Managing and Using Information Systems

Preface v

Acknowledgments ix

About the Authors xi

Introduction 1

The Case for Participating in Decisions about Information Systems 3

What If a Manager Doesn’t Participate? 6

Skills Needed to Participate Effectively in Information Technology Decisions 7

Basic Assumptions 8

Economics of Information versus Economics of Things 12

Summary 16

Key Terms 16

1 The Information Systems Strategy Triangle 17

Brief Overview of Business Strategy Frameworks 20

Why are Strategic Advantage Models Essential to Planning for Information Systems? 26

Brief Overview of Organizational Strategies 26

Brief Overview of Information Systems Strategy 27

Summary 29

Key Terms 30

Discussion Questions 30

Case Study 1-1 Amazon in 2019 31

Case Study 1-2 Lego 32

2 Strategic Use of Information Resources 35

Evolution of Information Resources 36

Information Resources as Strategic Tools 38

How Can Information Resources Be Used Strategically? 40

Sustaining Competitive Advantage 46

Strategic Alliances 51

Co-Creating IT and Business Strategy 53

Summary 54

Key Terms 55

Discussion Questions 55

Case Study 2-1 Amazon Go: How Far Can It Go? 56

Case Study 2-2 Groupon 57

3 Organizational Strategy and Information Systems 59

Information Systems and Organizational Design 62

Information Systems and Management Control Systems 68

Information Systems and Culture 71

Summary 75

Key Terms 76

Discussion Questions 76

Case Study 3-1 Uber’s Use of Technology-Mediated Control 77

Case Study 3-2 The FBI 78

4 Digital Systems and the Design of Work 80

Work Design Framework 82

How Information Technology Changes the Nature of Work 83

Where Work is Done and Who Does It: Mobile and Virtual Work Arrangements 91

Gaining Acceptance for IT-Induced Change to Work 99

Summary 101

Key Terms 102

Discussion Questions 102

Case Study 4-1 Automation at Southern Glazer’s Wine and Spirits LLC 104

Case Study 4-2 Trash and Waste Pickup Services, Inc. 105

5 Information Systems and Digital Transformation 106

Silo Perspective versus Business Process Perspective 107

Building Agile and Dynamic Business Processes 112

Digital Business Transformation 115

Workflow and Mapping Processes 115

Types of Enterprise Systems 117

Enterprise System Issues 124

Summary 127

Key Terms 127

Discussion Questions 128

Case Study 5-1 Carestream Health 129

Case Study 5-2 Santa Cruz Bicycles 130

6 Architecture and Infrastructure 132

From Vision to Implementation 133

The Leap from Strategy to Architecture to Infrastructure 134

From Strategy to Architecture to Infrastructure: An Example 141

Virtualization and Cloud Computing 146

Other Managerial Considerations 147

Summary 151

Key Terms 152

Discussion Questions 152

Case Study 6-1 Enterprise Architecture at Chubb Industries 154

Case Study 6-2 The Case of Extreme Scientists 155

7 Security 156

NIST Cybersecurity Framework 158

IT Security Governance Framework 159

Cyberattacks and How They Occurred 161

The Impossibility of 100% Security 165

What Should Management Do? 167

How Do We Measure How Secure We Are? 174

Summary 175

Key Terms 176

Discussion Questions 176

Case Study 7-1 The Aircraft Communications Addressing and Reporting System (ACARS) 177

Case Study 7-2 Sony Pictures: The Criminals Won 177

8 The Business of Information Technology 179

Organizing to Respond to Business: A Maturity Model 181

Understanding the IT Organization 182

What a Manager Can Expect from the IT Organization 182

What the IT Organization Does Not Do 184

Chief Information Officer 184

Building a Business Case 186

IT Portfolio Management 189

Valuing IT Investments 190

Monitoring IT Investments 191

Funding IT Resources 196

How Much Does IT Cost? 198

Summary 200

Key Terms 201

Discussion Questions 202

Case Study 8-1 Air France/KLM Airlines 203

Case Study 8-2 Balanced Scorecards at BIOCO 204

9 Governance of the Information Systems Organization 206

IT Governance 207

Centralized versus Decentralized Organizational Structures 208

Decision Rights and Governance 210

Platform-Based Governance 212

Governance Frameworks for Control Decisions 215

Summary 218

Key Terms 219

Discussion Questions 219

Case Study 9-1 IT Governance at Toyota 220

Case Study 9-2 The “MyJohnDeere” Platform 221

10 Information Systems Sourcing 223

Sourcing Decision Cycle Framework 224

Outsourcing in the Broader Context 239

Summary 240

Key Terms 241

Discussion Questions 241

Case Study 10-1 O2 and RPA 242

Case Study 10-2 Crowdsourcing at AOL 243

11 Managing IT Projects 244

What Defines a Project? 246

What is Project Management? 247

Project Elements 249

IT Projects 252

IT Project Development Methodologies and Approaches 253

Managing IT Project Risk 261

Gauging Success 265

Summary 266

Key Terms 267

Discussion Questions 267

Case Study 11-1 Information Displays at Dutch Railways (Nederlandse Spoorwegen) 268

Case Study 11-2 Dealing with Traffic Jams in London 269

12 Business Intelligence, Knowledge Management, and Analytics 272

Competing with Business Analytics 273

Knowledge Management, Business Intelligence, and Business Analytics 274

Components of Business Analytics 279

Big Data 282

Caveats for Managing Knowledge and Business Intelligence 289

Summary 290

Key Terms 291

Discussion Questions 291

Case Study 12-1 Nest and the Internet of Things (IoT) 292

Case Study 12-2 Stop & Shop’s Scan It! App 292

13 Privacy and Ethical Considerations in Information Management 294

Responsible Computing 296

Corporate Social Responsibility 299

PAPA: Privacy, Accuracy, Property, and Accessibility 302

Green Computing 310

Summary 312

Key Terms 312

Discussion Questions 312

Case Study 13-1 Equifax’s 2017 Data Breach 314

Case Study 13-2 Ethical Decision Making 315

Glossary G-1

Index I-1