PREFACE vii FOREWORD xi
PART I FOUNDATIONS 1
CHAPTER 1 Information Systems and the Role of General and Functional Managers 3
Introduction 5
General and Functional Managers 6
General and Functional Managers versus End Users 9
The Next Wave of CIOs 10
Fundamental IT Trends: The Staying Power of Moore s Law 12
Processing Power and Memory Increase 13
Costs of Computing Power Decline 14
Computers Have Become Easier to Use 16
Other IT Trends of Managerial Interest 16
Declining Storage Costs 17
Ubiquitous Network Access 17
Ubiquitous Computing and Digital Data Genesis 17
How Do These Trends Affect Today s Managers? 21
Why Can t We Just Hire Good IT People? 22
Summary 23
Study Questions 23
Further Readings 24
Glossary 24
CHAPTER 2 Information Systems Defined 25
Introduction 26
Information Systems: Definition 27
IS, Not IT 27
Information Systems as Sociotechnical Systems 28
The Four Components of an Information System 29
Systemic Effects 32
Why Do Organizations Build Information Systems? 33
Successful Information Systems 34
Information Systems Outcomes 38
Information Systems in the Organizational Context 39
Every Organization is Unique 39
Bringing It All Together 40
Information Systems and Organizational Change 41
First–Order Change: Automate 41
Second–Order Change: Informate 42
Third–Order Change: Transform 43
Culture and Information Systems 45
National Culture 45
Organizational Culture and National Culture 46
How Culture Impacts Structure 47
Implications 49
Don t Put the Cart before the Horse 49
The Rock in the Pond 50
Information Systems Are in Flux 50
Conclusion 51
Summary 51
Study Questions 51
Further Readings 52
Glossary 52
Case Study: Troubleshooting Information Systems at the Royal Hotel 52
CHAPTER 3 Organizational Information Systems and Their Impact 58
Introduction 59
Categorizing Systems 60
Hierarchical Perspective 60
Functional Perspective 64
Process Perspective 65
The Information System Cycle 69
The Integration Imperative 70
Defining Integration 70
The Dimensions of Integration 70
Enterprise Systems 73
The Genesis of Enterprise Systems 73
Enterprise Systems: Definition 75
The Advantages of Enterprise Systems 78
The Limitations of Enterprise Systems 79
Supply Chain Management 83
A Brief History of Supply Chain Management 84
Modern Supply Chain Management 85
Knowledge Management 87
Knowledge: Definition 87
Knowledge Management: Definition 89
Business Intelligence 90
Business Intelligence: Definition 92
Components of the Business Intelligence Infrastructure 93
The Evolution of Business Intelligence 96
Customer Relationship Management 97
Aspects of CRM 97
The Limitations of CRM 99
Best–of–Breed Integration 99
Enterprise Application Integration (EAI) 100
Ultimate Flexibility: Service–Oriented Architecture 100
Integration: Concluding Remarks 102
Summary 103
Study Questions 104
Further Readings 104
Glossary 105
Case Study: Hilton Hotels Brand Differentiation through Customer Relationship Management 106
PART II COMPETING IN THE INTERNET AGE 119
CHAPTER 4 The Changing Competitive Environment 121
Introduction 122
Network Economics 123
Networks Are Different: Value in Plentitude 124
Physical and Virtual Networks 124
Key Concepts and Vocabulary 126
Two–Sided Networks 134
Implications for General and Functional Managers 134
The Economics of Information 137
Data and Information 138
Classic Information Goods 138
The Economic Characteristics of Information 139
Implications 143
Information–Intensive Goods 144
Information in Networks 146
The Richness and Reach Trade–Off 147
Implications 149
Obstacles 151
The Internet Changes Everything? 153
A Note about Disruptive Technology 154
Sustaining Technology 154
Disruptive Technology 155
Implications for Managers 156
What to Do? 157
Summary 158
Study Questions 159
Further Readings 159
Glossary 159
Case Study: Online Education 160
CHAPTER 5 Electronic Commerce: New Ways of Doing Business 163
Introduction 166
The Internet 166
Internet Services 168
Distributed Ownership 168
Multiplicity of Devices 169
Open Standards 170
The Network, More than the Internet of Today 170
The eCommerce Vocabulary 172
eCommerce and eBusiness 173
The Enablers 173
Categorizing Electronic Commerce Initiatives 174
Manifestations of eCommerce and eBusiness 180
Business Models: Definition 180
Dominant Business Models 184
The Implications of eCommerce 188
Disintermediation 188
Reintermediation 189
Market Efficiency 189
Channel Conflict 189
Customer and Employee Self–Service 191
eCommerce: From Novelty to the Mainstream 191
The Web 2.0 Phenomenon 192
Web 2.0 Technologies 196
Web 2.0 and Business Innovation 201
Summary 203
Study Questions 203
Further Readings 204
Glossary 204
Case Study: STA Travel Island Marketing First Life Travel Services in Second Life 205
PART III THE STRATEGIC USE OF INFORMATION SYSTEMS 209
CHAPTER 6 Strategic Information Systems Planning 211
Introduction 212
A Word About Strategic and Operational Planning 213
Strategic Alignment 213
Six Decisions Requiring Managerial Involvement 215
The Purpose of Strategic Information Systems Planning 217
Plans Enable Communication 217
Plans Enable Unity of Purpose 218
Plans Simplify Decision Making over Time 218
The Strategic Information Systems Planning Process 218
Know Who You Are: Strategic Business Planning 219
Know Where You Start: Information Systems Assessment 219
Know Where You Want to Go: Information Systems Vision 221
Know How You Are Going to Get There: Information Systems Guidelines 226
Know How Well–Equipped You Are to Get There: Information Systems SWOT 230
From Planning to Action: Proposed Strategic Initiatives 231
Summary 231
Study Questions 232
Further Readings 232
