Contents
Preface vii
l The Challenge of Infonnation Systems Technology
Introduction to IT Management
Concepts of IT Management
Challenges in Managing IT Assimilation
A Young Technology
Technological Growth
IT End-User Coordination
Specialization
Shift in Focus
Questions from Senior Management
Issues in Information Technology
The IT Environment
IT Architecture and Organization
Management Processes
Project Management
IT Strategy
The IT Business
Conclusion
Case l-l: Verifone: The Transaction Automation Company
Case 1-2: A Tale ofTwo Airlines in the Information Age: Or Why
the Spirit ofKing George lll Is Alive and Well!
2 Manageable Trends
Underlying Themes
Theme l: Strategic Impact
A Contingency Approach to IT Management
Theme 2: Integrating Changing Technology Platforms
Theme 3: Assimilating Emerging Technologies
Phase l. Technology Identification and Investment
Phase 2. Technological Leaming and Adaptation
Phase 3. Rationalization/Management Control
Phase 4. Maturity/Widespread Technology Transfer
Theme 4: Sourcing Policies for the IT Value Chain
Theme 5: Applications Development Process
Design
Construction
Implementation
Operation
Maintenance
Theme 6: Partnership of Three Constituencies
IT Management
User Management
General Management
Summary
Case 2-1: KPMG Peat Marwick: The Shadow Partner
3 Effects of IT on Competition
Analyzing Impact
Forces That Shape Strategy
Search for Opportunity
Analyzing the Value Chain for IT Opportunities
Inbound Logistics
Operations and Product Definition
Outbound Logistics
Marketing and Sales
After-Sales Service
Corporate Infrastructure
Human Resources
Technology Development
Procurement
The Risks of Information Systems Success
Problems and Evaluations
Assessing Competitor Risk
The Challenge
A New Point ofView Is Required
Planning Issues
Confidentiality and Competition
Evaluating Expenditures
The IT-Management Partnership
Opening Questions
A Final Thought
Case 3-1: Canadian Airlines (A): Reservations About
Its Future (A)
Case 3-2: Burlington Northem: The Ares Decision (A)
Case 3-3: Burlington Northem: The Ares Decision (B)
4 Electronic Commerce: From Interorganizational
Systems to the Internet
The Evolution of Interorganizational Systems
lOS Evolution at American Hospital Supply (AHSC)
lOS Evolution at American Airlines
Pattems of Interaction among lOS Participants
LevelsoflOSControl
From Proprietary lOS to Ubiquitous Platforms for Electronic
Commerce
Making Sense of Market Relationships
lOS and Producer Relationships
lOS and the Changing Buyer-Seller Relationship
Managing the Evolution ofTechnology
Maintaining a Secure Environment for Doing Business
Developing and Maintaining Information Partnerships
The Allegis Example
Benefits of Information Partnering
Types of Information Partnership
Summary
Case 4-1: Singapore Tradenet: A Tale of One City
Case 4-2: Singapore Leadership: A Tale ofOne City
Case 4-3: Hong Kong Tradelink: News from the Second City
Case 4-4: Open Market, Inc.
Case 4-5: Procter & Gamble: Improving Consumer Value through
Process Design
5 Information, Organization, and Control
The Organization Design Challenge of the 1990s
From Control to Learning
From Autonomy to Collaboration
Information, Organization, and Control in a Retail Bank
Information, Organization, and Control in the Supermarket
Targeted Opportunities
Communicating Organizational Priorities
Meaningful Budgets
Effective Incentive Systems
Solutions for Production
Facts to Make the Sale
Adaptation to Change
Summary
Case 5-1: Mrs. Fields, Inc. (1977-1987)
Case 5-2: Frito-Lay, Inc.: A Strategic Transition (1980-1986)
Case 5-3: Frito-Lay, Inc.: A Strategic Transition Abridged
(l987-l992)
6 IT Architecture: Evolution and Altematives
The Evolution of IT Architecture
Era l-The Mainframe (1950s to l970s)
Era 2--The Microcomputer (Late l970s and 1980s)
Era 3--Distributed Information Systems (Late l980s to Present)
360
Era 4-Ubiquitous
Value Creation in a Distributed IT Environment
IT Architecture Implementation Issues in the 1900s
Merging the Islands ofAutomation
Managing Global Telecommunications
Managing the IT Legacy
Assimilating Emerging Information Technologies
Summary
Case 6-1: H. E. Butt Grocery Company: A Leader in ECR
Implementation (Abridged)
Case 6-2: American Airlines: The InterAACT Project (A)
Case 6-3: Air Products and Chemicals, Inc.: MlS Reorganization
(A) and Project lCON (A) Abridged
7 Organizing and Leading the Information Technology
Function
Organization Issues in IT Development
Some Examples
Implications
Pressures toward User Dominance
Pent-Up User Demand
Competitive and Service Growth in the IT Market
User Control
Fit with the Organization
User Leaming
Summary
Pressures toward IT Control
Staff Professionalism
Feasibility Study Concems
Corporate Database System
Fit with the Corporate Structure and Strategy
Cost Analysis
Summary
Coordination and Location of IT Policy
IT Responsibilities
User Responsibilities
General Management Support and Policy Overview
Summary
Case 7-1: Air Products and Chemicals, Inc : Project lCON (D)
8 Information Technology Operations
Changing Operations Environment
A Focused Service Organization Alternative-An Example
Altemative Organizations
Developing an Operations Strategy
Technology Planning
Measuring and Managing Capacity
Managing the IT Operations Workforce
Selection Factors for Operations Manager and Staff
Human Issues in Managing the Workforce
Production Planning and Control
Setting Goals
Establishing Priorities
Strategic Impact of IT Operations
Implementing Production Control and Measurement
Security
Privacy
The Roots of the Privacy Issue
The Implications
Summary
Case 8-1: Aerospace Technology Manufacturing, Inc : Industry,
9 Company and I/S Transitions
Information Technology Management Processes
Management Control
IT Evolution and Management Control
Software Issues
Operations Issues
Corporate Control Process
Strategic Impact of IT on the Corporation
Looking Ahead: Other Aspects of Control
Results Control Architecture
Unallocated Cost Center
Allocated Cost Center and Charge-Out
Profit Center
Financial Reporting Process
Nonfinancial Reporting Process
iT Audit Function
Summary
Planning-A Contingent Focus
Pressures toward IT Planning
External (Corporate) Pressures
Intemal (IT Process) Pressnres
Limitations on IT Planning Results
Planning as a Resource Drain
Fit to Corporate Culture
Strategic Impact of IT Activities
Mismatches: Using the Strategic Grid
Corporate Environmental Factors That Influence Planning
Summary
Case 9-1: Toyworid: Information Technology Planning
10 Managing the Information Technology Resource
through Strategic Partnerships
Why Outsourcing Alliances Are So Difficult
Outsourcidng in Retrospect
Outsourcing in the l990s
What Drives Outsourcing?
When to Outsource IT
Position on the Strategic Grid
Development Portfolio
Organizational Learning
A Firm's Position in the Market
Current IT Organization
Structuring the Alliance
Contract Flexibility
Standards and Control
Areas to Outsource
Cost Savings
Supplier Stability and Quality
Management Fit
Conversion Problems
Managing the Alliance
The ClO Function
Performance Measurements
Mix and Coordination ofTasks
Customer-Outsourcer Interface
Case lO-l: Xerox: Outsourcing Global Information Technology
Resources
Case l0-2General Dynamics and Computer Sciences Corporation:
Outsourcing Is Function (A + B, Abridged)
11 A Portfolio Approach to Information Technology
Development
Project Risk
Elements of Project Implementation Risk
Project Categories and Degree of Risk
Assessing Risk of Individual Projects
Portfolio Risk
Summary
Project Management: A Contingency Approach
Management Tools
Influences on Tool Selection
Relative Contribution of Management Tools
Summary
Case ll-l: Profiling at National Mutual (A)
Case ll-2: Profiling at National Mutual (B)
Case ll-3: Chemical Bank: Technology Support for Cooperative
Work
12 Transnational IT Issues
Information Technology Impact on Transnational Firms
Geographic Transfer ofWork
Global Networking and Expertise Sharing
Global Service Levels
Time-Based Competition
Cost Reduction
Country Diversity
Sociopolitical
Language
Local Constraints
Economics
Currency Issues
Autonomy
National Infrastructure
Summary
National IT Environment Issues
Availability oflT Professional Staff
Central Telecommunications
National IT Strategy
General Level of iT Sophistication
Size of Local Market
Data Export Control
Technological Awareness
Summary
Corporate Factors Affecting IT Requirements
Nature of the Finn's Business
Strategic Impact of IT
Corporate Organization
Company Technical and Control Characteristics
Other Considerations
Transnational IT Policy Issues
Guidance on Architecture
Central Hardware/Software Concurrence or Approval
Central Approval of Software Standards and Feasibility Studies
Central Software Development
IT Communications
StaffRotation
Consulting Services
Central IT Processing Support
Technology Appraisal Program-An Example
Summary
Case l2-l: Colliers Intemational Property Consultants
Case 12-2: Azucar, S.A.: (1973-1977)
13 The IT Business
"The IT Business'Analogy
The IT Marketing Mix
The Products
The IT Consumer
Costs
Channels of" Distribution
Competition
Promotion
Price
The Role of the Board of Directors
The Role ofthe IT Chief Executive Officer
Summary
Case 13-l: Avalon Information Services, Inc.
Case l3-2: Agrico, Inc: A Software Dilemma
Annotated Bibliography
Index
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