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Information Technology for Management: DrivingDigital Transformation to Enhance Local and GlobalPerformance, Growth and Sustainability 12th Edition

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  • Edition: 12th
  • Format: Paperback
  • Copyright: 2021-01-08
  • Publisher: Wiley
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Information Technology for Management, 12 Edition provides students with a comprehensive understanding of the latest technological developments in IT and the critical drivers of business performance, growth, and sustainability. Integrating feedback from IT managers and practitioners from top-level organizations worldwide, the newest edition of this well-regarded textbook features thoroughly revised content throughout to present students with a realistic, up-to-date view of IT management in the current business environment.

The text offers a flexible, student-friendly presentation of the material through a pedagogy that is designed to help students with different learning styles easily comprehend and retain information. This blended learning approach combines visual, textual, and interactive content—featuring numerous real-world case studies of how businesses use IT to increase efficiency and productivity, strengthen collaboration and communication, and maximize their competitive advantage. Students learn how IT is leveraged to reshape enterprises, engage and retain customers, optimize systems and processes, manage business relationships and projects, and more.

Table of Contents

Preface xiii

Acknowledgments xviii

Part 1 Emphasizing Local and Global Sustainability in the on-Demand and Sharing economies

1 Digital Transformation Disrupts Companies, Competition, and Careers Locally and Globally 1

Case 1.1 Opening Case: Uber and Airbnb Innovative Digital Business Models Facilitate Global Expansion and Operational Resilience During the COVID-19 Pandemic 2

Introduction 4

1.1 Doing Business in the On-Demand and Sharing Economies 5

Disruptive Digital Business Models 7

IT’s Role in the On-Demand and Sharing Economies 8

IT—Business Objectives 8

1.2 Business Process Improvement and Competition 10

What Is a Business Process? 11

Improving Business Processes 12

Don’t Automate, Obliterate! 12

Competition 13

1.3 IT Innovation and Disruption 15

Social–Mobile–Analytics–Cloud (SMAC) Model 15

Technology Mega Trends 16

COVID-19 Accelerates Digital Transformation 18

Lessons Learned 19

1.4 IT and You 20

On-Demand ‘Gig’ Workers 21

IT Adds Value to Your Performance and Career 22

Managing and Interpreting Big Data Are High Demand Skills 23

Becoming an Informed IT User 26

Case 1.2 Business Case: The IoT Comes to Sports 29

Case 1.3 Video Case: Creating a Digital Vision to Transform a Company and Improve the Customer Experience 30

2 Information Systems, IT Infrastructure, and the Cloud 31

Case 2.1 Opening Case: The Amazing Story of Tommy Flowers—Creator of the First Programmable Computer 32

Introduction 33

2.1 IS Concepts and Classification 34

IT Adds Value 34

Six Components of an IS 35

Data, Information, Knowledge, and Wisdom 36

Types of Information Systems 37

Transaction Processing System 38

Management Information System 40

Decision Support Systems 40

Executive Information System 41

ISs Exist within Corporate Culture 43

2.2 IT Infrastructure, IT Architecture, and Enterprise Architecture 43

Adding Value with an EA 44

Measuring EA Success 45

EA and Sustainability 46

Developing an EA 47

EA Must Be Dynamic and Evolving 48

2.3 Data Centers and Cloud Computing 48

Data Centers 49

Data Virtualization 50

Cloud Computing 53

Cloud Infrastructure 53

Moving Workloads from the Enterprise to the Cloud 53

Cloud Services 54

Anything-as-a-Service (XaaS) Models 54

Selecting a Cloud Vendor 57

2.4 Virtualization and Virtual Machines 59

Case 2.2 Business Case: Grupo AGORA Upgrades IT to Quench the Thirst of Millions Throughout Spain 64

3 Data Management, Data Warehouses, and Data Governance 66

Case 3.1 Opening Case: ThyssenKrupp Elevator Saves $1.5 Million and 900 Trees by Digitizing Documents 67

Introduction 68

3.1 Data Management 69

Database Technologies 69

Databases 70

Centralized Databases 71

Distributed Databases 72

Database Management System (DBMS) 73

Elements of a DBMS 73

Benefits of a DBMS 79

DBMS Vendor Rankings 80

3.2 Data Warehouses and Data Marts 81

Moving Data from a Database to a Data Warehouse or a Data Mart 81

Building and Using a Data Warehouse 82

Real-Time Support from an Active Data Warehouse 83

Data Lakes 85

3.3 Data Governance and Master Data Management (MDM) 85

Data Governance 85

Master Data and Master Data Management (MDM) 87

Benefits of Data Governance and Master Data Management 89

Information Management 90

Data Life Cycle and Data Principles 90

Harnessing Scattered Data 91

Breaking Down Data Silos 91

Culture Must Change 92

Garbage In, Garbage Out 93

The Cost of Dirty Data 94

3.5 Electronic Document, Record, and Content Management 96

Electronic Document Management 97

Electronic Document Management Systems 97

Electronic Records Management 97

Legal Duty to Retain Business Records 98

Electronic Records Management Systems 99

Enterprise Content Management 100

Enterprise Content Management Systems 100

Choosing an EDMS, ERMS, or ECMS 100

Case 3.2 Business Case: Dirty Data Jeopardize University Fundraising Efforts 104

4 Networks, the Internet of Things (IoT), and Edge Computing 107

Case 4.1 Opening Case: Cedar Park, Texas Improves Customer Communications to Empower Them to Conserve Water through Its New Smart Water Network 108

Introduction 109

4.1 Network Fundamentals 109

Business Functions Supported by Computer Networks 110

Types of Networks 111

Local Area Network (LAN) 111

Wide Area Network (WAN) 112

Intranets, Extranets, and Virtual Private Networks 113

Transmission Media and Speed 114

Network Components 115

Circuit Switching vs. Packet Switching 115

Network Applications 116

4.2 Wireless Networks and Standards 117

Differences Between 4G and 5G Networks 118

Advantages and Disadvantages of 5G 118

There Is a Growing Need for 5G 118

Wireless Network Standards 119

Wireless Connectivity 120

Wireless Networks Use Different Transmission Media 122

Wireless Network Technologies 123

4.3 Mobile Computing and the Internet of Things (IoT) 127

Mobile Network Drivers 127

More Smartphone Use 128

More High-Capacity Networks 128

Faster Broadband Speeds 128

More Mobile Video 129

Benefits of Mobile Computing 129

Mobile Technologies 129

Examples of NFC Applications and Their Potential Business Value 131

The Internet of Things 132

Factors Driving IoT 133

IoT Architecture 133

The Growth of IoT 134

Advantages and Disadvantages of IoT 136

Edge Computing 137

Edge Architecture and Apps 138

Industry Applications of Edge Computing 138

Choosing Mobile Computing Solutions 138

Networks Support Communication, Search, Collaboration and Relationships 139

4.4 Network Quality of Service 142

Net Neutrality 142

Quality of Service Models 143

Case 4.2 Business Case: Carnival Seeks to Keep Passengers Happier at Sea with IoT, NFC, and Edge Computing 147

5 Data Privacy and Cyber Security 149

Case 5.1 Opening Case: Yahoo Is Fined $117.5 Million for Worst Data Hacks in History 150

Introduction 151

5.1 Data Privacy Concerns and Regulations 152

Confused, Concerned, and Out of Control 152

The Privacy Paradox 154

Privacy Rights Are Civil Rights 154

U.S. Consumer Protection Data Privacy Regulations 154

U.S. State-Level Privacy Laws 155

European Union’s General Data Protection Rules (GDPR) 156

The EU-U.S. Privacy Shield 157

Public Lack of Understanding 157

5.2 Extent and Cost of Cyberattacks and Cyber Threats 158

Unintentional Cyber Threats 161

Intentional Cyber Threats 161

How Much Does a Cyberattack Really Cost an Organization? 169

Cyberattack Targets and Consequences 170

Most Prevalent and Deadly Cyber attack Targets 170

5.4 Defending Against Cyberattacks and Managing Risk 176

Cyber Defense Strategies 177

Managing Risk 178

Securing Systems 179

Backup and Recovery 181

Business Continuity Planning 182

Disaster Recovery Services 183

5.5 Regulatory Controls, Frameworks, and Models 184

General Defense Controls 185

Application Defense Controls 186

Auditing Information Systems 186

Government Regulations 187

Risk Management and IT Governance Frameworks 187

Industry Security Standards 189

IT Security Defense-In-Depth Model 189

Case 3.2 Business Case: Multi-National Marriott Hotels Could Face Consumer Backlash and up to $1 Billion in Regulatory Fines and Litigation Costs for Massive Data Breach 195

Part 2 Maximizing Growth with Data Analytics, Social Media and Omni-Channel Technology

6 Business Intelligence, Data Science, and Data Analytics 199

Case 6.1 Opening Case: NASCAR Pushes the Envelope by Combining Big Data with Augmented Reality in the World of Live Customer Engagement 200

Introduction 201

6.1 Business Intelligence and Data Science 202

Four Phases of Decision-Making 202

Data Driven Decision-Making with Data Analytics 203

Traditional and Modern Business Intelligence (BI) 204

Adding Value with Traditional and Modern BI 206

Finding and Hiring BI Professionals 207

Software to Support BI Professionals 208

Data Science 210

Adding Value with Data Science 212

Building a Data Science Team 213

Software to Support the Data Science Team 215

6.2 Big Data and Advanced Data Analytics 217

Big Data 217

The Four Vs of Big Data 218

Big Data Goals and Challenges 220

Predictive Data Analytics 221

Prescriptive Data Analytics 223

6.3 Descriptive Data Analytics Tools 224

Adding Value with Data Mining 224

Adding Value through Learning, Exploration, and Discovery with Data Visualization 226

Dashboards Are Real Time 231

Adding Value with Digital Dashboards 231

Enterprise Mashup Architecture 233

Adding Value with Mashups 233

6.4 Predictive and Prescriptive Data Analytics Methods and Techniques 234

Adding Value with Text Mining 235

Spatial Data Mining 235

Geocoding 236

GIS Is Not Your Grandfather’s Map 237

Infrastructure and Location-Aware Collection of Geospatial Data 238

Adding Value with Spatial Data Mining 238

Geospatial Data Analysis Software 238

Regression Modeling 238

Time-Series Regression 239

Adding Value with Regression 240

Adding Value with Optimization and Rules-Based Decision-Making 241

Adding Value with Machine Learning 241

Case 6.2 Business Case: London Heathrow Airport Launches BI and Machine Learning to Improve Airfield Management, Predict Passenger Flow, and Transform Airport Security 245

Case 6.3 Video Case: The Beauty of Data Visualization 246

7 Social Media and Semantic Web Technology 249

Case 7.1 Opening Case: The Darkside of Digital Campaigns: Disinformation and Foreign Influence 250

Introduction 251

7.1 Web 2.0—The Social Web Technologies 252

The Constantly Changing Web 252

A Platform for Services and Social Interaction 252

Emergence of Social Applications, Networks, and Services 253

Why Managers Should Understand Web Technology 255

Communicating on the Web 255

Challenges and Opportunities for Business 257

7.2 Social Web Tools and Applications 258

Social Networking Services (SNS) 259

How Businesses Use Social Networking Services 260

E-commerce 2.0 and Social Commerce 261

Private Social Networks 262

Engaging Consumers with Blogs and Microblogs 262

What Is the Purpose of a Blog? 262

Blogging and Public Relations 262

Reading and Subscribing to Blogs 263

Blogging Platforms 263

Microblogs 263

Twitter 263

Consumer Mashups and RSS Technology 264

RSS Technology 264

Social Metrics and Monitoring Tools 264

Enterprise 2.0: Workplace Collaboration and Knowledge Sharing 266

Collaboration Tools 266

Social Tools for Information Retrieval, Knowledge Management, and Sharing 266

Social Bookmarking Tools 267

Content Creation and Sharing 267

Shared Content Creation with Wikis 267

Leveraging the Power of the Crowd: Crowdsourcing and Crowdfunding 268

Crowdfunding 268

Social Media Is More Than Facebook, YouTube, and Twitter 269

7.3 Using Search Technology for Business Success 270

How Search Engines Work 270

How Crawler Search Engines Work 271

Why Search Is Important for Business 274

Enterprise Search 274

Recommendation Engines 275

Search Marketing 275

Web Search for Business 276

Emerging Search Technologies 277

7.4 A Search for Meaning—Web 3.0 and Semantic Technology 278

What Is the Semantic Web? 278

The Language(s) of Web 3.0 279

Semantic Web and Semantic Search 280

Semantic Web for Business 282

7.5 Recommendation Engines 283

Case 7.2 Business Case: Facebook Helps Songkick Rock the Ticket Sales Industry 290

Case 7.3 Video Case: Power Searching with Google 291

8 Omnichannel Retailing, E-commerce, and Mobile Commerce Technology 294

Case 8.1 Opening Case: Amazon Pioneers New In-Store Retail Concept 295

Introduction 296

8.1 Omnichannel Retailing 297

Keeping Up with Consumer Demands and Behavior 297

Digital Connections 299

Consumers Still Love to Shop in Stores 299

Supply Chain Is More Important Than Ever 300

The Omnichannel Retailing Concept 301

8.2 In-Store Retail Technology 303

Changes in Consumer Shopping Behavior 303

In-Store Retailing Trends 303

In-Store Tech Improves Convenience and Enhances the Shopping Experience 304

8.3 E-commerce—Online Retailing 306

Types of E-commerce Markets 306

Challenges to E-commerce 312

E-commerce Business and Strategic Planning 313

8.4 Mobile Commerce 313

Mobile Advertising 314

Mobile Apps 315

Information: Competitive Advantage in Mobile Commerce 315

QR Codes in Mobile Marketing 316

Mobile Entertainment 317

Hotel Services and Travel Go Wireless 317

Mobile Social Networking 318

8.5. Mobile Payment and Financial Services 319

Mobile Payment Systems 319

Mobile Banking and Financial Services 320

Short Codes 321

Security Issues Questions 322

Case 8.2 Business Case: eBay—An E-commerce Pioneer Faces New Challenges 326

Case 8.3 Video Case: Searching with Pictures Using Mobile Visual Search 327

Part 3 Optimizing Performance and Growth with Business-Driven Systems, Artificial Intelligence and IT Strategy

9 Functional Business Systems 330

Case 9.1 Opening Case: Business Case: Equifax Data Breach Highlights Need for Regulatory Compliance Changes in Financial Management 331

Introduction 332

9.1 Functional and Cross-Functional Business Processes 332

Information Systems to Support Functional Business Units 333

9.2 Production and Operations Management Systems 336

Inventory Control Systems 337

Quality Management Systems (QMS) 339

Computer-Integrated Manufacturing Systems 340

Manufacturing Execution Systems 341

Transportation Management Systems 342

Other POM Technologies 343

9.3 Sales and Marketing Management Systems 344

Sales Management Systems 345

Marketing Management Systems 346

Social Media as a Marketing Management Strategy 347

9.4 Accounting, Finance, and Regulatory Compliance Systems 348

Accounting Systems 349

Financial Planning and Budgeting Systems 349

Regulatory Compliance Systems 351

9.5 Human Resource Information Systems (HRIS) 355

Employee Development 356

HR Planning, Control, and Management 356

HRIS Move to the Cloud 357

Case 9.2 Business Case: MAHLE GmbH Partners with SAP and MHP to Digitalize Its Logistics and Product Development Processes 361

Case 9.3 Video Case: Fuze Increases Its Sales and Marketing Success with an Account-Based Marketing System 361

10 Enterprise Systems 363

Case 10.1 Opening Case: High-Profile Food Recalls Prompt Walmart to Create a Safer, More Transparent, and More Efficient Global Food Supply Chain 364

Introduction 365

10.1 Intro to Enterprise Systems 366

Types of Enterprise Systems 366

Integrating Legacy Systems 368

10.2 Enterprise Resource Planning 370

Automating ERP 370

ERP and the IT Infrastructure 371

ERP Implementation Critical Success Factors 373

Lessons Learned 374

What’s New in ERP Systems? 375

Selecting an ERP Vendor, Value-Added Reseller or Consultant 376

10.3 Supply Chain Management 378

Automating the Supply Chain 378

Managing the Three Supply Chain Flows 379

Electronic Data Interchange in the Order Fulfillment and Logistics Process 380

Virtual Collaboration in the Supply Chain 382

Achieving a Fully Digitized Supply Chain 382

Four Technology Stages of Digital Adoption 383

Lessons Learned 386

Leading SCM Systems Developers 387

10.4 Customer Relationship Management 387

The CRM Process 388

Automating CRM 390

Customer Acquisition and Retention 390

CRM for a Competitive Edge 391

Implementing a CRM System 391

Lessons Learned 392

10.5 Communicating and Collaborating with Enterprise Knowledge Management Systems, Enterprise Content Management Systems, and Enterprise Social Platforms 393

What Is Knowledge Management? 393

Koenig’s Three Stages of

KM Development 394

Automating EKM 394

Benefits of EKM System 395

Techniques for Managing Knowledge in Group Work 396

Enterprise Content Management (ECM) 398

Purpose and Benefits of an ECM System 398

Using an ECM System 399

Enterprise Social Platforms 399

Growth in the ESP Market 400

Evolution of ESPs 401

Case 10.2 Business Case: Lowe’s Integrates Augmented Reality and Robot Assistants into Its SCM and CRM Programs 406

Case 10.3 Video Case: P&G—Creating Conversations with Global Consumers 407

11 Artificial Intelligence, Robotics, and Quantum Computing Technology 409

Case 11.1 Opening Case: HSBC Adopts Machine Learning Artificial Intelligence to Fight Money Laundering 410

Introduction 411

11.1 How AI Works 411

Stages of Artificial Intelligence Development 412

Types of Artificial Intelligence Machines 413

The Six Branches of Artificial Intelligence 414

11.2 AI Applications in Business and Society 419

Adoption of AI Business Applications 419

AI Maturity in Organizations 419

Current AI Use in Business and Society 421

Do All Businesses Need to Invest in AI? 423

AI Use in the Public Sector 424

Barriers to AI Adoption and Use 425

11.3 AI and Society (Ethics) 426

Major Issues of Concern 426

Work Automation and Job Loss 426

Privacy, Civil Rights, and Government Use of Artificial Intelligence 427

Unexpected Results When Bias Creeps into the Learning Process 428

11.4 Robotics 430

Types of Robotic Machines 430

11.5 Quantum Computing (QC) 436

What Is Quantum Mechanics? 436

Quantum Computers 436

Challenges in Quantum Computing 437

Case 11.2 Business Case: Recommendation Systems Powered by AI—Still Room for Improvement 441

12 IT Strategy, Sourcing, and Strategic Technology Trends 444

Case 12.1 Opening Case: San Diego County’s 20-Year Outsourcing Journey 445

Introduction 446

12.1 IT Strategy and Competitive Advantage 447

Aligning IT Strategy and Business Strategy 447

The Open Group Architecture Framework (TOGAF) 448

Resistance to Business–IT alignment 449

Achieving and Sustaining a Competitive Advantage—Locally and Globally 449

Competitive Advantage Tools 450

Competing Globally 453

IT-Enabled Service-Based Comparative Advantage 456

12.2 IT Strategic Planning, Process, and Tools 457

The Five Components of an IT Strategy 457

Identifying Value Drivers 458

A Reactive Approach to IT Investments Will Fail 458

Developing an IT Strategic Plan 458

IT Strategic Planning Process and Tools 459

Strategic Planning Tools 461

12.3 IT Sourcing Strategies and IT Service Management 468

IT Offshoring 468

IT Onshoring 469

Cloud Services 469

IT Service Management 470

Levels and Types of IT Services 471

Benefits of Using a Structured ITSM Strategy 475

The Outsourcing Life Cycle 476

Ask for “Proof of Concept” or a Trial Run 478

Establishing and Managing IT Vendor Relationships 478

Outsourcing Benefits 480

Outsourcing Risks and Hidden Costs 480

12.4 Strategic Technology Trends 481

Scanning for Strategic Technology Trends 482

Case 12.2 Business Case: Department of Defense (DOD) Evaluates Technology to Gain Help for Crisis Victims and Protect First Responders 487

Part 4 Building, Operating and Managing Systems to Support Sustainable Business Practices During and After the COVID-19 Pandemic

13 Systems Development, IT Service Management and Project, Program and Portfolio Management 490

Case 13.1 Opening Case: VELCO Outsources Project Management and Brings in Politically Sensitive Capital Project $6 Million Under Budget 491

Introduction 492

13.1 Systems Development 493

The Systems Development Life Cycle 494

13.2 Systems Development Methodologies 497

Waterfall Model 497

Object-Oriented Analysis and Design 498

Agile Systems Development Methodology 499

The DevOps Approach to Systems Development 501

Systems Development Tools and Techniques 503

Choosing a Systems Methodology or Tool 505

13.3 Project, Program and Portfolio Management (PPPM) 506

Project Management 506

The Role of the Project Manager 507

Program Management 509

Portfolio Management 510

Putting It All Together 511

Why Projects Fail 512

The Project Management Office 513

PPPM Frameworks 514

The Project Triple Constraint 515

Five Phases of the Project Management Life Cycle 516

13.4 Initiating, Planning, and Executing Projects 517

Phase One: Project Initiating 517

Phase Two: Project Planning 520

Phase Three: Project Execution 521

13.5 Monitoring/Controlling and Closing Projects 522

Phase Four: Project Monitoring and Controlling 523

Phase Five: Project Closing 526

Achieving a High PMTQ 527

Case 13.2 Business Case: It Took 10 Years and More Than $600 Million to Realize That Big Muscles, Not Computer, Can Best Move Baggage 532

Case 13.3 Demo Case: Mavenlink Project Management and Planning Software 533

14 IT Ethics and Local and Global Sustainability 537

Case 14.1 Opening Case: Royal Bank of Scotland Leverages Technology to Fulfill Its Strategy to Build a More Sustainable Bank 538

Introduction 539

14.1 An Introduction to Ethics 540

The Three Basic Tenets of Business and IT Ethics 541

Code of Ethics 542

IT Professionals’ Code of Ethics 543

Developing an Ethics and Compliance Program 544

Ethics Training in the Workplace 545

IT-Related Unethical Behavior 545

Discrimination in Social Media Recruiting 552

Recruiting Regulations 554

Proving Social Media Discrimination 555

Protecting Companies and Candidates from Social Media Discrimination 556

Providing a Secure and Respectful Workplace 557

The Ethical Dilemma of Competing Responsibilities 558

14.2 ICT and Local Sustainability 559

The Triple Bottom Line and Sustainable Development 560

Profits: “Green IT” Trumps Greenbacks 561

People: Preserving Quality of Life 562

14.3 ICT and Global Sustainability 569

The Link between ICT and Climate Change 573

Climate Change Mitigation 574

Formal Climate Change Initiatives and Agreements 575

Beyond Climate Change 576

ICT and Sustainability in Developing Countries 577

Barriers to ICT Acquisition, Implementation, and Use in Developing Countries 582

Taking a People-First Approach to Technology 583

Sustaining Business in a Post-COVID-19 World 583

Case 14.2 Business Case: Spies vs. Pirates—La Liga Fined Over Mobile App That Spied on Illegal Match Screenings 588

Case 14.3 Video Case: IT Ethics in the Workplace 589

Glossary G-1

Organization Index I-1

Name Index I-3

Subject Index I-4

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