Management of Information Technology, Fourth Edition

by Frenzel, Carroll W; Frenzel, John

• ISBN13: 9780619034177
• ISBN10: 0619034173
• Edition: 4th
• Format: Paperback
• Copyright: 2003-07-21
• Publisher: Cengage Learning

Summary

Management of Information Technology, Fourth Edition, is a comprehensive text focused on the fundamental principles and practices necessary for managers to succeed in modern information-centric organizations. IT departments in today’s Web-based e-business world are in transition, moving from self-sufficiency toward managed dependencies in order to support aggressive and cost-effective e-commerce strategies. Managers in these high-performance organizations must implement disciplined processes and exhibit management maturity to effectively exploit the power of modern Information Technology. This text illustrates those successful principles and processes that have demonstrated lasting value to modern organizations. These lessons are valuable to students of management across many disciplines.

Table of Contents

FOREWORD	xv
PREFACE	xvi
PART ONE FOUNDATIONS OF IT MANAGEMENT
Chapter 1 Managing in the Information Age	4	(28)
Introduction	5	(1)
How Organizations Use Information	6	(3)
Information Technology Organizations	9	(2)
Managing Information Technology	11	(3)
The Evolution of IT Management	11	(2)
Types of Information Systems	13	(1)
Internet-Based Business Systems	14	(1)
IT Management Challenges	15	(3)
Controls and Environmental Factors	17	(1)
Competitive Considerations	17	(1)
People and Organizations	17	(1)
IT Management Issues	18	(1)
The Maturation of IT Management	19	(1)
Managing Mature IT Organizations	20	(1)
Information Technology Assimilation	21	(1)
Important Concepts in Information Systems	22	(1)
Critical Success Factors	22	(1)
Critical Success Factors for IT Managers	23	(1)
Expectations	24	(2)
A Model for Studying IT Management	26	(2)
Summary	28	(1)
Review Questions	29	(1)
Discussion Questions	30	(1)
Management Exercises	31	(1)
Chapter 2 Information Technology's Strategic Importance	32	(30)
A Business Vignette: AOL Suffers Massive Growing Pains	33	(2)
Introduction	35	(1)
Strategic Issues for Senior Executives	36	(1)
Strategic Information Systems Defined	37	(1)
Visualizing Competitive Forces	38	(2)
Forces Governing Competition	38	(1)
Strategic Thrusts	39	(1)
New Economy Paradigms	40	(1)
Strategic Systems in Action	41	(8)
Airline Reservation Systems	42	(2)
Stock Brokerage Systems	44	(4)
Strategic E-Business Systems	48	(1)
Where Are the Opportunities?	49	(3)
The Importance of Technology	49	(1)
The Time Dimension	49	(2)
The Strategic Value of Networks	51	(1)
The Strategist Looks Inward	52	(1)
External Strategic Thrusts	53	(1)
Integrating the Strategic Vision	54	(1)
Value Chain Reconstruction for E-Business	55	(1)
Additional Important Considerations	55	(3)
Organization and Environment	56	(1)
Financial Implications	56	(1)
Legal Considerations	56	(1)
Some Cautions	57	(1)
Summary	58	(1)
Review Questions	59	(1)
Discussion Questions	60	(1)
Management Exercises	61	(1)
Chapter 3 Developing the Organization's IT Strategy	62	(28)
A Business Vignette: AT&T Struggles with Strategy	63	(2)
The Importance of Strategy to Organizations	65	(1)
Considerations in Strategy Development	66	(3)
Relationship of Strategies to Plans	69	(1)
Strategic Management	70	(1)
Types of Strategies	71	(3)
Stand-Alone Strategies	72	(1)
Integrating Business and Functional Strategies	73	(1)
Requirements of a Strategy Statement	74	(3)
Strategy Document Outline	74	(3)
Strategy Development Process	77	(2)
The Strategic Time Horizon	77	(1)
Steps in Strategy Development	78	(1)
E-Business Strategy Considerations	79	(1)
The IT Strategy Statement	80	(3)
Business Aspects	81	(1)
Technical Issues	81	(1)
Organizational Concerns	82	(1)
Financial Matters	82	(1)
Personnel Considerations	82	(1)
E-Business and Knowledge Management Strategies	83	(2)
Using and Maintaining Strategies	85	(1)
Summary	86	(1)
Review Questions	87	(1)
Discussion Questions	88	(1)
Management Exercises	89	(1)
Chapter 4 Information Technology Planning	90	(26)
A Business Vignette: Team-Based Planning Aligns Goals and Objectives	91	(1)
Introduction	92	(1)
The Planning Horizon	93	(2)
Strategic Plans	95	(1)
Tactical Plans	96	(1)
Operational Plans and Controls	96	(1)
Planning Schedules	97	(1)
Rapid-Response Planning for Internet Applications	98	(1)
A Planning Model for IT Managers	98	(7)
Application Considerations	100	(1)
System Operations	101	(1)
Resource Planning	102	(1)
People Plans	102	(1)
Financial Plans	103	(1)
Administrative Actions	103	(1)
Technology Planning	104	(1)
Using Critical Success Factors in Planning	105	(1)
Business Systems Planning	106	(1)
The Integrated Approach	106	(3)
Management Feedback Mechanisms	109	(1)
Summary	110	(1)
Review Questions	111	(1)
Discussion Questions	112	(1)
Management Exercises	113	(3)
PART TWO TECHNQLOGY, LEGISLATIVE AND INDUSTRY TRENDS
Chapter 5 Hardware and Software Trends	116	(36)
A Business Vignette: Linux Makes a Run at Windows	117	(2)
Introduction	119	(1)
Semiconductor Technology	120	(6)
Trends in Semiconductor Technology	121	(5)
Recording Technology	126	(6)
Magnetic Recording	127	(2)
Fault-Tolerant Storage Subsystems	129	(1)
CD-ROM Storage	130	(1)
Autonomous Storage Systems	131	(1)
Computer Architecture	132	(4)
Supercomputers	133	(2)
Microcomputers	135	(1)
Trends in Systems Architecture	136	(2)
Client/Sewer Systems	136	(2)
Communications Technology	138	(1)
The World Wide Web, Intranets, and Extranets	139	(3)
Thin Clients	141	(1)
Programming Technology	142	(4)
Operating Systems	142	(1)
Network Operating Systems	143	(2)
Application Programming	145	(1)
Recapitulation	146	(1)
Implications for Managers and Organizations	147	(1)
Summary	148	(1)
Review Questions	149	(1)
Discussion Questions	150	(1)
Management Exercises	151	(1)
Chapter 6 Modern Telecommunications Systems	152	(36)
Introduction	153	(1)
Voice Networks	154	(10)
Circuit Switched Networks	154	(1)
Telephone Signals	155	(1)
Multiplexing	156	(1)
Digitizing Voice Signals	157	(1)
The Digital Telephone	158	(3)
T-Services	161	(3)
Data Communication Networks	164	(13)
Packet Switched Networks	164	(1)
Local Area Networking	165	(1)
The Open System Interconnection Model	165	(2)
Internetworking Technology	167	(1)
Communication Between Networks	168	(1)
Physical Layer Technologies	169	(1)
Optical-Fiber Media	170	(1)
Wavelength Division Multiplexing	171	(1)
Fiber-Based Advanced Transport Technologies	172	(3)
Frame Relay, ATM, and Gigabit Ethernet	175	(2)
The Last Mile	177	(3)
Digital Subscriber Lines	177	(1)
Digital Cable	178	(1)
Voice Over Cable	179	(1)
Wireless Systems	180	(4)
Licensed Wireless	180	(2)
Unlicensed Wireless	182	(2)
Summary	184	(1)
Review Questions	185	(1)
Discussion Questions	186	(1)
Management Exercises	187	(1)
Chapter 7 Legislative and Industry Trends	188	(36)
A Business Vignette: A Telecom Giant Emerges from Government Ownership	189	(2)
Introduction	191	(1)
The Semiconductor Industry	192	(1)
The Computer Industry	193	(4)
Hardware Suppliers	194	(1)
The Software Business	195	(1)
Industry Dynamics	196	(1)
The Information Infrastructure	197	(1)
Regulating Telecommunication Services	198	(7)
The Divestiture of AT&T	199	(1)
The 1996 Telecommunications Act	200	(2)
FCC Actions	202	(1)
Implementation Realities	203	(2)
Privatization Around the Globe	205	(1)
Industry Transformations	205	(5)
Local Service Providers	205	(2)
Industry Consolidations	207	(3)
Local and Long-Distance Considerations	210	(3)
Traditional Long-Distance Service Providers	211	(1)
Competition Among Long-Distance Suppliers	211	(2)
Cellular and Wireless Operators	213	(3)
Satellite Cellular Networks	216	(1)
The World's Major Telecommunication Firms	216	(1)
From Monopoly to Oligopoly in the U.S	217	(1)
Implications for Business Managers	218	(1)
Review Questions	219	(1)
Discussion Questions	220	(1)
Management Exercises	221	(3)
PART THREE MANAGING SOFTWARE APPLICATIONS
Chapter 8 Managing Applications Portfolios	224	(30)
A Business Vignette: Too Early to Claim Victory?	225	(2)
Introduction	227	(1)
Application Program Resources	228	(1)
Depreciation and Obsolescence	228	(1)
Maintenance and Enhancement	229	(1)
Data Resources	229	(1)
Applications as Depreciating Assets	230	(1)
Internet Influences on Application Development	230	(1)
Spending More May Not Be the Answer	231	(3)
The Programming Backlog	231	(1)
The Need to Prioritize	232	(2)
Enhancement and Maintenance Considerations	234	(5)
The High Cost of Enhancement	234	(2)
Trends in Resource Expenditures	236	(1)
Typical Ad Hoc Processes	237	(2)
Superior Portfolio Management	239	(8)
Satisfaction Analysis	240	(2)
Strategic and Operational Analysis	242	(1)
Costs and Benefits Analysis	243	(2)
Additional Important Management Factors	245	(2)
Managing Data Resources	247	(1)
Prioritizing E-Business Applications	247	(1)
The Value of This Process	248	(2)
Summary	250	(1)
Review Questions	251	(1)
Discussion Questions	252	(1)
Management Exercises	253	(1)
Chapter 9 Managing Application Development	254	(32)
A Business Vignette: Remarkable Software Commands the Space Shuttle	255	(2)
Introduction	257	(1)
The Challenges of Application Development	258	(3)
Reasons for Development Difficulties	259	(2)
Application Project Management	261	(1)
The Traditional Life-Cycle Approach	262	(1)
Business Case Development	263	(3)
The Phase Review Process	266	(5)
Phase Review Objectives	267	(1)
Timing of Phase Reviews	268	(1)
Phase Review Contents	268	(2)
The Participants	270	(1)
Phases for Large Projects	270	(1)
Managing the Review Process	271	(1)
Resource Allocation and Control	271	(1)
Risk Analysis	272	(5)
Risk Reduction Actions	277	(1)
More on the Life-Cycle Approach	277	(1)
Programming Process Improvements	278	(1)
Successful Application Management	279	(1)
Summary	280	(1)
Review Questions	281	(1)
Discussion Questions	282	(1)
Management Exercises	283	(1)
Appendix	284	(2)
Chapter 10 Development and Acquisition Alternatives	286	(30)
A Business Vignette: American Programmers Face the Law of Supply and Demand	287	(2)
Introduction	289	(1)
Advances in Programming Tools and Techniques	290	(13)
Fourth-Generation Languages	290	(2)
CASE Methodology	292	(3)
The Object Paradigm	295	(1)
Java Programming	296	(1)
Linux, HTML, and XML	297	(1)
Prototyping	298	(3)
Improving Programming Quality	301	(2)
Subcontract Development	303	(1)
Purchased Applications	304	(4)
Advantages of Purchased Applications	304	(2)
Disadvantages of Purchased Applications	306	(2)
E-Business Alternatives	308	(2)
Internet Systems and Technology	308	(1)
Web Hosting	309	(1)
Application Service Providers	309	(1)
Additional Alternatives	310	(1)
Managing the Alternatives	310	(2)
Summary	312	(1)
Review Questions	313	(1)
Discussion Questions	314	(1)
Management Exercises	315	(1)
Chapter 11 Managing E-Business Applications	316	(34)
A Business Vignette: Merrill Lynch: On the Horns of a Dilemma	317	(2)
Introduction	319	(1)
Re-Engineering for E-Business Environments	320	(2)
Distributed Systems	322	(1)
Client/Server Operations	323	(2)
Building Client/Server Applications	325	(1)
The Issues of Distributed Computing	325	(3)
Human Support Infrastructure	328	(3)
The Info Center	328	(3)
E-Business, The New Paradigm	331	(2)
Intranets and Extranets	331	(2)
Developing and Using Intranets and Extranets	333	(5)
Managing Web-Hosting Operations	335	(1)
Application Hosting	336	(1)
E-Sourcing	337	(1)
Implementing E-Business Systems	338	(1)
Organizational Factors	338	(1)
Information Infrastructure	338	(1)
Systems Management	339	(1)
Management Issues	339	(5)
Policy Considerations	340	(1)
People Considerations	341	(1)
Managing Expectations	342	(1)
Change Management	343	(1)
Summary	344	(1)
Review Questions	345	(1)
Discussion Questions	346	(1)
Management Exercises	347	(3)
PART FOUR SUPERIOR PRACTICES IN MANAGING SYSTEMS
Chapter 12 Developing and Managing Customer Expectations	350	(28)
A Business Vignette: Managing Expectations Isn't Always Easy	351	(2)
Introduction	353	(1)
Tactical and Operational Concerns	354	(1)
Customer Expectations	354	(1)
The Disciplined Approach	355	(2)
Service-Level Agreements	357	(2)
What the SLA Includes	359	(4)
Schedule and Availability	361	(1)
Timing	361	(2)
E-Business Customer Expectations	363	(3)
Contracts with Outside IT Service Suppliers	364	(1)
What to Include in Service Contracts	364	(1)
Types of Service Contracts	365	(1)
Workload Forecasts	366	(2)
Workload Considerations When Outsourcing	368	(1)
Measurements of Satisfaction	368	(3)
User Satisfaction Surveys	369	(1)
E-Business Satisfaction Measurements	370	(1)
Additional Considerations	371	(1)
Congruence of Expectations and Performance	372	(1)
Summary	373	(1)
Review Questions	374	(1)
Discussion Questions	375	(1)
Management Exercises	376	(1)
Appendix: Sample Service-Level Agreement	377	(1)
Chapter 13 Managing Computer and Data Resources	378	(32)
A Business Vignette: E-Business Demands High Performance Data Centers	379	(2)
Introduction	381	(2)
The Disciplines for E-Business Systems	383	(1)
Problem Definition	384	(1)
Problem Management	384	(6)
Problem Management's Scope	385	(1)
Problem Management Processes, Tools, and Techniques	386	(1)
Problem Management Implementation	387	(3)
Problem Management Reports	390	(1)
Change Management	390	(4)
Change Management's Scope	391	(1)
Change Management Processes	392	(2)
Change Management Reports	394	(1)
Recovery Management	394	(8)
Contingency Plans	398	(1)
Critical Applications	398	(1)
Emergency Planning	399	(1)
Strategies	399	(2)
Recovery Plans	401	(1)
Additional Considerations for E-Business Systems	402	(2)
Summary	404	(1)
Review Questions	405	(1)
Discussion Questions	406	(1)
Management Exercises	407	(1)
Appendix A Sample Problem Report	408	(1)
Appendix B Sample Problem Log	409	(1)
Appendix C Change Request Document	409	(1)
Chapter 14 Managing E-Business and Network Systems	410	(36)
A Business Vignette: Verizon Flexes Its E-Sourcing Muscles	411	(2)
Introduction	413	(1)
Managing Batch Systems	414	(2)
Network Systems Management	416	(2)
Network Management's Scope	417	(1)
Managers' Expectations of Networks	418	(1)
Network Management Disciplines	418	(9)
Network Service Levels	420	(2)
Configuration Management	422	(1)
Fault and Change Management	423	(1)
Recovery Management	424	(1)
Network Management Systems	425	(2)
Performance Management	427	(5)
Defining Performance	427	(1)
Performance Planning	428	(1)
Measuring and Analyzing Performance	429	(1)
Network Performance Assessment	430	(1)
System Tuning	431	(1)
Capacity Management	432	(5)
Capacity Analysis	432	(1)
Capacity Planning	433	(2)
Additional Planning Factors	435	(2)
Linking Plans to Service Levels	437	(1)
Management Information Reporting	437	(1)
The Network Manager	438	(2)
Summary	440	(1)
Review Questions	441	(1)
Discussion Questions	442	(1)
Management Exercises	443	(3)
PART FIVE CONTROLLING AND SECURING INFQRMATION RESOURCES
Chapter 15 Measuring IT Investments and Returns	446	(30)
A Business Vignette: Capital Blue Cross Makes Sound Decisions	447	(2)
Introduction	449	(3)
Accounting for IT Resources	452	(2)
Objectives of Resource Accountability	454	(2)
Recovering Costs from Client Organizations	456	(3)
Goals of Chargeback Systems	458	(1)
Alternative Accounting Methodologies	459	(3)
Profit Centers	459	(2)
Cost Centers	461	(1)
Additional Cost-Recovery Considerations	462	(4)
Funding Application Development and Maintenance	463	(1)
Cost Recovery in Production Operations	464	(1)
Network Accounting and Cost Recovery	465	(1)
Relationship of Accounting to Client Behavior	466	(1)
Some Additional Considerations	467	(1)
Managers' Expectations of Accounting Systems	467	(1)
Special Considerations for E-Business Systems	468	(1)
Measuring IT Investment Returns	469	(3)
Measuring E-Business Investment Returns	470	(2)
Summary	472	(1)
Review Questions	473	(1)
Discussion Questions	474	(1)
Management Exercises	475	(1)
Chapter 16 IT Controls, Asset Protection, and Security	476	(36)
A Business Vignette: Robbery on the Information Superhighway	477	(2)
Introduction	479	(1)
The Meaning and Importance of Control	480	(3)
Business Control Principles	483	(2)
Asset Identification and Classification	483	(1)
Separation of Duties	484	(1)
Efficiency and Effectiveness of Controls	485	(1)
Control Responsibilities	485	(2)
Owner and User Responsibilities	485	(1)
IT Managers' Responsibilities	486	(1)
Application Controls	487	(7)
Application Processing Controls	487	(1)
System Control Points	487	(3)
Processing, Storage, and Output Controls	490	(2)
Application Program Audits	492	(1)
Controls in Production Operations	493	(1)
Controls in Client/Server Operations	494	(1)
Network Controls and Security	494	(6)
Data Encryption	496	(1)
Firewalls and Other Security Considerations	497	(3)
Additional Control and Protection Measures	500	(3)
Managing Sensitive Programs	501	(2)
Controls for E-Business Applications	503	(1)
The Keys to Effective Control	503	(2)
Summary	505	(2)
Review Questions	507	(1)
Discussion Questions	508	(1)
Management Exercises	509	(3)
PART SIX PREPARING FOR IT ADVANCES
Chapter 17 People, Organizations, and Management Systems	512	(32)
A Business Vignette: IT Utilities-Are They Coming at Last?	513	(2)
Introduction	515	(1)
Technology Is Reshaping Organizations	516	(5)
Important Technology Trends	517	(1)
Large-Scale Organizational Transitions	518	(1)
The Span of Communication	519	(2)
People Are the Enabling Resource	521	(2)
People and Information Technology	522	(1)
Essential People-Management Skills	523	(5)
Effective People Management	523	(1)
Attitudes and Beliefs of Good People Managers	524	(1)
Achieving High Morale	525	(1)
Ethical and Legal Considerations	526	(2)
The Collection of Management Processes	528	(10)
Strategizing and Planning	528	(2)
Portfolio Asset Management	530	(2)
E-Business and Network Operation Disciplines	532	(3)
Network Management	535	(1)
Financial and Business Controls	536	(1)
Business Management	537	(1)
Management Processes for E-Business	538	(2)
Summary	540	(1)
Review Questions	541	(1)
Discussion Questions	542	(1)
Management Exercises	543	(1)
Chapter 18 The Chief Information Officer's Role	544	(27)
A Business Vignette: Visa Uses IT to Expand Its House of Cards	545	(2)
Introduction	547	(1)
Challenges Facing Senior IT Executives	547	(2)
The Chief Information Officer	549	(1)
CIOs' Organizational Position	549	(1)
CIOs' Performance Measures	550	(1)
Challenges Within the Organization	550	(1)
The Chief Technology Officer	551	(1)
The Chief Information Officer's Role	552	(4)
Developing IT Management Maturity	552	(1)
Evaluating Technology Futures	553	(2)
Important Business and IT Trends	555	(1)
Finding Better Ways of Doing Business	556	(6)
Introducing New Technology	557	(1)
Facilitating Organizational Change	558	(1)
New Ways of Doing Business	559	(3)
CIOs in the Internet World	562	(2)
Successful Executive Advances	564	(1)
What CIOs Must Do for Success	565	(2)
Summary	567	(1)
Review Questions	568	(1)
Discussion Questions	569	(1)
Management Exercises	570	(1)
References and Readings	571	(6)
Part One Foundations of IT Management	571	(1)
Part Two Technology, Legislative, and Industry Trends	571	(1)
Part Three Managing Software Applications	572	(1)
Part Four Superior Practices in Managing Systems	573	(1)
Part Five Controlling and Securing Information Resources	573	(1)
Part Six Preparing for IT Advances	574	(1)
Other References and Readings	574	(3)
Index	577