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DISCUSS
Discuss features appear throughout the text, presenting real world examples of information systems problems,
ethics and innovations. Covering a range of topics, these boxed features are designed to promote critical
thinking through discussion and debate.
APPLY YOUR KNOWLEDGE
The Apply your knowledge projects invite
students to use the concepts from each
chapter in order to engage in a variety of
business scenarios.
GRADUATE SPOTLIGHTS
Graduate spotlights, located at the start of each part
of the book, present IT graduates’ stories. They share
their experiences of studying business information
systems and how those experiences have informed
their career choices.
CRITICAL BUSINESS THINKING
At the end of each chapter, the Critical
business thinking feature provides students
with an opportunity to apply critical thinking
skills and chapter concepts to business
problems.
CHAPTER 2 Information systems in business 37
Critical business thinking
1 Pursuing Porter
There is no doubt that Michael Porter is one of the more influential
business strategists of the 21st century. Research Michael Porter on
the Internet for interviews, additional articles and new or updated
business strategies.
Create a summary of your findings to share with your class.
How can learning about people such as Thomas friedman and
Michael Porter help prepare you for a career in business? Name
three additional business professionals you should follow to help
prepare for your career in business.
2 renting movies
The movie rental industry is fiercely competitive. Customers have
their choice of renting a movie by driving to a video shop (e.g.
Blockbuster), ordering through the mail (e.g. from Quickflix), or
watching directly from their television (e.g. streaming from ABC
iView).
Using Porter’s five forces Model (buyer power, supplier
power, threat of new entrants, threat of substitute products and
competition), evaluate the attractiveness of entering the movie
rental business. Be sure to include product differentiation, switching
costs and loyalty programs in your analysis.
3 Working for the best
Each year, Fortune magazine creates a list of the top 100
companies to work for. find the most recent list. What types of
data do you think Fortune analysed to determine its company
rankings? What issues could occur if the analysis of the data were
inaccurate? What types of information can you gain by analysing
the list? Create five questions a student performing a job search
could answer by analysing this list.
4 job surveys
Research the Internet for current Is jobs. Which types of jobs are
on the rise? If there are any jobs you are unfamiliar with, research
the Internet to determine the job characteristics. List the top three
jobs you would want if you were to pursue a career in Is. What do
you find interesting about these jobs? What skills can you build to
help you prepare for these jobs?3
5 communication is key
The ability to clearly communicate with your peers, team members,
managers and end users is critical skill for all those involved in
the IT business. However, good communication skills do not come
easily for many. The 2013 movie “The Internship” (http://www.
theinternshipmovie.com/) is about two salesmen, Vince and
Owen, who lots their jobs, however, they do not give up and apply
for an internship with Google.
Watch the film (or at least the trailer) and list the communication
skills that Vince and Owen possess that the other applicants (and
some of the employees), do not.
6 The Five Forces Model at work
your team is working for a small investment company that
specialises in technology investments. A new company, Geyser,
has just released an operating system that plans to compete with
Microsoft’s operating systems. your company has a significant
amount of capital invested in Microsoft. your boss, Kellee Lazarus,
has asked you to compile a Porter’s five forces analysis for
Microsoft to ensure your company’s Microsoft investment is not
at risk.
7 Complanency can result in lost competitive
advantage
In 2004, a few years before Apple introduced it first iPhone, Nokia
had developed a phone prototype that was Internet ready and
touch screen. However it was not until many years later, and long
after Apple claimed the crown as a first-mover and thus gaining
it competitive advantage, that Nokia release its first comparable
phone. It has missed a great opportunity (and revenue) due to
“management [being]worried that the product could be a costly
flop….. [the] organization so swollen by its early success that it
grew complacent, slow and removed from consumer desires” 36
.
Name three companies or products that today could be
classed as having the first-mover advantage; what is their business
strategy; are they global or local; who founded the organisation
(how old are they and their country of residence); who is their
closest competition (or rival). for one of the companies/products
generate a Porter’s five forces analysis.
8 Applying the Three generic Strategies
This chapter discussed several examples of companies that pursue
differentiated strategies so that they are not forced into positions
where they must compete solely based on price. In a team,
choose an industry and find and compare two companies—one
that is competing based on price and another that is pursuing
a differentiated strategy enabled by the creative use of IT. some
industries you may want to consider are clothing retailers,
supermarkets, airlines and personal computers.
Prepare a presentation for the class on the ways the company
is using IT to help it differentiate and compete against the low-cost
provider.
9 Top five things you will say to your
grandchildren
Wired magazine recently posted a list of the top 10 things you
will say to your grandchildren, five are repeated here. for each
expression below, try to identify what it is referring to and why it
will be considered outdated.37
1 Back in my day, we only needed 140 characters.
2 Televised contests gave cash prizes to whoever could store
the most data in their head.
2 Well, the screens were bigger, but they only showed the
movies at certain times of day.
4 We all had one, but nobody actually used it. Come to think
of it, I bet my LinkedIn profile is still out there on the web
somewhere.
5 you used to keep files right on your computer, and you had to
go back to that same computer to access them!
aid on the amount of fish caught using the information
om Wisefish. Borrell says, ‘sanford has achieved its goal
d inventory control and management. Project fish has
truly integrated ERP platform for our business.’
d’s ability to service export markets has also improved.
ny has increased insight into exactly what product is
market from fishing vessels and can confidently pre-sell
they even hit the shore. Marel production data from at-
ing trawlers is sent daily via satellite to the shore office
aded into the system. ‘With integrated real-time internet
an instantly see which market worldwide is giving a
on a certain product and may even make a decision
t more stock instead of shipping it.’ Wisefish allows
ers to see exactly what product is on board any vessel
in processing on shore, which makes it now feasible
fish. Given the unique supply situation of this industry,
certain and seasonal supply of any specific fish variety
ort shelf-life of fresh fish, the real-time information that
ovides also gives the customer confidence in sanford’s
onsistently supply on time and on order.
r positive outcome from the project has been the
own of the traditional ‘silo’ mentality. This development
ed in increased communication between branches
pportunity for staff to add value to their roles. ‘At an
ion level, we’ve opened up the opportunity for our
come business analysts instead of number crunchers,’
l. sanford can also provide the Ministry of fisheries
ew Zealand food safety Authority with faster access to
via direct electronic data transfer. The scope of Project
ues to evolve as its users become more familiar with its
. selected customers can now look up their contracts
ernet, see online when their stock has been assigned
d, and track the container to its delivery point. The
ap sanford has achieved in its information and business
e integration since late 2005 continued in 2012 with
ny announcing a NZ$100 million investment in a high
project looking at more eco-friendly ways of catching
re efficiently moving it to market.
uDY QueSTIONS
university, what business benefits and costs could
e from switching from all paper exams to all electronic
s? for students, what are the advantages and
vantages?
other issues or questions not directly discussed in the
could you suggest might arise during this period of
ility testing and evaluation?
ample was given of how an e-exam might bring more
nticity to a medical exam. Can you think of several
an e-exam could make an ICT exam more ‘authentic’?
were on the evaluation team for this trial, what do you
could be some of the business, organisational or technical
that might be raised following the successful trial?
and Opt-out are often issues relating to IT and
ess ethics particularly relating to online facilities.
do you see as the pro’s and con’s of “opt-in” or “opt-
when it comes to e-exams?
ow to ‘sell’ the idea to reluctant students?
UNIVERsITy Of AUCKLAND, NZ
BUsINEss
sTRATEGy
CHAPTER 1 Information systems in business 11
ll versed in advanced technology can compete in the information age.
ness leaders have created exceptional opportunities by coupling the
traditional business methods. Here are just a few examples:
mpany; its original business focus was to sell books, and it now sells
pany; its primary business focus is to rent videos.
mpany; its primary business focus is to sell shoes, bags, clothing and
t first saw an opportunity to change the way people purchase books.
n age to tailor offerings to each customer and speed the payment
ns of tiny virtual bookstores, each with a vastly larger selection and
al bookstores. The success of his original business model led him to
er types of products. The founders of Netflix and Zappos have done
. All these entrepreneurs were business professionals, not technology
enough about the information age to apply it to a particular business,
now lead entire industries.
y versus information systems
mation systems are two closely related fields – each are required in
n technology is primarily concerned with hardware and software
stems, web services, code, devices, networks (see Chapter 5), and
concerned with the people, processes and the technology – it is a
stems designed to create, gather, store, manipulate or disseminate
btaining, storing and retrieving information, for example, the Dewey
ks, protocols and terminology for product identification, customer
orkplace communication.
nts frequently ask, ‘Why do we need to study information technology
r is simple: they are everywhere in every business. They affect nearly
he processes of work, rest and play through improvements in software,
ng them provides great insight to anyone learning about business.
ole of information technology in business by reviewing a paper or
magazine such as BusinessWeek, Business Review Weekly (BRW) or NZ
articles are dedicated to technology in business. These are business
nes, yet they are filled with technology. Students who understand
usiness.
ypically discuss such topics as databases, customer relationship
chain management, ‘big data’, security, ethics, business intelligence
ormation systems. This text explores these topics in detail, along with
pportunities and challenges. IT and IS can be important enablers of
This is not to say that they equal business success and innovation, or
s and innovation. They are most useful when they leverage the talents
s the right people know how to use and manage it effectively.
em (MIS) is a business function just as marketing, finance, operations
managementarebusinessfunctions.Formallydefined,management
a general name for the business function and academic discipline
le, technologies and procedures—collectively called information
iness problems. To perform the MIS function effectively, almost all
rge and medium-sized ones, have an internal IT department, often
), Information Systems (IS) or Management Information Systems
out IT, it is important to understand the relationships between data,
and knowledge.
Pluses and minuses
The line famously quoted in the film Spider-Man, ‘With great power comes great responsibility’, applies to every
type of technology you encounter in business. Technology provides countless opportunities for businesses, but can
also lead to pitfalls and traps. Online trading, for instance, brought many companies profits but has cost many
individual investors their life savings through fraud. Ponzi schemes, for example, attract inexperienced investors
with promises of high yield investments but no real profits are generated. Online anonymity means the promoters
disappear when the schemes end. sites such as Craigslist and eBay allow anyone to become a provider of goods
or services and a few unethical individuals have even used it to run online prostitution rings 7
.
A manager must be able to analyse the good and the bad associated with technology.
Review some companies that primarily operate on the Internet, such as Kogan, eBay, Craigslist or Amazon,
and compile a list of the business opportunities and the potential pitfalls associated with doing business online.
Data, information, business intelligence and knowledge
Students who understand business along with the power associated with IT are well placed to create
their own opportunities and perhaps even new industries—just as co-founders Chris DeWolfe and
Tom Anderson did with MySpace, Mark Zuckerberg did with Facebook, and as Ruslan Kogan did with
Kogan.com. Our primary goal in this book is to arm you with the knowledge you need to compete in the
information age. The core drivers of the information age are data, information, business intelligence and
knowledge.
Data
Data are raw facts that describe the characteristics of an event or object. Before the information age,
managers manually collected and analysed data, a time-consuming and complicated task without which
they would have little insight into how to run their business. Lacking data, managers often found
themselves making business decisions about how many products to make, how much material to order
or how many employees to hire based on intuition or gut feelings. In the information age, successful
managers compile, analyse and comprehend massive amounts of data daily, which helps them make
more successful business decisions.
The amount of data that we use or generate today is growing exponentially, and thus too much for
the traditional IT based systems that store, collate, correlate, and retrieve the data. Big data is the term
used for data sets that are so large and complex it is difficult to process the data using traditional data
processing applications. Data sets grow in size in part because they are increasing being gathered by for
mobile devices, web logs, software logs, cameras, and RFID readers. The ‘size’ of big data is indefinable,
as what is big for one organisation may not be big for another. Regardless of the big data size, a business
needs to understand its data, what it needs to do with it, when, how quickly and in what format. (see
Chapter 8 for more on big data)
Table 1.1 shows sales data for Tony’s Snack Company, a fictitious business that supplies snacks to
stores. The data highlights characteristics such as order date, customer, sales representative, product,
quantity and profit.
The second line in Table 1.1, shows that Roberta Cross sold 90 boxes of Twisties to Coles for $1350,
resulting in a profit of $450 (note that profit = sales — costs). This data is useful for understanding
individual sales but does not provide much insight into how Tony’s business is performing as a whole.
Tony needs to ask questions to help him manage his day-to-day operations, such as:
• Who are my best customers?
• Who are my least profitable customers?
• What is my best-selling product?
• What is my slowest-selling product?
• Who is my strongest sales representative?
• Who is my weakest sales representative?
What Tony needs, in other words, is not data but information.
Data
raw facts that describe
the characteristics of an
event or object
Big data
data sets that are so
large and complex it is
difficult to process the
data using traditional
data processing
applications
discuss
LO 1.3
What job/position did you have when you were interviewed for the 2nd edition?
At the time of the 2nd edition, I held the same position as I do now—Partner at PRIME Process Management
Group. At the time we had been established only a few years. Our organisation provides consultancy, training
and software in the Business Process Management space. Our clients call upon us to document their existing
business processes, analyse and improve these, then implement the changes into their organisation.
What did your job/position involve?
In the earlier days, my job was more focused on the development of our product and services. This was
establishing, trialling and refining the product and services which would satisfy our customers. This was
in addition to the day-to-day activities such as managing client projects, recruitment and retention and of
course getting out there and selling our product and services.
What do you enjoy most about your job?
I get great satisfaction out of establishing teams, setting an objective and working with the team to achieve
that. I like bringing out the best in people. I also enjoy doing strategic planning activities for the business.
This gives room for creative thinking, making plans and working towards achieving our objectives.
What are your thoughts on the future of information systems?
I’m feeling positive. I have seen the application of IT, hence the use of information systems, adopted in
a variety of industries—some faster than others. There is so much more room for IT and information
systems, let alone the continuous improvement of these.
What advice would you give to recent graduates looking to work in information
systems?
I mentioned this in my write-up for the 2nd edition of this book and I feel it still holds true. Anything
that can be offshored will be offshored. It is a good specialisation, but ensure you also develop excellent
communication and interpersonal skills. Focus on customer-facing roles where you can use your technical,
business, communication and interpersonal skills, as these cannot be offshored so easily.
BERNADETTE
Name
Bernadette Kropman
Degree studied
Bachelor of Business (Information
Systems) and Master of Information
Technology
Current position
Partner/Owner Prime PMG
Employer
Prime Process Management Group
UPDATED
GRADUATE
SPOTLIGHT
PART 1 Information systems are business CHAPTER 2 Information systems in business
38 39
Apply your knowledge
BUsINEss
PROJECTs
prOJeCt ONe Capitalising on your career
Business leaders need to be comfortable with management information systems (MIs) for the following (primary) reasons.
• The sheer magnitude of the dollars spent on MIs must be managed to ensure business value.
• Research consistently shows that when top managers are active in supporting MIs, they realise a number of benefits such as gaining
a competitive advantage, streamlining business processes and even transforming entire industries.
• When business leaders are not involved in MIs, systems fail and revenue is lost and entire companies can even fail because of
poorly managed systems.
How do companies get managers involved in MIs? One of the biggest positive factors is managers’ personal experience with MIs
and MIs education, including university classes and executive seminars. As soon as managers understand MIs through experience
and education, they are more likely to lead their companies in achieving business success through MIs.
1 search the Internet for examples of the types of technologies currently used in the field or industry that you plan to pursue. for
example, if you are planning a career in accounting or finance, you should become familiar with financial systems such as Oracle
financials. for a career in logistics or distribution, research supply chain management systems. If marketing appeals to you,
research customer relationship management systems, blogs, e-marketing and social networking.
2 As a competitive tool, MIs can differentiate products, services and prices from competitors’ offerings by improving product quality,
shortening product development or delivery time, creating new MIs-based products and services, and improving customer service
before, during and after a transaction. search the Internet for examples of companies in the industry where you plan to work that
have achieved a competitive advantage through MIs.
3 Create a brief report of your findings. Include an overview of the type of technologies you found and how companies are using
them to achieve a competitive advantage.
prOJeCt tWO Achieving alignment
Most companies would like to be in the market-leading position of Jetstar or Dell, which have used MIs to secure their respective spots
in the marketplace. These companies are relentless about keeping the cost of technology down by combining the best of MIs and
business leadership. The future belongs to those organisations perceptive enough to grasp the significance of MIs and resourceful
enough to coordinate their business and MIs.
Use any resource to answer the question, ‘Why is it challenging for businesses to align MIs and their other operations?’ Use the
following questions to begin your analysis.
1 How do companies monitor competitive intelligence and create competitive advantages?
2 What are some of the greatest MIs challenges for most firms?
3 What drives MIs decisions?
4 Who or what is the moving force behind MIs decisions for most companies?
prOJeCt FOUr Porter’s five forces
setting strategic direction for a business is a challenge for even seasoned professionals. The good news is that many tools are
available to help you find competitive advantages, including Porter’s five forces. Porter’s five forces Model analyses the competitive
forces within the environment in which a company operates to assess the potential for profitability in an industry. Its purpose is to
combat these competitive forces by identifying opportunities, competitive advantages and competitive intelligence. If the forces are
strong, they increase competition; if the forces are weak, they decrease competition.
Porter’s five forces Model is a good framework for understanding market forces. Break into groups and choose a comparison from
the list below to perform a Porter’s five forces analysis.
• Notebook computer and tablet computer
• smart phone (eg iPhone) and non smart mobile phone
• iTunes and spotify
• GPs device and street directory
• Digital books and printed books
prOJeCt FIVe Adding value
To identify competitive advantages, Michael Porter created value chain analysis, which views a firm as a series of business processes
that each add value to the product or service. Value chain analysis is a useful tool for determining how to create the greatest possible
value for customers. The goal of value chain analysis is to identify processes in which the firm can add value for the customer and
create a competitive advantage for itself, with a cost advantage or product differentiation.
Cafe chain Gloria Jeans has employed you after your graduation for a temporary position that could turn into a full-time opportunity.
With new cafes popping up on every corner, coupled with the global recession, Gloria Jeans is worried about losing market share to
competitors. your boss, Heather sweitzer, is out of ideas for ways to improve the company’s profitability. you decide that one of the
most useful tools for identifying competitive advantages is Porter’s value chain analysis. Of course, you do not yet have the detailed
knowledge to complete all of the elements required, but you know enough to get started and plan to take your draft to Heather next
week.
Using your knowledge of Gloria Jean’s, create a value chain analysis. feel free to make assumptions about operations; just be sure to
list any that you make. Also, be sure to write an overview of the tool and its potential value so Heather can understand how it works.
prOJeCt SIX Flat competition
‘When I was growing up in Minneapolis, my parents always said, “Tom, finish your dinner. There are people starving in China and
India.” Today I tell my girls, “finish your homework, because people in China and India are starving for your jobs.” And in a flat
world, they can have them, because there’s no such thing as an American job anymore’ (Thomas friedman).
In his book The world is flat , Thomas friedman describes the unplanned cascade of technological and social shifts that effectively
levelled the economic world, and ‘accidentally made Beijing, Bangalore, and Bethesda next-door neighbors’. The video of Thomas
friedman’s lecture at MIT discussing the flat world is available at http://mitworld.mit.edu/watch/the-world-is-flat-30-9321. If you want
to be prepared to compete in a ‘flat world’, you should watch this video and answer the following questions.
1 Do you agree or disagree with friedman’s assessment that the world is flat?
2 What are the potential impacts of a flat world for a student performing a job search?
3 What can students do to prepare themselves for competing in a flat world?
prOJeCt SeVeN Garbage in – garbage out
Electronic health records and computerized systems are being hailed as the best way to make the health system safer and more
efficient. But the rush to implement these systems might be doing more harm than good.
Genesis Burkett was born 16 weeks prematurely but was thriving in the neonatal intensive care unit. When he was 40 days old, a
pharmacy technician administered a routine IV bag of sodium chloride and calcium. But there was a problem: When the technician
entered the prescription information into the electronic system that told an automated machine how much of each solution to include,
he punched in the wrong dose of sodium—administering more than 60 times the amount Genesis’s tiny body could handle. Within
hours, the infant suffered a heart attack and died.38
Australia is rolling out an online eHealth system (http://www.ehealth.gov.au/) Individuals eHealth records allows you and your
doctors, hospitals and other healthcare providers to view and share your health information to provide you with the best possible care.
Explore the web site to determine the risk of data ‘garbage in / garbage out’ situations. suggest several ways for both the individual
and the medical professionals could this overcome this problem?
We know that people use IT to work with information. Knowing this, how could these types of errors occur? What could happen if you
decided to use Wikipedia to collect BI for a research paper? What could Wikipedia do to help prevent these types of errors?
prOJeCt eIGht What’s wrong with this bathroom?
If you were the CEO of a global financial company that was experiencing a financial crisis, would you invest $1 million to renovate
your office? Probably not, and you are possibly wondering if this is a foolish and irrelevant question. Guess what, this is a true story!
John Thain, the former CEO of Merrill Lynch, decided to spend Us $1.2 million refurbishing his office—well after Merrill Lynch
posted huge financial losses. Thain personally signed off all of the following (all in Us dollars):
• rug: $87 784
• mahogany pedestal table: $25 713
• 19th-century credenza: $68 179](https://image.slidesharecdn.com/14262-250501233050-d554fd2f/85/eBook-PDF-Business-Driven-Information-Systems-3rd-Edition-23-320.jpg)
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- 5. 760741 781743 9 ISBN 9781743760741 www.mhhe.com/au/baltzan3e 3e Connect is proven to deliver better results. Content integrates seamlessly with enhanced digital tools to create a personalised learning experience that provides precisely what you need, when you need it. Maximise your learning with SmartBook, the first and only adaptive reading experience designed to change the way you read and learn. It creates a personalised reading experience by highlighting the most impactful concepts you need to learn at that moment in time. To learn more about McGraw-Hill SmartBook® visit www.mheducation.com.au/student-smartbook 3e business-driven information systems business-driven information systems baltzan lynch fisher baltzan lynch fisher BUSINESS-DRIVEN INFORMATION SYSTEMS 3e continues the excellent work undertaken in the second edition to revise and update the developing area of Information Systems. With a completely revised design that allows for easy navigation and close correlation to key topics in many tertiary courses, it is a must-have for students studying Business-Driven Information Systems. The approach provides both theoretical and practical discussion on concepts that await today’s graduates, including mobile technologies, cloud computing, privacy, security and social networking. Key features include: • Case studies and industry examples: new and revised opening and closing case studies that contain a balance between local and international examples, enabling students to better understand concepts and theories. • Graduate spotlights: recent graduates share their unique career paths, demonstrating the opportunities available to graduates in the area of Information Systems. • Market-leading digital package: contains LearnSmart and SmartBook, and is the first MIS title in Australia to offer such adaptive technology to maximise student productivity and efficiency in learning. • Expand your knowledge modules: a great feature that offers integration with the core chapters and provides critical knowledge, using essential business applications such as Microsoft® Excel, Microsoft® Access and Adobe Dreamweaver® .
- 6. :55 PM baL60744_fm_i-1.indd vii 08/20/15 05:55 PM CONTENTS IN FULL Authors xv Prefacexvi Acknowledgementsxviii Highlights of this edition xix Text at a glance xxiii Digital resources xxv PART 1 INFORMATION SYSTEMS ARE BUSINESS2 CHAPTER 1 BUSINESS INFORMATION SYSTEMS 6 OPENING CASE STUDY Google: king of search (and therefore information)7 SECTION 1.1 // INFORMATION SYSTEMS IN BUSINESS 9 Business in the information age 9 Information technology versus information systems 10 Data, information, business intelligence and knowledge 11 Data11 Information12 Business intelligence 14 Knowledge14 Common functional areas in an organisation14 A systems-thinking approach to information technology 16 IT resources 16 People: IT cultures 17 People: roles and responsibilities in information technology 18 The IS team 19 The gap between business personnel and IT personnel20 Fundamental information systems in business 20 Transaction processing systems 20 Decision support systems 21 Strategic support systems 24 SECTION 1.2 // BUSINESS STRATEGY 26 Identifying competitive advantages 26 Porter’s Five Forces Model—evaluating industry attractiveness 27 Buyer power 28 Supplier power 29 Threat of substitute products or services 29 Threat of new entrants 29 Rivalry among existing competitors 30 Using the Five Forces Model to analyse the airline industry30 Porter’s three generic strategies— choosing a business focus 30 Value chain analysis—executing business strategies 32 Value creation 32 Global IT 34 Business in the global environment 35 CLOSING CASE STUDIES Closing Case Study 1.1: e-Exam trial at CQU37 Closing Case Study 1.2: Apple— complications made simple 38 Critical business thinking39 Apply your knowledge 40
- 7. baL60744_fm_i-1.indd viii 08/20/15 05:55 PM baL607 Contents in Full viii CHAPTER 2 A BRAVE NEW CONNECTED WORLD43 OPENING CASE STUDY Disruptive technologies shape the world 44 SECTION 2.1 // OUR CONNECTED WORLD 45 The Web changed the world 45 The Internet changed business 45 Benefits of a connected world 46 Sharing resources 47 Providing opportunities 48 Reducing travel 48 Challenges of a connected world 49 Security49 Legal issues 49 Social, ethical and political issues 50 SECTION 2.2 // THE INTERNET AND THE WEB: A TECHNOLOGY REVOLUTION 51 Disruptive and sustaining technologies 52 Disruptive versus sustaining technology 52 A Web evolution 54 Web 1.0 55 Web 2.0 55 Content sharing through open sourcing 55 User-generated content56 Collaboration inside the organisation 56 Collaboration outside the organisation 57 Networking communities with Web 2.0 technologies58 Web 2.0, social media and business 60 Blogs60 Wikis60 Web 3.0 61 The semantic Web 61 The Internet of Things62 CLOSING CASE STUDIES Closing Case Study 2.1: Like us on Facebook! The rise of social business innovation63 Closing Case Study 2.2: Barcelona Smart City 64 Critical business thinking66 Apply your knowledge 67 CHAPTER 3 e-BUSINESS AND MOBILE BUSINESS70 OPENING CASE STUDY Paywalls and the business future of newspapers 71 SECTION 3.1 // E-BUSINESS 73 Advantages of e-business 73 Expanding global reach 74 Opening new markets 74 Reducing costs 75 Improving operations 76 Improving effectiveness 76 e-Business models 77 Business-to-business (B2B) 77 Business-to-consumer (B2C) 79 Consumer-to-business (C2B) 79 Consumer-to-consumer (C2C) 79 e-Business forms and revenue-generating strategies80 Organisational strategies for e-business 81 Marketing/sales81 Financial services 82 Procurement83 Customer service 83 Intermediaries84 e-Business tools used to connect and communicate84 Measuring e-business success 85 Website metrics 86 Web analytics 87 e-Business challenges and benefits 87 Protecting consumers 87
- 8. :55 PM baL60744_fm_i-1.indd ix 08/20/15 05:55 PM Contents in Full ix Leveraging existing systems 87 Increasing liability 87 Providing security 87 Adhering to taxation rules 87 Trends in e-business: e-government and m-business88 e-Government88 SECTION 3.2 // MOBILITY: THE BUSINESS VALUE OF A WIRELESS WORLD 90 m-Business: supporting ‘anywhere’ business90 Benefits of business mobility 90 Enhances mobility 91 Provides immediate data access 91 Increases location and monitoring capability 92 Improves workflow 92 Provides mobile business opportunities 92 Provides an alternative to wiring 93 Challenges of business mobility 93 Protecting against theft 94 Protecting wireless connections 94 CLOSING CASE STUDIES Closing Case Study 3.1: Grocery shopping online96 Closing Case Study 3.2: Shoes of Prey 97 Critical business thinking 98 Apply your knowledge 99 CHAPTER 4 DECISIONS AND PROCESSES102 OPENING CASE STUDY Content streaming on demand 103 SECTION 4.1 // DECISION-MAKING SYSTEMS105 Decision making 105 The decision-making process 105 Decision-making essentials 106 Operational107 Managerial107 Strategic108 Metrics: measuring success 109 Efficiency and effectiveness metrics 110 The interrelationship between efficiency and effectiveness MIS metrics 112 Benchmarking—baseline metrics 112 Visualisation113 The future: artificial intelligence 115 Expert systems 115 Neural networks 116 Genetic algorithms 116 Intelligent agents 117 Virtual reality 118 SECTION 4.2 // BUSINESS PROCESSES118 Evaluating business processes 118 Support: changing business processes with MIS 120 Business process improvement 121 Business process re-engineering 123 Business process management 126 Is BPM for business or IT? 127 BPM risks and rewards 127 Business process modelling 128 The future: business process modelling and management 131 CLOSING CASE STUDIES Closing Case Study 4.1: True confessions— of an airline revenue manager 133 Closing Case Study 4.2: Using virtual reality to improve business decisions 134 Critical business thinking135 Apply your knowledge 136
- 9. baL60744_fm_i-1.indd x 08/20/15 05:55 PM baL607 Contents in Full x PART 2 ESSENTIALS OF INFORMATION SYSTEMS138 CHAPTER 5 TECHNICAL FUNDAMENTALS142 OPENING CASE STUDY Supercell: concentrates on games not infrastructure143 SECTION 5.1 // HARDWARE AND SOFTWARE BASICS 145 The business benefits of a solid MIS infrastructure145 Hardware basics 146 Central processing unit 146 Primary storage 147 Secondary storage 148 Input devices 149 Output devices 150 Communication devices 150 Computer categories 151 Software basics 151 System software 151 Application software 152 SECTION 5.2 // COMMUNICATION NETWORKS153 Networks153 Network components 153 Architecture154 Topology155 Protocols155 Media157 Network types 160 Local area network (LAN) 160 Wide area network (WAN) 160 Metropolitan area network (MAN) 161 Wireless networks 161 Network transmission speeds 164 Broadband connection types 166 Network security 167 Network providers 167 Networks and mobile phones 168 Addressing privacy concerns around RFID and LBS 169 CLOSING CASE STUDIES Closing Case Study 5.1: Everything to do with IT changes all the time: keeping up after you graduate 171 Closing Case Study 5.2: Advanced computing infrastructure may lower the price of your next cuppa 172 Critical business thinking174 Apply your knowledge 175 CHAPTER 6 SYSTEMS DEVELOPMENT AND PROJECT MANAGEMENT178 OPENING CASE STUDY Australia Post: staying relevant in the e-business era 179 SECTION 6.1 // DEVELOPING ENTERPRISE APPLICATIONS181 Developing software 181 The systems development life cycle 182 Traditional software development methodology184 Waterfall methodology 184 Agile software development methodologies185 Implementing agile methodologies 187 Developing successful software 189 Having unclear or missing business requirements189 Poor communication between management and the development team 189 Inadequate project management 189 Skipping SDLC phases 189 Changing technology 189 Catering for the cost of finding errors in the SDLC 189
- 10. :55 PM baL60744_fm_i-1.indd xi 08/20/15 05:55 PM Contents in Full xi SECTION 6.2 // PROJECT MANAGEMENT 191 Managing software development projects191 The triple constraint 192 Project participants 193 Choosing strategic projects 194 Understanding project planning 195 Project charter 195 Project plan 196 Managing projects 198 Managing people 198 Managing communications 198 Managing change 199 Outsourcing projects 200 Outsourcing benefits 202 Outsourcing challenges 203 CLOSING CASE STUDIES Closing Case Study 6.1: Why do large government IT projects fail? HealthSMART project lets Victorian health services down 205 Closing Case Study 6.2: myki: an integrated travel card for Victoria 206 Critical business thinking 207 Apply your knowledge208 CHAPTER 7 ENTERPRISE ARCHITECTURE AND SECURITY213 OPENING CASE STUDY Sony hack stops the world: well, Sony’s world 214 SECTION 7.1 // ENTERPRISE ARCHITECTURE215 The business benefits of solid enterprise architecture215 Supporting operations: information architecture216 Backup and recovery 217 Disaster recovery 218 Business continuity planning 220 Supporting change: infrastructure architecture222 Accessibility223 Availability223 Maintainability223 Portability223 Reliability224 Scalability224 Usability224 Supporting the environment: sustainable enterprise architecture 225 Cluster computing 225 Grid computing 225 Cloud computing 227 Virtualisation233 Making enterprise architecture green(er)236 Increased electronic waste 237 Increased energy consumption 240 Increased carbon emissions 240 SECTION 7.2 // ENTERPRISE SECURITY 241 Protecting intellectual assets 241 The first line of defence: people 242 The second line of defence: technology 244 People: authentication and authorisation 244 Data: prevention and resistance 246 Attacks: detection and response 248 Hackers and viruses 248 Preventing viruses on a mobile device 251 CLOSING CASE STUDIES Closing Case Study 7.1: Developing an enterprise-wide architecture within Insurance Australia Group252 Closing Case Study 7.2: Migration to Google docs: Bleeding Technology Pty Ltd 253 Critical business thinking 254 Apply your knowledge255
- 11. baL60744_fm_i-1.indd xii 08/22/15 04:16 PM baL607 Contents in Full xii PART 3 ENTERPRISE INFORMATION SYSTEMS258 CHAPTER 8 QUALITY DATA AND BUSINESS INTELLIGENCE262 OPENING CASE STUDY Chupa Chups: how sweet it is 263 SECTION 8.1 // DATA, INFORMATION AND DATABASES264 The business value of high-quality information264 Information type—transactional or analytical265 Information timeliness 266 Information quality 266 Information governance 268 Storing data 269 Storing data elements: entities and attributes 271 Keys to data 272 The business benefits of a relational database272 Increased flexibility 272 Increased scalability and performance 273 Reduced information redundancy 274 Increased information integrity (quality) 274 Increased information security 274 Integrating information among multiple databases275 Integration tools 276 The drawback of not integrating databases 277 Data warehousing 278 Multidimensional analysis 278 Information cleansing or scrubbing 280 SECTION 8.2 BUSINESS INTELLIGENCE (BI) 283 Data mining 283 Data mining tools 284 Cluster analysis 285 Statistical analysis 286 Association detection 286 Big data 287 Relationship between data warehousing and data mining 287 Business intelligence (BI) 288 Business benefits of BI 289 BI software/tools 291 Data management tools 292 Data discovery tools 292 Reporting tools 292 BI, business analytics and data science: similar but different 292 CLOSING CASE STUDIES Closing Case Study 8.1: XBRL and business information supply chains: enhancing business-to-government reporting 294 Closing Case Study 8.2: Data-driven innovation (DDI)—set to lead the way! 296 Critical business thinking298 Apply your knowledge 299 CHAPTER 9 ENTERPRISE INFORMATION SYSTEMS: ERP AND SCM302 OPENING CASE STUDY Still sick after $1.25 billion: Queensland Health ERP 303 SECTION 9.1 // ENTERPRISE RESOURCE PLANNING (ERP) 305 ERP fundamentals305 The evolution of ERP 309 ERP components 310 Core ERP components 311 Extended ERP components 313 e-Business313 Business intelligence (BI) 313 Supply chain management (SCM) 313 Customer relationship management (CRM) 313 Integrating ERP 314 ERP metrics 315
- 12. :16 PM baL60744_fm_i-1.indd xiii 08/22/15 04:16 PM Contents in Full xiii Choosing ERP software 317 Challenges of ERP 318 The future of ERP 318 SECTION 9.2 // SUPPLY CHAIN MANAGEMENT (SCM) 319 Supply chain fundamentals 319 Seven principles of SCM 322 The benefits of SCM 322 Improved visibility 322 Improve collaboration 323 Increased profitability 323 SCM metrics 324 The challenges of SCM 324 The future of SCM 325 Cloud computing and SCM 326 CLOSING CASE STUDIES Closing Case Study 9.1: GoPro goes into the cloud 327 Closing Case Study 9.2: ERP system takes ATE tankers to the next level 328 Critical business thinking 330 Apply your knowledge 331 CHAPTER 10 ENTERPRISE INFORMATION SYSTEMS: CRM AND COLLABORATION SYSTEMS333 OPENING CASE STUDY Bosch—power from the people 334 SECTION 10.1 // CUSTOMER RELATIONSHIP MANAGEMENT (CRM) 336 CRM fundamentals 336 Phases in CRM 337 Types of CRM 338 Operational CRM 339 Analytical CRM 343 Collaborative CRM 344 The benefits of CRM 345 CRM metrics 345 The challenges of CRM 346 The future of CRM 347 SECTION 10.2 // COLLABORATION SYSTEMS AND TECHNOLOGIES 348 What is collaboration? 348 Collaborators348 Collaboration systems 349 Knowledge management systems 350 Content management systems 352 Workflow management systems 353 Groupware systems 354 Collaboration technologies 355 File storage and sharing 356 Email356 Wikis356 Instant messaging 357 Conferencing357 Social networking analysis 358 CLOSING CASE STUDIES Closing Case Study 10.1: Creating enterprise resource planning (ERP) software beautifully 360 Closing Case Study 10.2: CRM systems: giving customers that uncanny valley feeling 361 Critical business thinking 362 Apply your knowledge363 PART 4 BUSINESS AND TRANSFORMATION368 CHAPTER 11 ETHICS, PRIVACY, SOCIAL MEDIA AND FUTURE TRENDS372 OPENING CASE STUDY Bitcoin: a currency revolution? 373 SECTION 11.1 // ETHICS AND PRIVACY 375 Information ethics 375 Information does not have ethics; people do 377
- 13. baL60744_fm_i-1.indd xiv 08/22/15 04:16 PM Contents in Full xiv Privacy in the information age: an overview 378 Privacy in Australia 380 Developing information management policies 380 Ethical computer use policy 380 Information privacy policy 381 Acceptable use policy 382 Internet use policy 382 Email privacy policy 383 Anti-spam policy 384 Social media use in business 385 Workplace monitoring policy 386 Monitoring technologies 387 Protecting privacy: handling personal information 388 Privacy statements 388 Third-party privacy programs 388 Global information privacy issues 389 Europe389 The United States 390 Cloud computing and trans-border privacy considerations 390 SECTION 11.2 // SOCIAL MEDIA 392 Social media and today’s business 392 Managing social media 392 SECTION 11.3 // FUTURE TRENDS 393 Reasons to watch trends 393 Trends shaping the future of business 394 The world’s population projected to be 9 billion by 2050 394 People in developed countries are living longer 395 Advances in communication technologies are changing the way we live and work 396 The growth in information industries is creating a knowledge-dependent global society396 The global economy is becoming more integrated396 The economy and society are dominated by technology397 The pace of technological innovation is increasing398 Time is becoming one of the world’s most precious commodities 398 CLOSING CASE STUDIES Closing Case Study 11.1: The Facebook experiment: legal—yes, but ethical? 399 Closing Case Study 11.2: Privacy, copyright and online piracy of Dallas Buyers Club400 Critical business thinking 401 Apply your knowledge402 PART 5 EXPAND YOUR KNOWLEDGE MODULES406 ABOUT THE MODULES 407 GLOSSARY424 INDEX441
- 14. baL60744_fm_i-1.indd xv 08/20/15 05:55 PM PAIGE BALTZAN—US EDITION Paige Baltzan teaches in the Department of Information Technology and Electronic Commerce at the Daniels College of Business at the University of Denver. She holds a BSBA specialising in Accounting/MIS from Bowling Green State University and an MBA specialising in MIS from the University of Denver. She is a co-author of several books including Business Driven Technology, Essentials of Business Driven Information Systems, I-Series, and a contributor to Management Information Systems for the Information Age. Before joining the Daniels College faculty in 1999, Paige spent several years working for a large telecommunications company and an international consulting firm, where she participated in client engagements in the United States as well as South America and Europe. Paige lives in Lakewood, Colorado, with her husband, Tony and daughters Hannah and Sophie. KATHY LYNCH DrKathyLynchisafreelanceeducationconsultantandaretiredInformationSystemsacademic.Heracademic employment was most recently as an Associate Professor in ICT Research and Development at the University of the Sunshine Coast (Queensland), prior to this she was in the Faculty of Information Technology, Monash University.HerfirstacademicappointmentwasasalecturerintheFacultyofEducationatMonashUniversity. Kathy holds a PhD (cross-discipline Information Systems and Education) and a Master of IT (Research) from Monash University. Additionally, she holds several other postgraduate and undergraduate qualifications in both IT and Education. Kathy has taught IT-related subjects in the secondary, vocational and university sectors across Australia. She is on numerous international and national review panels for grants, promotions and academic papers, and has been a past Editor-in-Chief of the Australian Journal of Information Systems, and The Interdisciplinary Journal of Management, Systems and Information. She has instigated and led a broad range of practical business-driven information systems projects ranging from one of the first web-database systems in the Australian vocational sector in the early 90s, to portals for indigenous language reconciliation, augmented reality, and e- and mobile-learning initiatives She has also managed large enterprise-wide systems in both the tertiary and vocational sectors. Kathy’s research interests focus on the effective and efficient use of IT regardless of the domain, with a specific interest in e-learning in developing countries. She is an Honorary Research Associate in numerous IT faculties across the globe (Australia, Uganda and South Africa). JULIE FISHER Dr Julie Fisher is a Professor in the Faculty of Information Technology at Monash University, Australia. She has worked and conducted research in the information systems field for the last 25 years. Julie is passionate about teaching and has taught information systems to both undergraduate and postgraduate students. For much of her academic life Julie has conducted research in user interface design and usability, areas which are both critical for developing effective and efficient systems. She has led projects involving the usability testing of small business websites, the implementation of mobile devices in a hospital ward and assisted with the development of health and other portals. Julie has published widely in leading international and national journals and conferences. AUTHORS
- 15. baL60744_fm_i-1.indd xvi 08/20/15 05:55 PM baL607 xvi PREFACE The Australian and New Zealand edition of Business-Driven Information Systems discusses various business initiatives first, and how technology supports those initiatives second. The premise for this unique approach is that business initiatives should drive technology choices. Therefore every discussion first addresses the business needs and then addresses the technology that supports those needs. This text provides the foundation that will enable students to achieve excellence in business, whether they major in operations management, manufacturing, sales, marketing, finance, human resources, accounting or virtually any other business discipline. Business-Driven Information Systems is designed to give students the ability to understand how information technology and information systems can be a point of strength for an organisation. Unlike many texts currently available, this third edition has been regionalised in order to best reflect the needs of instructors and students in the Asia–Pacific region. The text therefore not only provides many more regional examples and case studies, but also reflects our business environments with a focus on Small and Medium Enterprises (SMEs). Common business goals associated with information technology projects include reducing costs, improving productivity, improving customer satisfaction and loyalty, creating competitive advantages, streamlining supply chains, global expansion and so on. Achieving these results is not easy and this text aims to explore some of these issues. Implementing a new accounting system or marketing plan is not likely to generate long-term growth or reduce costs across an entire organisation. Businessesmustundertakeenterprise-wideinitiatives to achieve broad general business goals such as reducing costs. Information systems play a critical role in deploying such initiatives by facilitating communication and increasing business intelligence. WINNER OF THE APA AUSTRALIAN EDUCATIONAL PUBLISHING AWARD 2010 FOR TERTIARY (ADAPTATION) TEACHING AND LEARNING IN ITS FIRST EDITION Any individual anticipating a successful career in business (whether it is in the functional areas of accounting, finance, human resources or operations, or in the systems area—specifically writing, administering or upgrading the organisation’s information systems) must understand the basics of information systems that can be found in this text. We have found tremendous success teaching information systems (IS) courses by demonstrating the correlation between business and IT. Students who understand this tight correlation will therefore understand the power of this course. Students learn 10 per cent of what they read, 80 per cent of what they personally experience and 90 per cent of what they teach others. The business-driven approach in this text takes the difficult and often intangible IS concepts, brings them to the students’ level and applies them using a hands-on approach to reinforce the concepts. Teaching IS with a business-driven focus helps to: • add credibility to IS • open students’ eyes to IS opportunities • attract students to study a major in IS • engage students. FEATURES Business-Driven Information Systems is state-of-the- art in its discussions, presents concepts in an easy- to-understand format and allows students to be active participants in learning. The dynamic nature of information technology requires all students, and more specifically business students, to be aware of both current and emerging technologies. Students are facing complex subjects and need a clear, concise explanation to be able to understand and use these concepts successfully throughout their careers. By engaging students through the use of numerous case studies, exercises, projects and questions that enforce concepts, Business-Driven Information Systems creates a unique learning experience for both teaching staff and students.
- 16. :55 PM baL60744_fm_i-1.indd xvii 08/20/15 05:55 PM xvii Highlights of the text and features that differentiate it from other texts in the same field are: • in-text and chapter opening/closing cases situated in the global, Australian, New Zealand or Australasian context • comprehensive ethics, privacy and information security focus in various chapters of the text, tailored to the needs of the business practitioners of tomorrow • Graduate spotlights presented throughout the text. A number of graduates who have completed an Information Systems degree in Australia or New Zealand, and who are information systems practitioners or professionals, share their stories, reflect on their studies in relation to their career, and offer insights into where they are now • a handy reference to the AACSB standards in each chapter for instructors and students, identifying which graduate attributes/skills will be developed by completing the chapter and exercises AUDIENCE Business-Driven Information Systems is designed for use in undergraduate or introductory MBA courses in Information Systems, which are required in many Business Administration or Management programs as part of the common body of knowledge for all business majors. Its contents are sufficient to be the grounding text for a course in Information Systems. LOGICAL LAYOUT Students and teaching staff will find the text well organised with the topics flowing logically from one chapter to the next. A definition of each term is provided before it is covered in the chapter and an extensive glossary is included at the back of the text. Each chapter offers a comprehensive opening case study, introduction, learning outcomes, closing case studies, key terms, critical business thinking questions, and practical business projects. The teachings in Business-Driven Information SystemsareextendedtoPart5throughtheExpansion Pack Modules or ‘technology plug-ins’, which offer online learning about core business applications including Microsoft Excel® Microsoft Access® and Dreamweaver®,andincludefullpedagogicalsupport. MATERIAL TO ENCOURAGE DISCUSSION Allchapterscontainadiverseselectionofcasestudies and individual and group problem-solving activities as they relate to the use of information systems in business in Australia and New Zealand and other parts of the world. The comprehensive closing case studies at the end of each chapter reinforce content and encourage students to consider the concepts presented and then apply those concepts to a situation they might find in an organisation. This text also includes integrated Discuss box features. Different people in an organisation can view the same facts from different points of view and the cases will encourage students to consider some of those views. THOROUGH EXPLANATIONS Complete coverage is provided for each topic that is introduced. Explanations are written so that students can understand the ideas presented and relate them to other concepts. SOLID THEORETICAL BASE The text draws on current theory and practice of information systems related to the business environment. Current academic and professional journals cited throughout the text are found in the notes at the end of each chapter—creating a road map for additional, pertinent readings that can be the basis for learning beyond the scope of the chapters. INTEGRATIVE THEMES Several integrative themes recur throughout the text ensuring a cohesive learning experience. Among these themes are value-added techniques and methodologies, ethics and social responsibility, globalisation and gaining a competitive advantage. Such topics are essential to gaining a full understanding of the strategies that a business must recognise, formulate and in turn implement. In addition to addressing these in the chapter material, many illustrations are provided for their relevance to business practice.
- 17. baL60744_fm_i-1.indd xviii 08/20/15 05:55 PM baL607 xviii Adapting a book of this scale has been a daunting task, made easier by the quality of the US edition and its approach to the coverage of the subject matter— thank you to Paige and Amy. A similar approach has been adopted for this Australian and New Zealand edition, the main focus having been on the relevance of the real-world examples and cases used. It has also been an enlightening experience, dare we say, even fun! Nothing of this magnitude can be undertaken successfully alone; it has been a team effort and the texthasbenefitedfromthethoughtfulcriticismsand insights of instructors from institutions throughout the Pacific region. Particular thanks go to the following people who took part in our Management Information Systems symposium, participated in our survey or reviewed the text—all of whom very generously took the time to offer constructive and invaluable suggestions on the regional market needs and about the existing and proposed book content. We wish to thank our case contributors for adding significant regional flavour and to the digital resource authors that added their expertise to this book: Peter Blakey, formerly of Massey University Dr Yvette Blount, Macquarie University ACKNOWLEDGMENTS Dr Pari Delir Haghighi, Monash University Dr Francis Gacenga, University of Southern Queensland Dr Heather Gray, Griffith University Kenneth Howah, Central Queensland University Associate Professor Christian Jones, University of the Sunshine Coast Dr Tanya Linden, University of Melbourne Dr Kim MacKenzie, Queensland University of Technology Dr Alistair Robb, University of Queensland Pamela Spink, Monash University Dr Lorraine Staehr, La Trobe University Susan Sutherland, Consultant, Information Systems Canberra Pty Ltd Dr Indrit Troshani, University of Adelaide Marie van der Klooster, formerly of Deakin University Finally, particular thanks must extend to the McGraw-Hill team who provided support and a helping hand at every stage of development. We would like to specifically acknowledge publisher Jillian Gibbs, senior product developer Lisa Coady and senior production editor Daisy Patiag. Their hard work and determination was much appreciated.
- 18. :55 PM baL60744_fm_i-1.indd xix 08/20/15 05:55 PM xix The text has been revised so as to show the change and growth in business-driven information systems and the technologies that underpin them. Some content has been moved from one chapter and inserted into a different chapter; some content has been deleted. This has been a result of feedback from academics currently teaching IS, as well as global trends in IS degrees. This edition has an additional content author, Professor Julie Fisher from Monash University, bringing further expertise and collaboration to the text. Julie and Kathy have worked, researched and taught IS together and individually for many years. This collaboration enhances this edition of Business-Driven Information Systems. New and enhanced learning resources in the book and online include: • New or updated Opening Case studies for all chapters have been written by either Kathy Lynch or Julie Fisher, who have ensured the Opening Cases stimulate interest in the chapter prior to working through it. Opening Case study questions now immediately follow the case, as do any reference notations. • New or updated Closing Case studies for all chapters have been written by academics involved in teaching information systems. Closing case study questions have also been included. • Graduates who were spotlighted in previous editions have updated their profile to show where their degree has taken them. Further, additional Graduate Spotlights have been included too. Together, these show the career diversity a degree in IS can bring. • Discuss feature boxes have replaced the innovation or ethics feature boxes. The intention of these Discuss boxes is to highlight a real-world business issue related to the chapter, providing an opportunity for group debate or discussion. • Critical business thinking questions or activities are new, updated or deleted. The intentions of these are to challenge students to take the IS concepts presented in the chapter and apply them to business scenarios. • Apply your knowledge projects are new, updated or deleted. These projects encourage students to take IS concepts and apply them using a hands-on approach to reinforce concepts, demonstrating the correlation between business and technology. • The reach of Business-Driven Information Systems is extended with the Expand your knowledge modules, a package containing 12 Technology plug-ins/modules that teach students how to solve business problems using essential business applications like Microsoft Excel® ’Access® and Dreamweaver® . CHAPTER HIGHLIGHTS BUSINESS INFORMATION SYSTEMS 1 • A fresh look at IS in business including the fundamental information systems used in business (previously in Chapter Four). • New Opening Case on Google illustrates how one innovation can change the world, and questions students to view Google’s business through Porters’ business strategies. • Two new Closing Cases; e-Exams and the Apple Watch, each demonstrating the strategic importance of business-driven information systems. HIGHLIGHTS OF THIS EDITION
- 19. baL60744_fm_i-1.indd xx 08/20/15 05:55 PM baL607 xx OUR BRAVE NEW CONNECTED WORLD 2 • Updated content on the importance of connectivity and the business value of a network connected world. • Expanded coverage of Web 2.0 and its role in business today. • Expanded coverage of Web 3.0, including the Internet of Things. • New Opening Case on 3D printing illustrates one of the latest disruptive technologies in business today, and questions students to explore not only the business opportunities it brings, but also its legal implications. • Two new Closing Cases on Facebook and the Internet of Things, each demonstrating the business advantages (and concerns) of connectivity through the Internet. E-BUSINESS AND MOBILE BUSINESS 3 • Updated coverage of e-business, including how to measure e-business success, organisational strategies for e-business and expanded coverage of e-government. m-Business content has also been updated. • The Opening Case on paywalls has been updated (previously in Chapter 2) and looks at print versus online news content. It questions students to explore the business of limited free viewing of online newspapers, and its future. • Two new Closing Cases, on online grocery shopping and Shoes of Prey, each demonstrating how businesses have changed due to e- and m-business models. DECISIONS AND PROCESSES 4 • Updated coverage of business decision making and business processes. • Content on the fundamental types of Information Systems (transaction processing systems, decision support systems and strategic support systems) have been moved to Chapter One to ensure that the basics of IS are covered very early on in the text. • The Opening Case on Quickflix/Netflix has been updated to take a closer look at the impact on business when a decision is made to go (or not to go) online. • The Closing Case on the airline industry has been revised, and a new case on virtual reality has been added, each demonstrating the role information systems play in business decision making. TECHNICAL FUNDAMENTALS 5 • Content in this chapter has been updated and re-organised to present a better logical flow of information. • Network security, in particular when using mobile devices, has been included as well as privacy concerns. • New Opening Case on Supercell illustrates the robust and reliable technological infrastructure required for online games, and questions students to explore the company’s network and data security requirements, and the business reasons of why Supercell develops for mobile-only games. • Two new Closing Cases, on keeping up to date with new technology post-graduaduation and the impact of advanced computing infrastructure on the price of coffee, each demonstrating the fundamental information technology used in business is rapidly changing and the need to keep current with these changes.
- 20. :55 PM baL60744_fm_i-1.indd xxi 08/20/15 05:55 PM xxi SYSTEMS DEVELOPMENT AND PROJECT MANAGEMENT 6 • Content has been updated where required, including user-centered design, usability, and outsourcing. • The Opening Case on Australia Post has been slightly modified. It illustrates how companies have to manage technological advances and customer wishes to deliver efficient services and products. • One new Closing Case on HealthSMART and a revised case on Myki, both of which present reasons as to why projects fail. ENTERPRISE ARCHITECTURE AND SECURITY 7 • This chapter contains the content on enterprise security that was previously in Chapter 11. It has been updated and moved to strengthen the focus on enterprise-wide systems and technology. • New Opening Case on the Sony hack illustrates the lengths some people will go to make a point; how the hack was done is a lesson for all. The case questions students regarding legislation, regulations and business requirements in data retention, recovery and backup. • Two new Closing Cases, on developing an enterprise-wide architecture and migrating to google apps, each demonstrating the need to examine and implement information technology and systems across an enterprise rather than independently. QUALITY DATA AND BUSINESS INTELLIGENCE 8 • Content in this chapter has been updated and re-organised to present a better logical flow of information. It looks at the attributes and importance of quality data and databases, and then at data warehousing, data mining and business intelligence. The concept of Big Data, and the relationship between BI, business analytics and data science is explored. • New Opening Case on Chupa Chups illustrates the need to access reliable, useful and complete data across a large global company, and questions students to explore basic database schema and business intelligence tools. • Two new Closing Cases on XBRL and supply chains and data-driven innovation, each demonstrating how large amounts of quality data are being prepared and used. ENTERPRISE INFORMATION SYSTEMS: ERP AND SCM 9 • Content in this chapter has been updated and re-organised to present a better logical flow of information. ERP and SCM are grouped together as they are commonly the initial enterprise information systems implemented in a large business. • New Opening Case on Queensland Health illustrates what can go wrong during an ERP implementation, and questions the implications involved in implementing a government- wide ERP system as well as the tendering process. • Two new Closing Cases, on GoPro and ATE tankers, both of which explore the importance of ERP and SCM, and how they can be effectively conducted and implemented.
- 21. baL60744_fm_i-1.indd xxii 08/20/15 05:55 PM baL607 xxii ENTERPRISE INFORMATION SYSTEMS: CRM AND COLLABORATION SYSTEMS 10 • Content in this chapter has been updated and re-organised to present a more logical flow of information. CRM and collaboration systems such as groupware and knowledge management systems are grouped together in this chapter as they are common enterprise information systems implemented in a large business. • New Opening Case on Bosch illustrates how a large global company is using collaboration systems within their organisation and with their clients, and questions the collation of user profiles, user-generated content and the use of this content in business. • Two new Closing Cases, one on Apple’s ERP systems which explores the importance of user experience in software development, and one that looks at the data contained in CRM systems from a legal perspective. ETHICS, PRIVACY, SOCIAL MEDIA AND FUTURE TRENDS 11 • Content in this chapter has been updated and re-organised to present a more logical flow of information. • Social media has a dedicated section due to the uptake of it throughout the business world as a business tool. Further, Future Trends from Chapter 12 in the previous edition is now incorporated into this chapter as many of these trends and policies relate to ethics, privacy and social media. • New Opening Case on Bitcoin illustrates the use of online currency to purchase goods, and questions students as to business concerns regarding the use of bitcoins rather than cold hard cash (or credit). • Two new Closing Cases, one on Facebook and one on online privacy and copyright, both demonstrating the legal and ethical implications when using online sources to generate, download or stream content.
- 22. :55 PM baL60744_fm_i-1.indd xxiii 08/20/15 05:55 PM xxiii TEXT AT A GLANCE LEARNING OUTCOMES Learning outcomes list the essential areas of knowledge to be covered in each chapter. Every learning outcome corresponds to a relevant section in the chapter, targeting student learning and revision. KEY TERMS Key terms are highlighted where they first appear and are defined in the margins. They are also listed and defined in the glossary at the end of the book. REAL-WORLD CASE STUDIES Each chapter begins with an Opening case study, illustrating information systems in action in the business world. Each case study is designed to contextualise the content to be covered in the chapter. Closing case studies reinforce concepts, themes and issues discussed in the chapter. These case studies illustrate how the core concepts covered in each chapter have been implemented by prominent organisations and businesses. CHAPTER 1 Information systems in business 9 I nformation is everywhere. The amount of data and information in the world today is hard to estimate – however, it is a lot and is growing at a terrific rate. We are generating data from computers, sensors, cameras, phones, so much so that we are surpassing the capacity of the devices that store it, let alone retrieve it. Information technology and the systems allow for the logical and useable retrieval of data. But with this much data, business decisions need to be made as to what data and information needs to be retrieved, or alternatively, the end user be given the ‘power’ to decide themselves what data or information they require. Most organisations value information and the systems that house the information as strategic assets, therefore the first section of this chapter introduces data, information, business intelligence and knowledge, and their place in business. The second section of this chapter focuses on business strategies help make business decisions, solve problems and find new, innovative opportunities and therefore possibly a company a competitive advantage through the use of information technology and systems. Fact a confirmed or validated piece of data or information Information age when infinite numbers of facts are widely available to anyone who can use a computer Information technology (IT) a field concerned with the use of technology in managing and processing information. Information technology can be an important enabler of business success and innovation 1.1 Information systems in business L e a r n i n g O u t c O m e s 1 Differentiate between information technology and information systems 2 Describe the information age and the differences between data, information, business intelligence and knowledge. 3 Outline the common functional areas in an organisation 4 Examine information technology’s impact on business 5 Explain a systems thinking approach in relationship to business 6 Describe and compare the different roles and responsibilities in information technology. 7 Identify the three main types of information systems, and how business personnel can use these systems to make decisions and gain competitive advantage Business in the information age Facts … Did you know … • Wotif.com was founded by an Aussie (in 2000) • Kogan.com started in a garage in a suburb in Melbourne by its founder; a Monash IT graduate, Ruslan Kogan in 2006. (In 2012, Ruslan Kogan was named the richest Australian under 30, and in 2014 one of the 200 richest Australians 2 ) • A 15-30 second timeslot in the 2013 television broadcast of the AFL grand final cost up to $100,0003 A fact is the confirmation or validation of an event or object. In the past, people primarily learned facts from books. Today, by simply clicking a button people can find out anything, from anywhere, at any time. We live in the information age, when infinite numbers of facts are widely available to anyone who can use a computer. The impact of information technology (IT)—a field concerned with the use of technology to manage and process information—on the global business environment is equivalent to the printing press’s impact on publishing and electricity’s impact on productivity. University student start-ups were mostly unheard of before the information age. Now, it is not at all unusual to read about a business student starting a multimillion-dollar company from his or her bedroom. Think of Mark Zuckerberg, who started Facebook from his university dorm room, or Michael Dell (Dell Computers) and Bill Gates (Microsoft), who both founded their legendary companies as university students. It is not only the Americans who think of great IT ideas; Graeme Woods came up with his wotif idea when he was an IT consultant after he finished his University of Queensland Information Systems post graduate degree5 LO 1.1 re available. Are why not? products, then f the following (more than one st the following egic, business support, global, and his Generic ogle products in q=tbn:ANd9GcQbhzeu EIlfT-274w company/histor y/ ww.businessweek.com/ new-no-dot-2-in-market- ny/philosophy/) /images/company- PART 1 Information systems are business 12 taBLe 1.1 Tony’s snack company data Order date customer sales representative Product Qty unit price $ total sales $ unit cost $ total cost $ Profit $ 4-Jan Coles PJ Helgoth Doritos 41 24 984 18 738 246 4-Jan Coles Roberta Cross Twisties 90 15 1 350 10 900 450 5-Jan franklins Craig schultz Twisties 27 15 405 10 270 135 6-Jan Coles Roberta Cross Twisties 67 15 1 005 10 670 335 7-Jan 7-Eleven Craig schultz Pringles 79 12 948 6 474 474 7-Jan Coles Roberta Cross Twisties 52 15 780 $10 520 260 8-Jan IGA Craig schultz Twisties 39 15 585 $10 390 195 9-Jan Coles Craig schultz Twisties 66 15 990 $10 660 330 10-Jan Target Craig schultz Twisties 40 15 600 $10 400 200 11-Jan Coles Craig schultz Twisties 71 15 $1 065 $10 710 355 Information Information is data converted into a meaningful and useful context. Having the right information at the right moment in time can be worth a fortune. Having the wrong information at the right moment, or the right information at the wrong moment, can be disastrous. The truth about information is that its value is only as good as the people who use it. People using the same information can make different decisions depending on how they interpret or analyse the information. Thus information has value only insofar as the people using it do as well. Tony can analyse his sales data and turn it into information to answer all the above questions and understand how his business is operating. For instance, Table 1.2 shows that Roberta Cross made $5858 profit from Coles; further the data can answer the questions raised by Tony (Table 1.3) to help him identify and then address such issues as underperforming sales representatives and weak products. Avariableisadatacharacteristicthatstandsforavaluethatchangesorvariesovertime.Forexample, in Tony’s data, price and quantity ordered can vary. Changing the value of variables allows managers to create hypothetical scenarios to study future possibilities. Tony may find it valuable to anticipate how sales or cost increases affect profitability. To estimate how a 20 per cent increase in prices might improve profits, Tony simply changes the price variable for all orders, which automatically calculates the amount of new profits. To estimate how a 10 per cent increase in costs hurts profits, Tony changes the cost variable for all orders, which automatically calculates the amount of lost profits. Manipulating variables is an important tool for any business. Business intelligence Business intelligence (BI) is information collected from multiple sources such as suppliers, customers, competitors, partners and industries that analyses patterns, trends and relationships for strategic decision making. BI manipulates multiple variables and in some cases even hundreds of variables including such items as interest rates, weather conditions and even petrol prices (BI is covered in Chapter 8). Tony can use BI to analyse internal data such as company sales, along with external data about the environment such as competitors, finances, weather, holidays and even sporting events. Both internal and external variables affect snack sales, and analysing these variables can help Tony determine ordering levels and sales forecasts. For instance, BI can predict inventory requirements for Tony’s business for the week before the AFL Grand Final if, say, the home team is playing, average temperature is above 30 degrees and the stock market is performing well. This is BI at its finest, incorporating all types of internal and external variables to anticipate business performance. Information data converted into a meaningful and useful context Variable a data characteristic that stands for a value that can change or vary over time Business intelligence (BI) information collected from multiple sources such as suppliers, customers, competitors, partners and industries that analyses patterns, trends and relationships for strategic decision making taBLe 1.2 Order date 26-Apr 29-Aug 7-sep 22-Nov 30-Dec 7-Jul 6-Aug 2-Oct 15-Nov 21-Dec 28-feb 6-Mar 16-Mar 23-Apr 4-Aug 18-Aug 5-sep 12-sep 28-Oct 21-Nov 29-Jan 12-Apr 16-Jun sorting the da (Profit $5 858 taBLe 1.3 tony’s Busine Who is Tony Who is Tony Who is Tony Who is Tony What is Tony What is Tony What is Tony What is Tony Who is Tony Who is Tony What is the Who is the b What is the Who is the b 43 baL60744_ch02_043-069 43 08/08/15 07:56 PM A brave new connected world What’s in IT for me? T his chapter gives you the fundamental knowledge you need to harness the next generation of online business opportunities that a connected world brings. While it is difficult to imagine a time when the world was not connected, an increasingly connected world can pose challenges for businesses, and also offers a range of benefits—allowing businesses to share resources, reduce travel and enhance communication. It is important to understand the evolution of the Internet and the characteristics that distinguish each stage of its progression, and the possibilities of what is to come next in this connected world of ours. As future managers and knowledge workers, you need to understand the benefits that a connected world can offer your organisation and career. You also need to be aware of the tools you can use to better engage with customers, share ideas and collaborate with colleagues and customers alike to resolve business problems. SECTION 2.1 . . . . . . . . 45 Our connected world • The Web changed the world • The Internet changed business • Benefits of a connected world • Challenges of a connected world SECTION 2.2 . . . . . . . . 51 The Internet and the Web: a technology revolution • Disruptive and sustaining technologies • A Web evolution • Web 1.0 • Web 2.0 • Web 3.0 EMPLOYABILITY SKILLS — AACSB • Communication abilities • Analytic skills • Use of information technology • Reflective thinking skills PART 1 Information systems are business 36 Critical business thinki Fish project 1 Pursuing Porter There is no doubt that Michael Porter is one of the more influentia business strategists of the 21st century. Research Michael Porter o the Internet for interviews, additional articles and new or update business strategies. Create a summary of your findings to share with your clas How can learning about people such as Thomas friedman an Michael Porter help prepare you for a career in business? Nam three additional business professionals you should follow to hel prepare for your career in business. 2 renting movies The movie rental industry is fiercely competitive. Customers hav their choice of renting a movie by driving to a video shop (e.g Blockbuster), ordering through the mail (e.g. from Quickflix), o watching directly from their television (e.g. streaming from AB iView). Using Porter’s five forces Model (buyer power, supplie power, threat of new entrants, threat of substitute products an competition), evaluate the attractiveness of entering the movi rental business. Be sure to include product differentiation, switchin costs and loyalty programs in your analysis. 3 Working for the best Each year, Fortune magazine creates a list of the top 10 companies to work for. find the most recent list. What types o data do you think Fortune analysed to determine its compan rankings? What issues could occur if the analysis of the data wer inaccurate? What types of information can you gain by analysin the list? Create five questions a student performing a job searc could answer by analysing this list. 4 job surveys Research the Internet for current Is jobs. Which types of jobs ar on the rise? If there are any jobs you are unfamiliar with, researc the Internet to determine the job characteristics. List the top thre jobs you would want if you were to pursue a career in Is. What d you find interesting about these jobs? What skills can you build t help you prepare for these jobs?3 5 communication is key The ability to clearly communicate with your peers, team member managers and end users is critical skill for all those involved i the IT business. However, good communication skills do not com easily for many. The 2013 movie “The Internship” (http://www theinternshipmovie.com/) is about two salesmen, Vince an Owen, who lots their jobs, however, they do not give up and app for an internship with Google. Watch the film (or at least the trailer) and list the communicatio Established in 1881, sanford harvests and processes seafood in New Zealand, from the far North to stewart Island, delivering products to New Zealand and seven international markets that resulted in over NZ$433 million in sales revenue for the year ending september 2010. since the early 1990s, the company has grown organically and through acquisitions, and is now listed on the NZX. One consequence of the acquisitions strategy was inheriting disparate information systems and, in early 2005, sanford had to integrate its information management platform, a visionary company- wide enterprise resource planning (ERP) initiative it dubbed ‘Project fish’. Believed to be a world first for the fishing industry, sanford achieved a transformation of the very core of its business infrastructure and, through harnessing and integrating several software applications, has taken the lead in innovative and sustainable business practices. Increasing customer service demands and growing regulatory requirements, combined with sanford’s commitment to the sustainability of New Zealand’s seafood supplies, had made it apparent that the existing standalone software applications were no longer sufficient. since then, sanford has continued to grow, and now not only owns 11 inshore fishing vessels for fresh fish, six at-sea scampi processing trawlers, four deep-sea vessels and three ‘super seiner’ tuna vessels, but also runs four large 50 to 75 metre charter trawlers that typically have a crew of 40 and stay out at sea for 35 days. The fishing fleet is complemented by eight land based processing facilities across New Zealand, from stewart Island and Bluff in the south to Auckland and Kaeo in the North. These plants, though owned by sanford, also process catch landed by independent local or even overseas fishing vessels coming here from the still fish-rich south-Pacific and Antarctic waters. Before 2005, Marel, a tracking system developed in Iceland, was used to track the fish as it was processed and packed in these plants. However, no system other than the sharing of spreadsheets enabled a complete overview of the business and its inventory across all plants. This process involved a lot of repetitive data re- entry and also led to numerous spreadsheets being held in various locations. ‘Marel gave us great detail of each plant’s processing and packing but it was not presented in the context of the whole company,’ explains Teresa Borrell, project leader on Project fish. ‘We were also operating one financial system in the North Island and another in the south Island with little integration between the two systems. One of our key drivers for the project was to introduce a new level of organisation-wide inventory control and management.’ sanford subsequently achieved this goal with the introduction of another product developed in Iceland—Wisefish, an information management and finance system. ‘Wisefish was the final piece in our puzzle,’ says Borrell. ‘We knew we had the foundation for increased business intelligence and transparency with Marel, but who are paid on the amount of fish caught using the information received from Wisefish. Borrell says, ‘sanford has achieved its goal of improved inventory control and management. Project fish has delivered a truly integrated ERP platform for our business.’ sanford’s ability to service export markets has also improved. The company has increased insight into exactly what product is coming to market from fishing vessels and can confidently pre-sell fish before they even hit the shore. Marel production data from at- sea-processing trawlers is sent daily via satellite to the shore office and then loaded into the system. ‘With integrated real-time internet data, we can instantly see which market worldwide is giving a high return on a certain product and may even make a decision to airfreight more stock instead of shipping it.’ Wisefish allows the marketers to see exactly what product is on board any vessel at sea and in processing on shore, which makes it now feasible to pre-sell fish. Given the unique supply situation of this industry, with the uncertain and seasonal supply of any specific fish variety and the short shelf-life of fresh fish, the real-time information that Wisefish provides also gives the customer confidence in sanford’s ability to consistently supply on time and on order. Another positive outcome from the project has been the breaking down of the traditional ‘silo’ mentality. This development has resulted in increased communication between branches and the opportunity for staff to add value to their roles. ‘At an administration level, we’ve opened up the opportunity for our staff to become business analysts instead of number crunchers,’ says Borrell. sanford can also provide the Ministry of fisheries and the New Zealand food safety Authority with faster access to information via direct electronic data transfer. The scope of Project fish continues to evolve as its users become more familiar with its capabilities. selected customers can now look up their contracts via the internet, see online when their stock has been assigned and loaded, and track the container to its delivery point. The quantum leap sanford has achieved in its information and business infrastructure integration since late 2005 continued in 2012 with the company announcing a NZ$100 million investment in a high technology project looking at more eco-friendly ways of catching fish and more efficiently moving it to market. CASe STuDY QueSTIONS Q1 for the university, what business benefits and costs could accrue from switching from all paper exams to all electronic exams? for students, what are the advantages and disadvantages? Q2 What other issues or questions not directly discussed in the Case could you suggest might arise during this period of feasibility testing and evaluation? Q3 An example was given of how an e-exam might bring more authenticity to a medical exam. Can you think of several Closing Case study 1 URsULA DANTIN, UNIVERsITy Of AUCKLAND, NZ EMPLOYABILITY SKILLS—AACSB The AACSB feature outlines general skill areas that that particular chapter focuses on.
- 23. baL60744_fm_i-1.indd xxiv 08/20/15 05:55 PM xxiv DISCUSS Discuss features appear throughout the text, presenting real world examples of information systems problems, ethics and innovations. Covering a range of topics, these boxed features are designed to promote critical thinking through discussion and debate. APPLY YOUR KNOWLEDGE The Apply your knowledge projects invite students to use the concepts from each chapter in order to engage in a variety of business scenarios. GRADUATE SPOTLIGHTS Graduate spotlights, located at the start of each part of the book, present IT graduates’ stories. They share their experiences of studying business information systems and how those experiences have informed their career choices. CRITICAL BUSINESS THINKING At the end of each chapter, the Critical business thinking feature provides students with an opportunity to apply critical thinking skills and chapter concepts to business problems. CHAPTER 2 Information systems in business 37 Critical business thinking 1 Pursuing Porter There is no doubt that Michael Porter is one of the more influential business strategists of the 21st century. Research Michael Porter on the Internet for interviews, additional articles and new or updated business strategies. Create a summary of your findings to share with your class. How can learning about people such as Thomas friedman and Michael Porter help prepare you for a career in business? Name three additional business professionals you should follow to help prepare for your career in business. 2 renting movies The movie rental industry is fiercely competitive. Customers have their choice of renting a movie by driving to a video shop (e.g. Blockbuster), ordering through the mail (e.g. from Quickflix), or watching directly from their television (e.g. streaming from ABC iView). Using Porter’s five forces Model (buyer power, supplier power, threat of new entrants, threat of substitute products and competition), evaluate the attractiveness of entering the movie rental business. Be sure to include product differentiation, switching costs and loyalty programs in your analysis. 3 Working for the best Each year, Fortune magazine creates a list of the top 100 companies to work for. find the most recent list. What types of data do you think Fortune analysed to determine its company rankings? What issues could occur if the analysis of the data were inaccurate? What types of information can you gain by analysing the list? Create five questions a student performing a job search could answer by analysing this list. 4 job surveys Research the Internet for current Is jobs. Which types of jobs are on the rise? If there are any jobs you are unfamiliar with, research the Internet to determine the job characteristics. List the top three jobs you would want if you were to pursue a career in Is. What do you find interesting about these jobs? What skills can you build to help you prepare for these jobs?3 5 communication is key The ability to clearly communicate with your peers, team members, managers and end users is critical skill for all those involved in the IT business. However, good communication skills do not come easily for many. The 2013 movie “The Internship” (http://www. theinternshipmovie.com/) is about two salesmen, Vince and Owen, who lots their jobs, however, they do not give up and apply for an internship with Google. Watch the film (or at least the trailer) and list the communication skills that Vince and Owen possess that the other applicants (and some of the employees), do not. 6 The Five Forces Model at work your team is working for a small investment company that specialises in technology investments. A new company, Geyser, has just released an operating system that plans to compete with Microsoft’s operating systems. your company has a significant amount of capital invested in Microsoft. your boss, Kellee Lazarus, has asked you to compile a Porter’s five forces analysis for Microsoft to ensure your company’s Microsoft investment is not at risk. 7 Complanency can result in lost competitive advantage In 2004, a few years before Apple introduced it first iPhone, Nokia had developed a phone prototype that was Internet ready and touch screen. However it was not until many years later, and long after Apple claimed the crown as a first-mover and thus gaining it competitive advantage, that Nokia release its first comparable phone. It has missed a great opportunity (and revenue) due to “management [being]worried that the product could be a costly flop….. [the] organization so swollen by its early success that it grew complacent, slow and removed from consumer desires” 36 . Name three companies or products that today could be classed as having the first-mover advantage; what is their business strategy; are they global or local; who founded the organisation (how old are they and their country of residence); who is their closest competition (or rival). for one of the companies/products generate a Porter’s five forces analysis. 8 Applying the Three generic Strategies This chapter discussed several examples of companies that pursue differentiated strategies so that they are not forced into positions where they must compete solely based on price. In a team, choose an industry and find and compare two companies—one that is competing based on price and another that is pursuing a differentiated strategy enabled by the creative use of IT. some industries you may want to consider are clothing retailers, supermarkets, airlines and personal computers. Prepare a presentation for the class on the ways the company is using IT to help it differentiate and compete against the low-cost provider. 9 Top five things you will say to your grandchildren Wired magazine recently posted a list of the top 10 things you will say to your grandchildren, five are repeated here. for each expression below, try to identify what it is referring to and why it will be considered outdated.37 1 Back in my day, we only needed 140 characters. 2 Televised contests gave cash prizes to whoever could store the most data in their head. 2 Well, the screens were bigger, but they only showed the movies at certain times of day. 4 We all had one, but nobody actually used it. Come to think of it, I bet my LinkedIn profile is still out there on the web somewhere. 5 you used to keep files right on your computer, and you had to go back to that same computer to access them! aid on the amount of fish caught using the information om Wisefish. Borrell says, ‘sanford has achieved its goal d inventory control and management. Project fish has truly integrated ERP platform for our business.’ d’s ability to service export markets has also improved. ny has increased insight into exactly what product is market from fishing vessels and can confidently pre-sell they even hit the shore. Marel production data from at- ing trawlers is sent daily via satellite to the shore office aded into the system. ‘With integrated real-time internet an instantly see which market worldwide is giving a on a certain product and may even make a decision t more stock instead of shipping it.’ Wisefish allows ers to see exactly what product is on board any vessel in processing on shore, which makes it now feasible fish. Given the unique supply situation of this industry, certain and seasonal supply of any specific fish variety ort shelf-life of fresh fish, the real-time information that ovides also gives the customer confidence in sanford’s onsistently supply on time and on order. r positive outcome from the project has been the own of the traditional ‘silo’ mentality. This development ed in increased communication between branches pportunity for staff to add value to their roles. ‘At an ion level, we’ve opened up the opportunity for our come business analysts instead of number crunchers,’ l. sanford can also provide the Ministry of fisheries ew Zealand food safety Authority with faster access to via direct electronic data transfer. The scope of Project ues to evolve as its users become more familiar with its . selected customers can now look up their contracts ernet, see online when their stock has been assigned d, and track the container to its delivery point. The ap sanford has achieved in its information and business e integration since late 2005 continued in 2012 with ny announcing a NZ$100 million investment in a high project looking at more eco-friendly ways of catching re efficiently moving it to market. uDY QueSTIONS university, what business benefits and costs could e from switching from all paper exams to all electronic s? for students, what are the advantages and vantages? other issues or questions not directly discussed in the could you suggest might arise during this period of ility testing and evaluation? ample was given of how an e-exam might bring more nticity to a medical exam. Can you think of several an e-exam could make an ICT exam more ‘authentic’? were on the evaluation team for this trial, what do you could be some of the business, organisational or technical that might be raised following the successful trial? and Opt-out are often issues relating to IT and ess ethics particularly relating to online facilities. do you see as the pro’s and con’s of “opt-in” or “opt- when it comes to e-exams? ow to ‘sell’ the idea to reluctant students? UNIVERsITy Of AUCKLAND, NZ BUsINEss sTRATEGy CHAPTER 1 Information systems in business 11 ll versed in advanced technology can compete in the information age. ness leaders have created exceptional opportunities by coupling the traditional business methods. Here are just a few examples: mpany; its original business focus was to sell books, and it now sells pany; its primary business focus is to rent videos. mpany; its primary business focus is to sell shoes, bags, clothing and t first saw an opportunity to change the way people purchase books. n age to tailor offerings to each customer and speed the payment ns of tiny virtual bookstores, each with a vastly larger selection and al bookstores. The success of his original business model led him to er types of products. The founders of Netflix and Zappos have done . All these entrepreneurs were business professionals, not technology enough about the information age to apply it to a particular business, now lead entire industries. y versus information systems mation systems are two closely related fields – each are required in n technology is primarily concerned with hardware and software stems, web services, code, devices, networks (see Chapter 5), and concerned with the people, processes and the technology – it is a stems designed to create, gather, store, manipulate or disseminate btaining, storing and retrieving information, for example, the Dewey ks, protocols and terminology for product identification, customer orkplace communication. nts frequently ask, ‘Why do we need to study information technology r is simple: they are everywhere in every business. They affect nearly he processes of work, rest and play through improvements in software, ng them provides great insight to anyone learning about business. ole of information technology in business by reviewing a paper or magazine such as BusinessWeek, Business Review Weekly (BRW) or NZ articles are dedicated to technology in business. These are business nes, yet they are filled with technology. Students who understand usiness. ypically discuss such topics as databases, customer relationship chain management, ‘big data’, security, ethics, business intelligence ormation systems. This text explores these topics in detail, along with pportunities and challenges. IT and IS can be important enablers of This is not to say that they equal business success and innovation, or s and innovation. They are most useful when they leverage the talents s the right people know how to use and manage it effectively. em (MIS) is a business function just as marketing, finance, operations managementarebusinessfunctions.Formallydefined,management a general name for the business function and academic discipline le, technologies and procedures—collectively called information iness problems. To perform the MIS function effectively, almost all rge and medium-sized ones, have an internal IT department, often ), Information Systems (IS) or Management Information Systems out IT, it is important to understand the relationships between data, and knowledge. Pluses and minuses The line famously quoted in the film Spider-Man, ‘With great power comes great responsibility’, applies to every type of technology you encounter in business. Technology provides countless opportunities for businesses, but can also lead to pitfalls and traps. Online trading, for instance, brought many companies profits but has cost many individual investors their life savings through fraud. Ponzi schemes, for example, attract inexperienced investors with promises of high yield investments but no real profits are generated. Online anonymity means the promoters disappear when the schemes end. sites such as Craigslist and eBay allow anyone to become a provider of goods or services and a few unethical individuals have even used it to run online prostitution rings 7 . A manager must be able to analyse the good and the bad associated with technology. Review some companies that primarily operate on the Internet, such as Kogan, eBay, Craigslist or Amazon, and compile a list of the business opportunities and the potential pitfalls associated with doing business online. Data, information, business intelligence and knowledge Students who understand business along with the power associated with IT are well placed to create their own opportunities and perhaps even new industries—just as co-founders Chris DeWolfe and Tom Anderson did with MySpace, Mark Zuckerberg did with Facebook, and as Ruslan Kogan did with Kogan.com. Our primary goal in this book is to arm you with the knowledge you need to compete in the information age. The core drivers of the information age are data, information, business intelligence and knowledge. Data Data are raw facts that describe the characteristics of an event or object. Before the information age, managers manually collected and analysed data, a time-consuming and complicated task without which they would have little insight into how to run their business. Lacking data, managers often found themselves making business decisions about how many products to make, how much material to order or how many employees to hire based on intuition or gut feelings. In the information age, successful managers compile, analyse and comprehend massive amounts of data daily, which helps them make more successful business decisions. The amount of data that we use or generate today is growing exponentially, and thus too much for the traditional IT based systems that store, collate, correlate, and retrieve the data. Big data is the term used for data sets that are so large and complex it is difficult to process the data using traditional data processing applications. Data sets grow in size in part because they are increasing being gathered by for mobile devices, web logs, software logs, cameras, and RFID readers. The ‘size’ of big data is indefinable, as what is big for one organisation may not be big for another. Regardless of the big data size, a business needs to understand its data, what it needs to do with it, when, how quickly and in what format. (see Chapter 8 for more on big data) Table 1.1 shows sales data for Tony’s Snack Company, a fictitious business that supplies snacks to stores. The data highlights characteristics such as order date, customer, sales representative, product, quantity and profit. The second line in Table 1.1, shows that Roberta Cross sold 90 boxes of Twisties to Coles for $1350, resulting in a profit of $450 (note that profit = sales — costs). This data is useful for understanding individual sales but does not provide much insight into how Tony’s business is performing as a whole. Tony needs to ask questions to help him manage his day-to-day operations, such as: • Who are my best customers? • Who are my least profitable customers? • What is my best-selling product? • What is my slowest-selling product? • Who is my strongest sales representative? • Who is my weakest sales representative? What Tony needs, in other words, is not data but information. Data raw facts that describe the characteristics of an event or object Big data data sets that are so large and complex it is difficult to process the data using traditional data processing applications discuss LO 1.3 What job/position did you have when you were interviewed for the 2nd edition? At the time of the 2nd edition, I held the same position as I do now—Partner at PRIME Process Management Group. At the time we had been established only a few years. Our organisation provides consultancy, training and software in the Business Process Management space. Our clients call upon us to document their existing business processes, analyse and improve these, then implement the changes into their organisation. What did your job/position involve? In the earlier days, my job was more focused on the development of our product and services. This was establishing, trialling and refining the product and services which would satisfy our customers. This was in addition to the day-to-day activities such as managing client projects, recruitment and retention and of course getting out there and selling our product and services. What do you enjoy most about your job? I get great satisfaction out of establishing teams, setting an objective and working with the team to achieve that. I like bringing out the best in people. I also enjoy doing strategic planning activities for the business. This gives room for creative thinking, making plans and working towards achieving our objectives. What are your thoughts on the future of information systems? I’m feeling positive. I have seen the application of IT, hence the use of information systems, adopted in a variety of industries—some faster than others. There is so much more room for IT and information systems, let alone the continuous improvement of these. What advice would you give to recent graduates looking to work in information systems? I mentioned this in my write-up for the 2nd edition of this book and I feel it still holds true. Anything that can be offshored will be offshored. It is a good specialisation, but ensure you also develop excellent communication and interpersonal skills. Focus on customer-facing roles where you can use your technical, business, communication and interpersonal skills, as these cannot be offshored so easily. BERNADETTE Name Bernadette Kropman Degree studied Bachelor of Business (Information Systems) and Master of Information Technology Current position Partner/Owner Prime PMG Employer Prime Process Management Group UPDATED GRADUATE SPOTLIGHT PART 1 Information systems are business CHAPTER 2 Information systems in business 38 39 Apply your knowledge BUsINEss PROJECTs prOJeCt ONe Capitalising on your career Business leaders need to be comfortable with management information systems (MIs) for the following (primary) reasons. • The sheer magnitude of the dollars spent on MIs must be managed to ensure business value. • Research consistently shows that when top managers are active in supporting MIs, they realise a number of benefits such as gaining a competitive advantage, streamlining business processes and even transforming entire industries. • When business leaders are not involved in MIs, systems fail and revenue is lost and entire companies can even fail because of poorly managed systems. How do companies get managers involved in MIs? One of the biggest positive factors is managers’ personal experience with MIs and MIs education, including university classes and executive seminars. As soon as managers understand MIs through experience and education, they are more likely to lead their companies in achieving business success through MIs. 1 search the Internet for examples of the types of technologies currently used in the field or industry that you plan to pursue. for example, if you are planning a career in accounting or finance, you should become familiar with financial systems such as Oracle financials. for a career in logistics or distribution, research supply chain management systems. If marketing appeals to you, research customer relationship management systems, blogs, e-marketing and social networking. 2 As a competitive tool, MIs can differentiate products, services and prices from competitors’ offerings by improving product quality, shortening product development or delivery time, creating new MIs-based products and services, and improving customer service before, during and after a transaction. search the Internet for examples of companies in the industry where you plan to work that have achieved a competitive advantage through MIs. 3 Create a brief report of your findings. Include an overview of the type of technologies you found and how companies are using them to achieve a competitive advantage. prOJeCt tWO Achieving alignment Most companies would like to be in the market-leading position of Jetstar or Dell, which have used MIs to secure their respective spots in the marketplace. These companies are relentless about keeping the cost of technology down by combining the best of MIs and business leadership. The future belongs to those organisations perceptive enough to grasp the significance of MIs and resourceful enough to coordinate their business and MIs. Use any resource to answer the question, ‘Why is it challenging for businesses to align MIs and their other operations?’ Use the following questions to begin your analysis. 1 How do companies monitor competitive intelligence and create competitive advantages? 2 What are some of the greatest MIs challenges for most firms? 3 What drives MIs decisions? 4 Who or what is the moving force behind MIs decisions for most companies? prOJeCt FOUr Porter’s five forces setting strategic direction for a business is a challenge for even seasoned professionals. The good news is that many tools are available to help you find competitive advantages, including Porter’s five forces. Porter’s five forces Model analyses the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry. Its purpose is to combat these competitive forces by identifying opportunities, competitive advantages and competitive intelligence. If the forces are strong, they increase competition; if the forces are weak, they decrease competition. Porter’s five forces Model is a good framework for understanding market forces. Break into groups and choose a comparison from the list below to perform a Porter’s five forces analysis. • Notebook computer and tablet computer • smart phone (eg iPhone) and non smart mobile phone • iTunes and spotify • GPs device and street directory • Digital books and printed books prOJeCt FIVe Adding value To identify competitive advantages, Michael Porter created value chain analysis, which views a firm as a series of business processes that each add value to the product or service. Value chain analysis is a useful tool for determining how to create the greatest possible value for customers. The goal of value chain analysis is to identify processes in which the firm can add value for the customer and create a competitive advantage for itself, with a cost advantage or product differentiation. Cafe chain Gloria Jeans has employed you after your graduation for a temporary position that could turn into a full-time opportunity. With new cafes popping up on every corner, coupled with the global recession, Gloria Jeans is worried about losing market share to competitors. your boss, Heather sweitzer, is out of ideas for ways to improve the company’s profitability. you decide that one of the most useful tools for identifying competitive advantages is Porter’s value chain analysis. Of course, you do not yet have the detailed knowledge to complete all of the elements required, but you know enough to get started and plan to take your draft to Heather next week. Using your knowledge of Gloria Jean’s, create a value chain analysis. feel free to make assumptions about operations; just be sure to list any that you make. Also, be sure to write an overview of the tool and its potential value so Heather can understand how it works. prOJeCt SIX Flat competition ‘When I was growing up in Minneapolis, my parents always said, “Tom, finish your dinner. There are people starving in China and India.” Today I tell my girls, “finish your homework, because people in China and India are starving for your jobs.” And in a flat world, they can have them, because there’s no such thing as an American job anymore’ (Thomas friedman). In his book The world is flat , Thomas friedman describes the unplanned cascade of technological and social shifts that effectively levelled the economic world, and ‘accidentally made Beijing, Bangalore, and Bethesda next-door neighbors’. The video of Thomas friedman’s lecture at MIT discussing the flat world is available at http://mitworld.mit.edu/watch/the-world-is-flat-30-9321. If you want to be prepared to compete in a ‘flat world’, you should watch this video and answer the following questions. 1 Do you agree or disagree with friedman’s assessment that the world is flat? 2 What are the potential impacts of a flat world for a student performing a job search? 3 What can students do to prepare themselves for competing in a flat world? prOJeCt SeVeN Garbage in – garbage out Electronic health records and computerized systems are being hailed as the best way to make the health system safer and more efficient. But the rush to implement these systems might be doing more harm than good. Genesis Burkett was born 16 weeks prematurely but was thriving in the neonatal intensive care unit. When he was 40 days old, a pharmacy technician administered a routine IV bag of sodium chloride and calcium. But there was a problem: When the technician entered the prescription information into the electronic system that told an automated machine how much of each solution to include, he punched in the wrong dose of sodium—administering more than 60 times the amount Genesis’s tiny body could handle. Within hours, the infant suffered a heart attack and died.38 Australia is rolling out an online eHealth system (http://www.ehealth.gov.au/) Individuals eHealth records allows you and your doctors, hospitals and other healthcare providers to view and share your health information to provide you with the best possible care. Explore the web site to determine the risk of data ‘garbage in / garbage out’ situations. suggest several ways for both the individual and the medical professionals could this overcome this problem? We know that people use IT to work with information. Knowing this, how could these types of errors occur? What could happen if you decided to use Wikipedia to collect BI for a research paper? What could Wikipedia do to help prevent these types of errors? prOJeCt eIGht What’s wrong with this bathroom? If you were the CEO of a global financial company that was experiencing a financial crisis, would you invest $1 million to renovate your office? Probably not, and you are possibly wondering if this is a foolish and irrelevant question. Guess what, this is a true story! John Thain, the former CEO of Merrill Lynch, decided to spend Us $1.2 million refurbishing his office—well after Merrill Lynch posted huge financial losses. Thain personally signed off all of the following (all in Us dollars): • rug: $87 784 • mahogany pedestal table: $25 713 • 19th-century credenza: $68 179
- 24. Discovering Diverse Content Through Random Scribd Documents
- 25. him. In person he is above the medium height, with a regular cast of features; and he has that frank, ingenuous manner not usually conceded to such polished men of the world. Sir John is the only member of the English part of the commission who brings his wife. He tarries in the shadow of the aristocratic Arlington, but the remainder of the commission are quartered at the superb Philip mansion on K street, opposite Franklin Square, where, with a large retinue of servants, dogs and horses, the fire of an English home is kept burning. This house is one of the largest and finest private residences in Washington. The extensive drawing room has a waxed floor, relieved in sundry places by exquisitely finished velvet rugs. Pictures of English landscapes look down from the lofty walls. “I didn’t know they had such comfortable houses in this country,” said one of the royal blood. “It must have been made expressly for our use,” chimed another. It is simply an elegant American home, planned by an English-born American citizen, who, out of deference to his late countrymen, resolved that they should carry away from his adopted country something sweet and savory in the shape of pleasant recollections. Olivia.
- 26. A DISSERTATION ON DRESS. Proper Procedure for Members of the Select Circle of Society. Washington, March 18, 1871. In a social way the doors of the White House have closed for the season. The beginning of Lent has heretofore marked the abrupt decline of the star of Fashion, but this year the days of folly have been lengthened, in consequence of the necessity of extending hospitalities to the British part of the joint high commission. Recent receptions may be compared to autumnal flowers trying to bloom after the coming of frost. The carpets at the Executive Mansion begin to show the result of the wear and tear of a winter’s campaign, and a dingy pall seems to wrap all the other surroundings. Mrs. Grant looks weary and worn, and, though her manner is kind and engaging as ever, it is plain to see that she will be glad when this universal handshaking is over. One becomes thoroughly exhausted in vain attempt to feel satisfied with the foam and froth of Washington’s fashionable dissipations. The same envy, heart burnings and petty jealousies exist here as in monarchical courts. There may be a small quantity of genuine comfort in a modern dinner party at the capital, and yet there is room for grave doubts. Suppose you are invited to a dinner at the White House; you must remember that every rule and regulation is prescribed. When you receive your invitation you know exactly what chair you will occupy at the table. Soon after your arrival you will receive a card which will inform you which “lady” you are ordered to take to dinner. This woman sits by your side. You are obliged to be civil whether you are inclined to be or not. You are expected to say solid,
- 27. substantial things after the soup. You are expected to avoid everything weak and watery after the fish. Sly and delicate humor must be sandwiched between every course. Suppose this woman, though good enough in her way, is exactly the one you would flee from if the wind was fair, and the coast clear? There are women in Washington of rare conversational powers; queenly in manners, and kind of heart; but they are scarce, and the number can be counted without using any number beyond the digits. There is to be a fashionable crush or reception at the Cabinet minister’s home. In order to keep it within the bounds of mathematics cards of invitation have been issued. Is it possible that a Cabinet minister means to pack his house so densely? Every available inch of standing room is occupied. The stairs resemble seats in an amphitheatre, with its tier of heads, one rising above another. The lights in the showy chandeliers burn with that dim blue flame sometimes noticed in mines down deep in the earth. There is a faint, deathly odor of undying perfumes. The music sounds as though it were afar off in the heavy atmosphere. If the mansion were a prison, and the inmates therein wretches of high and low degree, could the imagination picture a more horrible situation? But let it be remembered that this medley is made up of silk, satin, lace and jewels, snowy shoulders and distinguished men. Everybody is polite and refined; wit sparkles, women laugh, and if one must be pressed to atoms, no more charming death could be devised. Did the Cabinet dame invite all these people to her hospitable mansion? Nay! Never! She scattered abroad a suitable number of invitations. Some of the people who received these cards took the liberty to ask a friend, or perhaps more; and thus it will readily be seen that if many of the invited guests take such liberties the company is doubled, and sometimes quadrupled by the license usurped by what is called “fashionable society in Washington.” The writer has known of an instance where a member of Congress and his wife received cards for a Cabinet reception. They attended, accompanied by nine guests by their own invitation. The time will come when such entertainments must be done away with. None but men of immense
- 28. wealth can accept such positions unless they have the fearlessness to emulate the simple life of George S. Boutwell. And yet how can an honorable, high-minded man accept legions of civilities and never have anything to offer in return? The social fabric of Washington is reared upon the foundation prepared for it by George and Martha Washington. It was good and excellent for those days, when the wise and prudent Martha, and the wives of the Cabinet ministers, could return the visits of their friends in a single day. More than three-quarters of a century have gone, and society after that style is ready for the sickle. Last winter the wives of the Cabinet ministers met in solemn council and decided that visits would not be returned for the reason that the sun and moon could not be made to stand still, and the days were not long enough for the hundreds of demands made upon them. The most beautiful, gifted, and accomplished woman in Washington shortened her days in order to meet the insane, exorbitant demands made upon her by the tyrant Fashion. Mrs. Belknap once said to the writer: “It would not matter so much if I omit visiting a Senator’s wife, but it would pain me exceedingly if any person thought they were neglected on account of their obscurity. If I get well, this matter must be explained, and I know the people will understand it.” Heretofore the ladies who move in what is called Washington society, with the exception of Mrs. Grant, have been expected to return their calls. For the first time in social history, the Cabinet dames, who are a law unto themselves, have decided otherwise. In a little time the wives of the Senators will enact the same law, for they are already beginning to feel their chains, and some of the boldest assert that life is too solemn and earnest to be wasted in a giddy whirlpool of dissipation. Among the accomplished women no longer seen upon the topmost wave of society may be mentioned Mrs. General Williams, better known as Mrs. Stephen A. Douglas, and the elegant wife of Senator Sprague. Both have known what it is to reign as “Queen of Beauty and Fashion,” and both have retired before the noon of life to
- 29. the substantial comforts and enduring peace to be found only in the smooth waters of domestic life. The most perfect entertainments of the winter have been given at the handsome mansion of Senator Chandler. A card reception at a Senator’s residence partakes more of the nature of a private party, consequently painfully crowded rooms are avoided. For this reason the finest toilettes of the winter are brought out, because they can be worn without danger of serious damage. The costliest dresses of the winter have been sported by Mrs. John Morrissey and Mrs. Fernando Wood. Mrs. Morrissey wore a black thread-lace dress, over heavy white moire, with solitaire diamonds only for ornament, at the Corcoran ball. Mrs. Morrissey has never been seen in general society in Washington. A party given by the Chinese embassy, and Mr. Corcoran’s entertainment planned to complete the Washington monument, as well as to make the beau-monde merry and glad, are the only social places known to the writer where the Hon. John Morrissey and his pretty, unobtrusive wife have been seen. The rarest dress noticed this winter has been worn by Mrs. Fernando Wood. Take up your finest collar, my lady reader—“old point,” by the way. Now imagine a whole dress, with any quantity of ferns and palms running over it—waist, sleeves, skirt, all complete— with pink silk underneath. Could anything more exquisite in the shape of a dress be conceived? Stop a moment. Let us see! It certainly bears inspection. Let us move away and examine it as one would a picture. We are writing for a newspaper, and the truth must be told. It looks at this distance as if Mrs. Wood had rolled herself up regardless of expense in one of her own parlor window-curtains. It is true that silk is worth its weight in silver the world over. We might as well talk of cheap silver as cheap silk. When we buy a heavy dress for a small sum of money we are paying for dye-stuff, and the dye-stuff we buy very soon destroys the silk. But costly as the article is with which we love to decorate ourselves, it is within the reach of every industrious single woman in the country. It is worn as every-day apparel by the fashionable women of
- 30. Washington. When a dress becomes too well known, or has lost its freshness, it is taken for every-day wear. This is a great mistake for more than one reason. By making silk so common it detracts from its elegance and beauty. The only difference between a woman in full dress and when she is not—in the first instance she wears a clean garment, and in the latter, one that has seen the vicissitudes of life. Oh! blessed are the charms of the laundry. Better all cotton than all silk. Because silk is so common, fashion has decided that the superior excellence or elegance of a woman’s wardrobe must consist in her rare and costly laces. But against this extravagant innovation good taste has set her face. A moderate amount of lace adds additional charms to a handsome dress, but when we come to make the entire garment of the material the effect is lost. Queen Augusta, of Germany, who ranks next to Eugenie in matters pertaining to the toilet, prefers tulle dresses to wear over her silks and satins. Sometimes these are ornamented with field grasses, at least this was the case in her younger years. In latter days her tulle garments are trimmed with pearls. The most exquisite taste delights in simplicity. The more barbarous a nation the more it revels in gorgeous and costly ornament; but when every American woman lays her earrings aside forever the tranquillity and peace of the Republic is assured. Olivia.
- 31. MEETING OF OCCIDENT AND ORIENT. Reception of the Imperial Embassy of Japan by President Grant. Washington, March 4, 1872. Another interesting ceremony has taken place which marks an epoch in the civilization of the world. To-day the Occident and the Orient has an official greeting. The fluttering petticoats of the East have bowed before the scant, ungraceful pantaloons of the West, and history records the performance. The event was stately and solemn, and nothing occurred to mar or disturb the feelings of those present, except the cold and disdainful way in which the press was treated. These scions of republican royalty were kept outside, whilst such crumbs of information fell to our lot as the powers that be chose to bestow. Before the magic hour of 12, for the royal time of day was chosen, ten of the Japanese highest in power, accompanied by Mr. Mori, the Japanese minister, descended from their carriages and in single file marched slowly into the Executive Mansion. Previously everything had been prepared for their reception. The broad halls and the great vestibule had been reduced to excruciating neatness. The air was laden with the odor of tropical exotics. Above the central part of the great ottoman, in the Blue Room, arose a pyramid of flowers composed of Japanese lilies, birds of paradise, and the long, dreamy, pendant leaves of the Eastern fern. Daylight, which was not considered quite good enough for such an occasion, had been carefully excluded, like the press, but, like this mighty engine, it managed to struggle in, or at least enough of it for all practical purposes.
- 32. Whilst all these things were in preparation Secretary Fish came rushing in and seized an unfortunate servant, who had accidentally put the right flower-pot in the wrong place. This was quickly adjusted and the Secretary left the place. Then Mrs. Secretary Fish, swathed in pearl-colored silk, trimmed with the costliest lace, sailed through the rooms. A lackey followed her with fear and trembling. As near as could be ascertained in the distance, the hair on his head stood upon end. All at once dulcet sounds were heard, “Take it away.” The servant stood terror-bound until the lady said: “Too much mignonette. We cannot be too careful. Perfume is a good thing in the right place. The danger is, everything is becoming too common.” The flower-basket was removed, and the rooms were pronounced all ready for the ceremony. First of all Secretary Robeson sailed in, and following in his wake were the heads of the Navy Department, in their brilliant regimentals. As these were not the men who distinguished themselves in the late war, the people have no care to hear about them. But their shining shoulder-straps and other finery helped to make the occasion brilliant, the same as a shoal of dolphins at sea on a hot summer’s day. Secretary Robeson looked as handsome and happy as could be expected. Then came Minister Boutwell, in white choker and pale pearl- colored kids, closely followed by that interesting old greenback known as General Spinner. Then Spinner was brought up by the heads of the Treasury Department, and they stretched out until it seemed as if it was intended they should represent the “crack of doom.” Then came the handsome Saxon Secretary of War, with his officers, followed by Cresswell and the Post Office, and Attorney- General Williams and his “heads.” The heads of the Attorney- General’s office are men who have blossomed, fruited and now ought to be gathered and put in the cellar for future use. Delano, of the Interior, was there with his force, the most dignified magnate present.
- 33. Spilled around promiscuously were Judge Holt, Cameron, Casserly, with nose at an angle of forty-five degrees; Banks, with a new shade to his hair, called “Paris in Ashes;” Professor Henry, with any amount of electricity in his pockets; Speaker Blaine and Colfax—dear Colfax! who came out and said he felt sorry for the press; he knew how it was himself before greatness was thrust upon him. And last, but not least, the Japanese. The President had fixed himself in the right place in the East Room. To his left were the great men of his Empire. To his right were the ten Eastern representatives. The first five stood a little forward of the other five, because they preceded them in rank. The first five were dressed somewhat different from the remainder. They wore garments which are never allowed to be upon their persons except in the presence of a ruler of a great nation, and when engaged upon the highest diplomatic duty. This dress consisted of a blue silk skirt, embroidered with white, which reached almost to the floor, just allowing the queer, sandaled feet to become visible. This was surmounted by a black silken tunic fastened at the waist, which did not allow the arms to be of much use. The head was covered by a courtier’s hat of device indescribable, with a long metallic ribbon-like streamer falling down the back. A stranger costume can hardly be conceived. Those of lesser rank wore the same skirt and tunic, but the headgear seemed to be made of patent leather, banded with soft white material, an excellent invention for a masquerade. The great ambassador, in a sing-song way, read from his parchment, whilst General Grant and all the others listened. Then our President read something to the Japanese, Mr. Mori standing and looking quietly on. Then President Grant introduced his Cabinet. There was no-handshaking. The Americans snapped their heads in the usual jerky way, but the Japanese gave them the graceful salaam of the East. An Oriental only knows how to bow. After everything official was concluded, then the Japanese allowed their hands to be touched by the Western barbarians. The Cabinet at this point offered their arms to the fluttering silks, and each Minister took a Japanese into the presence of Mrs. Grant, where the press
- 34. had no desire to go. We claim there are certain inalienable rights. For the preservation of these we will endure all that heroism requires, and for comfort and support we look to the people. Olivia.
- 35. THE PUBLIC GREET THE JAPANESE. Under Adverse Circumstances Eastern Royalty Is Welcomed. Washington, March 6, 1872. It has already been truthfully stated that several thousand dollars of the people’s money have been set aside with which to entertain our Oriental guests. Last night’s experiment proved to be a superb success. The Masonic Temple’s insignificant proportions were dwindled to Lilliputian size in the vain effort to make it resemble some gorgeous Eastern landscape. In the vain pursuit of this Quixotic dream General Myers purchased pink and white tarletan by the rod and furlong; carpenters nailed it to the ceiling, to the roof overhead, and to every other available spot worth mentioning. Where there was no place for tarletan, the gallant general plastered the stars and stripes. A couple of fountains were placed in the upper part of the room, and it was said Japan in miniature was represented on its watery surface, but no persons present would have found it out unless they had been told previously that this was the original program. Hanging baskets were attached to the ceilings by long strings, a threatening menace to the brains below, whilst birds in cages were suspended in such a way as to cause serious alarm as to personal safety. Then cards of invitation were issued, calling the faithful together between the hours of 9 and 11 o’clock. At 9 o’clock the writer stood within the enchanted hall of the Masonic Temple. The sight was sorrowful if it was not imposing. The imperial chandeliers had not been lighted. Carpenters were hard at work nailing tarletan to finish out the eastern sky. Workmen were hurrying with tables and flower pots and other et cetera of the landscape.
- 36. Humbler hands were scrubbing the floor, whilst one or more men were finishing up the corners with an unpoetical mop. In the centre of all this grandeur stood the Secretary of State, supported by General Banks; only a short distance from them, to the left, were the wives of these distinguished officials. As the landscape was to be heated after the Esquimaux style, that is, by hanging lights and the warmth of human bodies, the damp floors had to be dried by opening the windows of the magnificent temple. Through these yawning holes came the Arctic blasts. Mrs. Fish wrapped her royal ermine mantle around her; Mrs. Banks drew the folds of her opera cloak close. It had previously been agreed that those ladies who had elected themselves “to receive” should get to the temple precisely at half past 8 to put the last half dainty touches to the brilliant surroundings. It was a few moments after 9, and only Mrs. Fish and Mrs. Banks and a newspaper intruder, who was bound to tell the truth, unless she chose the majesty of silence! A new actress in the drama—all ripples, laughter, and girlish abandon—Mrs. Colfax—came bouncing into the “eastern scene.” She had thrown aside her wrappings in the dressing-room, and appeared clad in rich white silk court-train over a black silk petticoat, and a white pom-pon in her hair. Her neck and arms were bare, and in through the open windows came the biting winds. The lithe, elastic frame shuddered like a jaunty yacht caught in the jaws of a terrific nor’wester, but succor was close at hand in shape of covering, and the pearly shoulders disappeared from view. Next came Mrs. Governor Cooke, magnificently arrayed in filmy lace and light green. If the fountains in the corner had been larger and she had been more sylph-like the play of Undine might have been performed. At last the tarletan was tacked, the last pot of flowers planted, the floor mopped, the last bird—cage hung, the gas-jets lighted, and the reception ladies had disposed themselves on the sofas. Let it be remembered there were no other seats in the room. The door swung open on its noiseless hinges, and in walked the precious Japanese men, who had got themselves up in “Melican fashion” to please us rude barbarians of the West. How poor, weak, and shammy
- 37. everything must have seemed to their almond-shaped eyes! Flower- pots and pink tarletan, a bit of bright carpet, a cold, damp floor, a wintry atmosphere faced them. As they walked through the narrow path which opened in the throng and led to the upper end of the hall, they saw seated before them women no longer young and some of them far advanced into that period which is called the “sere and yellow leaf of age,” with shoulders exposed below the point of modesty (if there is any such place in that delicate region), arms bare above the elbow! What a lesson it must have conveyed to our visitors! And yet these women tried to look beautiful! The foreign ministers, with their wives and daughters, had drawn themselves into the usual diplomatic knot. There was the tall and queenly Lady Thornton, elegant in pink silk and Chambrey gauze; and Sir Edward Kingly as a knight of old; and pretty Madame Roberts, the wife of the Spanish minister, in quaint costume, regardless of expense; magnificent Mademoiselle Freyre, the daughter of the Peruvian minister, who was the most gorgeously and costly appareled of any woman in the temple. A moderate fortune of diamonds nestled in her hair, whilst bust, arms and ears sparkled like the cave wherein was caught unfortunate Sinbad the Sailor. About the banquet? It fell below the “Oriental landscape” attempt. It was spread under the directions of A. G. Jiraudan. We never heard of this man before, and yet he will be remembered for his stale boned turkey and hard crusts. In place of ice cream we were treated to doubtful frozen custard. The salad might have been made of lamp oil, judging by its flavor. The coffee was such as contractors furnished the army during the late war, and water was denied the last resting place of a goblet. We drank it from the humble plebeian glass in the shape of a mug without a handle. Fancy Sir Edward Thornton carrying this cup to his aristocratic lips at an entertainment given to royalty! Will not motherly Philadelphia or her sister city New York open the doors of hospitality and retrieve Washington from her niggardly disgrace? Not that the people of the
- 38. capital are in fault, but a grave charge lies somewhere. Let exposure do its work. Olivia.
- 39. SAMUEL F. B. MORSE. Memorial Services Held At The Capitol. Washington, April 17, 1872. Because we have no Westminster Abbey, or other royal sleeping place when genius passes away, we have memorial services held at the capital of the nation, under the shadow of the dome and the Goddess of Liberty. No man since the Saviour was born has ever had such obsequies follow him to the grave as the plain citizen of a Republic who has just passed away. The ceiling of the House of Representatives had been pierced, and numerous wires were seen suspended from the wall, and these ended below the Speaker’s desk, where an electric instrument was placed that transferred to those present that throb of sympathy which alone makes the world akin. The voices of seventy cities of the Union were heard speaking in the Hall of Representatives, for Professor Morse had given to each a tongue of flame. Click, click, click; from the bed of mighty waters came the sob of the Old World. London sent her condolence, dated many hours subsequent to our time. April the sixteenth was dead and gone in England, but on the wings of the lightning came the intelligence of an unborn day. From Europe, Egypt, China, flashed sympathy with this nation because a simple American citizen had gone to his eternal home. In the self-same spot where all this tribute was paid to his memory he had once stood—poor, obscure, and alone, working out the solemn problem which should revolutionize the world. On the floor of the House of Representatives might have been seen political strength, the judicial ermine, poet, painter, scholar, and
- 40. humble citizen, and from the galleries looked down the womanly element of the Republic. First of all came President Grant, with his square, immovable face. At his side walked Secretary Fish, whose comeliness will ever furnish a theme for song and story. Then came Secretary Belknap, with a presence sufficiently warm and attractive to keep the whole Cabinet from spoiling for the want of caloric; then clear-cut Secretary Boutwell. Behind the Cabinet might have been seen the ponderous Supreme Judges, and their presence proved that the Creator worked regardless of material when he constructed these excellent men. On the Speaker’s stand stood the men whose speeches were to honor the great man whose memory was to be embalmed. Speaker Blaine sat in his accustomed seat, with Vice- President Colfax at his right hand. Speaker Blaine touched his desk with his gavel, and silence fell upon those congregated there. Then softly upon the ear sounded the silver voice of Professor Morse’s aged pastor in solemn prayer, a simple petition, such as men utter when their feet have almost reached the other shore. After the Marine Band had been heard, Sunset Cox made some remarks, and these were followed by a lengthy biography from Senator Patterson, which was altogether too long to be read when so much that was equally interesting was to follow. Fernando Wood gave the most interesting account of the struggle and despair, but final triumph, of Professor Morse in his attempts to make the Government aid him in his undertaking. Mr. Wood is the only man in Congress who was a member of that body at the time the inventor was pleading his cause. Professor Morse first laid his plans before his own Government, and they were rejected. He then went abroad, was absent two years, going, as did Columbus, from court to court, obscure, unheard, unnoticed. All undaunted, he came home, to try for the last time to bring his wonderful discovery before the world. It was this period of his life that the Hon. Fernando Wood brought so vividly before the audience. With the mind’s eye the vast congregation could see a threadbare, dejected man traversing the streets of Washington, modestly attempting to electrify Congress
- 41. with a flash of his own genius. At last, when he was slowly settling into the depths of despair, he had the supreme happiness of learning that in the very last hours of a session a modest amount had been appropriated to carry out his apparently insane undertaking. Facing the speakers of the evening hung a portrait of the departed. It was surrounded by a white groundwork, inlaid with an inscription in green letters: “What God hath wrought.” It was the picture of a man in the winter of life, with hair and beard of snow; a face not classically made, but with fine, manly features, that must have glowed with indestructible beauty when lit up by the enthusiastic genius within. Samuel F. B. Morse has gone the way of all the earth. He lived to know that his name had been spoken by the intellectual world from pole to pole. No more honor could be bestowed upon his ashes; and his memory is embalmed in the soul of his country. One of the speakers of the evening said that Professor Morse was born the same year that Benjamin Franklin died, and the lives of the two men seemed like joining a broken thread. And this reminds the writer of a man who might have been seen in that audience who to- day is trying on the same field to get Congress to help him to demonstrate to the people that wires and batteries and Atlantic cables are only so much waste matter; that from given points anywhere on the world’s surface that same lightning which Franklin brought to earth with his kite can be harnessed to do his bidding. He has got his patent, his invention, and his faith. As with Morse, Congress is afraid to “establish a precedent,” and so another inventor goes begging his way, perhaps to immortal fame. Olivia.
- 42. ON THE PROMENADE. A Saturday Holiday With Its Strollers And Equipages. Washington, April 22, 1872. Spring, though laggard, has at last smiled upon Washington. Once more the bosom of Mother Earth has yielded up the frost and the baby vegetation wears a smiling face. No longer the cold, bitter winds smite the wayfarer, for the king of the season has tempered their edge. Saturday afternoon at the capital is a holiday. Congress usually adjourns from Friday until Monday. Not always the Senate, but the House, which is a much harder-worked body, necessarily must have a short respite for breathing time, although it is claimed by the members that the last day of the week is the hardest of them all. A Senator who holds his position for six years can afford to take more or less ease; but a member who has only two years to serve, if he has any ambition or talent, is about the hardest-worked man in the nation. He has the superhuman effort to perform of making himself felt in Congress; at the same time he must manage to keep the peace at home. The majority of them know there are men in their districts as gifted as themselves, who are working out the problem of rotation in office. So when Saturday afternoon comes they try to forget their troubles whilst riding up and down Pennsylvania avenue, with the smoke of cigars issuing from their lips; but only the women suffragists envy this deceitful happiness. Smoothly the carriage moves over the faultless pavement. Some of the members are wealthy enough to own their own “turnouts,” but these seem to have simply been purchased for their comfort, for there is scarcely anything about them suggestive of display. The
- 43. carriage of Mrs. Secretary Fish is of the plainest and most comfortable description. It might have belonged to some Knickerbocker relative of a past generation, so prim and respectable it seems. Even the wheels have an aristocratic roll, entirely unlike the little plebeian satin-lined concerns of the parvenues which have been called into existence in the same way that Cinderella’s fairy god-mother changed the nut-shells and mice. When the Avenue was first lined with Nicholson pavement the carriages of the “first families” were seen rolling over it. In those days the “thoroughbreds” belonging to the President were seen stretching their graceful limbs in contrast to the fast-trotting bays owned by Sir Edward Thornton. The carriages of the foreign ministers were then displayed in all their glory. The most magnificent were usually occupied by the South American ministers. The representative of Peru could be seen in the daintiest affair, lined with white satin. The body of the carriage is rounded and the top opened in the centre, and when thrown back it seemed to disclose a huge bird’s nest, and the white satin in the distance bore a striking resemblance to eider down. Altogether it looked like a portable nest filled with the rarest birds of a tropical clime, whilst coachman and footman in the most gorgeous livery completed one of the handsomest pictures of a Saturday afternoon. Another elegant establishment might have been noticed—a luxurious carriage, with its light-bay prancing thoroughbreds attached. On the creamy cushions, with their costly white lap-robe, was seated a solitary woman in the earliest stages of the winter of life. She usually wore a white carriage costume—nothing but white from the snowy ostrich tip to the Paris kids that encased her slender fingers. Who is it? A wealthy New York widow, too wise to be ensnared by fortune hunters, and not a remarkably shining target for arrows of the other kind. In those days not so very far remote the carriage of Senator Chandler might have attracted attention, especially if the superbly dressed madame and her accomplished daughter were securely
- 44. inclosed within. But, alas! alas! the creme de la creme no longer patronize the Nicholson pavement. This is given up to the blonde- haired beauties, fast youths, and tipsy Congressmen. The sunny side of the Avenue has become the fashionable promenade. What a changing human kaleidoscope! Here comes Secretary Robeson with his substantial bride. One feels like lowering the mainsail of conversation in time to salute the jolly consort and tender as they go sailing down the river of human life. This is the Hon. Eugene Hale, of Maine, with his graceful new wife. Would the ladies know how the richest heiress in Washington is attired? In plain black cashmere and a simple straw hat. And this is the Hon. Benjamin F. Butler, one of our most famous citizens, but so changed for the better that his nearest friends scarce recognize him. The time has been when General Butler was dubbed “belligerent,” but this must have been when he was in the active fermentation of life. To-day the dregs have settled to the bottom. The froth and scum were all whisked off in that last Massachusetts campaign. Nothing but the rich, generous body remains. Even the famous Don Piatt can find no peg to hang a fault on; besides, the General is growing handsome, for the beauty of the spirit lights up the countenance, and this is the truest type of perfection. A slender and exceedingly graceful man hurries by—a gentleman whom the wicked types made us call in our last letter “Sunset Cox.” We never applied any such appellation to this gentleman, and for this reason we call attention to this correction. We have no personal acquaintance with the Hon. S. S. Cox, but men, like greenbacks, pass in Washington for just about what they are worth. There is nothing about this Congressman to remind one of sunset, unless it is the brilliant coloring of his mind. This is the term which envy and malice have fastened upon him; and this uncourteous term cannot be made to foreshadow his decline. Although he has not reached the noontide of life, he is one of the readiest debaters, one of the most eloquent and pleasing speakers, a fascinating writer, and in every
- 45. sense of the word an accomplished man. If this is “sunset,” may we have a little more of it in Congress, for we believe in men instead of parties, and when women vote we shall not stop to ask “Is he a Republican?” “Is he a Democrat?” but we shall propound the awful question, “Who is the man?” Yonder comes Mrs. Cresswell, clinging to the arm of the Postmaster-General—a pretty, petite woman, but not quite strong enough to stamp her impression on the age. And yet women who have only social qualities upon which they can rely are remembered long after their thrones are crumbled into dust. To-day Mrs. Crittenden, of Kentucky, has her shrine in Washington. Her manners are quoted like the speeches of Clay or Webster. “Tell me,” inquired the writer of an elderly lady who was blessed with an excellent memory, “what made Mrs. Crittenden so famous?” “I am sure I cannot tell, unless it was because she treated the poorest slaves as though they were ladies and gentlemen.” Olivia.
- 46. CHARLES SUMNER. An Interview in the Workshop of the Veteran Statesman. Washington, April 15, 1873. This article is not written with the attempt to portray that which makes Charles Sumner the central figure of the American Senate. No woman possesses the gift to explore his mind. Yet there may be those who read The Press who feel an interest in the material part of his nature, and who would like to know something about his every- day life—how he looks, how he appears, and the impression he makes upon the womanhood of the day. The so-called gentle sex are convened in secret now, and men are not supposed to hear what we say. We will examine Charles Sumner in the same way that we would a picture, whilst his fine house and exquisite surroundings may be called the frame. Stand a little way off, because light is needed, and remember he is seen to the best advantage in what he terms his “work-room.” An easy chair high enough to support the head is drawn before the open grate, and its capacious depths reflect the majestic figure of Mirabeau, but the face was designed by his Maker expressly for Charles Sumner. It is one of the best living pictures that foreshadows the exceeding grace of autumn. The sense of harmony in its highest embodiment is fulfilled; but the vision is neutral-tinted with all the scarlet glory left out. Even the long dressing-gown with its heavy tassels is soft, bluish-gray. In scanning the features you realize that the artist has been trying to follow the classical order of art. You see it in the royal head crowned by its abundant gray hair, in the oval face, and the clear
- 47. eyes which, if you watch closely, you can catch a glimpse of the soul within. Observe the Greek nose, and finely moulded lips, which are never used except to make the world wiser and better. Now add the manners of an English lord and an improvement on the polish of the Chesterfieldian age, and we have the picture of the simple American gentleman. The difference between spending a morning with Charles Sumner or learning about him through the newspapers is like quenching our thirst at a fountain at Saratoga or procuring some of the elixir at a drug store. It may be that your apothecary is honest, and that you are imbibing genuine Congress water, and then again perhaps you are the victim of misplaced information. With his permission, let us make a visit to that model “work-room,” because Charles Sumner will take us into the company of the famous people of the world. He will tell us about meeting George Eliot at a dinner party, or about his being on the same ship with George Sand. Then we can say to him with enthusiasm: “Tell us about this wonderful George Eliot. How old is she? Whom does she look like, and don’t you think her the greatest intellect represented by the womanhood of the present day?” “I think her a great woman, perhaps the greatest, but time must decide all things connected with fame. I have a picture amongst my engravings very much like her, so much so that it would answer very well for her portrait.” The picture is found. It represents Lorenzo de Medici, and is ugly to the last degree. “Not like that. No! It cannot be possible that her face is as wide as it is long; that these are her eyes, that her nose, that her mouth— why, this is the face you see looking out of the moon!” “It may be a plain face,” says Mr. Sumner, “but then it is so strong and noticeable, a face once seen that will never be forgotten.” “But her hair is cut short like a man’s.”
- 48. “That is a matter of taste. You see at a glance that she lacks vanity, which is another sign of a great woman. I also met Mr. Lewes, her husband, at the same time. He is noted for his German studies, but he is not so eminent as his wife.” “About her age, Mr. Sumner?” “That is a very hard point to settle, but without flattery I should think her beyond 50.” “Beyond 50, and still writing the best love stories that the world enjoys?” “Why not? Genius never grows old.” “But about George Sand?” “I met this famous woman many years ago on a steamer. We were going from Marseilles to Genoa. Among the passengers this woman in particular attracted my attention, because she held by the hand a very beautiful child. I have never observed such hair on a child’s head. It was the real gold in color, and fell to his knees, not in curls, but in waves. The lady wore the Spanish costume. I now recall her Spanish mantilla. She was short, we might call her thick-set, not handsome, yet holding her child by the hand. I had a curiosity to find out her name. She was accompanied by a tall, slender gentleman. They kept aloof from the other passengers, and seemed to find society enough in each other. Upon inquiry I found her to be the celebrated George Sand. At that time she was a topic of conversation everywhere. She made a very distinct impression on my mind. She was comparatively a young woman. On board the same ship I was interested in two other passengers. This time it was quite an aged couple. The old gentleman carried his gold-headed cane and bustled around as if it was his mission to entertain everybody. One would almost think that he thought himself in his own house and the people around him his guests. His aged wife was at his side, helping in the good work. I noticed a respect shown them which age alone cannot always command. I soon learned the man to be one of Charles the Tenth’s Ministers, I am not quite
- 49. certain which, but I think his minister of finance. I shall always remember the extreme courtesy and politeness of these old people and their endeavors to make everybody happy around them.” “Did they talk to George Sand?” “No! for the lady and her cavalier kept to themselves, and did not seem to need any exertions in their favor.” In the conversation about the private lives of writers, a query came up of this kind: “Will a woman of good judgment marry a man fifteen years younger than herself?” “I shall have to refer you to Mr. Disraeli. I know that to have been a very happy marriage. I met Mr. Disraeli and his wife at Munich, when they were on their wedding tour. At the principal hotel we met at the breakfast table. Mr. Disraeli sat by the side of his newly made wife. He might have been, or at least looked, about 30 years old. His intensely black hair smoothed to perfection. At that time he had become famous as an author. Everything seemed noticeably new about him. Mrs. Disraeli appeared like a kind-hearted, middle-aged English woman, and Disraeli seemed the one to carry the idea that he had drawn the prize. Time has shown how devoted they were to each other. In the last few months we hear of his walking by her side and supporting her tenderly. She must have been nearly, if not quite, 80. In my opinion Disraeli is one of the most remarkable men of this age when we remember the obstacles he had to overcome to reach the position he occupies in England. The prejudice which exists there against his Jewish faith alone is enough to chill the most ambitious.” A book was drawn from a side table which had been printed in 1460. It was in the German language, and, with one exception, it is as perfect as a book published yesterday. Its binding would shame our best modern work. “This,” said the man in gray, “reminds me of a conversation I once had with Macaulay, as well as an incident of my school-boy days. The master once said to the scholars, ‘Can any of you tell me in
- 50. which year printing was invented?’ No answer. ‘Remember, children, it was the year which contains the figure 4 three times.’ The small brains were greatly puzzled. At last one little fellow answers ‘1444’. When I grew older I tried to ascertain the proof of this; but I have never been able to find which year printing was invented. It was somewhere about 1450, and, from all I can learn, I am inclined at times to think the Dutch instead of the Germans made this discovery. I remember a long talk I had with Macaulay on this subject. I was on the side of the Dutch; he was for the Germans. At last he proposed that we should adjourn to the British Museum and search the authorities, and have this weighty matter decided. I did not go, but I have always regretted it. We all remember Macaulay’s Essay on Milton. I think it ranks with the best of his writings; yet he told me that he regretted nothing so much as its publication; and this proves the incompetency of authors to judge their own works.” We spoke about the changing seasons of human life, and the writer asked the statesman a question which lies very near to every woman’s soul. “Is beauty confined to one period of our existence? Infancy and childhood are only promises; the summer is something more; but give me the golden reality of October or the bracing chill of a December landscape if the intellectual powers are not on the wane.” “I have known beauty to go with the years, but this I fear is the exception, not the rule. One of the handsomest women I ever knew was the mother of Lord Brougham. At the time I met her she must have been over 80 years of age. I was then quite a boy, and abroad for the first time, and met with the kindness to be invited to the castle of this nobleman. The manners and figure of Mrs. Brougham betrayed none of the decrepitude of age. I never shall forget her extreme kindness and efforts to entertain a young American. I remember that amongst other things she brought the bag which her son wore at the time he was Lord High Chancellor. This bag is worn around the neck of this exalted officer of the British Government. It is an elaborate affair, made of silk, gold lace, and embroidery. When
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