product allows you to teach market-leading Pearson Education content in an easy-to-use customizable format.


For instructors looking for Application Software support to use with this text, Prentice Hall is pleased to offer PH Train IT and PH Assess IT for Office 2000. These exciting tutorial and assessment products are fully certified up to the expert level of the Microsoft Office User Specialist (MOUS) Certification Program. These items are not available as stand-alone items but can be packaged with the Laudon/Laudon text at an additional charge. Please go to for an online demonstration of these products or contact your local Prentice Hall representative for more details.


A series of optional management software cases called Solve it! Management Problem Solving with PC Software has been developed to support the text. Solve it! consists of 10 spreadsheet cases, 10 database cases, and 6 Internet projects drawn from real-world businesses, plus a data disk with the files required by the cases. The cases are graduated in difficulty. The case book contains complete tutorial documentation showing how to use spreadsheet, database, and Web browser software to solve the problems. A new version of Solve it! with all new cases is published every year. Solve it! must be adopted for an entire class. It can be purchased directly from the supplier, Azimuth Corporation, 124 Penfield Ave., Croton-on-Hudson, New York 10520 (Telephone: 914-271-6321).


The production of any book involves many valued contributions from a number of persons. We would like to thank all of our editors for encouragement, insight, and strong support for many years, especially editors Robert Horan and David Alexander who guided the development of this edition. We remain grateful to Natalie Anderson and Mickey Cox for their support of this project. We thank Sharon K. Turkovich, senior marketing manager, for her excellent marketing work. Special thanks to Patti Arneson for her focus group and market research work for this edition.

We commend Kyle Hannon for directing the preparation of ancillary materials and Anne Graydon and Arnold Vila for production/manufacturing of this text under an extraordinarily ambitious schedule. We thank Shirley Webster for her energetic photo research work and Rebecca Johnson for her contributions as developmental editor.

Our special thanks go to Dr. Lisa Miller of Central Oklahoma University for developing the hands-on Application Exercises for this edition and the testing systems that accompany our text. We also want to thank Professor Beverly Amer of Northern Arizona University for her assistance in reviewing the Management Decision Problems and other text features, as well as Dr. Anne Nelson of High Point University and Dr. Edward Fisher of Central Michigan University for their work on supporting materials.

The Stern School of Business at New York University and the Information Systems Department provided a very special learning environment, one in which we and others could rethink the MIS field. Special thanks to Professors Edward Stohr, Vasant Dhar, and Alex Tuzhilin for providing critical feedback and support where deserved. Professor William H. Starbuck of the Management Department at NYU provided valuable comments and insights in our joint graduate seminar on organization theory.

The Concours Group has provided stimulation, insight, and new research on enterprise systems and industrial networks. We remain especially grateful to Dr. Edward Roche for his contributions and to Jim Ware, Walt Dulaney, Vaughn Merlyn, and Peter Boggis of the Contours Group for ideas and feedback.

Professor Gordon Everest of the University of Minnesota, Professors Al Croker and Michael Palley of Baruch College and NYU, Professor Lisa Friedrichsen of the Keller Graduate School of Management, and Professor Kenneth Marr provided additional suggestions for improvement. We continue to remember the late Professor James Clifford of the Stern School as a wonderful friend and colleague who also made valuable recommendations for improving our discussion of files and databases.

One of our goals was to write a book that was authoritative, synthesized diverse views in the MIS literature, and helped define a common academic field. A large number of leading scholars in the field were contacted and assisted us in this effort. Reviewers and consultants for Management Information Systems: Managing the Digital Firm are listed on the back endpapers of the book. We thank them for their contributions. Consultants for this new edition include: Professor Tom Abraham of Kean University, Professor Bob Fulkerth of Golden Gate University, Professor Minnie Ghent of Florida Atlantic University, Professor Rassule Hadidi of University of Illinois-Springfield, Professor Susan K. Lippert of George Washington University, Professor Ronald E. McGaughey of Arkansas Tech University, Professor Roger McHaney of Kansas State University, Professor Steve Newberry of Tarleton College, Professor Mary E. Rasley of Lehigh Carbon Community College, and Professor Frederick Wheeler of University of Maryland-University College.

It is our hope that this group endeavor contributes to a shared vision and understanding of the MIS field.

— K.C.L.
— J.P.L.

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