Shim haspublished about 50 articles in professional journals, includ- Administra-ing Journal of Systems Management, Financial Management, Journal of Operational Research, Omega, Data Man
Trang 1TEAM LinG
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Trang 4John Wiley & Sons, Inc.
ffirst.fm Page iii Thursday, August 4, 2005 5:46 PM
Trang 5This book is printed on acid-free paper
Copyright © 2005 by John Wiley & Sons, Inc All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey Published simultaneously in Canada.
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rose- wood Drive, Danvers, MA 01923, 978-750-8400, fax 978-646-8600, or
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Library of Congress Cataloging-in-Publication Data:
1 Information technology—Handbooks, manuals, etc
2 Management information systems—Handbooks, manuals, etc
I Siegel, Joel G II Title.
T58.5.S54 2005
658.4’038 dc22
2005043953
Printed in the United States of America
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Trang 6A BOUT THE A UTHORS
Jae K Shim, Ph.D., is a Professor of Business tion at California State University, Long Beach Dr Shimreceived his MBA and Ph.D degrees from the University ofCalifornia at Berkeley (Haas School of Business) He is thePresident of the National Business Review Foundation, amanagement and computer consulting firm Dr Shim haspublished about 50 articles in professional journals, includ-
Administra-ing Journal of Systems Management, Financial Management,
Journal of Operational Research, Omega, Data Management, Management Accounting, Simulation and Games, Long Range Planning, Journal of Business Forecasting, Decision Sciences, Management Science, and Econometrica Dr Shim has over 50
books to his credit and is a recipient of the 1982 CreditResearch Foundation Outstanding Paper Award for his arti-cle on financial modeling He is also a recipient of a FordFoundation Award, Mellon Research Fellowship, andArthur Andersen Research Grant Dr Shim has been forover 20 years an industrial consultant in the areas of infor-mation systems development and applications, corporateplanning modeling, business forecasting, and financialmodeling
Joel G Siegel, Ph.D., CPA, is a computer consultant tobusinesses and Professor of Accounting, Finance, and Infor-mation Systems at Queens College of the City University ofNew York He was previously associated with Coopers andLybrand, CPAs, and Arthur Andersen, CPAs He served as aconsultant to numerous organizations including Citicorp,International Telephone and Telegraph, Person-WolinskyAssociates, and the American Institute of CPAs Dr Siegel
is the author of 50 books His books have been published
by Prentice Hall, Richard Irwin, McGraw-Hill, Collins, John Wiley, Macmillan, Probus, International Pub-lishing, Barron’s, and the American Institute of CPAs Hehas authored approximately 200 articles on business topicsincluding many articles in the area of computer applications
Harper-to business His articles have appeared in various journals
including Computers in Accounting, Decision Sciences,
Financial Executive, Financial Analysts Journal, The CPA Journal, National Public Accountant, and Practical Accountant.
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In 1972, he received the Outstanding Educator of AmericaAward Dr Siegel is listed in Who’s Who Among Writersand Who’s Who in the World Dr Siegel is the former chair-person of the National Oversight Board
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Trang 8H OW T HIS B OOK C AN H ELP Y OU
The book covers information systems in all phases of ness and in all functional areas to analyze and solve busi-ness problems in the real world The practical and efficientuse of computer technology, both software and hardware, ishighlighted All types of business applications are covered.The importance of databases, networking, and telecom-munications is clearly presented Popular accounting, tax,finance, management, manufacturing, and marketing soft-ware is explained for easy use Software for decision sup-port systems (DSSs), executive information systems (EISs),and artificial intelligence (AI) (e.g., financial modeling, bud-geting, strategic planning and control, forecasting, dataanalysis, inventory planning, and optimization software) iscovered with real-life examples What-if analysis and theeffects of changing assumptions are discussed
busi-The purpose of the book is to provide a wealth of currentand essential information to managers in all types of orga-nizations so that they may make optimum decisions Itgives the businessperson all he or she needs to know in thecomputerized financial application and modeling environ-ment Emerging trends in information technology are antici-pated and discussed In other words, expected developments
in computers are presented so that managers can properlyplan ahead The professional success of a business managerdepends on keeping abreast of the latest thinking and appli-cations in information technology This surely gives a com-petitive edge
The book is written for business professionals in a tical, reader-friendly manner including clear illustrations
prac-We have simplified difficult computer terminology andusage Important topics include management informationsystems (MISs), selection of the best software and hardwarefor particular applications, business application software(e.g., accounting, finance, management, tax, marketing, andmanufacturing), databases, telecommunications and onlineservices (e.g., Internet, AOL, MSN, Dow Jones, Westlaw,AICPA), and computer security and auditing The latestmultimedia trends are covered New developments in artifi-cial intelligence and expert systems, decision support sys-tems, and executive information systems are covered
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The audience for this book includes accountants, tax parers, financial managers, general managers, marketingexecutives, production/operations managers, purchasingmanagers, personnel managers, business analysts, forecast-ers, budget analysts, chief financial officers (CFOs), chiefexecutive officers (CEOs), chief operating officers (COOs),chief information officers (CIOs), chief technology officers(CTOs), project managers, consultants, systems analysts, andcomputer support staff Businesspeople in large, medium,and small companies will benefit Private and nonprofit enti-ties will find the material of equal value
pre-The following are some representative topics, amongothers discussed in the book, of vital interest to business-people:
❍ Strategic uses of the information system and logy
techno-❍ The use of software in planning and control
❍ The applications of telecommunication technologiesand how digitized computer signals can take advan-tage of these technologies
❍ Accounting and information systems and packagesshowing how applications can be made to record keep-ing, reporting, and financial statement presentation
❍ The Sarbanes-Oxley compliance software
❍ An explanation of what a decision support system(DSS) is about and how it is useful to business deci-sion makers to improve the quality of their analysisand evaluation It improves problem solving
❍ The use of artificial intelligence and expert systems inmaking decisions
❍ Computerized security (e.g., protecting files, servicecontracts, backups, insurance coverage, and securitydevices) It includes preventing fraud
❍ Database management involving organizing andmanaging information so that it can be retrieved andutilized in an effective and efficient way
❍ What a management information system (MIS) is,and what its applications and benefits are
❍ The use of online databases (e.g., World Wide Web,Dow Jones, Westlaw, Lexis) in making business deci-sions
❍ The use of the Intranet within a company as an tant information source
impor-❍ Available accounting and financial software and howthey improve financial reporting and analysis
❍ The use of networking to operate smarter and be moreefficient in a computer environment
❍ The use of computer conferencing
❍ Financial modeling and what-if analysis in ing, forecasting, and general decision making
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❍ Manufacturing information systems packages to aid
in inventory record keeping, inventory managementand control, and production planning
❍ Executive information systems (EISs)
❍ Marketing information systems to aid in sales ning, sales forecasting, market research, and advertis-ing effectiveness
plan-❍ Selecting the best hardware for the particular tion needs and to enhance productivity
applica-❍ Value chain management software
Chapter 1 discusses what management information tems are about and presents MIS techniques The differenttypes of MISs are explained, including when each typewould be most appropriate Chapter 2 covers MISs in busi-ness decision making and explains decision models Chapter
sys-3 introduces basic hardware components and how to buythe “right” hardware combination for each user’s require-ments Chapter 4 presents systems software and explains thefunctions and terminology of different types of systems soft-ware Chapter 5 covers application software and how suchsoftware can be used to improve profitability and enhanceproductivity Chapter 6 discusses the use of database soft-ware, including query languages Chapter 7 presents datacommunications Chapter 8 discusses the different types ofonline databases and the information available on them.State-of-the-art communication technologies and popularnetwork applications are also presented Chapter 9 discusseshow to use an Intranet within the business Chapter 10 pre-sents accounting, audit, and tax software and their businessapplications Chapter 11 shows how MISs can be applied tofinancial management to improve the management of assetsand liabilities, and to help plan the financing of debt andequity The role of the MIS in forecasting is also explained.Chapter 12 discusses manufacturing information systemsand packages It includes applications to production plan-ning so as to improve manufacturing activity and inventorymanagement Marketing information systems and packagesare presented in Chapter 13 The chapter shows how soft-ware is used in marketing management, sales planning,and advertising effectiveness The use of decision supportsystems (DSSs) to aid in management decision making bymaking it more accurate and reliable is the subject of Chap-ter 14 Chapter 15 deals with the use of artificial intelli-gence software to imitate the human mind process It aids
in managerial analysis and decision making Chapter 16 isdirected toward computer security and auditing It pre-sents protective data systems and information technology
to safeguard the integrity of information Ways to preventmisappropriation of resources and fraudulent transactionsare enumerated
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Chapter 17 deals with wireless technology, which vides businesses with enhanced connectivity and flexibility.Chapter 18 touches upon a strategic issue regarding the eco-nomic feasibility study of an Information Technology (IT)project Finally, Chapter 19 addresses how to manage an ITproject In a project, you usually deal with unique problems,have a set of constraints, and often work with deadlines
pro-A glossary of MIS terms is included The presentation isgeneric in nature The reader does not need to know pro-gramming There are many checklists, charts, tables, andgraphs In the index, a specific area of interest may easily befound
In conclusion, the book shows clearly how computerscan aid business managers in efficiently performing theirfunctions Their success depends on being up-to-date in thecomputer environment and having all information immedi-ately available to make successful decisions
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Trang 12About the Authors v How This Book Can Help You vii One What Are Management
Information Systems? 1
What Are Information Systems? • 1
Computer Hardware • 2Personal Computers • 2Servers • 2
Minicomputers • 3Mainframe Computers • 3Supercomputers • 3Computer Software • 3System Software • 4Application Software • 4Data • 4
Trained Personnel • 4Procedures • 5
When to Use Transaction Processing Systems (TPSs) • 5
When to Use Management Reporting (Information) Systems (MRSs) • 5
When to Use Decision Support Systems (DSSs) • 6
When to Use Office Information Systems (OISs) • 7
When to Use Executive Information Systems (EISs) • 7
Why Do You Need MISs to Solve Your Business Problems? • 7
What Computer Technologies Are Available for Business? • 8
How Will You Manage Your Information Resources? • 8
Advantages of Outsourcing • 9Risks of Outsourcing • 10
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What is the Role of the Information Systems in the Development
of the Strategic Plan? • 11
Two Management Information Systems
and Decision-Making Models 13
What is the Management
Information System (MIS)? • 13
Management • 14Planning • 14Organizing and Coordinating • 14Controlling • 14
Decision Making • 14Information • 14Systems • 15
Classifying Management
Information Systems in Terms of the Type of Output Provided • 15
MISs and Organizational Levels • 17
Levels of Management: What Kinds
of Decisions Are Made? • 18
Lower Management • 18Middle Management • 19Top Management • 20
Modeling a Real-Life System • 21
Narrative Models • 22Physical Models • 22Graphical Models • 22Mathematical Models • 22
The Model Base • 23
Financial Models • 23Statistical Models • 23Optimization Models • 24Formulation of LP • 25Decision Analysis Models • 28Standard Deviation • 28Decision Matrix • 29Decision Tree • 30Graphical Models • 31Project Planning and Management Models • 31
Simulation Models • 32
Three How to Select the Best
Microcomputer System 35
Microcomputers, Large-System Computing, and Network Computing • 35
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Microcomputers • 35Computers on the Go • 36Internet Appliances • 36Large-System Computing • 36Network Servers • 37
Computer System Unit • 37
System Board • 37CPU • 37
Main Memory • 38Cache Memory • 38RAM • 38
ROM • 38System Clock • 38Power Supply • 39Expansion Slots and Boards • 39Bus Lines • 39
Ports • 40
How to Select Laptops • 40
How Do CPUs Affect Your Computing Power? • 41
Input Technologies • 42
Keyboard • 43Mouse • 43Trackball • 43Bar Code Readers • 44Penbased Input • 44Image Scanner • 44Voice Recognition Device • 44Magnetic Ink Character Recognition (MICR) • 44
Video Capture • 44Touch Screens • 44
What Input Devices Do You Need? • 44
Output Technologies • 45
Text Format • 45Graphical Format • 45Video Format • 45Audio Format • 45
What Output Technologies
Do You Need? • 45
Regular Computer Users • 46Retailers • 46
Cartoon/Movie Makers • 46Information Help Center • 46Publishers • 46
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Video Conferences • 46Architect • 46
Secondary Storage • 46
Magnetic Tape • 47Magnetic Disk • 47Floppy Disk • 47Hard Disk • 47Optical Disk • 48CD-ROM • 48CD-RW • 48DVD-R, DVD-RW • 48USB Keychain Hard Drives • 48
Four What Is Systems Software? 49
The Operating System, Utility
Programs, and Language Translators • 49
The Operating System (OS) • 49Booting • 50
Housekeeping Tasks • 50User Interface • 50Managing Computer Resources • 50Managing Files • 50
Managing Tasks • 50Utility Programs • 51Programming Language Processors • 51
IBM-Compatible Operating
Systems • 52
Windows XP • 52
Macintosh Operating Systems • 53
Other Operating Systems • 53
Unix • 53Netware • 54Linux and the Open-Source Revolution • 54
Single-User Versus Multiuser
Systems • 54
Single-Tasking Systems Versus
Multitasking Systems • 55
Single Tasking • 55Multitasking • 55
Evolution of Programming
Languages • 55
First-Generation Programming Language • 55
Second-Generation Programming Language • 56
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Third-Generation Programming Language • 56
BASIC • 56PASCAL • 56C/C++ • 56COBOL • 57FORTRAN • 57Ada • 57Fourth-Generation Programming Language • 57
Query Languages • 57Application Generators • 57Fifth-Generation Programming Language (Natural Language) • 58
What are Object-Oriented Languages (OOLs) and Computer-Aided Software Engineering (CASE) Tools? • 58
Five Practical Guide to Application
Finding Out What is Available • 59
Versions • 59Release • 59Yearly Version • 59Proprietary Software • 60Public Domain Software • 60Freeware • 60
Seven Main Types of Software and How They Operate • 60
Presentation Software • 61Word Processing Software • 61Spreadsheet Software • 61Database Software • 61Communication Software • 62Desktop Publishing • 63Graphics Software • 63
Packaged, Customized, or Semicustomized Software • 63
Packaged Software • 63Customized Software • 63System Analysis and Design Life Cycle • 63
Prototyping • 64Semicustomized Software • 64
Where to Get Software Assistance • 64
Presentation Software • 65
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Trang 17Data Communications Software • 66
When to Use Integrated
Software Packages • 66
Six Data and Databases 68
What is a Database? • 68
What is a Database File (Table)? • 69
Types of File Organization • 69
Sequential File • 69Indexed-Sequential File • 69Direct File • 70
Data Models (Relational,
Hierarchical, and Network) • 70
Relational Databases • 70Hierarchical Databases • 71Network Databases • 71Object-Oriented Databases • 71
Primary Keys, Secondary Keys, and Foreign Keys • 72
Primary Keys • 72Secondary Keys • 72Foreign Keys • 72
Other Features in a Database
Management System • 74
Data Dictionary • 74Database Utilities • 75Database Recovery • 75
The Database Administrator
(DBA) • 75
What Is a Database Administrator? • 75Major Functions of a Database Administrator • 76
Database Design • 76
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System Backup and Recovery • 76End User Service and
Coordination • 76Database Security • 76Performance Monitoring • 76
Query Languages • 76
What Is a Query Language? • 76Structured Query Language • 77Query by Example • 77
Seven Data Communications 78
Digital Signals Versus Analog Signals • 78
Digital Data Versus Analog Data • 78
Digital Transmission Versus Analog Transmission • 79
Types of Wired Communication Media • 79
Twisted-Pair Wire • 79Coaxial Cable • 80Fiber-Optical Cable • 80
Wireless Communication Media • 80
Microwave System • 80Satellite System • 81Global Positioning System (GPS) • 82Pagers and Cellular Phones • 82
Modems and Other Devices • 82
Local Area Network (LAN) and Its Applications • 83
Components of an LAN • 83Microcomputer (Workstation) • 83Network Interface Card • 83Network Operating System • 83Types of LANs • 83
Wide Area Network (WAN) and Its Applications • 84
Integrated Services Digital Network (ISDN) • 84
Network Topologies • 84
Internet and E-Commerce • 85
Electronic Commerce • 86Internet Development Tools • 87
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Computer Conferencing • 88
Multimedia • 88
Multimedia Components • 88Multimedia Applications • 88Encyclopedias, Large Databases • 89Training • 89Presentations • 89Animation • 89
Eight Network and Telecommunications 90
What is Telecommunication? • 90
Going Online • 90
Modem • 91Types of Telecommunications • 92
Computer Networks • 93
Advantages of Networks • 94Data Flow • 94
Network Topologies • 95
Wide Area Networks and Local Area Networks • 100Advantages of Interfacing Networks • 100
Disadvantages of Interfacing Networks • 101
Electronic Databases • 101
Commercial Online Services • 102
U.S Government’s STAT-USA
Online Service • 104
Online Business Databases • 107