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Management
information
systems
First Australasian Edition

Gray
Issa
Pye
Troshani
Rainer
Prince
Watson
CONTENTS

Preface x Discussion questions 62

About the authors xii Problem-solving activities 62
Applications at a glance xiv Collaboration exercise 63
How to use this resource xvi
CLOSING CASE 1 > The information technology
Digital self-study resources xxi
behind the Asia–Pacific’s largest
low-cost airline 63
CHAPTER 1 Introduction to
information systems 1 CLOSING CASE 2 > A tool to combat terrorism and
fight crime 64
OPENING CASE > Kogan Technologies
(www.kogan.com.au) 2
1.1 Why should I study information systems? 5 CHAPTER 3 Data and knowledge
management 71
IT’S ABOUT BUSINESS  Driving
business-driven
mobile apps 9 OPENING CASE > L oyalty New Zealand — reaping the
big data rewards 72
1.2 Overview of computer-based
information systems 12 3.1 Managing data 75
IT’S ABOUT BUSINESS  IS in SA agriculture 15 IT’S ABOUT BUSINESS  Cloudaccounting: the case
of MYOB’s AccountRight Live
1.3 How does IT impact organisations? 20
for SMEs 75
1.4 Why are information systems important to
3.2 The database approach 78
society? 23
3.3 Database management systems 83
IT’S ABOUT BUSINESS  Telepresence robots 24
3.4 Data warehouses and data marts 89
SUMMARY 27
IT’S ABOUT BUSINESS  How data warehousing is
Chapter glossary 28
supporting tourism business
Discussion questions 29
in Australia95
Problem-solving activities 29
Collaboration exercise 29 3.5 Knowledge management 96
IT’S ABOUT BUSINESS  Awebsite for gathering
CLOSING CASE 1 > Today, every company is a
subjective knowledge97
technology company 30
SUMMARY 101
CLOSING CASE 2 > The Arab spring 32
Chapter glossary 101
Discussion questions 102
CHAPTER 2 Organisational strategy, Problem-solving activities 103
competitive advantage and Collaboration exercise 103
information systems 37
CLOSING CASE 1 > Big data 104
OPENING CASE > M2M: the case of Coca-Cola Amatil 38
CLOSING CASE 2 > How Nimble is affecting the
2.1 Business pressures, organisational responses
short-term micro lending industry
and IT support 40
in Australia 106
IT’S ABOUT BUSINESS  Kennards Hire BI systems 43
IT’S ABOUT BUSINESS  The Surui tribe of the Amazon 47
CHAPTER 4 Telecommunications and
IT’S ABOUT BUSINESS  Two strategic information networking 111
systems49
OPENING CASE > Studio G 112
2.2 C
 ompetitive advantage and strategic
4.1 What is a computer network? 114
information systems51
4.2 Network fundamentals 117
IT’S ABOUT BUSINESS  Rewards and recognition to
increase user adoption and 4.3 The internet and the world wide web 123
engagement56 IT’S ABOUT BUSINESS  Browser competition heats up 126
2.3 Business–IT alignment 58 4.4 Network applications 128
SUMMARY 61 IT’S ABOUT BUSINESS  All hail Taxi Pro? 130
Chapter glossary 61 IT’S ABOUT BUSINESS  Massive open online courses 139

vi Contents
SUMMARY 143 CHAPTER 7 Information security 205
Chapter glossary 143 OPENING CASE > Small businesses in danger 206
Discussion questions 145
7.1 Introduction to information security 208
Problem-solving activities 145
Collaboration exercise 147 7.2 Unintentional threats to information systems 211
7.3 Deliberate threats to information systems 214
CLOSING CASE 1 > Managing information flow 147
It’s about business  acktivists ‘Anonymous’ attack
H
CLOSING CASE 2 > Marriott’s corporate Australian government websites 218
portal 149
It’s about business  elbourne IT: an Australian
M
internet success219
CHAPTER 5 Business intelligence 153
7.4 What organisations are doing to protect
OPENING CASE > Farmer wants an app 154 information resources 222
5.1 Managers and decision making 157 7.5 Information security controls 224
5.2 What is business intelligence? 161 It’s about business SaaS and Cancer Council SA 224
IT’S ABOUT BUSINESS  Virgin
Australia’s BI
SUMMARY 236
performance 162
Chapter glossary 237
IT’S ABOUT BUSINESS  Usinganalytics to save Discussion questions 239
Grevy’s zebra 164 Problem-solving activities 240
5.3 Business intelligence applications for data Collaboration exercise 240
analysis 165
CLOSING CASE 1 > An inside look at the Australian
5.4 B
 usiness intelligence applications for government’s cyber security
presenting results167 plans 240
IT’S ABOUT BUSINESS  Australiancardiologists CLOSING CASE 2 > Compliance 242
using GIS technology170
5.5 B
 usiness intelligence in action: corporate CHAPTER 8 Social computing 249
performance management 171
OPENING CASE > La Casa Ristorante’s Twitter dream 250
SUMMARY 173 8.1 Web 2.0 253
Chapter glossary 173
8.2 Fundamentals of social computing in business 261
Discussion questions 174
8.3 Social computing in business: shopping 263
Problem-solving activities 174
Collaboration exercise 175 IT’S ABOUT BUSINESS  Pinterest 264
8.4 Social computing in business: marketing 269
CLOSING CASE 1 > Procter & Gamble uses analytics
in novel ways 175 IT’S ABOUT BUSINESS  How tweeting has grown
our wine business 270
CLOSING CASE 2 > North East Water 176
IT’S ABOUT BUSINESS  Buying a vehicle takes work! 272
8.5 S
 ocial computing in business: customer
CHAPTER 6 Ethics and privacy 181
relationship management274
OPENING CASE > Big brother watching you work 182
8.6 S
 ocial computing in business: human
6.1 Ethical issues 184 resource management277
IT’S ABOUT BUSINESS  Know thy customer 186 IT’S ABOUT BUSINESS  So you want to find a job 277
6.2 Privacy 189 8.7 Crowdsourcing 280
IT’S ABOUT BUSINESS  AFP and Australians’ IT’S ABOUT BUSINESS  Scientific
discoveries via
private data 192 crowdsourcing and online
SUMMARY 196 gamers281
Chapter glossary 196 SUMMARY 283
Discussion questions 197 Chapter glossary 285
Problem-solving activities 197 Discussion questions 285
Collaboration exercise 197 Problem-solving activities 286
CLOSING CASE 1 > Dunedin City Council blocks Collaboration exercise 286
hate site 198 CLOSING CASE 1 > Facebook commerce 286
CLOSING CASE 2 > Google and China 199 CLOSING CASE 2 > Tourism Australia’s social strategy 289

Contents vii
CHAPTER 9 E-business and e-commerce 295 Discussion questions 367
OPENING CASE > Matt Barrie’s Freelancer.com 296 Problem-solving activities 367
Collaboration exercise 368
IT’S ABOUT BUSINESS  298
9.1 Overview of e-business and e-commerce 299 CLOSING CASE 1 > A paperless airport 368

9.2 Business-to-consumer (B2C) electronic CLOSING CASE 2 > The battle for the mobile wallet 369
commerce 306
IT’S ABOUT BUSINESS  David Jones building an CHAPTER 11 Information systems within the
online shopping presence 307 organisation 375
IT’S ABOUT BUSINESS  What to do about customer OPENING CASE > Hog’s Breath Cafe and Imagatec 376
‘showrooming’ practices? 312 11.1 Transaction processing systems 377
IT’S ABOUT BUSINESS  New Zealander starting a 11.2 Functional area information systems 379
wildfire313
11.3 Enterprise resource planning systems 386
9.3 Business-to-business (B2B) electronic
IT’S ABOUT BUSINESS  BurraFoods expansion
commerce 315
required revamped ERP
9.4 Ethical and legal issues in e-business 317 solution386
SUMMARY 321 11.4 Reports 390
Chapter glossary 322 SUMMARY 393
Discussion questions 323 Chapter glossary 393
Problem-solving activities 324 Discussion questions 394
Collaboration exercise 325 Problem-solving activities 394
CLOSING CASE 1 > The new virtual economy of Collaboration exercise 394
Bitcoin 325 CLOSING CASE 1 > Information systems helping
CLOSING CASE 2 > Two Australians on the ‘up farmers manage emissions 395
and up’ 327 CLOSING CASE 2 > Hilton embraces collaboration
with information technology
CHAPTER 10 W
 ireless, mobile computing partners 396
and mobile commerce 333
OPENING CASE>  obile technology changing IT
M CHAPTER 12 Extending the organisation to
service delivery in Queensland’s customers 401
outback 334 OPENING CASE >  usiness consultant CRM in
B
10.1 Wireless technologies 336 the cloud 402
10.2 W
 ireless computer networks and internet 12.1 Defining customer relationship management 404
access342 IT’S ABOUT BUSINESS  7-Eleven
social media
IT’S ABOUT BUSINESS  Near-field communications strategy406
helps travellers in Japan 343 12.2 O
 perational customer relationship
IT’S ABOUT BUSINESS  Free municipal wi-fi in management systems408
Brisbane parks 346 IT’S ABOUT BUSINESS  Tweetfor immediate
IT’S PERSONAL Wireless and mobile 351 customer service409
10.3 Mobile computing and mobile commerce 352 IT’S ABOUT BUSINESS  GoogleHelpout: real time
customer relationship
IT’S ABOUT BUSINESS  Xero to hero — floating on
support412
a NZ cloud 354
12.3 A
 nalytical customer relationship management
IT’S ABOUT BUSINESS  Eco IT in Aus — animal
systems414
telemetry data collection 356
12.4 O
 ther types of customer relationship
10.4 Pervasive computing 357
management systems416
IT’S ABOUT BUSINESS  BP uses wireless
IT’S ABOUT BUSINESS  CRM risk/return 418
technologies358
IT’S ABOUT BUSINESS  Brazil uses smart meters 361 SUMMARY 420
Chapter glossary 420
10.5 Wireless security 363
Discussion questions 421
SUMMARY 365 Problem-solving activities 421
Chapter glossary 366 Collaboration exercise 421

viii Contents
CLOSING CASE 1 > Competitive advantage using a CHAPTER 14 Acquiring information systems
concierge app 422 and applications 453
CLOSING CASE 2 > British Gymnastics 423 OPENING CASE > L earning from the Queensland
Health payroll fiasco 454
CHAPTER 13 Extending the organisation 14.1 Planning for and justifying IT applications 456
along the supply chain 429 14.2 Strategies for acquiring IT applications 460
OPENING CASE > T he Kimberly Clark Australia 14.3 The traditional systems development life cycle 465
supply chain story 430 IT’S ABOUT BUSINESS  Atlassianhelps manage
13.1 Supply chains 431 large software projects 466
13.2 Supply chain management 433 IT’S ABOUT BUSINESS  Virgin
Australia’s
IT’S ABOUT BUSINESS  Energizer
supply chain reservation system471
and technology434 14.4 A
 lternative methods and tools for systems
IT’S ABOUT BUSINESS  Airbusmoves to a smart development472
supply chain 437 IT’S ABOUT BUSINESS  GEHealthcare switches
13.3 Information technology support for supply from Waterfall to Agile 474
chain management438 14.5 Vendor and software selection 477
IT’S ABOUT BUSINESS  Concreteideas for SUMMARY 481
sustainable business441 Chapter glossary 482
SUMMARY 444 Discussion questions 483
Chapter glossary 444 Problem-solving activities 483
Discussion questions 445 Collaboration exercise 483
Problem-solving activities 445 CLOSING CASE 1 > Tweak or trash? 484
Collaboration exercise 445
CLOSING CASE 2 > Smart technology in Western
CLOSING CASE 1 > The computer that could cut Australia information
fatality rates for truckies 445 security group 485
CLOSING CASE 2 > Information technology Acknowledgements 489
helps Cannondale Endnotes 491
manage its complex Index 495
supply chain 446

Contents ix
 Preface

To me, this is not an information age. It’s an age of networked intelligence; it’s an age of
vast promise.
—Don Tapscott
Information systems are at the forefront of business innovation in the Asia–Pacific region.
In today’s dynamic digital business environment, rapid advances in information systems
mean that change will be the only constant. Information systems are transforming the
world into a very small place and are contributing to increased global competition. As
a result, Australian and New Zealand organisations are constantly searching for ways
to gain a competitive advantage by achieving operational excellence; developing new
­products, services and business models; providing superb customer service; and improving
­decision-making capabilities.
Although immersed in technology, many first-year students initially struggle to see the
relevance of information systems to their future professions. We wrote this resource to
specifically cater for the needs of business students from all majors who will soon embark
on professional careers, with three goals in mind:
1 to enable students to be immediately successful when joining an organisation
2 to help students understand the importance of information systems for individuals,
organisations and society as a whole
3 to empower students to become informed users of any given organisation’s
­information systems.
To accomplish these goals, we aim to provide the essential, relevant knowledge ­students
require to understand how to become adaptable business professionals and effectively use
information systems in their careers.
Management Information Systems, First Australasian Edition is interwoven with
­contemporary themes such as business ethics and culture, green IT, cloud computing,
IT risk and security, and the impact of social media on e-commerce. We have provided
a platform for students to develop their strategic thinking skills along with frequent
opportunities to practise developing systems that support and improve businesses’
­
­organisational processes.
Our resource draws on diverse, vivid examples from large corporations, small- and
medium-sized enterprises, and government and not-for-profit sectors in Australia and
New Zealand. Through our series of ‘IT’s About Business’ case studies in every chapter,
we provide a strong pedagogical balance of grounding theory and real-world applica‑
tions. We have adopted a cross-functional approach that considers the perspectives of all
majors within the business degree, with extensive hands-on exercises to encourage crea­
tive thinking, problem solving and industry best practice.
Critically, we recognise that despite the increasingly automated nature of modern
­workplaces, people continue to play a crucial role in systems.
We would like to extend a most sincere thank you to the scores of business information
systems academics whose invaluable advice helped shape our manuscript. Special thanks
go to Lubna Alam (University of Canberra), Christine Bruff (University of ­Newcastle),
Peter Clutterbuck (University of Queensland), Paul Darbyshire (Victoria ­ University),
Kristy de Salas (University of Tasmania), Rohan Genrich (University of Southern
Queensland), Marta Indulska (University of Queensland), Dale MacKrell (University of
­Canberra), Matthew Mansour (Macquarie University), Nigel Martin (Australian National
University), Peter Radoll (University of Canberra) and Jian Yang (Macquarie University)
for their time and consultation at the conception of the project. We would also like to
thank Marie van der Klooster in addition to our other academic colleagues who authored
the comprehensive resources that a­ ccompany the text.
Our appreciation goes to the John Wiley & Sons team for their contribution to this
book: Terry Burkitt (Publishing Editor), Kylie Challenor (Managing Content Editor),
Tara Seeto (Publishing Assistant), Catherine Spedding (Content Editor), Renee Bryon
(Copyright and Image Research Supervisor), Delia Sala (Graphic Designer), Tony Dwyer

x Preface
(Production Controller), Rebecca Cam (Digital Content Editor) and Beth Klan (Editorial
Assistant).
We hope you will enjoy our active approach in Management Information Systems, First
Australasian Edition. We are confident your learning experience will position you as a
highly valued future employee within a broad range of professions as you form a deeper
understanding of ‘what’s in IT for you’.
Heather Gray
Tomayess Issa
Graeme Pye
Indrit Troshani
July 2014

Preface xi
 About the authors

Heather Gray
Dr Heather Gray’s research interests include using emerging technologies to bridge
the digital divide in developing countries. Dr Gray is also actively pursuing the use of
­technology in online delivery of tertiary courses. She has experience with teaching large
classes in an online environment where she is responsible for designing and delivering
subjects for Open Universities Australia where some subjects have thousands of
­students. Dr Gray has published her learning and teaching research as book chapters and
journal articles.
Dr Gray’s industry background includes short- and long-term contracts with
governments in Queensland and South Korea, as well as Australian national and
international corporations in roles that included business systems analysis, project
management and business process coaching. With a keen interest in online education
supported by social networking and cloud computing tools, she uses innovative
approaches in learning and teaching that saw her ranked in the top 20 ‘UniJobs Lecturers
of the Year’ in 2012. By keeping business and education capacity building at the forefront
of her learning and teaching approaches, Dr Gray is focussed on supporting and enabling
the development of business leaders for the future.
As the Outreach and Internationalisation Project Officer in Griffith Sciences for the
Griffith School of Information and Communication Technology, Dr Gray is involved in
the development of education research and programs, staff development and curriculum
design in the Australasian region. She is also heavily involved in the development of
online education courses and programs that bring together a scaffolded approach to
learning and teaching to enable students to engage with real world tools, technologies and
problem solving. As a digital divide researcher she explores technology leapfrogging and
mobile technology use in business and education in the Australasian region, bringing this
knowledge into her educational learning and teaching approaches.

Tomayess Issa
Dr Tomayess Issa is a Senior Lecturer at the School of Information Systems at Curtin
University, Australia. Tomayess completed her doctoral research in web development and
human factors. As an academic, she is also interested in establishing teaching methods and
styles to enhance students’ learning experiences and resolve problems that students face.
Dr Issa is a Conference and Program Co-Chair of the IADIS International ­Conference on
Internet Technologies and Society and IADIS International Conference on International
Higher Education.
Furthermore she initiated the IADIS conference for Sustainability, Green IT and
­Education. Currently, she conducts research locally and globally in information systems,
human-computer interaction, usability, social networking, teaching and learning,
sustainability, green IT, and cloud computing.
Dr Issa has participated in conferences and published her work in several peer-reviewed
journals, books, book chapters, papers and research reports. Dr Issa is a Project Leader in
the International Research Network (IRNet-EU, 2014–2016) for study and development of
new tools and methods for advanced pedagogical science in the field of ICT instruments,
e-learning and intercultural competences.

Graeme Pye
Dr Graeme Pye received his PhD in information systems security analysis and modelling
in 2009 and has been a Lecturer with the School of Information and Business ­Analytics,
Deakin University, Victoria, Australia, since 2004. His research is widely published and
focuses primarily on security analysis and modelling of systems, and is continuing to
investigate the security and risk aspects of Australian critical infrastructure systems, their
resilience, and the human and social networking relationships associated with emergency
management and disaster recovery. Dr Pye is also interested in information warfare;

xii About the authors

human and social communication networks; and computer ethics, privacy and governance
of information systems.
Dr Pye has taught a variety of information systems subjects including systems anal‑
ysis and design, advanced database, information security and risk management, business
information systems, business intelligence, and information systems management.

Indrit Troshani
Dr Indrit Troshani is a Senior Lecturer at the University of Adelaide Business School.
He holds a PhD (Computer Science) from Edith Cowan University (Western Australia)
and an MSc (Computer-based Information Systems) from the University of Sunderland
(UK). Dr Troshani teaches accounting information systems to both undergraduate and
postgraduate students. He also teaches information systems, internet commerce and
­electronic commerce.
Dr Troshani is an active researcher and his research interests include information
technology adoption and diffusion (e.g. digital business reporting, mobile technology in
healthcare and e-health, public sector adoption of social media, green IS/IT), accounting
information systems, and social construction of technology. His work has been published
in several journals including Information Technology & People, Electronic Markets, Journal
of Computer Information Systems, Journal of Engineering and Technology Management,
European Journal of Innovation Management, and Industrial Management & Data S­ ystems.
Dr Troshani has also provided consulting services in his areas of expertise to various
public and private sector organisations on an adhoc basis.

About the authors xiii

Applications at a glance

CHAPTER 1 Introduction to information systems

IT’S ABOUT BUSINESS OPENING CASE > CLOSING CASE >
Driving business-driven mobile apps Kogan Technologies 1 Today, every company is a
IS in SA agriculture technology company

Telepresence robots 2 The Arab Spring

CHAPTER 2 Organisational strategy, competitive advantage and information systems

Kennards Hire BI systems M2M: the case of Coca-Cola Amatil 1 IT behind the Asia–Pacific’s largest
The Surui tribe of the Amazon low-cost airline

Two strategic information systems 2 A tool to combat terrorism and

fight crime
Rewards and recognition to increase
user adoption and engagement
CHAPTER 3 Data and knowledge management
Cloud accounting: the case of MYOB’s Loyalty New Zealand — reaping the big 1 Big data
AccountRight Live for SMEs data rewards 2 How Nimble is affecting the short-
How data warehousing is supporting term micro lending industry
tourism business in Australia in Australia
A website for gathering
subjective knowledge
CHAPTER 4 Telecommunications and networking
Browser competition heats up Studio G 1 Managing information flow
All hail Taxi Pro? 2 Marriott’s corporate portal
Massive open online courses
CHAPTER 5 Business intelligence
Virgin Australia’s BI performance Farmer wants an app 1 Procter & Gamble uses analytics in
Using analytics to save Grevy’s zebra novel ways

Australian cardiologists using GIS 2 North East Water

technology
CHAPTER 6 Ethics and privacy
Know thy customer Big brother watching you work 1 Dunedin City Council blocks hate site
AFP and Australians’ private data 2 Google and China
CHAPTER 7 Information security
Hacktivists ‘Anonymous’ attack Small businesses in danger 1 An inside look at the Australian
Australian government websites government’s cyber security plans
Melbourne IT: an Australian 2 Compliance
internet success
SaaS and Cancer Council SA
CHAPTER 8 Social computing
Pinterest La Casa Ristorante’s Twitter dream 1 Facebook commerce
How tweeting has grown our 2 Tourism Australia’s social strategy
wine business
Buying a vehicle takes work!
So you want to find a job
Scientific discoveries via crowdsourcing
and online gamers

xiv Applications at a glance

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Applications at a glance (continued)

CHAPTER 9 E-business and e-commerce

IT’S ABOUT BUSINESS OPENING CASE > CLOSING CASE >
Sydney app ‘Ingogo’ Matt Barrie’s Freelancer.com 1 The new virtual economy of Bitcoin
David Jones building an online 2 Two Australians on the ‘up and up’
shopping presence
What to do about customer
‘showrooming’ practices?
New Zealander starting a wildfire
CHAPTER 10 Wireless, mobile computing and mobile commerce
Near-field communications helps Mobile technology changing IT service 1 A paperless airport
travellers in Japan delivery in Queensland’s outback 2 The battle for the mobile wallet
Free municipal wi-fi in Brisbane parks
Xero to hero — floating on a NZ cloud
Eco IT in Aus — animal telemetry data
collection
BP uses wireless technologies
Brazil uses smart meters
CHAPTER 11 Information systems within the organisation
Burra Foods expansion required Hog’s Breath Cafe and Imagatec 1 Information systems helping farmers
revamped ERP solution manage emissions
2 Hilton embraces collaboration with
information technology partners
CHAPTER 12 Extending the organisation to customers
7-Eleven social media strategy Business consultant CRM in the cloud 1 Competitive advantage using a
Tweet for immediate customer service concierge app

Google Helpout: real time customer 2 British Gymnastics

relationship support
CRM risk/return
CHAPTER 13 Extending the organisation along the supply chain
Energizer supply chain and technology The Kimberly Clark Australia supply 1 The computer that could cut fatality
Airbus moves to a smart supply chain chain story rates for truckies

Concrete ideas for sustainable business 2 IT helps Cannondale manage its

complex supply chain
CHAPTER 14 Acquiring information systems and applications
Atlassian helps manage large Learning from the Queensland Health 1 Tweak or trash?
software projects payroll fiasco 2 Smart technology in Western Australia
Virgin Australia’s reservation system information security group
GE Healthcare switches from
Waterfall to Agile

Applications at a glance xv
How to use this resource

Chapter outline/Learning objectives

1
Introduction to The chapter outline lists the major concepts covered in each chapter, while
information systems the learning objectives provide an overview of the key learning goals that
students should achieve after reading the chapter.

oPenIng CASe >

Learning from the Queensland Health payroll
fiasco

CHAPTER OUTLINE LEARNING OBJECTIVES

1.1 Why should I study information 1 Identify the reasons why being an informed user of information
systems? systems is important in today’s world.
1.2 Overview of computer-based 2 Describe the various types of computer-based information
information systems systems in an organisation.
1.3 How does IT impact organisations? 3 Discuss ways in which information technology can affect
managers and non-managerial workers.
1.4 Why are information systems important
to society? 4 Identify positive and negative societal effects of the increased
use of information technology.

The torturous implementation of Queensland Health’s payroll system will almost

certainly be remembered as one of the most disastrous IT projects in our country’s
history. What began as a $6.19 million contract between the state of Queensland
and IBM Australia to replace Queensland Health’s ageing payroll system eventually
led to over 35 000 payroll anomalies and will ultimately cost taxpayers $1.25 billion.
The project has been subjected to numerous reviews and a commission of inquiry
that saw a number of key IBM and QLD State Government personnel take the
stand.
OPENINg CASE >
Loyalty New ZealandA— reaping the big
Opening case
GROSS UNDERESTIMATION
data rewards The stunted progress of the implementation project that the state had spent two
years trying to roll out had a direct impact on Queensland Health, which was
originally scheduled to receive the new SAP‐based system in 2006 and was using
a decade‐old LATTICE payroll system at the time. With the supplier ending support

A short, real-world case focuses on a company from our local

for the LATTICE payroll system in July 2008, a decision was made in late 2007 by
Queensland Health and CorpTech to escalate the implementation of the Queensland
Health payroll system. That’s where IBM came into the picture, in what would be its
first project in a prime contractor role.

region using information systems to solve a business problem. The contract price negotiated for the design and implementation of the new payroll
system was $6.19 million. It was to be delivered in July 2008, the same month that
the support for the existing payroll system was scheduled to expire.

Cases in introductory information systems textbooks typically

The fact that Queensland Health, CorpTech and IBM agreed to a seven month
timeframe to deliver a payroll system with complex award structures that spanned
13 awards and multiple industrial agreements, and contained in excess of 24 000
different combinations of pay for 80 000 employees shows a gross underestimation

focus on multinational corporations. In contrast, our chapter of the project at hand. What is even more alarming is that according to the original
project documentation, a timeframe of only two weeks was allocated to determine
the business requirements and solution scope of the complex payroll project.

opening cases also demonstrate how small- and medium-sized

To put this in context, a similar payroll project took 12 months to scope and three
years to rollout at the privately run Mater hospital, which incidentally finished on

454 Managment information systems | First Australasian edition

enterprises address business problems using information systems.

Established in 1996 and based in Wellington and Auckland, Loyalty New Zealand
operates a FlyBuys loyalty program that recognises and rewards customers while
also offering over 50 participating businesses vital information concerning their
c14AcquiringInformationSystemsAndApplications.indd 454 29/04/14 10:34 PM
customers. The vision of Loyalty New Zealand is to create, maintain and motivate

The cases add an entrepreneurial flavour to each chapter for loyal customers for their business partners. With 75 per cent of New Zealand
households being active members of the FlyBuys program, transactional
information is systematically recorded at point-of-sale (POS) terminals when
customers use their FlyBuys card. This gives Loyalty New Zealand access to

students considering their own start-up business. rapidly growing, vast amounts of customer behaviour data. Loyalty New Zealand
is currently using big data to enhance the benefits and the value customers get
by using their cards. Big data refers to vast amounts of generally unstructured
and distributed customer information collected from various sources such as
transactional histories, customer feedback and surveys, social media applications,
mobile device activity and software logs which can be processed by using special
application software in order to obtain new insight concerning customer behaviour.
Using SAS software, Loyalty New Zealand are enhancing their ability to better
understand their customers by way of profiling, segmenting and analysing data in
order to target customers with meaningful offers and campaigns that aim at providing
the right offer to the right consumer at the right time. With SAS, Loyalty New Zealand
now can develop, scale and launch campaigns within a single day which is almost
20 times faster than before. Specifically, Loyalty New Zealand now has many new
capabilities, including the ability to carry out highly targeted campaigns, the ability
to model behavioural propensity of consumers and the ability to profile them on
the basis of the geographical area of residence and proximity to business outlets.
Customised recommendations can also be provided in real time to customers based
on continuously evolving individual product preferences. For example, recurring
patterns of purchases of baby products could be indicative of a new baby in the family
QUESTIONS of the cardholder, which can be used as a basis to offer types of complementary
1 Given that The Nook’s customers are university-aged Homo conexus users baby products or even information related to relevant promotional campaigns of
of technology, do you think it will be possible for them to be successful businesses that are partners of Loyalty New Zealand in the cardholder’s geographical
moving into the future without a strong IT strategy? area of residence. Recurring patterns of past purchases can also be used as a basis to
anticipate the types of products or services that customers might be likely to purchase
2 If ‘informed users’ provide more value to a company, can the same be said
of ‘informed customers’?
72 Managment information systems | First Australasian edition

1.2 Overview of computer-based

information systems
c03DataAndKnowledgeManagement.indd 72 29/04/14 10:22 AM

Organisations refer to their MIS functional area by several names, including the MIS
department, the information systems department, the information technology department
and the information services department. Regardless of the name, however, this functional
area deals with the planning for — and the development, management and use of — IT
tools to help people perform all of the tasks The Nook
related is a small cocktail
to information bar that
processing opened
and man- questions about technology. They have
agement. IT relates to any computer-based tool in 2005 after its
that people useowners,
to workMalakai and Abbie,
with information teamed up with your IT lecturer and designed
graduated from
and to support the information and information-processing university.
needs Throughout
of an organisation. questions to go along with the topics you
An IS collects, processes, stores, analyses their college years,
and disseminates they DJedfor
information together
a specifiand
c will be learning about in your information
purpose. In fact, the purpose of ISs is to get the right information to the right people at the and
earned business degrees in management systems course.
right time in the right amount and in the right marketing, respectively.
format. Because ISs are They decided
intended to put
to supply This apprenticeship is designed to
their collective
useful information, we need to differentiate between knowledge
information and twotogether and open
closely related accomplish two things. First, it will give
terms: data and knowledge (see figure 1.4). their own venue in Paddington, Sydney. Malakai and Abbie the benefit of learning
Data items refer to an elementary description The Nook of things, events,
has been veryactivities and trans-
successful. technology in a class that was not offered
actions that are recorded, classified and storedHowever,
but are not theorganised to convey
pair realise any specifi
that they can nowc when they were in university. Second, it
meaning. Data items can be numbers, letters, be fimore
gures,successful
sounds and byimages. Examples
collecting, of
analysing will give you the benefit of applying the
data items are a collection of numbers (e.g.and 3.11,using
2.96,the3.95,
data1.99,
that2.08) and characters
is available to textbook knowledge you learn to the real
(e.g. B, A, C, A, B, D, F, C). them. To do this, they need to upgrade world.
their infrastructure. This is the perfect time As this chapter states, your generation is
to upgrade everything because they have considered Homo conexus. This constant
recently closed for renovation. connectivity has to play a role in
Information technology (IT) was not even the restructuring of The Nook.
part of their degree structure when they were It is your job to help Malakai
in university, so they have not used much (if and Abbie understand exactly

The Nook
any) technology in their bar. While they are how this will look. As you read
considering its use as they restructure, they through the chapters, you
are not sure how much and in what ways will be provided with some
they should pursue the use of IT. discussion questions to help
To help them with the use of IT in The Nook, you consider the impact of
ISs on The Nook.

At the beginning of each chapter is a recurring case

Malakai and Abbie have hired you as an
IT apprentice to help answer many of their
Knowledge

When you graduate, either you will start your own business or you will go to
focusing on ‘The Nook’, a small Sydney cocktail bar run by
university graduates Malakai and Abbie. The Nook needs
work for an organisation, whether it is public sector, private sector, for profit, or not for
profit. Your organisation will have to survive and compete in an environment that has
been radically changed by information technology. This environment is global, mas-
Information
sively interconnected, intensely competitive, 24/7/365, real time, rapidly changing and

help redesigning its online presence and overhauling its

information intensive. To compete successfully, your organisation must use IT and IS
Figure 1.4 Binary code, the
foundation of information and effectively.
knowledge, is the key to making As the case illustrates, the core competency of business is not technology. Rather, it is
complex decisions. Data the company’s business model. However, the company is effectively using IT to support its

12 Managment information systems | First australasian edition

business model and thus to create a successful business.
As you read this chapter and this book, keep in mind that the information technol-
ogies you will learn about are important to businesses of all sizes. No matter what area of
technological infrastructure. Throughout the course of
the book, students are presented with a series of related
business you major in, what industry you work for, or the size of your company, you will
benefit from learning about IT. Who knows? Maybe you will have a great idea and use
c01IntroductionToInformationSystems.indd 12 29/04/14 2:29 AM
the tools you learn about in this class to make your dream a reality, much the way Ruslan
Kogan has!
The modern environment is not only intensely competitive for your organisation, but
for you as well. You must compete with human talent from around the world. Therefore,
you will also have to make effective use of IT.
business problems for them to solve as if they were on work
Accordingly, this chapter begins with a discussion of why you should become
knowledgeable about IT. It also distinguishes among data, information and knowledge,
and it differentiates computer-based information systems from application programs.
Finally, it considers the impacts of information systems on organisations and on society
experience at The Nook. Each chapter-opening scenario poses
a business challenge that students will be able overcome after
in general.

4 Managment information systems | First australasian edition

c01IntroductionToInformationSystems.indd 4 29/04/14 2:29 AM reading the chapter content.

xvi How to use this resource

IT’s About Business
IT’S ABOUT BUSINESS

Short cases that Xero to hero — floating on a NZ cloud

from the ground up for the cloud, not adapted from

demonstrate real-world desktop software’. The key features of Xero include

automatic bank account feeds, invoicing, accounts
payable, expense claims, fixed asset depreciation, and

applications of IT to
standard business and management reporting. Xero can
automatically import bank statements from thousands
of banks globally, including the major banks in the USA,
UK, New Zealand and Australia.

business in Australia Xero capitalised on their target market by recognising

that small business were willing to pay for software
applications but were not particularly well serviced by

and New Zealand. Each

massive software companies Oracle and SAP. ‘Some
accountants are paying tens of thousands of dollars for
tools to run their practice, what we are saying to them
Known as the ‘Apple of accounting’, Xero is an online
is come to Xero, bring your clients and we are going

case is accompanied
accounting software product designed specifically for
to let you run your practice on the cloud’, said Xero’s
small to medium sized businesses under a subscription
managing director Chris Ridd. The company is shaping
based model (often referred to as ‘SaaS’, Software as a
as a serious threat to QuickBooks’ and MYOB’s market

by a series of critical
Service). Xero CEO and founder Rod Drury describes the leading positions. Companies have reported hundreds of successful data-warehousing applications. For
cloud‐based business as ‘a global company that started example, you can read client success stories and case studies at the websites of vendors
Sources: Sydney Morning Herald (2013), ‘Xero value cracks $NZ2b mark’,
in New Zealand’. The company spent its first five years in such as Oracle (www.oracle.com) and Mark Gurry and Associates (www.mga.com.
www.smh.com.au/business/xero‐value‐cracks‐nz2b‐mark‐20130704‐2pd75.
New Zealand, which was a highly effective strategy as it au). For a more detailed discussion,
that had visit the Data Warehouse Institute Australia (tdwi.

thinking questions.
html; H McKenzie (2013), ‘Xero: a billion‐dollar software company
enabled Xero to gradually build a strong product while org/australia).
five years in stealth at the bottom of the planet’, The benefits
Pandodaily, of data warehousing include the following.
pandodaily.
com/2013/05/01/xero‐a‐billion‐dollar‐software‐company‐that‐had‐five‐years‐
flying under the radar of its main competitors. • End users can access needed data quickly and easily via web browsers because these
in‐stealth‐at‐the‐bottom‐of‐the‐planet; C Fitzsimmons (2013), ‘Stuart McLean
In October 2009 Xero was celebrating 12 000 customers, data are located in one place.
goes from Google to hero to Xero’, Business Review Weekly, www.
• End users can conduct extensive analysis with data in ways that may not have been pos-
brw.com.au/p/tech‐gadgets/stuart_mclean_goes_from_google_hero_
but they now have over 200 000 customers worldwide,
w8FY4THYCU7LccKp5WWwdP;sible before. (2013), ‘How Xero added 120
S Macpherson
surpassing the billion dollar mark in March 2013 with 000 customers in three years’, Box Free IT, boxfreeit.com.au/2013/03/29/how‐
• End users can obtain a consolidated view of organisational data.
its value eventually rising above $NZ2 billion later that xero‐added‐120000‐customers‐three‐years; www.xero.com/au.
These benefits can improve business knowledge, provide competitive advantage,
year. This rapid, exponential growth can be attributed
enhance customer service and satisfaction, facilitate decision making and streamline busi-
to an audacious market entry strategy which had at its QUESTIONS
ness processes. IT’s About Business demonstrates the benefits of data warehousing to the
core the goal to make accountants and bookkeepers an 1 How do the add‐onAustralian
apps differ from mobile
tourism apps?
business.
endorsement channel for the software. Xero executed 2 What are the advantages of a mobile accounting
perfectly on this plan — up to 60 per cent of Xero package such as Xero?
IT’S ABOUT BUSINESS
licenses are sold through this channel. 3 What add‐on apps should small businesses use?
According to its website, Xero is ‘an easy‐to‐use How data warehousing is supporting tourism
4 How could these add‐on apps improve small business
but powerful online accounting platform designed growth and profitability? business in Australia
the ATDW and the ATBW offer a cost-effective solution
for tourism business owners and operators, enhancing
the dissemination of tourism information electronically
Location‐based applications and services and online exposure by way of a rich and flexible content
M‐commerce B2C applications include location‐based services and location‐based appli­ in a central data warehouse that can be easily used to
cations. Location‐based mobile commerce is called location‐based commerce (or populate their websites. Presently, the ATDW includes
L‐commerce). over 33 000 tourism product listings that can be published
Location‐based services provide information that is specific to a given location. For across ATDW’s multi-channel partner distribution network.
example, a mobile user can (1) request the nearest business or service, such as an ATM Tourism business owners can experience a number of
or a restaurant; (2) receive alerts, such as a warning of a traffic jam or an accident; and benefits when they join the ATDW, including:20
(3) find a friend. Wireless carriers can provide location‐based services such as locating • enhanced cost-effective online marketing including
taxis, service personnel, doctors and rental equipment; tracking objects such as packages content dissemination through state, territory and
Tourism Australia sponsored websites
354 Managment information systems | First Australasian edition • efficient content distribution as business information
is supplied once to the ATDW and distributed to
The AustralianTourism Data Warehouse (ATDW) is
multiple partners
Australia’s national distribution platform for tourism
• the ATDW offers tourism business owners
c10WirelessMobileComputingAndMobileCommerce.indd 354 information16 that supports the growth of30/04/14
the tourism
12:07 AM
opportunities for information quality control
industry in Australia.17 ATDW was originally developed in
2001 as a joint effort ofTourism Australia and other state • increased exposure of tourism business through
and territory tourism organisations. It is a centralised licensed tourism distributors and through inclusion in
the most comprehensive tourism data warehouse in
storage and distribution facility for tourism products and
Australia
information. Data stored in the ATDW include tourist
attractions and destinations, events and guided tours, • effective and efficient participation in state and federal
sponsored tourism campaign initiatives.
accommodation and transportation18 using nationally
agreed data formatting standards.Tourism business In October 2013, ATDW also offered the Tourism e-Kit,21
owners and operators, wholesalers, retailers and which offers an online training course and educational
distributors can access ATDW and use it for their booking resource for Australian tourism businesses focusing on
the benefits of joining the ATDW and being online.
systems and websites. In 2013 the AustralianTourism
Booking Widget (ATBW)19 was launched by ATDW. It was
developed specifically for SMEs operating in the tourism QUESTIONS
industry that do not have online booking capabilities in 1 Why is it so important for tourism businesses to
order to enable them to enter the online tourism market integrate data in the ATDW?
supporting real-time online bookings and online payments 2 What are some potential disadvantages of
other members of the website — potentially including disgruntled customers or unethical from consumers and customer support services.Together, consolidating tourism data into one data warehouse?
competitors — to post notes on the firm’s Facebook wall or comment on what the firm
has posted.
But, if the company turns off the feature that lets others write on its wall, people ChApter 3 | Data and knowledge management 95
may wonder what the company is afraid of. The company will also be eliminating its
opportunity to have great customer conversations take place, perhaps marketing the firm’s
products and services better than it could do. Further, the company could delete posts, but
that only encourages the post author to scream louder about being censored. c03DataAndKnowledgeManagement.indd 95 29/04/14 10:22 AM

Another risk is the 20–80 rule of thumb, which posits that a minority of individuals
(20 per cent) contribute most of the content (80 per cent) to blogs, wikis, social computing
websites and so on. For example, in an analysis of thousands of submissions over a three‐
Before you go on…
week time frame to news voting site Digg, the Wall Street Journal reported that one‐third
of the stories that made it to Digg’s homepage were submitted by 30 contributors (out of
900 000 registered members). Other risks of social computing include:
• information security concerns
• invasion of privacy
These end-of-section reviews prompt students to pause and test their
BEfOrE • violation of intellectual property and copyright
yOU gO ON . . .
1 Differentiate between
• employees’ reluctance to participate
• data leakage of personal information or corporate strategic information
• poor or biased quality of users’ generated content
understanding of concepts before moving on to the next section.
electronic commerce • cyberbullying/cyberstalking and employee harassment.
and social commerce. Consider Rosetta Stone (www.rosettastone.com), which produces software for
2 Describe the potential language translation. To get the most mileage possible out of social computing, Rosetta
benefits of social Stone has a strategy to control its customer interaction on Facebook. The strategy involves
commerce to both human intervention and software to help monitor the firm’s Facebook presence.
customers and Specifically, the software helps to monitor wall posts and respond to them constructively.
vendors. Fans of facebook.com/RosettaStone who post questions on its wall are likely to get a
3 Why are companies so prompt answer because the Facebook page is integrated with customer service software
worried about negative from Parature (www.parature.com). The software scans wall posts and flags those Apply the Concept
posts on social that require a company response, as opposed to those that represent fans of the company Background
networking sites? Link talking among themselves. Rosetta Stone customer service representatives are also able to This chapter has described many theories and pointed out that information
your answer to the post responses to the wall that are logged in the Parature issue tracking database. overload is a very real problem today. The amount of data we can now collect is
capabilities of social Companies are engaged in many types of social commerce activities, which include amazing. Did you know that even your Facebook posts and tweets are data? What
computing. shopping, advertising, market research, customer relationship management, human about organisational data? Soon mobile commerce will allow companies to store
4 Describe several risks resource management and crowdsourcing. In the next sections of this chapter, you will GPS location, demographic data and purchase data to create customer profiles
associated with social learn about each social commerce activity. that will provide tonnes of digital data. Businesses will be able to use this in ways
computing. Other software such as HootSuite enables managing all your social networking from a that we cannot even imagine today. Companies like IBM, Oracle, SAP and SAS are
single web location. leading the way into this world by designing software to help manage this data.

Activity
Go to YouTube and search for ‘IBM why data matters’.

QUESTIONS Deliverable
As a consumer, how do you feel about your own privacy given that businesses
1 Would it be reasonable for The Nook to allow their patrons to easily post
collect massive amounts of data on your spending habits? How much is too much?
comments about bands, drinks, food and so on their website? What if
At what point would you like to disconnect? Could you? Do you think that people
someone said something negative?
in general have become too dependent on data? Could businesses go back to
2 Social computing comes with many risks as noted here in the text. operating with less knowledge?
What additional risks would be associated with alcohol sales and
Imagine that you were asked to provide a report about this issue to your local
social media?
member of parliament explaining the direction we are going and whether it is a
3 What if one of The Nook’s customers tagged a photo (on The Nook’s social
good thing or not.
media page) of someone else who appeared extremely intoxicated? On the
drive home, the intoxicated customer was in an accident but the breath
test indicated a blood alcohol level within the legal limit. Should the
content on The Nook’s social site be available for use in court against the
consumer who caused the accident? The business didn’t tag the photo or
authorise the tag. Is The Nook liable? QUESTIONS
1 How could IT help The Nook comply with
be described as legal requirements
a fairytale ending toand
thissocial
rapid growth Sources: S Mitra (2012), ‘From New Zealand to Silicon Valley: Victoria
responsibilities surrounding the the
salebusiness
of alcohol? Ransom’s Wildfire journey’, 29 March, www.sramanamitra.com; J Constin
story, was sold to Google in July 2012. (2012), ‘Google acquires Wildfire, will now sell Facebook and Twitter
262 Managment information systems | First Australasian edition 2 Drinks and music never become obsolete,
Since the right?
company’s How could
acquisition byThe Nook’s
Google, lack has
Victoria marketing’, TechCrunch, 31 July, techcrunch.com; V Ransom (2011),
of IT create the environment that makes
assumed them
the role appear obsolete?
of Director of Product Management for
‘Victoria Ransom, founder and CEO of Wildfire’, Inc., 3 August, www.inc.
com; Ernst & Young, ‘Announcing the 2011 Ernst &Young Entrepreneur of
3 The sheer number of possibilities
Wildfire. are creating overload for Malakai and the Year finalists’, www.ey.com.
Abbie before they even adopt any specific IT. How can technology be used
c08SocialComputing.indd 262 29/04/14 9:38 PM
to help them make a decision about the IT they choose to adopt?

The second major issue confronting e‐commerce is order fulfilment, which can create
BEfOrE problems for e-tailers as well. Any time a company sells directly to customers, it is involved
2.2 Competitive advantage
yOU gO ON . . .andinstrategic
various order fulfilment activities. It must perform the following activities: quickly find
the products to be shipped; pack them; arrange for the packages to be delivered speedily
information systems
1 Describe electronic to the customer’s door; collect the money from every customer, either in advance, by
storefronts
A competitive strategy is a statement that identifiesand COD,toorcompete,
malls. approach
a business’s by individual
its invoice; and handle the return of unwanted or defective products.
goals and the plans and policies that2will be required
Discuss to carry
various It is very
typesout those goals. 24 A difficult
strategy, to accomplish these activities both effectively and efficiently in B2C,
in general, can apply to a desired outcome,
of onlinesuchservices,
as gaining because
market share.
such A acompetitive
company has to ship small packages to many customers and do it quickly. For
strategy focuses on achieving a desired asoutcome this reason,
when competitors want
cyberbanking, to prevent companies
you involved in B2C activities often experience difficulties in their
from reaching your goal. Therefore, when securities
you createtrading, job
a competitive supplyyou
strategy, chains.
must plan
searches,
your own moves, but you must also anticipate andtravel In addition
counter your competitors’ moves.to providing customers with the products they ordered and doing it on
Through its competitive strategy, anservices
organisationand so time,advantage
on.a competitive
seeks order fulfilment
in the provides all related customer services. For example, the customer
industry in which it operates. That 3is, Discuss
it seeks online must receive
to outperform its competitors in a assembly
critical and operation instructions for a new appliance. In addition, if the
measure such as cost, quality, and time-to-market.
advertising, its Competitive customer
methods advantage helpsis not happy with a product, an exchange or return must be arranged. (Visit
a com-
pany function profitably within its market
and and www.fedex.com.au
generate larger-than-average
its benefits. profits. to see how returns are handled via FedEx.)

Apply the Concept

Competitive advantage is increasingly
4 Identify important
the major In the
in today’s business late 1990s, e-tailers faced continuous problems in order fulfilment, especially
environment,
as you will note throughout the book. In general,
issues relatingthe during
to core business the holiday
of companies has season. These problems included late deliveries, delivering wrong
remained the same. That is, information technologies simply offer tools
e-tailing. items,
thathigh
can delivery
enhance costs and compensation to unhappy customers. For e-tailers, taking
an organisation’s success through its5traditional
What aresources orders
of competitive
spamming, over the
advantage, suchinternet
as is the easy part of B2C e-commerce. Delivering orders to cus-
permission marketing tomers’ doors is the hard part. In contrast, order fulfilment is less complicated in B2B.

This book’s unique pedagogical structure is designed to keep

Thesecompetitive
| Organisational strategy,
and viral2 marketing?
ChApter transactionsadvantage
are muchand
larger, but they systems
information are fewer 51
in number. In addition, these com-
panies have had order fulfilment mechanisms in place for many years.

students actively engaged with the course material. Reading c02OrganisationalStrategyCompetitiveAdvantageAndInformationSystems.indd 51 Apply the Concept
Background
29/04/14 6:16 PM

At this point in your ‘buying’ career, you have probably bought something

content in each section is followed by an ‘Apply the Concept’

online, gone to an auction site and possibly won a bid, and engaged in some
form of online banking. Your generation is very comfortable with the retail side of
e-commerce. In the midst of this, you have probably created an account with a few
vendors and received some email advertisements. No doubt you have also seen

activity. These are a hands-on opportunity for students to some pop-up ads promoting products when you search for certain items.
Another thing that has changed is that companies now want you to do their
advertising for them. The text refers to this as viral marketing.

immediately apply what they have learned. Each feature has the Activity
Go online and source a company that has effectively implemented a viral
marketing campaign. Now imagine that you work for a restaurant that also has a

following progression: background (places the activity in the

catering business. The owner has never done much with email or Twitter and she is
looking for you to help develop a viral marketing plan for the restaurant.

Deliverable

context of relevant reading material), activity (a hands-on exercise)

Write an email and/or Twitter content that the business owner can ask her patrons
to share with others. Be sure to develop an incentive for the customers to share
and for those who receive the email to share it with others. Put some thought into
this based on your own experience. Try to create a ‘use and share’ feeling in your

and deliverable (various tasks for students to complete as they marketing collateral.

perform the activity).

314 Managment information systems | First Australasian edition

c09EbusinessAndEcommerce.indd 314 29/04/14 7:06 PM

How to use this resource xvii

 What’s in IT for me?
WHAT’S IN IT FOR ME?
FOR THE ACCOUNTING MAJOR
BI is used widely in accounting study as well as the workforce, because this
This unique end-of-chapter summary demonstrates the relevance of
each key chapter topic to different functional areas of a business degree,
technology is designed to analyse accounting and financial data from specific
systems; for example, ERP to assist top management in making decisions.
Additionally, BI will assist accountants and CPAs to develop easier solutions and
explanations in real time. Finally, BI is used extensively in auditing to uncover
irregularities. It is also used to uncover and prevent fraud. CPAs use BI for many of
their duties, ranging from risk analysis to cost control. including accounting, finance, marketing, human resources management
and management information systems. This cross-functional focus makes
FOR THE FINANCE MAJOR
Using BI in the finance sector will allow users to manage risk, especially in
projects, reduce ongoing costs, and maximise existing resources and expertise

the book accessible for students from any major.

by analysing the current operational processes and activities. Integrating these
applications in the finance and banking sectors will meet user satisfaction and
fulfilment and reduce the churn rate. Finally, people have been using computers for
decades to solve financial problems. Innovative BI applications have been created
for activities such as making stock market decisions, refinancing bonds, assessing
debt risks, analysing financial conditions, predicting business failures, forecasting
financial trends and investing in global markets.

FOR THE MARKETING MAJOR

Using BI in the marketing sector will allow users to collect, analyse, manage and
transform data and statistics by using statistical methods and financial analysis and
marketing. Using these applications in study as well as business will allow users to
have the fundamental and foundation skills in database systems, data visualisation,
business modelling and managerial leadership. Finally, marketing personnel utilise
BI in many applications, from planning and executing marketing campaigns to
allocating advertising budgets to evaluating alternative routings of salespeople.
New marketing approaches such as targeted marketing and database marketing are
heavily dependent on IT in general, and on data warehouses and BI applications in
particular.

FOR THE HUMAN RESOURCES MANAGEMENT (HRM) MAJOR

BI is used in HRM to analyse and transmute information in HRM and other
departments. This information will assist in solving problems and providing an
effective and efficient decision to managers as well as employees. Using these
applications and tools in HRM will assist organisations to develop, manage change
and make organisations more unique and exceptional in the market. Finally, human
resources personnel use BI for many of their activities. For example, BI applications
can find résumés of applicants posted on the web and sort them to match needed
skills and to support management succession planning.

FOR THE MIS MAJOR

BI is used widely in the MIS major, as BI is a set of theories, methodologies and
technologies, and MIS provides the data infrastructure used in BI.
MIS personnel are also involved in building, deploying and supporting BI
applications. Using BI in any sector, including information systems, will bring
new opportunities and apply a successful strategy in a competitive and economic
market advantage.

172 Managment information systems | First Australasian edition FOR THE MIS MAJOR
The MIS function is responsible for the most fundamental information systems in
organisations: the transaction processing systems. The TPSs provide the data for
c05BusinessIntelligence.indd 172 30/04/14 10:10 AM
the databases. In turn, all other information systems use these data. MIS personnel
develop applications that support all levels of the organisation (from clerical to
executive) and all functional areas. The applications also enable the firm to do
business with its partners.

SUMMARY SUMMARY
1 explain the purpose of transaction processing > ERP systems integrate organisational resources,

Aligned to the learning objectives listed at the beginning of systems.

TPSs monitor, store, collect and process data
resulting in significant improvements in the quality
of customer service, production and distribution.
generated from all business transactions. These data The major drawbacks of ERP systems include the
the chapter, the summary enables students to review the provide the inputs into the organisation’s database.
2 explain the types of support information systems can
following.
> The business processes in ERP software are often

major concepts covered.

provide for each functional area of the organisation. predefined by the best practices that the ERP
The major business functional areas are production/ vendor has developed. As a result, companies may
operations management, marketing, accounting/ need to change existing business processes to fit
finance and human resources management. the predefined business processes of the software.
Figure 11.3 provides an overview of the many For companies with well‐established procedures,
activities in each functional area supported by FAIS. this requirement can be a huge problem.
3 Identify advantages and drawbacks to businesses of > ERP systems can be extremely complex, expensive
implementing an erP system. and time‐consuming to implement. In fact, the
Enterprise resource planning (ERP) systems integrate costs and risks of failure in implementing a new
the planning, management and use of all of the ERP system are substantial.
organisation’s resources. The major objective of
4 Discuss the three major types of reports generated by
ERP systems is to tightly integrate the functional
the functional area information systems and
areas of the organisation. This integration enables
enterprise resource planning systems, providing
information to flow seamlessly across the various
functional areas. examples of each type.
Routine reports are produced at scheduled intervals.
The major benefits of ERP systems include the
They range from hourly quality control reports to
SUMMARY following.
> Because ERP systems integrate organisational
daily reports on absenteeism rates.

resources, they make organisations more flexible, Out‐of‐the routine reports are called ad‐hoc (on‐
1 Compare and contrast the two major types of 4 explain the impact that networks have had on demand) reports. For example, a chief financial officer
agile and adaptive. The organisations can therefore
networks. business and everyday life for each of the six major might want to monitor cash flow and cash on hand.
react quickly to changing business conditions and
The two major types of networks are local area categories of network applications. capitalise on new business opportunities. Exception reports include only information that falls
networks (LANs) and wide area networks (WANs). > Discovery involves browsing and information > ERP systems provide essential information on outside certain threshold standards. An exception
LANs encompass a limited geographic area and are retrieval, and provides users the ability to view business performance across functional areas. report might identify only those cases where sales fell
usually composed of one communications medium. information in databases, download it and/ This information significantly improves managers’ outside an established threshold — for example, more
In contrast, WANs encompass a broad geographical or process it. Discovery tools include search ability to make better, more timely decisions. than 20 per cent short of the quota.

area and are usually composed of multiple engines, directories and portals. Discovery tools
communications media. enable business users to efficiently find needed >>> CHAPTer gLOSSArY
2 Describe the wireline communications media and information. ad-hoc (on-demand) reports Non-routine reports that computer-integrated manufacturing (CIM) An
often contain special information that is not included in information system that integrates various automated
channels. > Networks provide fast, inexpensive
routine reports. factory systems; also called digital manufacturing.
Twisted-pair wire, the most prevalent form of communications, via email, call centres,
drill-down reports Reports that show a greater level of
communications wiring, consists of strands of copper chat rooms, voice communications and batch processing Transaction processing system (TPS)
detail than is included in routine reports.
wire twisted in pairs. It is relatively inexpensive to blogs. Communications tools provide business that processes data in batches at fixed periodic intervals.
enterprise application integration (eAI) system A system
purchase, widely available and easy to work with. users with a seamless interface among team comparative reports Reports that compare performances that integrates existing systems by providing layers of
However, it is relatively slow for transmitting data, it members, colleagues, business partners and of different business units or times. software that connect applications together.
is subject to interference from other electrical sources customers.
and it can be easily tapped by unintended receivers. > Collaboration refers to mutual efforts by two or ChAPTer 11 | Information systems within the organisation 393

Coaxial cable consists of insulated copper wire. It is more entities (individuals, groups, or companies)
much less susceptible to electrical interference than who work together to accomplish tasks.
is twisted-pair wire and it can carry much more data. Collaboration is enabled by workflow systems. c11InformationSystemsWithinTheOrganisation.indd 393 30/04/14 12:00 AM

However, coaxial cable is more expensive and more Collaboration tools enable business users to
difficult to work with than twisted-pair wire. It is also collaborate with colleagues, business partners and
somewhat inflexible. customers.
Fibre-optic cables consist of thousands of very thin > E-learning refers to learning supported by the web.
filaments of glass fibres that transmit information via Distance learning refers to any learning situation in
light pulses generated by lasers. Fibre-optic cables which teachers and students do not meet face-to-
are significantly smaller and lighter than traditional face. E-learning provides tools for business users
cable media. They also can transmit far more data, to enable their lifelong learning.
and they provide greater security from interference > Online universities offer online courses in which
and tapping. Fibre-optic cable is often used as the students take classes via the internet at home
backbone for a network, whereas twisted-pair wire or an off-site location. Online universities make
and coaxial cable connect the backbone to individual it possible for students to obtain degrees while
devices on the network. working full time, thus increasing their value to
3 Describe the most common methods for accessing their organisations.
the internet. > Telecommuting is the process whereby knowledge
Common methods for connecting to the internet workers are able to work anywhere and anytime.
include dial-up, DSL, cable modem, satellite, wireless Telecommuting provides flexibility for employees,
and fibre to the premises. with many benefits and some drawbacks.

>>> CHaPTer glOSSarY

affinity portal A website that offers a single point of broadband A transmission speed ranging from
entry to an entire community of affiliated interests. approximately one megabit per second up to several
terabits per second.
analogue signals Continuous waves that transmit
information by altering the amplitude and frequency of broadcast media (also called wireless media)
Communications channels that use electromagnetic
the waves.
media (the ‘airwaves’) to transmit data.
backbone networks High-speed central networks to
browsers Software applications through which users
which multiple smaller networks (such as LANs and primarily access the web.
smaller WANs) connect.
bandwidth The transmission capacity of a network,
cable media (also called wireline media)
Communications channels that use physical wires or
Chapter glossary
stated in bits per second. cables to transmit data and information.

ChApter 4 | Telecommunications and networking 143

This study tool highlights vocabulary within the
chapters and facilitates student revision.
c04TelecommunicationsAndNetworking.indd 143 30/04/14 11:17 AM

xviii How to use this resource

 risk acceptance A strategy in which the organisation strong passwords Passwords that are difficult to guess;
accepts the potential risk, continues to operate with no longer rather than shorter; contain uppercase and
controls and absorbs any damages that occur. lowercase letters, numbers, and special characters; and
risk analysis The process by which an organisation are not a recognisable word or string of numbers.
assesses the value of each asset being protected, threat Any danger to which an information resource
estimates the probability that each asset might be may be exposed.
compromised and compares the probable costs of each
transport layer security (tLS) An encryption standard
being compromised with the costs of protecting it.
used for secure transactions such as credit card
risk limitation A strategy in which the organisation
purchases and online banking.
limits its risk by implementing controls that minimise the
impact of a threat. trap doors (see back door)

Discussion questions and problem-solving

risk management A process that identifies, controls and trojan horse A software program containing a hidden
minimises the impact of threats, in an effort to reduce function that presents a security risk.
risk to manageable levels. tunnelling A process that encrypts each data packet
risk mitigation A process whereby the organisation to be sent and places each encrypted packet inside

activities
>>> PrObleM‐SOlViNg aCTiViTieS
takes concrete actions against risks, such as another packet.
implementing controls and developing a disaster virtual private networkor (VpN)
1 A critical problem is assessing how far a company is 4 Enter www.biometricsinstitute.org/ www.A private network that
recovery plan. uses a public network (usually the internet) to securely
legally obligated to go in order to secure personal alltrustnetworks.com and other vendors of biometrics.
risk transference
is no suchAthing process in which the organisation connect
data. Because there as perfect Find the devices theyusers
makeby using
that can encryption.
be used to
security (i.e.,transfers the riskmore
by using
that other
can bemeans
done),to compensate

These features provide practice through active learning. The

there is always virus
control access intoMalicious
information computer
systems.code that can
Prepare attach itself to
a list
resolving this forquestion
a loss, such as by purchasing
can significantly affectinsurance.
cost. (or ‘infect’)
of products and other computer
major capabilities programs without the owner
of each.
a When areSCADA security(Supervisory
measures that Control and Data
a company of the
5 Software piracy is aprogram being aware
global problem. of the
Access the infection.
implements Acquisition)
sufficient to Large-scale,
comply with distributed,
its measurement and
voice recognition The user speaks a phrase that has

exercises are hands-on opportunities to apply the concepts

control systems used to monitor or to control following websites:
chemical, ww2.bsa.org and www.microsoft.
obligations?
physical, or transport processes. been can
com/piracy. What previously recorded
organisations dounder controlled,
to mitigate this monitored
b Is there any way for a company to know if its conditions and the voice recognition system matches the
problem? Are some organisations dealing with the
security The
security measures degree of protection
are sufficient? Can you deviseagainst a criminal
twothan
problem better voice signals.
others?
method for activity, danger, damage
any organisation and/or loss.
to determine if its

discussed in the chapter. security measures

2 Assume thatname
earthquake in
signatureare
the daily
one
sufficient?The user signs his or her
recognition
and probability
the systemof
previously
Brisbane recorded
is .07
matches
a majorthis signature with
per cent.under controlled,
The chance
vulnerability
6 Investigate the
resource
occurred in April
a What typewarm
of monitored site was
of attack
The possibility
Sony Playstation

A site
Network that
hackan
2011.will suffer harm by a threat.
information
that

it? that provides many of the same

your computer conditions.
centre being damaged during such a servicesofand
b Was the success theoptions of a hot of
attack because site but does not include
quake is 5 per cent.engineering
social If the centreGetting
is damaged,
around thesecurity systems by the
technology company’s
problems applications.
at Sony, management
average estimated
trickingdamage
computer willusers
be $4inside
million.
a company into revealing
problems whitelisting
at Sony, or aAcombination
process in which a company identifies
of both?
a Calculate sensitive
the expected loss in dollars.
information or gaining unauthorised access acceptable
Provide specific software
examples and permits
to support it to run, and either
your answer.
privileges.
b An insurance agent is willing to insure your facility prevents anything
c Which Sony controls failed? else from running or lets new
for an annual
spam feeUnsolicited
of $25 000.email.
Analyse the offer and software run in a quarantined environment until the
d Could Sony have prevented the hack? If so, how?
discuss whether to accept it. company can verify its validity.
spamware Alien software that uses your computer as a
3 Enter www.scamwatch.gov.au. Find out what the e Discuss Sony’s response to the hack.
launch platform for spammers. worm Destructive computer code that replicates itself
organisation does. Learn about email frauds and f Describe the damages that Sony incurred from the
spyware Alien software that can record keystrokes and/ without requiring another program to provide a safe
website scams. Report your findings. successful hack.
or capture passwords. environment for replication.

>>> COllabOraTiON eXerCiSe

>>> DiSCuSSiON QueSTiONS
Background thing and managing its own systems. Everyone needs
1 Why are computer systems so vulnerable? 7 Discuss why the corporate governance of IT is having
This chapter has shown the importance of information help and direction from an expert and the group of vice
2 Why
security. The ‘What’s In should information
IT For Me?’ section security be of prime concern
illustrated an impact on information security.
presidents has agreed that you need a CIO.
the different ways to management?
each business area needs to be 8 What types of user authentication are used at your
Deliverable
3 Is
aware of security. In security
some casesa technical issue?
there are A business issue? Both?
government
>>> PrObleM‐SOlViNg aCTiViTieS Provide
regulations, in others therea are
rationale for your
strategic, answer.
logistical, or
Write an executiveuniversity
summary and/or
authentication
place of work?
that accompanies
measures
an Do these
seeminclude
to be effective? What if
imaginary full report. The imaginary report would a
technical reasons4 for needing
Compare security. security in an organisation with
information
1 A critical problem is assessing how far a company is 4 Enter www.biometricsinstitute.org/ or www. a higher
full description of how level
the CIO of authentication
would were implemented?
help each functional
Activity insuring a house.
Would
area, so the executive it be worth
summary it, or would
will include it decrease
the highlights
legally obligated to go in order to secure personal alltrustnetworks.com and other vendors of biometrics. Divide your team 5 into
Whyfunctional
are authentication andone
areas. Assign authorisation
person important to
of what this position would mean to you. Have each team
productivity?
data. Because there is no such thing as perfect e‐commerce?
to each of the following: vice‐president of accounting,
Find the devices they make that can be used to vice‐president of of human expandingmember research
9 from
Why his
areor her respective
federal government position why so worried
authorities
6 finance,
Why is vice‐president
cross‐border cybercrime rapidly?
security (i.e., there is always more that can be done), control access into information systems. Prepare a list resources and vice‐president of production.
Discuss possible Imagine that
solutions.
you need a CIO to help maintain information security.
about SCADA attacks?
resolving this question can significantly affect cost. of products and major capabilities of each. your chief executive officer (CEO) is really having a hard Finally, submit your executive summary to your tutorial
time understanding why you need to invest in a chief group. For help formatting your executive summary,
ChApter 7 | Information security 239
a When are security measures that a company
5 Software piracy is a global problem. Access the information officer (CIO) to oversee your information search Google for ‘executive summary template’. You will
implements sufficient to comply with its systems. Right now each department is doing its own find many examples there to help you.
following websites: ww2.bsa.org and www.microsoft.
obligations?
com/piracy. What can organisations do to mitigate this c07InformationSecurity.indd 239 29/04/14 6:26 AM

b Is there any way for a company to know if its CLoSIng CASe 1 >
problem? Are some organisations dealing with the
security measures are sufficient? Can you devise a
problem better than others? An inside look at the Australian government’s cyber security plans
method for any organisation to determine if its
security measures are sufficient? 6 Investigate the Sony Playstation Network hack that It is no longer an option to be complacent about From governments to religious organisations, global
securing computer networks. There is growing evidence enterprises to small business owners, everyone has
2 Assume that the daily probability of a major occurred in April 2011. that groups such as Anonymous, state‐based actors been a victim of these types of attacks. The motives of
earthquake in Brisbane is .07 per cent. The chance of a What type of attack was it? and individuals are intent on stealing valuable data or attackers range from a self‐deluded intention of doing
causing disruption to computer‐based services. good for society, to monetary or political gain or for no
your computer centre being damaged during such a b Was the success of the attack because of
quake is 5 per cent. If the centre is damaged, the technology problems at Sony, management 240 Managment information systems | First Australasian edition
average estimated damage will be $4 million. problems at Sony, or a combination of both?
a Calculate the expected loss in dollars. Provide specific examples to support your answer.
b An insurance agent is willing to insure your facility c Which Sony controls failed?
c07InformationSecurity.indd 240 29/04/14 6:26 AM

for an annual fee of $25 000. Analyse the offer and

d Could Sony have prevented the hack? If so, how?
discuss whether to accept it.
3 Enter www.scamwatch.gov.au. Find out what the e Discuss Sony’s response to the hack.
organisation does. Learn about email frauds and f Describe the damages that Sony incurred from the
website scams. Report your findings. successful hack.

>>> COllabOraTiON eXerCiSe COLLABORATION EXERCISEs

Background thing and managing its own systems. Everyone needs
This chapter has shown the importance of information
security. The ‘What’s In IT For Me?’ section illustrated
help and direction from an expert and the group of vice
presidents has agreed that you need a CIO.
These are team exercises that require students to take on
the different ways each business area needs to be
aware of security. In some cases there are government
regulations, in others there are strategic, logistical, or
Deliverable
Write an executive summary that accompanies an different functional roles and collaborate to solve business
imaginary full report. The imaginary report would include a

problems. The activities give students first-hand experience

technical reasons for needing security.
full description of how the CIO would help each functional
Activity
area, so the executive summary will include the highlights
Divide your team into functional areas. Assign one person

solving business problems using IS tools while also

of what this position would mean to you. Have each team
to each of the following: vice‐president of accounting,
vice‐president of finance, vice‐president of human member research from his or her respective position why
resources and vice‐president of production. Imagine that you need a CIO to help maintain information security.
your chief executive officer (CEO) is really having a hard
time understanding why you need to invest in a chief
Finally, submit your executive summary to your tutorial
group. For help formatting your executive summary,
experiencing an authentic team environment.
information officer (CIO) to oversee your information search Google for ‘executive summary template’. You will
systems. Right now each department is doing its own find many examples there to help you.

CLoSIng CASe 1 >

An inside look at the Australian government’s cyber security plans
It is no longer an option to be complacent about
Deliverable think customers are becoming smarter about what
From governments to religious organisations, global
securing
Work computer
with your team to preparenetworks.
a short paperThere is growing
they share?evidence enterprises
Do social media have to small business owners, everyone has
the best interest
that highlights the major issues and trends you of their users in mind? Put some thought into these
that groups such as Anonymous, state‐based
have found. Do you think companies are moving
actors been a victim of these types of attacks. The motives of
issues, prepare your paper and submit it to your tutorial
andprotecting
toward individuals aredata?
customers’ intent
Do youon stealing valuable
group. data or attackers range from a self‐deluded intention of doing
causing disruption to computer‐based services. good for society, to monetary or political gain or for no

CLOSINg CASE 1 >

240 Managment information systems | First Australasian edition
Dunedin City Council blocks hate site
The Dunedin City Council internal network web content to be offensive, resulting in the site being added to the
filter has deemed that the Family First New Zealand banned list. However, he was confident that none of the
Christian lobby group’s ‘Protect Marriage’ website, administrators or owners of the website had previously
c07InformationSecurity.indd 240 29/04/14 6:26 AM
advocating traditional marriage values, is a ‘hate’ site done anything that could be construed as offensive
and blocked access for all council staff. The website or ‘hate’ related, but Family First should provide the
promotes marriage between a man and a woman. The evidence to support their claim.
council’s action has raised the ire of the Family First Council staff were still able to access gay marriage
director, who claimed that the action was discriminatory websites and at least two other websites ‘blacklisted’ by
and the result of an alternative agenda being pushed by web filters at other companies. Family First went on to
someone at the council or the content filter company. claim that it was inconsistent and highly hypocritical that
This action occurred during the sometimes heated public one side to the gay marriage debate was blocked, but not
debate surrounding legislation to legalise ‘gay’ marriage the other. It was apparent that this was discrimination
being introduced to the New Zealand parliament. The at its worst and the council seemed to be initiating and
Family First NZ group, who opposes the legislation, imposing its own version of the hate speech laws.
claimed that this incident further demonstrated the extent In response the council spokesperson outlined that if
that activists were willing to go to eliminate all opposing sites promoting gay marriage had not been blocked or
debate about this important family issue. Family First NZ picked up by the same filter, it was because no offending
believes that this is part of the ‘culture wars’ surrounding words or phrases were used that placed them in the
this issue and went on to claim that they had experienced same category and therefore they were not blocked. If
unprecedented hacking of their website since they first council staff members wanted to fill out the Family First
launched their campaign against this legislative bill. petition then they could do so at home, but they would
In response the Dunedin City Council said that they not unblock the site from the council network as it was
were not aware of any decision to intentionally block not a work‐related website anyway.
the website. The Family First lobby group was contacted Following on from this incident, the Dunedin City Council
by a Dunedin City Council staff member who indicated chief executive ordered a review of the organisation’s
that they were surprised when they tried to access policy on non‐work related internet usage during work
the group’s petition against the Labor Party Bill to gay hours after discovering that staff were also accessing
marriage, and that the siteby
used was
thedeemed a ‘hate’
ACBPS will website
continue to become
onlinethe norm sites ‘Big
auctions anddata
other non‐work
generating related
interest but few sites.
deployments’, Redmond Magazine,
and therefore contravened the Dunedin
for companies Citythe
around Council’s
world, leading to improved
After
24 September, redmondmag.com/articles/2013/09/24/big-data-generating-
having studied the council’s policy on acceptable
interest.aspx; ‘Gartner survey reveals that 64 percent of organizations
acceptable usage policy.
decision making and competitive success. internet usage, the chief executive thought that there
have invested or plan to invest in big data in 2013’, Gartner website,
The council’s communications and marketing manager was a lack of sufficiently clear guidelines for managers
www.gartner.com/newsroom/id/2593815; S Siewert (2013), ‘Big data in
Sources: Compiled from S Lohr (2012), ‘The age of big data’, The New the cloud: Data velocity, volume, variety, veracity’, IBM developerWorks,
later explained that the council
York Times, 11did not control
February; ‘Volume,thevelocity,
filtering and you
variety: what staff in to
need a public organisation with regard to non‐
9 July, www.ibm.com/developerworks/library/bd-bigdatacloud/bd-
process, which was done
knowby a United
about big data’States‐based workE Dumbill
(2012), O’Reilly Media, 19 January; related(2011),
internetbigdatacloud-pdf.pdf;
usage. H Barwick (2013), ‘Australian Customs uses big
‘Five big data
company. When the company waspredictions
employed, for 2012’,
the O’Reilly
councilMedia, 14 December; ‘IDC data to assess visitors’, CIO, 27 August, www.cio.com.au/article/524794/
Sources: Dunedin City Council,
Digital University Study 2011’ (2011), www.emc.com/collateral/demos/ Dunedin City Council — latest news, www.
australian_customs_uses_big_data_assess_visitors/; D Braue (2013),
outlined the broad categories of offensive content that it dunedin.govt.nz/your‐council/latest‐news/august‐2012; D Porteus
microsites/emc-digital-universe-2011/index.htm; J Enriquez (2011), ‘The ‘Customs’ big data passenger analysis(2012),
respects Australian, EU privacy
wanted limited. Based on of
glory these categories
big data’, the company’s
Popular Science, ‘Council
November; R Pacella web‘Where
(2011), filter blocks marriage
controls’,site
CSO,as “hate”’, Otago
27 August, Daily Times,
www.cso.com.au/article/524806/customs_
datascanned
web filter automatically lives’, Popular
sitesScience, November;
for words D McCafferty
or phrases 23(2010),
August, www.odt.co.nz/news;
‘The big D Porteus (2012), ‘DCC revisits staff
big_data_passenger_analysis_respects_australian_eu_privacy_controls;
data conundrum’, CIO Insight, 9 November; D Henschen internet use‘Big
(2011), figures’,
data’,OtagoBDaily Times,(2013),
Karlovsky 24 August, www.odt.co.nz/news;
‘Big Data deployed to protect our borders’, ARN, 28
and placed those thatInformationWeek,
were deemed 10 offensive into those
October; M Korn and S Tibken D Porteous
(2011), (2012), ‘Review August,
‘Fumbling of internet use “a priority”’, Otago Daily Times,
www.arnnet.com.au/article/524933/big_data_deployed_protect_
categories.These sites were
over then
data’, blocked
The Wall Streetfrom access.
Journal, 3 October; R King 25(2011),
August, www.odt.co.nz/news.
‘Getting a our_borders; S Sweeney (2013), ‘Australia secures borders with big
handle on big data with Hadoop’, Bloomberg BusinessWeek, 7 September; data tools’, futureGOV Asia Pacific, 2 September, www.futuregov.asia/
The council’s spokesperson further stated that they
D Henschen (2010), ‘What’s at stake in the big data revolution?’,
could not say why the Protect Marriage
InformationWeek, siteSwas
18 August;
QueSTiONS
Nunziata (2010), ‘Business analytics:
articles/2013/sep/02/australia-secures-borders-big-data-tools.

blocked, except that turning

the action
IP intomay have been
opportunity’, the 17 August; D
CIO Insight, 1 Henschen
Discuss(2010),
the ethical dilemma of internet usage at work.
‘The big data era: how data strategy will change’, InformationWeek, 7 QUESTIONS
result of someone leaving a comment on the site, or Is it ethical for an employer to monitor their staff’s
August; M Loukides (2010), ‘What is data science?’, O’Reilly Media, 2 June;
using language in a ‘Data,
manner 1 Iswhile
big data really a problem on its own, or are the use,
data determined by the
everywhere’ (2010), The filter usage
Economist, 25 February; of the internet
D Bollier at work?
(2010), ‘The promise and peril of big data’, The Aspen Institute, 1 January; control and security of the data the true problem?
T Davenport, J Harris and R Morison (2010), ‘Analytics at work: smarter Provide specific examples to support your answer.
decisions, better results’, Harvard Business Press; ‘Big data — it’s not just
198 Managment information
for Google anymore’| (2010),
systems First Australasian editionNestlé website, www.
AMD White Paper; 2 What are the implications of having incorrect data
nestle.com; IBM website, www.ibm.com; A Romanov (2013), ‘Putting points in your big data? What are the implications of
a dollar value on big data insights’, Wired, www.wired.com/2013/07/ incorrect or duplicated customer information? How
putting-a-dollar-value-on-big-data-insights; Oracle (2013), Oracle: Big
data for the enterprise: an Oracle white paper, June, www.oracle.com/us/ valuable are decisions that were made based on
c06EthicsAndPrivacy.indd 198 products/database/big-data-for-enterprise-519135.pdf; K Mackie (2013), 30/04/14
faulty information derived from incorrect 10:16 AM
data?

CLOSINg CASE 2 >

Closing cases
How Nimble is affecting the short-term micro lending
industry in Australia
THe PrOBLeM loan application processes by evaluating credit profiles
Each chapter concludes with two cases about business problems faced
The short-term lending services industry in Australia is objectively by way of automatically triangulating multiple
characterised by a general lack of customer-focus which is
inconsistent with customer expectations. Today customers
expect individualised and quick service. However,
sources of data and online behaviour. That is, the Nimble
system computes a score for each submitted application
by analysing Dun & Bradstreet credit histories, reported
income data and behavioural data as the application form
by actual Australian, New Zealand and global companies, outlining
how they have used IS tools to solve those issues. The cases are
according to the findings of a recent Gallup survey 66 per
is filled in. Behavioural data includes data concerning how
cent of retail banking customers indicate that their banks
fast applicants type information in their application, how
sent to them offers that were ‘too generic’ and over half
they move through the form, how they use the mouse,
were receiving offers for products which they already had.
whether they delete characters, use of capital letters and

broken down into four parts: a description of the problem, an overview

Additionally, the current business model of most lending
how they arrive at the Nimble website. Taken together, this
service providers including credit card companies appears
data is processed using complex mathematical algorithms
to be based on profit generation when borrowers are to evaluate whether applicants are likely to repay or
unable to repay their loans. default on their loans, or even if they are defrauding,

of the IS solution implemented, a presentation of the results of the

THe iT SOLuTiON thereby informing Nimble’s loan approval decisions. In the
Queensland-based short-term lender Nimble (www. process, Nimble is impacting the industry by promoting a
nimble.com.au) is addressing these problems in the short- business model that focuses on responsible lending.
term micro lending industry using big data. Originally, THe reSuLTS
known as Cash Doctors, Nimble was established in 2005
by Sean Teahan and Greg Ellis. The big data-based Nimble
system analyses both credit history and behavioural
Nimble operates completely online, with the entire
application taking approximately 5 minutes. With the
big data technology used, Nimble can approve a loan in
implementation and an analysis of the key take-aways from the case.
data to assess an applicant’s capacity to repay a loan. as little as 11 seconds with current default rates being
Specifically, the Nimble system is a self-learning
profiling technology that streamlines and strengthens
approximately 4.5 per cent. By October 2013, Nimble had
approved over 400 000 loans of up to $1200. Each case is followed by discussion questions so that students can
further explore the concepts presented in the case.
106 Managment information systems | First Australasian edition

c03DataAndKnowledgeManagement.indd 106 29/04/14 10:22 AM

How to use this resource xix

 Spreadsheet activity
SPrEADSHEET ACTIVITy PrOTeCTiNg iNFOrMATiON iN A SPreADSHeeT
OBJeCTiVe
You will learn how to lock and protect spreadsheets to
keep private information protected. You will also learn
happen again, the university is asking the group to show
evidence that the spreadsheet is locked and will only be
seen by those approved to deliver the T‐shirts within the
Every chapter contains a hands-on spreadsheet project that requires students
to practise their Excel skills while using the concepts learned in the chapter.
the difference between a ‘protected’ spreadsheet and a union group.
secure database. As a member of those approved by the university to
Chapter connection manage this information, your job is to take the data
Ethics are a difficult subject in information systems. The collected by the Google Survey and move private
tighter you keep a system, the less useful it is. However,
the more freely you allow people to access data, the
more privacy issues you have on your hands. The object
information to the private page and lock it so that it cannot
be used to exploit students. You will need to use your own
judgement to determine which information needs to be
Each activity includes deliverables and discussion questions.
of this exercise is to help establish the necessary balance moved to the private, locked page of the spreadsheet.
between ethics, privacy and data usefulness. Go to www.johnwiley.com.au/highered/rainer/ausnz/
ACTiViTY studentresources to download the Excel file you will
Recently, a student union group made plans to host a need. Then watch the accompanying video to learn how
party and took reservations for T‐shirt orders. One of to make a spreadsheet secure.
the members was an MIS student who had set up a DeLiVerABLe
Google Survey for the orders and had exported all of The final product will be a spreadsheet with the survey
the data into a spreadsheet. The data included name, data in a spreadsheet with the single page of data
address, shirt size, address, phone number and so on. divided between a secure page and an ‘open’ page.
The university has asked the union to keep this data DiSCuSSiON QueSTiONS
confidential due to problems in the past. 1 How can a spreadsheet be helpful if it is so easy to
Specifically, a year earlier, the same data were stored secure and hack?
in an unsecured spreadsheet that was emailed around 2 Are Google spreadsheets more secure than Excel
the union. One of the members took some of the spreadsheets?
information and used it to exploit and make fun of a 3 If a sheet needs to be ‘very hidden’, then why not go
physically larger member. To ensure that this does not ahead and delete it?

DATABASE ACTIVITy FiLTeriNg AND SOrTiNg

OBJeCTiVe exactly the rows you want. The techniques are simple,
In this activity, you will learn how to select only the but will be useful often.
useful rows of a table, hiding the others and sort a table The database you may have used with the chapter 4
on any column in it. A database is useless if you cannot activity has information a company might use to track
get information out of it. Access offers many ways to problems with network equipment. Its central element SPrEADSHEET ACTIVITy PrOTeCTiNg iNFOrMATiON iN A SPreADSHeeT
do that. Some are simple but limited. Others are more is the trouble ticket. A ticket is submitted by a user, OBJeCTiVe happen again, the university is asking the group to show
capable but require more work. Filtering and sorting a who works in a department, and refers to a device You will learn how to lock and protect spreadsheets to evidence that the spreadsheet is locked and will only be
table are at the low end but are still often useful. We will (item of network equipment). A ticket is initially open. keep private information protected. You will also learn seen by those approved to deliver the T‐shirts within the
start with them here and go on to more complex (but It is assigned to a technician, may go to ‘in process’ or union group.
the difference between a ‘protected’ spreadsheet and a
more capable) methods in later activities. ‘on hold’ (if there is any delay in resolving it), and is
secure database. As a member of those approved by the university to
eventually closed or cancelled. That database has five
Chapter connection Chapter connection manage this information, your job is to take the data
tables: users, departments, technicians, devices and
All organisations keep critical information in databases. Ethics are a difficult subject in information systems. The collected by the Google Survey and move private
trouble tickets. You can see how they are connected in
Security and privacy considerations govern who can access tighter you keep a system, the less useful it is. However, information to the private page and lock it so that it cannot
the NeTrouble database on the website. Choose the
that database and what they are allowed to see there. the more freely you allow people to access data, the be used to exploit students. You will need to use your own
Database Tools tab above the ribbon and click on the
This means being able to see some parts of a database more privacy issues you have on your hands. The object judgement to determine which information needs to be
relationship map.
but not others. Hence, the way people select parts of a of this exercise is to help establish the necessary balance moved to the private, locked page of the spreadsheet.
1 Download and open the Ch 06 NetSimple database
database to see is closely connected to privacy and security between ethics, privacy and data usefulness. Go to www.johnwiley.com.au/highered/rainer/ausnz/
from www.johnwiley.com.au/highered/rainer/ausnz/
considerations. Discussion questions 1 and 2 at the end of studentresources to download the Excel file you will
studentresources. It has one table with the same ACTiViTY
this activity go into this connection more deeply. Recently, a student union group made plans to host a need. Then watch the accompanying video to learn how
information as in NeTrouble, minus some columns
prerequisites party and took reservations for T‐shirt orders. One of to make a spreadsheet secure.
(such as employee date of birth and date of hire) to
None. save screen space. the members was an MIS student who had set up a DeLiVerABLe
ACTiViTY This is usually a poor way to organise a database. It Google Survey for the orders and had exported all of The final product will be a spreadsheet with the survey
In this activity, which you will find online, you will learn violates the normalisation rules you learned in the data into a spreadsheet. The data included name, data in a spreadsheet with the single page of data
Chapter 3. However, this ‘flat file’ data structure is address, shirt size, address, phone number and so on. divided between a secure page and an ‘open’ page.
how to filter and sort an Access table to zero in on
The university has asked the union to keep this data DiSCuSSiON QueSTiONS
ChAptEr 6 | Ethics and privacy 201 confidential due to problems in the past. 1 How can a spreadsheet be helpful if it is so easy to
Specifically, a year earlier, the same data were stored secure and hack?
in an unsecured spreadsheet that was emailed around 2 Are Google spreadsheets more secure than Excel
the union. One of the members took some of the spreadsheets?
c06EthicsAndPrivacy.indd 201 30/04/14 10:16 AM
information and used it to exploit and make fun of a 3 If a sheet needs to be ‘very hidden’, then why not go
physically larger member. To ensure that this does not ahead and delete it?

DATABASE ACTIVITy FiLTeriNg AND SOrTiNg

OBJeCTiVe exactly the rows you want. The techniques are simple,
In this activity, you will learn how to select only the but will be useful often.
useful rows of a table, hiding the others and sort a table The database you may have used with the chapter 4
on any column in it. A database is useless if you cannot activity has information a company might use to track
get information out of it. Access offers many ways to problems with network equipment. Its central element
do that. Some are simple but limited. Others are more is the trouble ticket. A ticket is submitted by a user,
capable but require more work. Filtering and sorting a who works in a department, and refers to a device
table are at the low end but are still often useful. We will (item of network equipment). A ticket is initially open.
start with them here and go on to more complex (but It is assigned to a technician, may go to ‘in process’ or
more capable) methods in later activities. ‘on hold’ (if there is any delay in resolving it), and is
eventually closed or cancelled. That database has five
Chapter connection
tables: users, departments, technicians, devices and
All organisations keep critical information in databases.
trouble tickets. You can see how they are connected in
Security and privacy considerations govern who can access
the NeTrouble database on the website. Choose the
that database and what they are allowed to see there.

Database activity
Database Tools tab above the ribbon and click on the
This means being able to see some parts of a database
relationship map.
but not others. Hence, the way people select parts of a
1 Download and open the Ch 06 NetSimple database
database to see is closely connected to privacy and security
from www.johnwiley.com.au/highered/rainer/ausnz/
considerations. Discussion questions 1 and 2 at the end of
studentresources. It has one table with the same
this activity go into this connection more deeply.

Every chapter includes a hands-on database project that requires students to

information as in NeTrouble, minus some columns
prerequisites (such as employee date of birth and date of hire) to
None. save screen space.
ACTiViTY This is usually a poor way to organise a database. It

practise their Access skills while using concepts learned in the chapter. Each In this activity, which you will find online, you will learn
how to filter and sort an Access table to zero in on
violates the normalisation rules you learned in
Chapter 3. However, this ‘flat file’ data structure is

| Ethics and privacy 201

activity includes deliverables, quiz questions and discussion questions.

ChAptEr 6

c06EthicsAndPrivacy.indd 201 30/04/14 10:16 AM

xx How to use this resource

Digital self-study resources

‘Plug IT In’ learning extensions

Comprising additional mini chapters relating to effective use of information systems in
contemporary business, the ‘Plug IT In’ learning extensions enable a high level of flexible
learning. Students can access these in digital format.
1 Business processes and business process management
2 Hardware and software
3 Cloud computing
4 Intelligent systems
5 Project management
6 Protecting your information assets

Base files accompanying the spreadsheet and database

activities
Every chapter contains a hands-on spreadsheet and database project activity that enables
students to practise their Excel and Access skills respectively.
The base files for these activities can be downloaded from Wiley’s student resource site:
www.johnwiley.com.au/highered/rainer/ausnz/studentresources

Digital self-study resources xxi

 1
Introduction to
information systems

CHAPTER OUTLINE LEARNING OBJECTIVES

1.1 Why should I study information 1 Identify the reasons why being an informed user of information
systems? systems is important in today’s world.
1.2 Overview of computer-based 2 Describe the various types of computer-based information
information systems systems in an organisation.
1.3 How does IT impact organisations? 3 Discuss ways in which information technology can affect
managers and non-managerial workers.
1.4 Why are information systems important
to society? 4 Identify positive and negative societal effects of the increased
use of information technology.

1
Other documents randomly have
different content
back; accordingly, on the following morning, he was seen coming along the
beach alone, "and when he had arrived within good gun-shot, they
commenced firing at him; without changing his pace, he continued to
advance, and drawing his cutlass, called out to Paine to stop firing and he
would make peace with him; Paine, however, continued to fire, and, at the
third or fourth discharge, Comstock fell lifeless upon his face, a ball having
pierced his heart. Fearing that he might not be quite dead, and perhaps would
get up again, Paine ran up to him with an axe, and cut off the back of his
neck. He was buried close to the tent, in the manner he had often expressed a
wish to be, with all his clothes on, and his cutlass hung to his side. Upon first
landing, he had fixed upon a site for a town, and amongst other public
buildings that he contemplated erecting, was a church, for which he had
selected what he considered an eligible situation.

"The natives were all the time so very friendly, that we were not in the
least afraid of them. A great many of them came to our tent every day, and
some of them were there day and night, eating, drinking, and sleeping with
us. Paine had a girl that he brought from another islet, who did not like to
stay with us, and would run away whenever she got an opportunity; he fired
muskets at her several times, and at last, used to keep her by putting her in
irons.

A few days after the ship ran away, some of the natives, who had been at
the tent, stole from us a number of tools. Paine gave four or five of our
people muskets without cartridges, and sent them to the natives, a great
many of whom were assembled not far off, for the stolen articles. The
natives refused to give them up, and soon began to throw stones at our
people, who, knowing that they had not the means of resisting, began to
retreat; the natives pursued them, throwing stones, and one of the party,
Rowland Jones, either fell or was knocked down by his pursuers, who came
up immediately afterwards and killed him. When the party returned to the
tent, Paine, who had taken the command after Comstock's death, ordered all
the muskets brought to him, and locked them up. We were all in or about the
tent, when a few hours afterwards the natives came there as usual, but in
greater numbers. After they had been there a little while, some one
remarked, 'I am afraid they are going to kill us; they have all got spears, or
stones, or sticks in their hands.' Upon this, Paine said he believed we were
all taken, but that he was safe. The words were scarcely out of his mouth,
when the natives commenced the massacre, knocking our people on the head
with stones and clubs, and sticking spears in them. An old man and his wife
laid hold of me, one on each side, and led me a little way off in the bushes,
where, I thought they were going to kill me, but where they only held me
fast and protected me from the violence of several who came and wanted to
kill me. I saw two of the natives lead Paine off a little way, and thought they
were going to save his life; but they proceeded only a few yards, when one
of them took up a stone and struck him on the head; he attempted to run, but
a second blow brought him down, and they immediately afterwards killed
him. Oliver, I did not see; but the natives told me that he ran a short distance,
when he was overtaken and killed in the bushes. A Sandwich Islander that
was with us, got to the water, and was overtaken and killed there."

"Were there any women at the massacre?"

"Oh, yes, and children too. The women seemed to take as active a part as
the men. I saw one old woman run a spear in the back of one man, who was
held by two natives, with a degree of violence that seemed far beyond her
strength. I thought that all but myself were killed until the following
evening. I had been taken to the islet where your schooner is anchored, and
where all the chiefs were assembled, when they brought Huzzy, to show me
that there was one living besides myself. After an interview of a few hours,
Huzzy was taken away to live with Lugoma, who had saved his life, and I
was taken to live with the old man who had saved mine. He was so very
poor that I scarcely ever got enough to eat of the coarsest native food. I had
to labour very hard, although I suffered constantly from hunger, which soon
made me weak and extremely wretched. At last, the high chief took
compassion upon me, and made me live with him; after which, I had always
plenty to eat, and was at liberty to work or not, as I pleased. He was very
kind to me in every respect. They have always brought Huzzy to me, or
taken me to see him once a fortnight, or once a month, and suffered us to
pass the day together."

Here Lay's narrative ended. Huzzy told us, that during his residence with
Lugoma, his time had been spent principally on the water, going with him in
his canoe, which required two to work it. Lugoma was a great fisherman,
and distinguished amongst the chiefs for his industry and enterprising
character. He would always have enough to eat, if he had to steal it. When
Huzzy would complain to him of the hard and laborious life that he led,
Lugoma would always reply, that if he would eat he must work. There seems
to be no doubt, that the natives saved the lives of these young men from no
other motive than that of making them slaves, and availing themselves of the
advantage of their labour.

At the dawn of day, we prepared to depart for the schooner, and in

getting up our anchor, which was a kedge, weighing upwards of a hundred
pounds, we found that it was hooked to a bunch of coral at the bottom, from
which all our efforts failed to move it. As soon as Lugoma saw our
difficulty, he told his son to go down and clear the anchor. The little fellow
jumped into the water, which was about three fathoms deep, and in a few
moments came up, making motions for us to haul away. He had disengaged
the kedge, and we had no further trouble in getting it up. It is a universal
practice amongst the natives, whenever they wish to anchor, to take a line
from the end of the canoe, and tie it to a tree of coral at the bottom.

The chief persisted in his desire to leave us, saying he was still afraid I
would kill him; and as I had no object in taking him with me against his will,
I consented to his departure, presenting him with some seeds, the culture of
which I caused to be explained to him, as also the value of the fruit. Our
return on board was welcomed by every body. We had now accomplished
the object of our visit, and the islands were altogether so void of interest,
except for their novel formation, and the singular habits of the natives, that
we were well content to leave them and return to some other place more
congenial to the feelings of civilized men. Before we left, however, we
wished to see the chiefs, and after representing the impropriety of their
conduct toward the white men who had sought an asylum upon their islands,
point out the course they must in future pursue towards such as might again
visit them. On the morning of December the first, none of the chiefs or
people residing upon the islet abreast of us having returned, the mother of
the high chief was directed to send for her son to come back, and bring with
him the rest of the chiefs, without delay. I made a visit to the chief's village,
where I found but few inhabitants, most of whom were women and children.
It was situated on the side of the island opposite to us, and bordering upon
the inland sea. It was not extensive, but a beautiful and romantic spot; the
grove of cocoa-nut and bread-fruit trees, through which were scattered the
huts of the natives, ran about a hundred yards back from the inland sea to a
wild thicket that passes through the centre of the islet, in length two or three
hundred yards. Here I found the largest canoe that I had yet seen. It was
large enough to carry fifty men, but being old, leaked so badly, that the high
chief was compelled to leave it behind, in his flight, with all the rest.

Near the high chief's hut, we came to consecrated ground. It was the
place of burial for the royal dead. It was but a small space, comprehended
within the circumference of a few yards, and at the head of each grave stood
a cocoa-nut tree, bound round with dry leaves,—a mark that prohibited the
use of the fruit. We were accompanied by a son of the high chief, a child
about twelve years old, who desired us not to tread on the graves of his
ancestors. Two graves were pointed out, as those of chiefs, who had been
highly distinguished, beside which stood the aged trunks of cocoa-nut trees,
that indicated the period of their demise to have been very distant. At one of
the huts we saw a domestic fowl, which, when I expressed a wish to
purchase, the chief's son, whose name was Ladro, immediately presented
me. We afterwards saw a number of others running wild in the thickets. They
were small, and looked like what is called the bantam. The natives never eat
them, giving, as the reason for it, that they are not cleanly in their food. On
our return, Lay took me to a place, where, after the massacre, he had buried
a Spanish dollar. It was still there, and he took it with him as a memento of
his captivity. We passed several springs of water, to which the women are
banished at a certain period.

We met with a native, whom Lay knew, and who, assuming the native
dress, went through the violent motions and gestures of a Mulgrave man,
engaged in battle. It was an indescribable mixture of the frightful and
ludicrous. I was apprehensive that it would offend the native: but he laughed
with us at the representation, and said, it was very good. On the following
morning, December the second, we were disappointed in not seeing the
chiefs. The captain went again to the high chief's mother, who made some
excuse for their not appearing, and declared, that they would positively be up
that night by moonlight. He told her to send to them again, and say, if they
were not there on the morrow, he would go after them, and the consequence
might be serious. The old woman seemed very much alarmed at hearing
such language, and promised a faithful compliance on the part of her son. It
had the desired effect, as on the following morning, December the third, the
chiefs all presented themselves on the shore, near our anchorage. The
captain, taking Lay and Huzzy with him, went on shore to meet them. They
told him, by way of opening the interview, that they were in his power, and
ready to obey all his commands. He required of them to restore a whale boat
that belonged to the Globe, a swivel, they had taken from the white men, and
Lay's musket, to all of which they cheerfully assented. He then gave them, as
a proof of his friendship, some cotton handkerchiefs, axes, and a variety of
other articles, of much more value to them than those he had taken. He told
them, that white men would never come there to hurt them, and that they
must always be kind and friendly to them, whenever ships should hereafter
visit their island. That, if other white men should ever be similarly situated
to those they had killed, they must take care of them, and at some future time
they would be rewarded for it. They promised faithfully to do all that they
were told, and regretted having killed our countrymen. We gave them a pair
of pigs, male and female, which we told them to take great care of, and
increase the number as much as possible, forbidding them, on pain of our
displeasure, to kill any until we should again return, which might be at no
very distant period, although it was uncertain when. The surgeon's grave was
made a sacred spot by the high chief, and every thing about it was to be held
in the same reverence as the burial-place of his forefathers. The high chief
was instructed, through the interpreters, in the manner of cultivating the
fruits and vegetables, the seeds of which we had given him in great variety.
Some we planted, and all was to be under his especial care. The use of the
various kinds was explained to him, as well as their importance to ships, that
might visit his islands, which would give him in return for them, axes, or
whatever else was most valuable to him.

On the fourth of December, I obtained a boat, and set off on a visit to

Lugoma, who, contrary to his promise, had not yet been on board. I took
Huzzy with me, knowing that it would delight the chief to see him. We met
with a variety of obstacles in our passage, through the inland sea, and did not
arrive at the islet of the chief until the second day after our departure. We
stood into his bay in the midst of a heavy shower, notwithstanding which, as
soon as he saw us, himself and son ran down to the shore to meet us, and
waded up to the middle in the water, extending their arms towards us, full of
roasted fish, of which he had taken a large quantity on the preceding day.
Both of them called to Huzzy, with repeated expressions of their happiness
at seeing him, and, in a moment after we struck the shore, the whole tribe of
old women welcomed us, with their joyful exclamations. As soon as we
were out of the boat, each one in turn clung round Huzzy's neck, and
embraced him in the kindest manner. In several different huts were large
piles of fish, amounting to some thousands, which had been roasted to
preserve them. Lugoma offered at once to accommodate us for the night,
saying, he had an abundance of room in his huts for us to sleep, and plenty
of fish for us to eat. The weather was squally and wet, which induced me to
accept his offer. I wished, also, to witness the manner in which he caught
fish in such quantities, and another opportunity might not offer before I left
the islands.

As soon as the shower was over, which lasted for two or three hours,
Lugoma went out, and employed himself busily collecting and breaking up
dry wood, and arranging his ovens of stones, that all might be in readiness to
cook the fish as soon they were taken out of the water. There was a
considerable shoal extending out from the shore, opposite to his huts, upon
which the fish, in their migrations along the islets came in great numbers. At
the outer edge of this shoal he had sunk, a few feet below the surface of the
water, a long line of cocoa-nut leaves, which were dry, and of a reddish
colour. One end of the line of leaves was taken to the shore, and made fast,
where there was a pen, built of stone. The line was then taken round upon
the shoal semi-circularly, encompassing a considerable portion of it, and the
space between the other end of the line and the shore left quite open. When a
school of fish is seen, the natives intercept them, driving them through this
open space, and, pressing forward, finally into the stone pen, from which
they are taken with nets. After all the arrangements were made, Lugoma and
another native, waded out beyond the line of leaves, to watch the schools of
fish, but, unfortunately, he allowed them all to escape; and, as well as
ourselves, seemed to be a good deal disappointed with his bad success. What
appeared to be most remarkable about this method of catching fish, is that,
after they are inclosed, they will not pass under the cocoa-nut leaves,
although there is a depth of several feet water between them and the bottom.
Lugoma took me to the place where he had planted the water-melon seeds, I
gave him at the time of our parting. He had cleared and mellowed the ground
with care, preparatory to planting the seeds, which were already up, and
looked thrifty. I bestowed upon him a great deal of praise, and planted a
variety of other seeds, of fruit and vegetables, of which he promised to have
an abundant supply for me, when I should again return. When night came,
and the hour of repose was at hand, I was perplexed with the difficulty of
providing for our security against surprise or treachery, without giving
Lugoma reason to suppose that we did not confide in his friendship, which I
knew he would infer, from any particular watchfulness on our part. I did not
believe that we had reason to apprehend danger from Lugoma or any one
else, but as we were exposed to it, and had the means of security, I was
determined not to run any risk. Three of the men were sent to sleep in the
boat, anchored off a short distance from the shore, and which Lugoma was
told no one must approach. The rest were directed to bring their arms on
shore, and keep a lookout through the night, in rotation. When the
arrangement was made, and we had all lain down, except the man that was
standing sentry, Lugoma saw him, and asked, if there was not room enough
for him to lay down. We answered evasively several times, with a view to
satisfy the uneasiness he expressed, lest he should be thought wanting in any
respect in hospitality; but were at last obliged to tell him, that the man was
keeping watch, to see that no one came to hurt us. His mortification was
evident, as he remarked, in reply, that no one would come to his island to
hurt us. We expressed our full confidence in his friendship, giving him the
further information, that it was our custom always to have some one on the
look-out. Lugoma arranged mats upon the floors of his huts for us all, and
invited me to lay down on one side of him, having his wife and daughter on
the other side. It blew and rained hard all night, but the morning was clear
and pleasant. We set off on a visit to an islet a few miles beyond that of
Lugoma. He offered to go with us, and dive for a large shell-fish, found
there; but as we could not take him, without incommoding ourselves, we
declined his company. The islet was so uninteresting, as hardly to repay us
for the trouble of going to it. It was covered with a thick growth of hard red
wood, common to most of the low islands, and wild bup. We soon took our
departure from it, and returned to Lugoma's islet, at an early hour of the day.

For the first time, at the Mulgraves', I observed, in one of Lugoma's huts,
a drum, resembling those of Nooaheeva, but of small dimensions. I supposed
it was an instrument of music, and in compliance with my request, Lugoma
readily consented to play on it. Calling his daughter to him, he bade her
thump upon it with her hands, whilst he sung, in time with the music, a few
short lines, throwing himself in a variety of attitudes, alternately extending
one arm, with great vigour, and drawing the other to his breast. Upon
inquiring what was the subject of his song, he told me, through Huzzy, that it
was the massacre of the white men,—a rudeness, I did not expect,—even
from the untutored Lugoma. I declined any further display of his musical
powers. When we were preparing to return on board, Lugoma came to me
several times, saying, that I might just as well cut his throat, as to lake Huzzy
away from him. "I have no one," said he, with a distressed look, "that is
equally capable of assisting me, to work my canoe, and now, he is going
away with his musket, my enemies can come and kill me." Finding, at last,
that he could not prevail upon us to leave Huzzy, he said, we must bring him
back very soon. That, if we were long absent, we should not find him living.
He said, that we must bring him clothes, like ours; guns and axes; and that
we should share the government of his islet with him, promising to have an
abundant supply for us, of all the fruits and vegetables we had planted.

When he and the old women had taken an affectionate leave of Huzzy,
he requested me to take two or three females in my boat, with their baskets
of fish, which were intended as a present to the high chief, and land them
upon the islet where he lived. We consented to do so, and, after landing
them, arrived on board late in the afternoon, the schooner having run down
to the Globe's anchorage, where she was now lying.

On the following morning Lugoma made his appearance on the beach,

with his little son, having landed with his canoe upon the opposite side of the
narrow islet. A boat was sent to bring them off. The chief stared wildly
round, astonished, and wondering at every thing he saw. He was very timid,
and, notwithstanding our kind reception, appeared to feel extremely doubtful
of his safety. His confidence was in a measure gained, however, when we
gave him an axe, a piece of cotton handkerchiefs, and some other trifles; and
he left us, reminding me of my promise to return. Not long after his
departure we got underway, and ran back to the residence of the chiefs,
where, at ten, A.M., we came to in our old anchorage.

The captain went on shore, and at two, P.M., December the eighth,
returned on board with the high chief, and two others. They were shown
every thing about the deck, but without awakening much apparent curiosity.
We then beat to quarters, and let them see what a formidable appearance we
made, arrayed for battle,—an appearance, truly ridiculous to one accustomed
to the imposing effect of a fine ship of war, and calculated to excite our
risibility, notwithstanding the seeming gravity we assumed for the occasion.
The captain asked the high chief, if he did not wish to hear one of the cannon
fired, to which he answered evasively, unwilling, I suppose, to acknowledge
his fears, as he had been a great warrior in his time. The captain then told
him, that he would have one of them fired, if he was not afraid, which
brought the chief to a confession, that he dared not hear it. The chiefs
brought a number of presents for the Tamon,[10] as they called the captain,
consisting principally of mats.

When they became tired of remaining on board, and expressed a wish to

be sent on shore, we gratified them, and got underway. The high chief's son,
who had visited me a number of times before, and to whom I had made
presents of trifling value, but important to him, came on board with his
father, and expressed a wish to go with me. His father gave his consent,
being perfectly willing that he should go; but as there was great probability
an opportunity would never offer for him to return, I thought it would be
cruel to take him from his native islands, where, in his father's inheritance,
he would be so well provided for.

It was late in the evening when we got underway, at the Mulgraves, for
the last time. We had surveyed all that part of the islands intervening
between our first anchorage and the Globe's landing, and now steered to the
eastward by the bearings we had previously taken. Squalls of wind and
heavy rain coming on, we soon lost sight of the land. The loud roaring of the
surf, off the extreme north-eastern point, as well as the heavy swell that set
in immediately afterwards, apprised us that we had cleared the group. The
land was in sight from the mast-head, in the morning, when we ran down for
the eastern end of the island, where we had first anchored, and at a
convenient distance run along upon the weather side, taking hearings at the
end of every base of three or four miles. Near the centre of the windward
part of the group we passed a wide opening into the inland sea, not far from
which was a reef of considerable extent, where a very high surf was
breaking. Within a short distance of the reef, we saw the bottom plainly in
ten fathoms water. There was no place on the weather side of the islands,
where it was possible to land with any degree of safety. After passing the
extreme northern point we steered off, with the trending of the land W. by S.;
and, at sun-down, were up with the island, from whence I had taken Lay,
having sailed nearly round the group. Here we hove to for the night.
 The group of Mulgrave Islands, as they are called, form a circular chain
of narrow strips of land, which are no where more than half a mile wide,
inclosing within the circle an inland sea, one hundred and forty miles in
circumference, filled with shoals and reefs of coral. It is every where
bounded on the sea-side, by a bank of coral, that protects it from the violence
of the ocean. This bank generally extends but a short distance from the
shore, when it goes off into unfathomable water. At the chief's islet, where
we buried the surgeon, it was wider than at any other place about the group,
being upwards of a cable's length, which, for a low coral island, may be
considered good anchorage. The whole circle is broken alternately into
clumps, a few feet above the water, of level and low coral reefs, some of
which are above high-water mark, and some sufficiently low to afford a
passage for boats. The clumps vary in length, but none of them are more
than two miles long, without an interruption of a dry or drowned reef. They
are covered with a thick growth of bushes, and trees of small size, except
where the cocoa-nut and bread-fruit trees rear their tall heads, and wide-
spreading branches. Wherever these grow, the underwood disappears, and
the place has the appearance of an old forest, cleared for a pleasure ground,
where a few trees have been left standing, for the advantage of their shade.

The bread-fruit tree is of two kinds. One is the same as that, which is
found at the Society, Sandwich, and many other islands of the Pacific. This
has no seed, and can only be produced by cuttings from the tree, or shoots,
that spring up from the roots. The other kind is seminal, and very much
superior to the first. It was not the bread-fruit season, when we were at the
Mulgraves, and much to our regret, we could not obtain any of the seeds of
this rare and valuable plant. This tree, in general, attains a size considerably
larger than that of the common bread-fruit. The leaf of the bread-fruit tree
strongly resembles that of the fig, and any one, who has seen the latter,
would immediately recognise it, by the resemblance, and the fine rich
foliage it bears, when growing luxuriantly. This is by far the most important
production of the Mulgrave Islands. When the fruit is not blasted, as
sometimes happens, there is a great plenty for the inhabitants. It lasts,
however, only for a few weeks; and it is to be presumed, that the natives
have no way of preserving it, in a dried or baked state, as is practised with
many of the South Sea Islanders, none having been seen by us during our
stay. The cocoa-nut tree is next in value to the natives. Of this food there is
an ample supply, unless the fruit is blasted. When the bread-fruit and cocoa-
nut, both fail in the same year, the natives experience great distress, and are
reduced to the necessity of living upon a fruit, they call bup. It is commonly
used by the poorest people, and in small quantities by the chiefs at all times.
It grows upon almost all the islands in the West Pacific; but, when wild, is
much inferior to that growing on the trees, which have a clear open space
around them.

Lay lived upon the wild bup for a considerable time after the massacre,
when residing with the poor old man, who saved his life, and before the high
chief took compassion on him. It has a sweet taste, like the juice of a green
corn-stalk. Bread-fruit, cocoa-nuts, and bup, is the only food of the
inhabitants of the Mulgrave Islands, except at the season of the year, when
great numbers of fish are taken. The industrious and enterprising have an
abundant supply at that period; but it is only whilst the season lasts, as they
are not in the practice of preserving them. The bup-tree is the most
remarkable of all the vegetable productions of the Mulgrave Islands. To
shipwrecked seamen, it might be the means of sustaining life, when no other
food could be found, and, as it is a never-failing resource, it ought to be
generally known amongst those, who navigate the Pacific Ocean. The tree
generally grows from twenty to thirty feet high,—sometimes singly, but
more frequently in small clusters. The diameter of the body rarely exceeds
six inches. It has a hard thick bark, but the wood is spongy, like that of the
cocoa-nut tree. It stands on from half a dozen to a dozen roots or prongs, by
which it is propped up two or three feet from the ground. The fruit is an
exact resemblance of a pine-apple. Its smell, when ripe, is at first agreeable,
but, so powerful, that it soon becomes offensive. The taste of the ripe fruit
has much the same effect—agreeable at first, like a mellow, sweet apple, but
cloying and nauseous to the stomach, when taken in any quantity. The ripe
fruit is never eaten by the natives of the Mulgraves. When green, it is not
considered in a state to be eaten, until a beard, which grows out alongside of
the stem, has acquired a length of four or five inches. It may then be taken
from the tree, and eaten raw, or roasted between hot stones. The soft part of
the seeds (if I may so call them) is alone palatable, the other part being hard
and tough. The manner of eating it is, to twist the soft part off with the teeth,
whereby the juice is expressed. There was but little about the islands that
would excite the interest of either the botanist or naturalist. We saw but few
flowers or plants. The islands were swarming with a species of small rat, that
had a tuft of hair upon its tail. The natives spoke of them as being very
troublesome. By throwing a small quantity of food upon the ground, near
one of the huts, dozens of them could be collected together in a few
moments.

When one of the natives is sick, the friends collect at the hut, where he is
lying, and chant over him, to appease the offended spirit that has afflicted
him. The same prescription is given for all diseases, which is a tea, made
from an herb found upon the island. If death takes place, the friends of the
deceased assemble, and mourn over the body, keeping it until it becomes
very offensive. Frequently, in the midst of their most bitter mourning and
lamentation, some of the mourners will intentionally say or do something
calculated to excite mirth, when they all burst out into immoderate laughter,
as if their mourning were the affectation of children, and as soon as the
humorous excitement has passed over, again relapse into their mournful
strain of howling and chaunting. When the body can be kept no longer, and
the day of interment arrives, the grave is dug, and the corpse taken upon
sticks, and carried to it by the friends of the deceased, followed by a large
concourse, who move along without order, and some one occasionally
breaks in upon their solemnity by a humorous trick, which gives rise to
others, and sets them all laughing. This is soon again succeeded by
mourning. The body is lowered into the grave, and covered up, when a little
canoe, with a sail to it, and laden with small pieces of cocoa-nut or other
food, having been previously prepared, is taken to the sea-shore on the
leeward part of the island, and sent off, with a fair wind, to bear far away
from the island the spirit of the deceased, that it may not afterwards disturb
the living. This ceremony is considered indispensably necessary, and is
never neglected. At the head of the grave a cocoa-nut is planted, the tree that
springs from which, is held sacred, and its fruits never eaten, in times of the
greatest famine. Their burial places are usually a short distance back of the
houses, and the females are strictly prohibited from going to them.

Their marriages are conducted with but little ceremony. If a man fancies
a female for his wife, he makes the proposal to her, which, if agreeable, he
applies to her friends. They meet, and hold a consultation, as to the propriety
of the match, and decide whether it shall take place. If the man's suit is
denied, nothing more is said on the subject. When united, they are said to be
very faithful, and jealous of each other's chastity. Lay or Huzzy related an
occurrence, that took place during their residence on the islands, which
shows how keenly a sense of injury is felt by them, and that jealousy
sometimes inspires them with the most ferocious and deadly revenge. A
young man had taken a young woman for a wife, whom he supposed to be a
virgin. In a very short time after she went to live with him, however, it was
evident that she was pregnant, and before the period which nature has
prescribed had elapsed, gave birth to a child. The indignant husband took the
infant from its mother's arms, and in her presence dashed its head upon a
stone in front of his hut. It was an act for which, under other circumstances,
he would have suffered death, by a custom of the islands, forbidding the
destroying of human life; and, as the female was of superior rank to the man,
being the daughter of a chief, it was believed that he would be punished. Her
friends were loud in their calls for justice upon the offender, until a council
of the chiefs was called, and the matter brought before them.

After an investigation, the chiefs were satisfied, that the woman had
grossly imposed upon her husband, whom they suffered to depart without
censure. It is permitted to the men to have as many wives as they can get;
but as food is very scarce, and they find it difficult to support one, there are
few, even of the chiefs, who have more. The high chief was the only
exception to this remark at the time of our visit. He had six, one of whom
was a particular favourite.

Latuano, the high chief of the Mulgraves, was called the greatest warrior
that the islands had produced for a long time. He told us that in one of his
wars he was driven from his islands, and remained (I think) fourteen days at
sea in his canoe, most of the time out of sight of land. He steered for an
island, which, according to the tradition of his countrymen, lay to the west of
the Mulgraves, and, after a great deal of suffering, arrived there in safety.
The high chief of this isle (south Pedder's Island) received him with
kindness, and after he had visited thirteen different islands of the group,[11]
sent him back to the Mulgraves with a fleet of canoes, and a great many
men. He arrived there in safety, conquered his enemies, and at the time of
our visit was tributary to the chief of Pedder's Island, who had given him a
daughter or grand-daughter in marriage. They told us that every few years
the chief of Pedder's Island, who is very powerful and very wise, sends a
fleet of canoes to the Mulgraves, for tribute. Lay and Huzzy were to have
been sent to him, as also the Globe's whaleboat and swivel. I was
particularly struck with Latuanos' strong resemblance to General Bolivar.
His stature was about the same, and his face bore the same marks of care and
serious thought, when his attention was not awakened to any particular
thing; and, when animated by conversation, the same vivid expression
beamed from his fine features, and sparkling black eyes. I could not but
think, when I was looking at him, that if he and General Bolivar could be
placed near to each other, similarly dressed, it would be difficult to tell
which was the Indian chief, and which the patriot hero.

The high chief is absolute in his authority, but, in the administration of

justice, particularly where the life of an individual is concerned, he is
influenced in passing judgment by the opinion of the chiefs of most
consequence.[12] Like all other men, whether civilized or uncivilized, they
have different grades of rank in their society, from the high chief down to the
farthest remove of relationship to royalty. The different islets that are
inhabited, are partitioned off to different chiefs, who acknowledge their
subordination to the high chief, by sending him a part of whatever grows, or
is taken within the limits of their government. They send him a portion of
their cocoa-nuts, bread-fruit, and bup, and of the fish or birds, that may be
caught by themselves or any of their people. The high chief requires this for
the support of his numerous family. Besides his wives and children, he
usually keeps a large number of men about him, who go in his canoe, and
perform other essential duties in his service. Several of the principal chiefs
are also in attendance, and live with him constantly. In his family, there is no
ceremony, to remind the common people of their lowly condition. They all
eat, drink, and sleep alike. In dress, there is nothing to distinguish the chiefs
from the common people, except that the former sometimes wear a mat that
comes down to the knee, of straw, and finely wrought. This, however, I
believe, is only worn upon particular occasions.

The men wear bunches of grass hanging down before and behind, such
as I have described at our first anchorage, being about the size and
appearance of a horse's tail. Those in most common use, were of a reddish
colour; but a few of them were white. The bark of which they are made is
taken from a long running vine. The boys go quite naked until they are ten or
twelve years old, when a dress similar to that of the men is put on them.
Their ornaments consist of shell bracelets and necklaces, and sometimes a
string of thorn is put round the head; flowers, when they can be obtained, are
often used instead of shells. Many of the men, and some of the women have
large slits in their ears, through which they put rolls of leaves from one to
two inches in diameter. The women wear beautiful white straw mats, of
elegant workmanship, about two feet square, and sometimes larger, bordered
round the edge, from one to two inches, with black diamond figures, worked
in with coloured straw, died with the husk of the cocoa-nut. They usually
wear two of these mats, one of which is behind and the other before, tied
round the waist with a beautiful round cord of braided straw. The ornaments
of the women are the same as those worn by the men. They have no manner
of worship. They acknowledge the existence of a Great Spirit whom they
call Kenneet, and who, they say, can make them sick and kill them: they
look for nothing good from him, and, so far as I could learn, have no idea of
rewards and punishments after death. They have a sort of conjurers amongst
them, for whose art they entertain great reverence, and in whom they place a
strict reliance. To them they apply in all cases of great emergency. Their art
consists in having a large bunch of straws, which they fold double and tie in
a great many different ways; if, after the straws are thus folded, doubled, and
tied, they can be drawn out without being in any manner entangled the one
with the other, the omen is propitious; but otherwise, the contemplated
undertaking is relinquished. On the following morning it is again resorted to,
and so on until success is promised. It must never be tried but in the
morning, and only once on the same day. The morning I took Lay from the
natives, the chiefs had recourse to this art before they would allow him to
speak to us; they were promised good fortune, otherwise he would have been
concealed from us. He who cannot perform the mysteries of this art, is not
allowed to drink from the same cup with him who can.
 They had a great aversion to hearing us whistle, particularly in their
houses, and would invariably run up to any of our people when they were
whistling, and with a fearful look, beg them to stop; saying, it would bring
spirits about the house that would make them sick and kill them. If one of
them has wronged another who has died, or if they were enemies, he never
eats without throwing away a portion[13] of his food to appease the ghost
of the departed.

At a meeting we had with the chiefs on shore, the captain remarked an

old man in the circle, whose name and character he asked of Lay or Huzzy;
being replied to, he said, in a stern manner that he did not like his face,
meaning that he looked like a bad man. The old fellow, seeing himself the
subject of conversation, asked the interpreter what the captain was saying
about him. On being told, his countenance expressed the utmost dismay,
and in a day or two afterwards, he died. There was not a native on the
islands with whom Lay or Huzzy conversed, that did not believe the
captain's dislike killed the old man. They seemed to entertain the most
singular notions of the captain's supernatural powers.

For the purpose of ascertaining what idea the high chief entertained of a
God, the captain asked him several questions, to which his answers were
vague and unsatisfactory. He thought he had conceived the right one, when
he asked the chief who he thought made it thunder. After a moment's
hesitation, he looked at the captain and replied, "I suppose you can make it
thunder." This was as satisfactory as any thing he could be made to express.
Thunder he believed was produced by the agency of a being superior to
himself, and the captain he conceived to be infinitely his superior.

Not long after the massacre of the white men, the natives were visited
by a disease that caused their limbs to swell, and produced great distress
amongst them; it was before unknown, and they ascribed it to Lay and
Huzzy, who, they believed, had the power to afflict them in that manner,
and had done it to be revenged for the death of their countrymen. They
finally charged them with it, and threatened to kill them, which, in all
probability they would have done, but for their superstitious fear of some
greater evil.
 Their huts are not, generally, more than ten by fifteen feet, and from ten
to fifteen feet high. They are divided into two apartments, upper and lower;
the lower is open all round, without any thatching; the floor is raised a little
above the adjacent ground, and covered over with small pieces of the
cleanest and whitest coral that can be found. The rafters and small sticks
that are laid across them for the thatching, are secured by twine made from
the outer husk of cocoa-nut, with which the thatching is also secured. The
thatch is the leaves of palm or cocoa-nut. The ceiling of the lower room is
generally so low, that one must bend almost double to get into it, and if you
remain, it must be in a lying or sitting posture. The garret has a floor of
sticks thickly interwoven with leaves; it is higher than the ground floor, and
has an air of comfort. The natives keep their provisions in it, and all such
things as they would preserve from the rats. They also sleep there in wet
weather. In the floor, a hole is left just large enough for a person to crawl
through, and so far from the sides that the rats cannot get to it.

Their canoes display the greatest ingenuity, and I have no doubt, that in
a civilized country, they would be ranked amongst the rarest specimens of
human industry, unassisted but by the rudest implements. The model is
most singular, and differs from all that I have ever seen in use, either in the
European or American world. Its construction is so remarkable, and in
many respects so inconvenient, that it seems improbable the model should
have had its origin in any other cause than the want of suitable timber for a
more perfect structure. The depth of a Mulgrave canoe, of common size, is
four or five feet; its length from thirty to forty. It is so narrow that a man
can scarcely stand in it; perfectly flat on one side, and round on the other. It
is sharp at both ends. The mast is from twelve to twenty-five feet long, and
the sail, (a straw mat,) which is bent to a small yard, is very large in
proportion to the canoe. They always sail on the flat side, and have the mast
a little inclined forward. It is supported by shrouds and a guy at either end,
which is used at pleasure to give the mast its proper inclination. In beating
to windward, instead of tacking as we do, and presenting the other side of
the boat to the wind, they bring the other end of the boat to it, making that
the bow which was before the stern. Amidships there are several light spars
extending about ten feet over the round side, and four over the other. Across
these are smaller sticks, which are securely lashed above and below, and
over them is made a platform. Upon that part of it which extends over the
flat side, they have a small thatched cabin, in which they store whatever
they wish to preserve from getting wet, or would conceal from observation.
The other part of the platform is intended to keep the canoe from being
upset; and when hard pressed with carrying sail, several men will
sometimes get on it, to keep the canoe upright. They move through the
water with astonishing velocity, and, in turning to windward, no boats can
surpass them. Although the natives had no other tools to work with than
what they made of shells, previous to the visit of the Globe, every article of
their workmanship is neat, and as highly polished as though it had been
wrought with steel. In the construction of their canoes, the keel-stern and
sternpost are solid pieces of hard wood, upon which they are built up of
small pieces laid one above the other, and closely seized on with the line of
cocoa-husk. The seams are neither caulked or payed, and the canoe
consequently leaks so much as to require one man to bail constantly. The
steerage is very laborious; they have no rudder, and the only means by
which they steer, is with a long flat paddle held in the hands of the
helmsman. To steer a large canoe in blowing weather, requires the utmost
strength of six or eight men. Upon the outriggers or platforms, and along
the masts, they arrange their spears, which are always taken with them,
even upon the most ordinary occasions. The canoes are also always
ballasted with a quantity of round stones, weighing about a pound each,
which forms a material part of their armament. Our carpenter was several
days at work upon the canoe of the high chief, caulking and graving her.
When he had completed his work, the high chief, after expressing his
gratification, earnestly solicited the captain to leave him on the island; he
said that he would always provide him an abundance to eat, and that no one
should ever hurt him. This, according to the high chief's standard, was the
most ample reward that he could promise for useful services.

The people of the Mulgraves are in general of moderate stature, and

well made. Their complexion is not so dark as that of the natives of the
Duke of Clarence and Byron's Island, and their features more comely. They
appeared to us like a different race of men. They have not the flat noses and
thick lips of the low islanders, except that two or three persons we saw
would come under that description. Their hair is long and invariably
combed out with great neatness, and tied on the top of their heads. Their
deportment is modest and manly, and after one becomes a little accustomed
to their dress, they have always an air of gentility. They have a fine majestic
walk, which one would hardly suppose, when it is considered that their way
is everywhere paved with sharp coral.

After we had given them the pigs, it was amusing to see with what
apparent pleasure they carried them about in their arms, nursing them with
as much care and tenderness, as though they had been children, whilst the
pigs, unused to such treatment, were kicking and scratching the naked
bodies of the poor natives, and squealing away most lustily. We had to
interfere to keep the pigs from being killed with kindness, and finally
prevailed upon the chief to forbid their being petted in this style. It is not
improbable that, in a few years, the whalers that may have occasion to
cruise, in the vicinity of these islands, will find an abundant supply. It is
hoped, however, that until they become numerous, no navigator who may
chance to touch there, will encourage the natives to diminish their number.

At 4, A.M., on the 9th of December, we took our departure from the

Mulgrave Islands, and stood to the westward. At daylight, we had lost sight
of the group, and at 10, A.M., made South Pedder's Island. Having stood a
little too far to the southward, we were all day beating up to weather the
N.E. point, where, at sun-down, we hove to in the hope that on the
following morning we should be able to effect a landing, and get a sight of
the great chief, so celebrated amongst the people we had just left. On the
11th of December, having passed all the early part of the day searching in
vain for anchorage, we hove to, a little after meridian, opposite to a
considerable bay, upon the shore of which was a native village, and large
forests of cocoa-nut trees. The captain took Huzzy in the gig, and, followed
by another boat, pulled in over a wide coral bank to the village. A few
people were attracted to the shore by the appearance of our boats. They
immediately conducted the captain to the chief, who was seated on a mat in
the open air, in front of his hut. He seemed but little moved at the
unexpected appearance of his visitors. He was a very old man, and had a
long white beard that came down upon his breast. The natives stood round
in respectful silence, as the old chief addressed the captain, whom he soon
distinguished as the person of highest rank amongst the strangers. He spoke
the same language as the inhabitants of the Mulgraves, and Huzzy was
forbidden to let him know that he was understood, but to listen attentively
to what he was saying to those around him. For a time his intercourse with
the captain was carried on by signs, and Huzzy overheard him say to the
natives, standing by, "Don't disturb them yet. Wait until to-morrow, and see
what they are going to do. They will look round here to see what they can
find, trade a little, and go on board of their vessel, to sleep, and to-morrow
they will come again." When the captain told Huzzy to address some
questions to the chief in his own language, it seemed to operate as quickly
as an electric shock upon the natives, who stared wildly around at him, and
at each other, with looks of the utmost astonishment. The chief partially lost
his gravity in the sensation it produced, being not less surprised than his
subjects. He asked Huzzy, before answering the question put to him, where
he had learned to speak the language of Pedder's Island. Huzzy replied, that
he had learned it at the Mulgrave Islands, where he had been for two years.
The old chief said, that he had been informed of two white men being there,
and was then fitting out a fleet of canoes to send after them. He expressed a
great deal of disappointment, that we had taken them away, saying, he
would have had them brought to his own island, and treated them well. He
asked, if Lay was also on board of the vessel. The captain had taken on
shore a present for the chief, and a number of trifles, that he thought might
be acceptable to the natives. Our people endeavoured to obtain a quantity of
cocoa-nuts and bup, of which there was the greatest abundance; but the
natives parted with their fruit very reluctantly. When finally the captain
addressed the chief, upon the subject of giving or selling us a supply, he
said,—No! that his island was thickly inhabited, and produced no more
food than was necessary for his people. That, if we were in want of cocoa-
nuts and bup, there were other islands, not far to the westward, where there
was an abundance, and but few people, and he advised our going there as
speedily as possible. Upon being asked, if he had ever seen white men
before, he replied,—Yes; that a long time ago there came a large vessel, in
which there were white men, who brought their forge on shore, where they
remained for several days. This, he said, was the only instance. The young
women were all sent away, and concealed in the thickets, or upon a distant
part of the island, where they remained during the whole day.

Amongst other presents made by the captain to the high chief, was a
battle-axe,—to him an article of the greatest value. He received it, however,
with reluctance, expressing his regret, that he had it not in his power to