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Strategic Management and Information Systems

Strategic Management and Information Systems

Wendy Robson

(2015)

Additional Information

Book Details

Abstract

Every degree programme in business information systems and technology (and the great majority of the fast-expanding conversion MSc programmes in IT for business) includes a course on the strategic issues surrounding information systems. This new edition of an established text meets the need for an accessible and practical text for students studying this subject for the first time.
It supports the increasingly wide skills profile expected of business and information systems graduates and postgraduates, by adopting a toolbox approach to techniques and their application, and overall it creates a base from which effective consideration can be given to more complex concepts.
The second edition has been completely updated in line with new developments in the field and is now presented in a more attractive user-friendly style.

Table of Contents

Section Title Page Action Price
Cover Cover
Title Page\r Title Page
Copyright Copyright
Contents iv
Introduction xii
Acknowledgements xvi
Part 1: Introduction to Strategic Management 1
1 Strategic management and planning 3
1.1 What is strategic management? 3
1.1.1 Definitions of strategy 4
1.1.2 Definitions of strategic management 6
1.1.3 Corporate strategy 7
1.1.4 Business strategy 7
1.1.5 Functional strategy 8
1.1.6 Strategic process 8
1.2 The major elements of strategic management 9
1.3 The diversity of strategic problems and decisions 11
1.3.1 The nature of the industry 11
1.3.2 The nature of the enterprise 11
1.3.3 The current circumstances 12
1.3.4 The organisation’s environment 12
1.4 The development of strategic management 12
1.5 The history of strategic planning and management 13
1.5.1 The analytical school 15
1.5.2 The pattern school 16
1.6 A model of the strategic planning process 16
1.7 Components of the strategic plan 20
1.7.1 Mission 20
1.7.2 Goals 20
1.7.3 Strategy 21
1.7.4 Policy 21
1.8 Examples of strategic plans 21
1.9 Summary and conclusions 24
References and further reading 24
2 Analytical tools in strategic management 26
2.1 The role of IS in strategic planning 28
2.2 Strategic analysis 29
2.2.1 Environmental analysis 31
Nature of the environment 31
Porter’s (1980) five forces model of competitive structure 36
Life cycle analysis 39
Key opportunities/threats (SWOT) analysis 39
2.2.2 Analysis of values and objectives 42
Strategy and culture 42
Strategy and objectives 45
2.2.3 Analysis of resources 46
Value chain analysis 48
Performance assessment 49
Product portfolio analysis 52
Analysis of core competencies 52
2.3 Strategy choice 57
2.3.1 Strategy formulation 58
What basis? – alternate competitive strategies 58
Which direction? – alternate directions 60
How? – alternate methods 62
Other approaches to generating strategic options 62
2.3.2 Strategy evaluation and selection 64
Strategic fit – appropriateness 65
Strategic feasibility 66
Strategic desirability 66
2.4 Strategic implementation 67
2.4.1 Resource planning 69
2.4.2 Strategy and structure 70
2.4.3 Strategy and people and systems 72
2.5 Summary and conclusions 73
References and further reading 75
Part 2: Information systems Strategy formulation 79
3 What are management information systems? 81
3.1 Definitions 82
3.1.1 Information technology (IT) 82
3.1.2 Management information systems (MIS) 82
3.1.3 Decision support systems (DSS) and executive information systems (EIS) 82
3.1.4 Strategic management information systems (SMIS) 83
3.1.5 Information systems (IS) 83
3.2 Management information systems 83
3.2.1 The instrumentation view 83
3.2.2 Levels of MIS 85
3.2.3 Nature of decision making 86
3.2.4 Desired attributes of MIS and information 87
3.2.5 The effects of management information systems 88
3.3.6 Strategy role of categories of systems players 89
References and further reading 91
4 Strategy planning for information systems 93
4.1 Where does an IS strategy fit within the wider set of strategies? 96
4.2 What has been the history of IS strategic planning? 99
4.3 What are the circumstances that demand and motivate major re-assessments of IS strategic plans? 103
4.3.1 Major corporate changes 103
4.3.2 External opportunities/threats 103
4.3.3 Evolutionary change 104
4.4 Who might be employed to do the actual planning? 104
4.5 What might an IS strategic plan contain? 106
4.6 Key concerns 109
4.7 Summary 109
References and further reading 110
5 The information systems strategic planning ‘toolkit’ 112
5.1 Reference to included tools 113
5.2 Checklist acronyms 114
5.2.1 SWOT 114
5.2.2 Sector analysis 116
5.3 Business opportunity 116
5.3.1 Opportunity categorising 118
5.3.2 Impact categorising 119
5.3.3 Strategic importance analysis 121
5.3.4 Benefit level matrix 125
5.4 Competitive position 127
5.4.1 Industry analysis 127
5.4.2 Five forces model 127
5.4.3 Generic business strategies 129
5.4.4 Strategic thrusts 132
5.4.5 Strategy set transformation 134
5.4.6 Business modelling 135
5.5 Internal position 136
5.5.1 Generic IS strategies 136
Centrally planned 137
Leading edge 137
Free market 138
Monopoly 138
Scarce resource 139
Necessary evil 139
5.5.2 Value chain and value system analysis 140
5.5.3 Information intensity matrix 142
5.6 Evolutionary models 144
5.6.1 Stages of growth model 144
5.6.2 Era models 152
5.6.3 Industry life cycle 153
5.7 Information requirements analysis 154
5.7.1 Critical success factor analysis 154
5.7.2 Critical set analysis 160
5.7.3 Ends-means analysis 161
5.7.4 Business systems planning (BSP) 163
5.7.5 Comparison of CSF, E-M and BSP 164
5.8 Summary and comparisons 166
References and further reading 170
6 Frameworks for integrating IS strategies with business strategies 173
6.1 Reasons for a planning framework 174
6.1.1 A framework or a methodology? 174
6.2 Alternative classifications of planning frameworks 176
6.2.1 Classified by the intention/effect of the framework 176
Business impacting 176
Business aligning 177
6.2.2 Classified by the nature of the planning environment 178
6.2.3 Classified by the nature of the planning process 181
6.3 Top-down aligning of IS and business strategies 184
6.4 Eclectic, aligning and impacting planning process 190
6.4.1 Strategic importance of IS and infrastructure-led bottom-up planning process 191
6.4.2 Strategic importance of IS and business-led top-down planning process 191
6.4.3 Strategic importance of IS and mixed, eclectic planning processes 192
6.5 Summary 194
References and further reading 197
7 Information value and IS investment 200
7.1 IS costs 202
7.1.1 Checklist for IS costs 203
7.1.2 IS cost dynamics or cost compounding 205
7.1.3 Levels of IS investment 205
IS investment level over time 208
IS investment level by industry sector 209
Allocation of the IS investment 210
7.1.4 Auditing IS costs 212
7.2 IS benefits – information value 215
7.3 Making the investment decision 225
Tangible benefits measurement 228
7.3.1 Hard financial justifications 229
Return on investment (RoI) 230
Discounted cash flow (DCF) 231
Payback period 232
7.3.2 Risk recognising techniques 233
Probability of attainment/Bayesian analysis 234
7.3.3 Return on management 235
7.3.4 Information economics 237
7.3.5 Strategic contribution assessment 241
7.4 Some final points 244
References and further reading 247
8 IS, business competition and organisation 250
8.1 Competitive advantage from IS strategies? 250
8.2 The classic argument for competitive advantage 252
8.3 Problems with the classic arguments of IS for competitive advantage 260
8.3.1 Analysis of the ‘tales’– management not technology 261
8.3.2 An advantage that can hurt 263
8.3.3 What are the chances for competitive advantage? 265
8.4 What is the organisational gain? 267
8.5 Business re-engineering 272
8.5.1 The need for re-design – a paradigm shift? 273
8.5.2 The ‘classics’ of business re-engineering 279
8.5.3 What is involved in BPR? 280
Identify the process for innovation 284
Identify the change levers 284
Develop the process vision 285
Understand the existing processes 285
Design the prototype the new process 285
8.5.4 Tools and techniques 286
8.5.5 BPR and the role of IS 288
8.5.6 BPR and people issues 290
8.6 Organisational learning 291
References and further reading 295
Part 3: Information Systems Strategy Choices 299
9 IS resource management 305
9.1 The role of IS 305
9.2 The location of IS 309
9.2.1 Centralised IS location 311
Benefits of centralised siting and control 311
Drawbacks of centralised IS services 312
Scenario for centralised siting and control 313
Re-centralising the IS location 313
9.2.2 Non-centralised IS locations 316
Decentralised IS location 316
Devolved IS location 317
Benefits of non-centralised IS functions 319
Disadvantages with non-centralised IS resource 319
Scenario for non-centralised siting and control 321
9.2.3 Commercialising the IS function 322
9.2.4 Outsourced IS 325
9.3 The organisation of IS 326
9.3.1 ‘Traditional’ IS function 326
9.3.2 Database-driven structure 331
9.3.3 Functional project groups 331
9.3.4 Information centres and decision support 333
9.3.5 Externally focused 334
9.4 Matching IS resource to business community 336
9.4.1 Symptoms of structural fit 342
9.4.2 Symptoms of structural misfit 343
9.4.3 Ownership of data controversy 344
9.4.4 Related issues 346
References and further reading 346
10 IS management and the IS profession 349
10.1 The role and nature of IS managers 350
10.2 Key IS management issues and tasks 356
10.2.1 Allocating IS management tas 356
10.2.2 Strategic IS management 358
10.2.3 Operational IS management 363
Separate innovation from production 363
Manage the technology not its use 364
Integrate all types of data 366
10.3 Hybrid management 367
10.3.1 Problems associated with hybrid management 371
10.3.2 Approaches to developing hybrid managers 372
10.3.3 From the perspective of a hybrid manager 375
10.4 IS as a profession 377
References and further reading 379
11 Managing user-controlled computing 382
11.1 What is user-controlled computing 383
11.2 Descriptive models of user-controlled computing 386
11.2.1 Described by skill and job content 386
11.2.2 Described by control discretion 388
11.2.3 Described by maturity stage 389
11.2.4 Described by three key variables 390
11.3 Approaches to directing user-controlled computing 392
11.4 Information centres and user support 399
11.4.1 Problems associated with information centres 404
11.4.2 Relationships between U-CC/IC/IS 406
11.4.3 Measuring information centre success 409
11.4.4 Help-desks and direct user support 411
11.5 Group-based user computing 413
11.5.1 What is CSCW? 413
11.5.2 Groupware systems 415
11.6 Summary and conclusions 418
References and further reading 419
12 Selection and acquisition 422
12.1 The procurement process 425
12.1.1 The role of rules, standards and open systems 431
12.1.2 Definitions associated with open systems 435
12.2 Acquisition of software 436
12.2.1 In-house development 437
12.2.2 Use of standard packages 439
12.3 Acquisition of hardware 446
12.3.1 Hardware source channels 447
12.3.2 Downsizing 450
Rightsizing 455
12.4 External acquisition of IS services 457
12.4.1 Managing outsourcing arrangements 464
12.4.2 Managing vendors 468
12.4.3 Human issues in outsourcing 471
12.5 Contract staff and consultants 472
12.6 Acquisition payment alternatives 475
12.6.1 Outright purchase 476
12.6.2 ‘Temporary’ purchase 476
Straightforward, or operating, lease 477
Purchase-lease 477
Renting 478
12.7 IS cost recovery 482
References and further reading 489
13 Responsible IS management 492
13.1 Managing IS security 492
13.1.1 Risk identification 495
Hacking 499
Viruses 500
13.1.2 Risk analysis 500
Loss 503
13.1.3 Risk handling 505
Controls and counter measures 509
Operating standards 512
Segregation of responsibilities 513
Network security measures 514
Passwords 514
Data encryption 515
Anti-virus security 516
Fire detection and prevention 516
13.1.4 Contingency planning and disaster recovery 517
13.2 IS management and ethics 523
13.2.1 Ethical frameworks 523
13.2.2 IS issues that pose ethical dilemmas 525
13.3 Managing IS and the law 527
13.3.1 Confidentiality and privacy 527
Data Protection Act 1984 530
Rights of data subjects 534
Cost to an organisation 536
Privacy concerns despite the Data Protection Act 537
13.3.2 Copyright and software protection 539
Confidence 540
Copyright 540
Software piracy 541
Systems development protection 546
13.3.3 Contracts 548
13.3.4 Health and safety 554
13.3.5 Information systems and crime 556
References and further reading 563
Author index 567
General index 570