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PART I FOUNDATIONS 1
CHAPTER 1 Information Systems and the Role of General and Functional Managers 3
Introduction 5
General and Functional Managers 6
General and Functional Managers versus End Users 9
The Next Wave of CIOs 10
Fundamental IT Trends: The Staying Power of Moore’s Law 12
Processing Power and Memory Increase 13
Costs of Computing Power Decline 14
Computers Have Become Easier to Use 16
Other IT Trends of Managerial Interest 16
Declining Storage Costs 17
Ubiquitous Network Access 17
Ubiquitous Computing and Digital Data Genesis 17
How Do These Trends Affect Today’s Managers? 21
Why Can’t We Just Hire Good IT People? 22
Summary 23
Study Questions 23
Further Readings 24
Glossary 24
CHAPTER 2 Information Systems Defined 25
Introduction 26
Information Systems: Definition 27
IS, Not IT 27
Information Systems as Sociotechnical Systems 28
The Four Components of an Information System 29
Systemic Effects 32
Why Do Organizations Build Information Systems? 33
Successful Information Systems 34
Information Systems Outcomes 38
Information Systems in the Organizational Context 39
Every Organization is Unique 39
Bringing It All Together 40
Information Systems and Organizational Change 41
First-Order Change: Automate 41
Second-Order Change: Informate 42
Third-Order Change: Transform 43
Culture and Information Systems 45
National Culture 45
Organizational Culture and National Culture 46
How Culture Impacts Structure 47
Implications 49
Don’t Put the Cart before the Horse 49
The Rock in the Pond 50
Information Systems Are in Flux 50
Conclusion 51
Summary 51
Study Questions 51
Further Readings 52
Glossary 52
CHAPTER 3 Organizational Information Systems and Their Impact 53
Introduction 54
Categorizing Systems 55
Hierarchical Perspective 55
Functional Perspective 59
Process Perspective 60
The Information System Cycle 64
The Integration Imperative 65
Defining Integration 65
The Dimensions of Integration 65
Enterprise Systems 68
The Genesis of Enterprise Systems 68
Enterprise Systems: Definition 70
The Advantages of Enterprise Systems 73
The Limitations of Enterprise Systems 74
Supply Chain Management 78
A Brief History of Supply Chain Management 79
Modern Supply Chain Management 80
Knowledge Management 82
Knowledge: Definition 82
Knowledge Management: Definition 84
Business Intelligence 85
Business Intelligence: Definition 87
Components of the Business Intelligence Infrastructure 88
The Evolution of Business Intelligence 91
Customer Relationship Management 92
Aspects of CRM 92
The Limitations of CRM 94
Best-of-Breed Integration 94
Enterprise Application Integration (EAI) 95
Ultimate Flexibility: Service-Oriented Architecture 95
Integration: Concluding Remarks 97
Summary 98
Study Questions 99
Further Readings 99
Glossary 100
PART II COMPETING IN THE INTERNET AGE 103
CHAPTER 4 The Changing Competitive Environment 105
Introduction 106
Network Economics 107
Networks Are Different: Value in Plentitude 108
Physical and Virtual Networks 108
Key Concepts and Vocabulary 110
Two-Sided Networks 118
Implications for General and Functional Managers 118
The Economics of Information 121
Data and Information 122
Classic Information Goods 122
The Economic Characteristics of Information 123
Implications 127
Information-Intensive Goods 128
Information in Networks 130
The Richness and Reach Trade-Off 131
Implications 133
Obstacles 135
The Internet Changes Everything? 137
A Note about Disruptive Technology 138
Sustaining Technology 138
Disruptive Technology 139
Implications for Managers 140
What to Do? 141
Summary 142
Study Questions 143
Further Readings 143
Glossary 143
CHAPTER 5 Electronic Commerce: New Ways of Doing Business 145
Introduction 148
The Internet 148
Internet Services 150
Distributed Ownership 150
Multiplicity of Devices 151
Open Standards 152
The Network, More than the Internet of Today 152
The eCommerce Vocabulary 154
eCommerce and eBusiness 155
The Enablers 155
Categorizing Electronic Commerce Initiatives 156
Manifestations of eCommerce and eBusiness 162
Business Models: Definition 162
Dominant Business Models 166
The Implications of eCommerce 170
Disintermediation 170
Reintermediation 171
Market Efficiency 171
Channel Conflict 171
Customer and Employee Self-Service 173
eCommerce: From Novelty to the Mainstream 173
The Web 2.0 Phenomenon 174
Web 2.0 Technologies 178
Web 2.0 and Business Innovation 183
Summary 185
Study Questions 185
Further Readings 186
Glossary 186
PART III THE STRATEGIC USE OF INFORMATION SYSTEMS 187
CHAPTER 6 Strategic Information Systems Planning 189
Introduction 190
A Word About Strategic and Operational Planning 191
Strategic Alignment 191
Six Decisions Requiring Managerial Involvement 193
The Purpose of Strategic Information Systems Planning 195
Plans Enable Communication 195
Plans Enable Unity of Purpose 196
Plans Simplify Decision Making over Time 196
The Strategic Information Systems Planning Process 196
Know Who You Are: Strategic Business Planning 197
Know Where You Start: Information Systems Assessment 197
Know Where You Want to Go: Information Systems Vision 199
Know How You Are Going to Get There: Information Systems Guidelines 204
Know How Well-Equipped You Are to Get There: Information Systems SWOT 208
From Planning to Action: Proposed Strategic Initiatives 209
Summary 209
Study Questions 210
Further Readings 210
Glossary 210
CHAPTER 7 Value Creation and Strategic Information Systems 211
Introduction 212
The Analysis of Added Value 213
The Benefits of Disciplined Analysis 214
The Definition of Value 214
Defining the Components of Value Created 215
Computing the Total Value Created 216
Appropriating the Value Created 218
The Definition of Added Value 219
Added Value in a Competitive Market 220
Pricing Considerations 220
The Relationship between Added Value and Competitive Advantage 221
How Is Added Value Created? 221
Two Ways to Create New Value 222
Some Considerations About the Analysis of Added Value 223
Strategic Information Systems 225
Definition: Strategic Information Systems 225
IT-Dependent Strategic Initiatives 227
Summary 229
Study Questions 230
Further Readings 230
Glossary 230
CHAPTER 8 Value Creation with Information Systems 232
Introduction 235
Traditional Models of Value Creation with IT 235
Industry Analysis 235
Value Chain 240
Customer Service Life Cycle 244
Traditional Models, Not "Old" Models 252
Emerging Frameworks 252
Virtual Value Chain 253
Value Creation with Customer Data 259
Crafting Data-Driven Strategic Initiatives 267
Conclusions 270
Summary 270
Study Questions 271
Further Readings 271
Glossary 272
CHAPTER 9 Appropriating IT-Enabled Value Over Time 273
Introduction 274
Not All IT is Created Equal 275
High-Speed Internet Access in Hotel Rooms 275
Business Intelligence at Caesars Entertainment 276
The Need for A Priori Analysis 277
Appropriating Value Over Time: Sustainability Framework 277
Sustainable Competitive Advantage 277
Resource Based View 278
Response Lag 279
Four Barriers to Erosion 279
The Holistic Approach 289
The Dynamics of Sustainability 290
Applying the Framework 292
Prerequisite Questions 292
Sustainability Questions 293
What Evolutionary Paths Does the Innovation Create? 295
Making Decisions 296
Develop the IT-Dependent Strategic Initiative Independently 296
Develop the IT-Dependent Strategic Initiative as Part of a Consortium 296
Shelve the IT-Dependent Strategic Initiative 296
Summary 297
Study Questions 297
Further Readings 298
Glossary 298
PART IV GETTING IT DONE 299
CHAPTER 10 Funding and Governance of Information Systems 301
Introduction 302
Information Systems Governance 303
Steering Committee 304
Funding Information Systems 305
Chargeback 305
Allocation 305
Overhead 306
The Budgeting and Project Prioritization Process 306
Making the Budget 306
Funding Information Systems Projects: Making the Business Case 308
Individual Project Risk 314
Portfolio Management 315
Outsourcing 316
Drivers of Outsourcing 317
The Risks of Outsourcing 317
Offshoring 318
Making Optimal Outsourcing Decisions 318
Summary 319
Study Questions 320
Further Readings 320
Glossary 321
CHAPTER 11 Creating Information Systems 322
Introduction 323
How Hard Can IT Be? 324
Fulfilling Information Processing Needs 326
Three Approaches 326
Make versus Buy 327
Buy and Make 330
Build Your Own: Systems Design and Development 330
Systems Development Life Cycle 330
Prototyping 337
Agile Development 339
Outsourced Development 340
Buying Off-the-Shelf Applications 342
Definition 342
Build 345
Implementation 345
End-User Development 346
The Benefits of End-User Development 346
The Risks of End-User Development 346
Summary 347
Study Questions 348
Further Readings 349
Glossary 349
CHAPTER 12 Information Systems Trends 350
Introduction 352
The Mobile Platform 353
Characteristics of the Mobile Platform 355
Mobile Commerce 356
Location-Based Social Networking 357
Augmented Reality 358
Green IS 360
Digital Data Genesis 361
Analyzing Digital Data Genesis Opportunities 365
The Advent of Supercrunchers 366
Customer-Managed Interactions 367
Open Source 369
Open Source: Definition 369
Open Source Is Open for Business 370
Advantages and Disadvantages of Open Source Software 371
Software as a Service 373
Historical Context 374
SaaS Today 375
Cloud Computing 377
Summary 379
Study Questions 379
Further Readings 380
Glossary 380
CHAPTER 13 Security, Privacy, and Ethics 381
Introduction 383
IT Risk Management and Security 384
Why Is Security Not an IT Problem? 385
Risk Assessment 386
Risk Mitigation 387
The Internal Threat 388
The External Threat 389
Responding to Security Threats 395
Managing Security: Overall Guidelines 398
Privacy 400
Privacy Defined 401
Privacy Risks 401
Safeguarding Privacy 404
Ethics 405
Ethics: Definition 405
Information Systems Ethics 406
Ensuring Ethical Uses of Information Systems 407
Summary 408
Study Questions 409
Further Readings 409
Glossary 409
Index
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