Managing & Using Information Systems: A Strategic Approach delivers a solid knowledgebase of basic concepts to help MBA students and general business managers alike become informed, competent participants in Information Systems (IS) decisions. Now in its eighth edition, this fully up-to-date textbook explains the fundamental principles and practices required to use and manage information while illustrating how information systems can create or obstruct opportunities - and even propel digital transformations within a wide range of organizations.
Drawing from their expertise in both academia and industry, the authors discuss the business and design processes relevant to IS while presenting a basic framework that connects business strategy, IS strategy, and organizational strategy. Step by step, readers are guided through each essential aspect of Information Systems, from fundamental information architecture and infrastructure to cyber security, Artificial Intelligence (AI), business analytics, project management, platform and IS governance, IS sourcing, and more. Detailed chapters contain mini-cases, full-length case studies, discussion topics, review questions, supplemental readings, and topic-specific managerial concerns that provide insights into real-world IS issues.
Managing & Using Information Systems: A Strategic Approach, Eighth Edition, is an excellent textbook for advanced undergraduate and MBA-level courses on IS concepts and managerial approaches to leveraging emerging information technologies.
Table of Contents
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
Summary 13
Key Terms 14
Foundational Readings 14
1 The Information Systems Strategy Triangle 15
Brief Overview of Business Strategy Frameworks 19
Why Are Strategic Advantage Models Essential to Planning for Information Systems? 25
Brief Overview of Organizational Strategies 25
Brief Overview of Information Systems Strategy 26
Summary 27
Key Terms 28
Foundational Readings 29
Discussion Questions 29
Case Study 1-1 Judo Bank: Business Strategy 30
Case Study 1-2 Amazon in 2023 31
2 Strategic Use of Information Resources 33
Evolution of Information Resources 35
Information Resources as Strategic Tools 37
How Can Information Resources Be Used Strategically? 38
Sustaining Competitive Advantage with Information Resources 44
Risks 48
External Relationships 50
Co- creating IT and Business Strategy 51
Summary 51
Key Terms 52
Foundational Readings 52
Discussion Questions 53
Case Study 2-1 Instacart: Gaining Strategic Advantage During a Pandemic 54
Case Study 2-2 Amazon Go: How Far Can It Go? 55
3 Organizational Strategy and Information Systems 57
Information Systems and Organizational Design 59
Information Systems and Management Control Systems 65
Information Systems and Culture 69
Summary 73
Key Terms 73
Foundational Readings 74
Discussion Questions 74
Case Study 3-1 [24]7.ai 75
Case Study 3-2 Uber’s Use of Algorithmic Management 76
4 Information Technology and the Design of Work 78
Work Design Framework 80
What Types of Work Are Impacted by Information Technology 81
Where and When Work Is Done and Who Does It 88
The Future of Work 94
Summary 98
Key Terms 98
Foundational Reading 98
Discussion Questions 99
Case Study 4-1 Conducting Bank Examinations Remotely 100
Case Study 4-2 Automation at Southern Glazer’s Wine and Spirits LLC 101
5 Information Systems and Digital Transformation 103
Functional Perspective Versus Business Process Perspective 105
Building Agile and Dynamic Business Processes 108
Gaining Acceptance for IT- Induced Change to Work 111
Digital Transformation 113
Techniques for Understanding Business Processes 114
Types of Enterprise Systems 115
Enterprise System Issues 120
Summary 123
Key Terms 124
Foundational Readings 124
Discussion Questions 125
Case Study 5-1 Gnosis Freight: Post- COVID Digital Transformation 126
Case Study 5-2 Carestream Health 127
6 Architecture and Infrastructure 129
From Vision to Implementation 131
The Leap from Strategy to Architecture to Infrastructure 133
Multi- Homing, Virtualization, and Cloud Computing 142
Other Managerial Considerations 144
Summary 148
Key Terms 148
Foundational Readings 149
Discussion Questions 149
Case Study 6-1 Enterprise Architecture at Chubb Industries 150
Case Study 6-2 Mohawk Paper 151
7 Cybersecurity 153
NIST Cybersecurity Framework 154
IT Security Governance Framework 156
Cyberattacks and How They Occurred 158
The Impossibility of 100% Security 162
What Should Management Do? 164
How Do We Measure How Secure We Are? 169
Resiliency or Protection? 171
Summary 171
Key Terms 172
Discussion Questions 172
Case Study 7-1 City of Baltimore 173
Case Study 7-2 Airline Industry Frequent Flyer Info Data Breach 174
8 The Business of Information Technology 175
Organizing to Respond to Business: A Maturity Model 177
Understanding the IT Organization 178
What a Manager Can Expect from the IT Organization 178
What the IT Organization Does Not Do 180
Chief Information Officer 180
Building a Business Case 182
IT Portfolio Management 184
Valuing IT Investments 185
Monitoring IT Investments 187
Funding IT Resources 192
How Much Does IT Cost? 194
Summary 197
Key Terms 198
Discussion Questions 198
Case Study 8-1 Blockchain Adoption Barriers in the Healthcare Industry in Iran 200
Case Study 8-2 Air France/KLM Airlines 201
9 Information Technology Governance 203
IT Governance 204
Centralized versus Decentralized Organizational Structures 205
Decision Rights and Governance 207
Governance Frameworks for Financial Control Decisions 210
Platform Governance 212
Summary 216
Key Terms 216
Foundational Reading 217
Discussion Questions 217
Case Study 9-1 Governance to Keep Deutsche Bahn on Track 218
Case Study 9-2 The “MyJohnDeere” Platform 218
10 Information Technology Sourcing 220
Sourcing Decision Cycle Framework 221
Outsourcing in the Broader Context 233
Summary 235
Key Terms 235
Foundational Readings 235
Discussion Questions 236
Case Study 10-1 Delta: Landing in the Cloud 237
Case Study 10-2 O2 and RPA 238
11 Managing IT Projects 240
What Defines a Project? 242
What Is Project Management? 243
Project Elements 245
IT Projects 248
IT Project Development Methodologies and Approaches 249
Managing IT Project Risk 255
Gauging Success 259
Summary 260
Key Terms 261
Foundational Readings 261
Discussion Questions 261
Case Study 11-1 Digital Transformation of Insurance Claim Management 263
Case Study 11-2 A Tale of Two Scrum Projects at Dutch Railways (Nederlandse Spoorwegen) 265
12 Business Intelligence, Artificial Intelligence, Knowledge Management, and Analytics 268
Knowledge Management 269
Business Analytics and Business Intelligence 275
Competing with Business Analytics 276
Components of Business Analytics 277
Big Data and the Internet of Things 282
Artificial Intelligence, Machine Learning, and Deep Learning 285
Summary 287
Key Terms 288
Foundational Readings 288
Discussion Questions 289
Case Study 12-1 Netflix: Analytics Now, AI Later? 290
Case Study 12-2 Nest and the Internet of Things (IoT) 291
13 Privacy, Ethical, and Societal Considerations for Information Management 292
What Is Expected of Management? 293
Responsible Computing 294
Corporate Social Responsibility 296
PAPA: Privacy, Accuracy, Property, and Accessibility 300
AI, Business, and Society 307
Green Computing 309
Summary 310
Key Terms 311
Foundational Reading 311
Discussion Questions 311
Case Study 13-1 A TikTok Challenge To TikTok Itself 312
Case Study 13-2 Ethical Decision Making 314
Glossary G- 1
Index I- 1