CHAPTER 1 Business and Information Systems Management Challenges 1
It Is Not Getting Any Easier to Run a Successful Business 2
Business Success Factors 2
Business Leadership 3
Ability to Fit the Pieces into the Increasingly Bigger Business Picture 3
Organizational Responsiveness and Resilience 4
Solving Customer Problems Through a Combined Organizational Effort 4
A Strong Company Culture 4
Ability and Willingness to Innovate, Change and Take Risks 4
Accomplishing These Factors While Maintaining a Balance 5
Communication Across the Entire Organization 5
Three Necessary Perspectives 5
Simultaneous Revolutions in the Business Environment 6
A Business Driver Model 7
Market 8
Technology 8
Regulation 8
Employees and Work 9
Innovative Use of Information Systems Requires a Systematic Approach 9
What is the Point（Objective）of lnformation Systems？ 11
Examples of Successful Use of Information Systems to Compete 12
Boeing 12
Wal-Mart Stores 13
Bissett Nursery Corporation 14
Federal Express 15
Charles Schwab 15
USAA 16
L.L. Bean 16
Progressive Corporation 17
A Quick Information Systems Assessment 17
The Best Industries at Using Information Systems to Compete 18
Conclusion 19
Recommended Reading 19
EXerciSes 20
SECTION I THE FIRST OF THREE PERSPECTIVES:THE BUSINESS ENVIRONMENT 23
CHAPTER 2 Business Competitive Environment 24
Defining Competitiveness and a Competitive Model 25
A Competitive Model 27
Who is Going to Make it Happen？ 27
How Does a Company Gain a Competitive Advantage？ 27
The Competitive Advantage of Nations 28
The Nation and Local Processes 29
Disagreement on the Role of the Nation 31
The Company Agenda 31
The Role of Government 32
Conclusion 32
Recommended Reading 33
Exercises 34
CHAPTER 3 The Porter Competitive Model for Industry Structure Analysis 36
The Porter Competitive Model 37
An Analysis of Wal-Mart Using the Porter Competitive Model 39
Intraindustry Rivalry 39
Bargaining Power of Buyers 41
Bargaining Power of Suppliers 41
Threat of New Entrants 41
Threat of Substitute Products or Services 42
Industry Structure and the Company Position 42
Computer Industry Analysis 42
The Strategic Business Unit and Competitive Strategies 45
Differentiation Strategy 45
Low-Cost Strategy 46
Supporting Strategies 46
The Value Chain and Competitive Advantage 47
Using the Value Chain to Summarize Potential for information Technology 50
Conclusion 51
Recommended Reading 52
Exercises 53
CHAPTER 4 Airline Industry Analysis 55
The Airline Industry and American Airlines 56
American＇s Plans to Increase Profits 57
Causes of Poor Airline Profits 58
Major Lessons of the Consistently Profitable Carriers 60
Singapore.Airlines 60
British Airways 64
Southwest Airlines 65
Airline Industry Analysis Using the Porter Competitive Model 67
Intraindustry Rivalry 67
Buyers（Customers） 70
Suppliers 71
New Entrants 72
Substitute Products or Services 72
Importance of information Technology 73
Benefits of information Systems to American Airlines 73
Airline Reservation Systems：A Changing Competitive Resource？ 75
The Airline Industry：Deregulated but Still Very Regulated 76
Conclusion 77
Recommended Reading 78
Exercises 79
CHAPTER 5 Information Systems Can Redefine Competitive Boundaries 81
Networks Cross Company Boundaries to Reap Benefits 82
Efficiency from Interorganizational Systems 82
Effectiveness from Interorganizational Systems 83
Competitive Advantage Through Better Customer Service with Interorganizational Systems 83
Competitive Advantage Through Strategic Alliances and Interorganizational Systems 84
Company Examples of interorganizational Systems 85
Payment Process Industry 86
Alliances Provide Growth Opportunities 87
Globalization 88
Global，International or Interdependent？ 89
Electronic Data Interchange （EDI） 89
Successful EDI Systems Are Logical Extensions of Existing Systems 90
EDI Implementation Obstacles 91
EDI Value-Added Network （VAN）Services 93
EDI at Mervyn＇s 94
E-Mai1-Enabled Applications 95
The Internet 96
Conclusion 96
Recommended Reading 96
Exercises 98
SECTION II THE SECOND PERSPECTIVE：THE COMPANY ENVIRONMENT 99
CHAPTER 6 Business Vision 101
What is a Vision？ 102
A Leader with a Vision at USAA 103
Customer Service is the Vision Driver 105
Employees Make a Vision Happen 105
Vision 2000：Evolution to a FinancIal Services Organization 106
USAA Uses Prototyping to Build New Information Systems 108
The Role and Contribution of Information Systems 111
Summary of USAA＇s Success 112
Whirlpool Corporation：The World＇s Largest Manufacturer and Marketer of Major Home Appliances 113
A Global Vision 115
Why Did Whirlpool Pursue a Global Strategy？ 115
Implementation of the Global Strategy 116
The Role of Information Systems in Global Business Strategies 118
Challenges to Realizing the Global Vision 120
The Global Large-Appliance Industry in 2005？ 121
Why a Vision？ 121
The Vision Process 123
A Logical Action Plan 123
Conclusion 124
Recommended Reading 124
Exercises 126
CHAPTER 7 Implementing a Vision：Strategy，Tactics and Business Plan 127
Progressive Corporation＇s Strategies Fit its Name 128
Information Systems Support of the Business Strategies 130
Summary of Progressive Corporation 132
Components and Issues Relating to a New Business Strategy 132
Strategic Management Process 134
Strategy-to-Tactics Implementation 136
The Issue of Control 138
The Business Plan 139
Information Technology-Based Strategies 139
Significant Structural Change to the Marketplace 140
Significant Structural Change to Operations 140
Redefining Traditional Products and Processes for the Marketplace 141
Redefining Traditional Operational Processes 141
An Information-Oriented Infrastructure is Key to a Responsive Competitive Strategy 142
Data Management 142
User Applications 143
Voice Management 143
Network Management 143
Planning Process 143
Financial Strategy and Organization 143
Moving from Plan to Action 144
Conclusion 144
Recommended Reading 144
Exercises 146
SECTION III THE THIRD PERSPECTIVE：THE USE OF INFORMATION SYSTEMS 147
CHAPTER 8 Evaluating Business Strategies and the Use of Information Systems：The Strategic Option Generator 149
Strategic Option Generator 150
Strategic Targets 151
Thrust 152
Mode：Offensive or Defensive？ 153
Direction 153
Execution 154
Analyzing Federal Express Using the Strategic Option Generator 154
Analyzing UPS Using the Strategic Option Generator 156
Conclusion 157
Recommended Reading 158
Exercises 158
CHAPTER 9 The Roles，Roles and Relationships Concept 159
Using Information Systems to Compete Dictates an Essential Partnership 160
Roles，Roles and Relationships 161
The Role of the Senior Executive 161
The Role of Other Senior Management （Managers of Major Business Functions） 162
The Role of the is Executive and the is Organization 162
The Role of Users of Information Systems 162
Relationships 163
Technology Transfer Through Organizational Learning 164
Phases of Information Systems Management 166
Direction 166
Conceptual Approach 166
Specific Approach 167
Making Things Happen：Capitalizing on Information Systems Opportunity 167
Threat to the Business（Crisis Management） 168
Personal Power 168
Improvement of Business Practices 168
Summary of the Three Options 169
A Road Map to Business Success 169
Leadership Phases 169
The is Organization as a Business Within a Business 170
Does the is Organization Fit Within the Business Model？ 171
Advantages of a Business-Within-a-Business Orientation 172
Outsourcing Information Systems 173
Company Examples of Outsourcing 174
Conclusion 175
Recommended Reading 175
Exercises 176
CHAPTER 10 The Redefine／Define Concept and Change Management 177
The Redefine／Define Concept 178
Redefine／Define the Business 179
USA Today：The First National，General-Interest Newspaper 180
American Airlines is in Two Primary Businesses 181
American President Companies 181
Redefine／Define Products or Services 182
A Change in Business Strategy at Charles Schwab 182
A Change in Products and Services at Banc One 183
Redefine／Define Business Processes 184
Boeing Redefines its Design Process for the 777 185
L．L．Bean. From a Mail Order to an 800-Number Order Process 186
The Product and Service Delivery Process 187
Change Management：A Major Management Challenge 189
IS Change Management at Hewlett-Packard 191
A Little Creativity Can Go a Long Way 192
Learning from the NUMMI Approach 192
A Vehicle for Change：Automating and Informating 193
Conclusion 193
Recommended Reading 194
Exercises 195
CHAPTER 11 Telecommunications as the Delivery Vehicle 197
The Increasingly important Role of Telecommunications 198
The Mission of Telecommunications Within an Organization 199
The Four Modes of Telecommunications 199
Building Telecommunications Networks 200
A Profile of Telecommunications User Requirements 200
Additional Considerations in Building a Telecommunications Network 201
Data Management Continues to Be a Challenge 204
Basic Data Management Functions 204
Business Criteria for Telecommunications 206
Linking Users with Information from Applications on Networks 207
A Telecommunications Road Map 208
Multi-Vendor and Multi-Product Connectivity 208
Information Systems Architecture 209
Distributed Systems, Cooperative Processing and Client-Server 210
Open Systems and Standards 212
Distributed Data Management 216
Internet-The Information Superhighway 217
What is the Internet? 218
Key Players in the Internet World 218
How the Internat Got Its Start 219
Current Uses of the Internet 220
The Future of the Internet 220
Integrated Voice-Data Applications 222
Groupware-A Major New Era for Computing 223
Groupware at UB Networks 224
Conclusion 225
Internet Glossary 225
Recommended Reading 225
Exercises 229
CHAPTER 12 Using Information Systems to Compete:A Success Factor Profile 231
The Success Factor Profile 232
The Success Factors 232
Why So Many Factors? 237
Company Success Factor Profiles 237
Federal Express Success Factor Profile 237
British Airways Success Factor Profile 239
Conclusion 240
Recommended Reading 240
Exercises 241
SECTION IV MAJOR INFORMATION SYSTEMS MANAGEMENT ISSUES 241
CHAPTER 13 Information Systems Organization and Personnel Considerations 244
Business Strategy and Organization Drive the Information Systems Organization 245
How Effective Are Current Business Organizational Structures? 246
A Successful Information Systems Organization 249
The Evolution of the Information Systems Organization 251
Information Systems Manager Skill Profile 252
Difficulty of the Information Systems Manager Job 252
To Whom Should the Information Systems Manager Report? 253
If the Information Systems Executive Reported to You 253
Successful Information Systems Are a Product of Good Working Relationships 254
Information Systems Steering Committee 255
Functional Interface Managers 255
Functional End-User Coordinator 256
Service Level Agreements 256
User Training and Education 256
Application and Technical Consultation 257
Joint R(D Projects) 257
The Working and Personal Posture of the IS Manager 257
Information Systems Personnel Considerations 257
The Chief Information Officer 259
Information Specialist 259
The Importance of Education and Training 260
The Future information Systems Organization 260
An Information Systems Executive and a CIO 261
Client Interface 262
General and Administrative 262
Information Systems Utility 262
Telecommunications 263
Conclusion 263
Recommended Reading 263
Exercises 264
CHAPTER 14 Information Systems Value and Financial Strategy 265
Needed：Better Answers Regarding the Value of Information Systems 266
What Is the Basis for Determining Information Systems Value? 267
What Is the Average for Information Systems Spending in an Industry? 268
High IS Costs Get Senior Management＇s Attention 269
Three Factors in Determining Value 269
The Evolution of Information Systems Justification 270
Stage I：In the Beginning There Are Budgets 270
Stage II：With GroWth Comes the Need for a Business Case 270
Stage III： Departments Should Pay for the Is Support They Receive 271
Stage IV：Time for a Management Process 274
Is There a Best Way to Manage Large IS Expenditures? 278
An Alternative: A Cost Accounting System 279
Managing Information Systems as Two Concurrent Businesses 279
Conclusion 280
Recommended Reading 280
Exercises 282
CHAPTER 15 Integrating Information Systems into the Business Plan 283
It All Starts with Business Planning 284
Business Drivers Influence Planning 284
The Two Major Challenges of Planning 286
Strategic Planning 287
The True Beneficiaries of Good Business and Is Planning 288
What to Plan to Link Information Systems to Business Strategies 289
Barriers to Aligning Information Systems with Business Strategies 290
Business and Information Systems Planning Framework 293
Developing New Strategies and Supporting Them with Information Systems 295
Strategic Planning Questions 295
Some Planning Guidelines 298
Planning Methodologies 298
Why Does Business and Information Systems Planning Fail? 300
Conclusion 301
Recommended Reading 302
Exercises 303
CHAPTER 16 Total Quality Management and the Role of Information Systems 305
A Case Analysis：Leadership Through Quality at Xerox 306
Leadership Through Quality 307
The Original TQM Implementation Plan 308
The Role of Information Systems Within Xerox 309
An Analysis of Xerox＇s TQM Program 311
Why TQM? The Problems and the Challenges 313
Fundamentals of Total Quality Management 313
TQM and Reengineering 315
To Measure Is to Know： The Role of Information Systems 316
Challenges in Implementing a TQM Program 318
Some Words from“Mr．Quality” W． Edwards Deming 319
Conclusion 320
Recommended Reading 322
Exercises 323
CHAPTER 17 Final Considerations 324
Organizational Responses to Business Drivers and the Significance of Information Systems 325
Business Success and the Role of Information Systems 326
Unsuccessful Competitive Information Systems 328
Questions to Ask when Contemplating the Use of Information Systems to Gain a Competitive Advantage 329
Some Advice Regarding Information Systems Implementation 332
Manufacturing System Guidelines 332
Conclusion 332
Exercises 334
Appendix：An Example of an Analysis Paper 335
Index 363