Manager's Guide to Making Decisions about Information Systems

The sign of a smart IS decision... The sign of a smart decision about information systems isn't based on technical details alone; it's based on how well that decision contributes to the overall success of the business. If you want to make your firm's investment in IS really pay off, you need to approach IS from a truly managerial perspective. Now with Paul Gray's Manager's Guide to Making Decisions About IS, you'll learn how IS can help the organization as a whole, and how to make key decisions on whether to undertake, upgrade, or decommission large software systems. You'll also learn about the capabilities of IS, such as the many uses of a data warehouse and using IS to gain competitive intelligence. See the big picture. The Manager's Guide to Making Decisions About IS first focuses on big picture issues, such as hardware, software, and the Internet; strategic uses of IS; aligning IS with the business; types of applications; and inter-organizational systems. Make decisions on big-ticket applications. Gray then provides you with essential knowledge that will help you make informed decisions on big-ticket applications, including electronic commerce, enterprise requirements planning (ERP), customer relationship management (CRM), data warehousing, knowledge management, and business intelligence. Explore current IS issues. Finally, the Manager's Guide to Making Decisions About IS examines the IS issues that managers are currently facing in today's business, including outsourcing, systems integration, supply chain, people issues, mergers and acquisitions, infrastructure, and privacy, security, and ethics. Armed with this knowledge, you'll have the confidence and understanding you need to sign-off on IS decisions that will have a valuable impact on your organization.

Table of Contents:
Chapter 1 What Is An Information System? 1 Managerial Questions 1 Introduction 1 What is an Information System? 2 Components of an Information System 2 Hardware 3 Personal Computers 3 Mainframe Computers 3 Client–Server Computers 4 Remote Computing Using Application Service Providers, Web Services, and Grid Computing 4 Software 5 Operating Systems 5 Applications Programs 5 Electronic Commerce (Chapter 3) 7 ERP (Enterprise Requirements Planning) (Chapter 4) 7 Data Warehousing (Chapter 5) 8 Customer Relationship Management (Chapter 6) 8 Knowledge Management (Chapter 7) 9 Business Intelligence (Chapter 8) 10 The Internet 11 Websites 11 Connectivity 11 Finding Things Using Search Engines 12 Content Management 12 Intranet/Extranet 12 Privacy 12 Security 12 Corporate Portals 13 Website Development 13 Website Traffic Analysis 13 Answers to Managerial Questions 14 Chapter 2 the Big Picture: It and Business 15 Managerial Questions 15 Introduction 15 Strategic Advantage Versus Strategic Necessity 15 Continual Improvement 17 Introducing Strategic Information Systems 17 Risks 19 Business–it Alignment 20 Assessing the Alignment Maturity Level 21 Alignment Considerations 21 Alignment when Strategy Changes 21 Information Economics 23 The Search for Productivity 23 Why Invest? 25 Organizational Change 25 Some Practical Problems 26 Does Information Technology Matter? 26 Carr’s Argument 26 The Response to Carr 27 This Book’s Position 27 The Arguments for Carr 27 The Arguments against Carr’s Position 28 Types of Information Systems 29 Transaction Processing Systems 29 Management Information Systems 30 Decision Support Systems 30 Knowledge-Based and Other Systems 30 Interorganizational Computing 30 Replacing Intermediation through Electronic Markets 31 Key Issues 32 Application and Technology Developments 34 Answers to Managerial Questions 35 Problems 36 Chapter 3 Electronic Commerce 37 Managerial Questions 37 Introduction 37 What is Involved in E-commerce? 39 Some E-commerce Statistics 39 Retail 40 Business to Business (B2B) 40 Technology 40 Benefits and Costs 41 Benefits 41 Costs 41 Business to Consumer (B2C) 43 Infrastructure 43 Electronic Retail Business Model 44 Information Transactions 45 Advertising 45 Impact on Retail Distribution 46 B2C in Service Industries 46 Cybermalls and Metamalls 47 Business to Business (B2B) 47 Structure of the E-marketplace 48 Electronic Data Interchange (EDI) 48 Moving to the Internet 48 Interorganizational Systems 48 Electronic Markets 50 Consumer to Consumer (C2C): The Case of Ebay 52 Consumer to Government (C2G): The Case of Wireless and 911 53 E-commerce Strategies 53 Conclusions 55 Answers to Managerial Questions 55 Problems 56 Chapter 4 Enterprise Requirements Planning 58 Managerial Questions 58 Introduction 58 How Sap Works 59 Cultural Problems of Implementation 61 ERP Vendors 62 Costs 62 Benefits 64 The Markus and Tanis View of the ERP Experience 64 Integration 65 Packages 65 Best Practices 65 Some Assembly Required 65 Reasons for Adopting or Not Adopting ERP 66 Adopting ERP 66 Not Adopting ERP 66 The ERP Team 67 The Future: ERP II 71 Final Thoughts 71 Answers to Managerial Questions 72 Problems 73 Chapter 5 Data Warehousing 74 Managerial Questions 74 Introduction 74 Definition of a Data Warehouse 75 Characteristics of a Data Warehouse 75 Subject Orientation 76 Data Integration 77 Time 78 Nonvolatile Data 78 Structure of the Data Warehouse 79 Metadata 80 Flow of Data 81 Why a Separate Warehouse? 81 Other Forms of Data Warehouses 82 Application: Online Analytic Processing 84 Application: Data Mining 86 Application: Customer Relationship Management 87 Application: Business Intelligence 88 Strategic Use 89 Managing the Data Warehouse 90 Why Warehouse Projects Can Fail 92 Data Warehousing Costs 93 The Data Warehousing Industry 94 Benefits and Problems 94 Answers to Managerial Questions 94 Problems 95 Chapter 6 Customer Relationship Management 96 Managerial Questions 96 Introduction 96 History of the CRM Market 97 The CRM Approach 99 Basic Assumptions of CRM 99 Customer 100 Relationship 100 Management 100 Drivers for CRM Applications 102 Revenue and Cost Goals 103 Principles of CRM 103 Technology and Service 104 Information Technologies for CRM 104 Key Tasks 104 IT Factors of CRM 105 Consultants 106 Return on Investment of Implementation 106 Cost and Time 106 Benefits 107 ROI of CRM Project 108 CRM Issues 109 Customer Privacy 109 Technical Immaturity 109 CRM Myths 110 The Importance of Channels 111 Vendors 111 Management Risks 112 Conclusions 115 Answers to Managerial Questions 115 Problems 115 Chapter 7 Knowledge Management 117 Managerial Questions 117 Introduction 117 Claims 118 Role of Information Technology 118 Principles of Knowledge Management 119 Knowledge Strategies 120 Leverage 120 Fragmentation, Leakage, Refreshment 120 Uncertain Value 120 Uncertainty in Value Sharing 121 Implications 121 Tacit Versus Explicit Knowledge 121 A Hierarchy of Knowledge 123 Generating Knowledge 123 Knowledge Acquisition 124 Dedicated Resources 125 Fusion 126 Adaptation 127 Networks 127 Transferring Knowledge 127 Personnel Issues 128 Km as an Industry 129 Technology 130 When Knowledge Management Makes Sense 134 Answers to Managerial Questions 135 Problems 136 Chapter 8 Business Intelligence 137 Managerial Questions 137 Introduction 137 Definition 137 Relation to other Software 138 What Can BI Do? 138 BI Technology 140 OLAP 144 Other Data Sources 147 Example: Competitive Intelligence 148 Example: Financial Analytics 150 Potential and Shortcomings 150 Return on Investment 151 Building a Business Intelligence System 152 The Business Intelligence Industry 153 Emerging Ideas in Business Intelligence 155 BI Everywhere 155 Business Process Management and Business Activity Monitoring 156 Answers to Managerial Questions 158 Problems 159 Chapter 9 Outsourcing and Its Variations: Letting Someone else Do the Work 161 Managerial Questions 161 Introduction 161 Origins of Outsourcing 162 Offshore Outsourcing 162 Outsourcing Considerations 164 A Typical Domestic Large Outsourcing Project 164 The Size of the Outsourcing Market 165 Why Outsource? 165 The Central Role of the Contract 166 Managing the Outsourcer Once the Contract Is Signed 167 Controls 169 Bottom Line on Outsourcing 170 Outsourcing the Infrastructure: Web Hosting Service Providers, Web Services, and Utility Computing 170 The Outsourcers 171 Web Hosting 171 Service Providers (xSPs) 171 Rationale 172 Should You Hire an xSP? 173 Web Services 173 Definition and Implication of Web Services 174 Running Computing as a Utility 176 Why Do It? 176 Implementing the Utility Approach 176 Stages of Utility Computing 176 Alternative Approaches 177 Risks of ASPs and Utilities 177 Answers to Managerial Issues 180 Problems 181 Chapter 10 Working Together: Systems Integration, Interorganizational Systems, Alliances, and Globalization 182 Managerial Questions 182 Introduction 182 Systems Integration 183 Definition 183 Objective 184 The Concept 184 Integrating the Enterprise 184 Integrating the Technology 185 Integration of Data, Application, and Processes 185 Aspects of Systems Integration 188 Enterprise Computing 188 Lessons Learned from Experience 189 The Systems Integration Industry 189 Management Strategy for Integration 190 Interorganizational Systems 191 Readiness 192 Control 192 Who Benefits? 194 Alliances 194 Globalization 194 Bringing in Immigrants, Moving Work Abroad 196 Privacy Rules and Transborder Data Flows 196 Answers to Managerial Questions 198 Problems 199 Chapter 11 Is in Managing Business Operations: the Supply Chain 200 Managerial Questions 200 Introduction 200 The Supply Chain 201 Software’s Role 202 Why Install Supply Chain Software? 203 Cooperation 203 Manufacturing 204 Overview 204 Cad 204 Cam 205 Just-in-Time Manufacturing 205 Inventory 206 Role of ERP 207 Role of Data Warehousing 207 Challenges to Implementation 208 Other Problems Along the Supply Chain 209 Demand Forecasting 209 What Is the Payoff From Information Systems In the Supply Chain? 210 Returns 213 The Supply Chain Market 213 Major Firms in the Supply Chain Market 214 Answers to Managerial Questions 215 Problems 215 Chapter 12 The Chief Information Officer, People Issues, Project Management, Change Management 216 Managerial Questions 216 Introduction 216 Chief Information Officer 217 Managing Expectations 217 Chief Technology Officer 218 Governance and Steering Committees 219 What Is People Need to Know 219 Create Programs 220 Manage Vendors and Outsourcers 220 Customize Programs to the Firm’s Needs 220 Know the Needs of the Business 220 Business Processes 220 Communicating with the User Community 221 Maintaining the Corporate Data 221 Maintaining Corporate Telecommunications 221 Integrating Systems 221 Managing E-mail and Internet Usage 222 Managing the Firm’s Web Presence 222 Managing Computer Security 222 Documentation, Updates, and Training 222 Maintaining and Running the Computers 223 Help Desk 223 Role of Educational Institutions 224 Project Management 224 The Project Manager 226 Change Management 227 Conclusions 229 Answers to Managerial Questions 229 Problems 230 Chapter 13 Information Systems in Mergers and Acquisitions 231 Managerial Questions 231 Introduction 231 Why Merge? 231 Effect of Merger on Information Systems 232 Merger Principles 233 The Merger Process 233 Security Issues 234 Cultural Considerations 235 Implications of Cases 237 Answers to Managerial Questions 237 Problems 238 Chapter 14 Work Systems and Infrastructure 239 Managerial Questions 239 Introduction 239 Work System 240 Infrastructure 241 What Is Infrastructure? 241 The Infrastructure Portfolio 243 Infrastructure Architecture 244 Infrastructure Investment Strategies 244 Making Infrastructure Investment Decisions 245 Infrastructure Capabilities 246 Work Systems 246 Fundamental Concepts of Work Systems 247 Relations among the Concepts 249 Technical Considerations for IS Work System Projects 253 Answers to Managerial Questions 254 Problems 255 Chapter 15 Privacy, Security, Copyright, Patents, and other Legal And Ethical Issues 256 Managerial Questions 256 Introduction 256 Privacy 257 Privacy Statements 258 Surveillance 259 Privacy versus Convenience 261 CRM, Data Warehousing, and Other Large Databases 261 Security 261 Controls 262 New Technologies 264 The Risk of Not Investing 264 Risk Management 264 HIPAA: the Intersection of Security and Privacy 265 Announcing Security Failures 266 Disaster Recovery and Business Continuity 266 An Example 267 Who Is Responsible? 267 The Threats 267 Some IT Measures 267 Some Lessons 268 Legal Issues 268 Privacy 269 Taxation of E-commerce 269 UCITA 270 Copyright and Patents 271 Copyright 271 Patents 272 Ethics 272 Answers to Managerial Questions 274 Appendix: the Computer Industry 277 Managerial Questions 277 Definition of the Information Industry 277 U.S. Census Bureau 278 Shapiro and Varian 278 Hoover’s Online 278 A Framework for Analyzing the Information Industry— The Houghton Map 279 Computer and Computer-related Segments 281 In-house Computer Shops 282 Employment 283 Outside Shops 285 Application Service Providers 285 Web Services 287 Outsourcers 287 Hardware Manufacturers 290 Retailers and Middlemen 291 Pricing and Maintenance 291 Open Source 292 Computing for Nonbusiness Applications 292 Telecommunications and Networks 292 Search Engines 293 New Technologies 293 Wi-Fi 294 RFID 294 Finding Out More About the Computer Industry and Computer Applications: the Computer Press and the Industry Observers 295 Conclusion 296 Answers to Managerial Questions 296 Glossary 299 Index 313