Managing and Using Information Systems: A Strategic Approach, Australia and New Zealand Edition

Managing & Using Information Systems: A Strategic Approach provides a solid knowledge base of basic concepts to help readers become informed, competent participants in Information Systems (IS) decisions. Written for MBA students and general business managers alike, the text explains the fundamental principles and practices required to use and manage information, and illustrates how information systems can create, or obstruct, opportunities within various organisations. This revised and updated seventh Australia and New Zealand edition discusses the business and design processes relevant to IS, and presents a basic framework to connect business strategy, IS strategy, and organisational strategy. Readers are guided through each essential aspect of information Systems, including information architecture and infrastructure, IT security, the business of Information Technology, IS sourcing, project management, business analytics, and relevant IS governance and ethical issues. Detailed chapters contain mini cases, full-length case studies, discussion topics, review questions, supplemental reading links, and a set of managerial concerns related to the topic.

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