1．The Challenge of Information Systems Technology 1
Introduction to IT Management 1
Concepts of IT Management 3
Challenges in Managing IT Assimilation 4
A Young Technology 4
Technological Growth 5
IT End-User Coordination 5
Specialization 6
Shift in Focus 7
Questions from Senior Management 7
Issues in Information Technology 10
The IT Environment 10
IT Architecture and Organization 12
Management Processes 13
Project Management 14
IT Strategy 15
The IT Business 15
Conclusion 16
2．Manageable Trends 19
Underlying Themes 19
Theme 1:Strategic Impact 20
A Contingency Approach to IT Management 24
Theme 2:Integrating Changing Technology Platforms 30
Theme 3:Assimilating Emerging Technologies 31
Phase 1．Technology Identification and Investment 32
Phase 2．Technological Learning and Adaptation 32
Phase 3．Rationalization/Management Control 33
Phase 4．Maturity/Widespread Technology Transfer 33
Theme 4:Sourcing Policies for the IT Value Chain 34
Theme 5:Applications Development Process 36
Design 38
Construction 38
Implementation 39
Operation 40
Maintenance 40
Theme 6:Partnership of Three Constituencies 42
IT Management 42
User Management 42
General Management 43
Summary 43
3．Effects of IT on Competition 47
Analyzing Impact 48
Forces That Shape Strategy 49
Search for Opportunity 52
Analyzing the Value Chain for IT Opportunities 57
Inbound Logistics 57
Operations and Product Definition 59
Outbound Logistics 59
Marketing and Sales 60
After-Sales Service 61
Corporate Infrastmcture 61
Human Resources 62
Technology Development 62
Procurement 63
The Risks of Information Systems Success 63
Problems and Evaluations 63
Assessing Competitor Risk 67
The Challenge 69
A New Point of View Is Required 69
Planning Issues 70
Confidentiality and Competition 71
Evaluating Expenditures 71
The IT-Management Partnership 72
Opening Questions 72
A Final Thought 73
4．Electronic Commerce:From Interorganizational Systems to the Internet 74
The Evolution of Interorganizational Systems 76
IOS Evolution at American Hospital Supply(AHSC) 76
IOS Evolution at American Airlines 79
Patterns of Interaction among IOS Participants 82
Levels of IOS Control 83
From Proprietary IOS to Ubiquitous Platforms for Electronic Commerce 85
Making Sense of Market Relationships 90
IOS and Producer Relationships 92
IOS and the Changing Buyer-Seller Relationship 96
Managing the Evolution of Technology 100
Maintaining a Secure Environment for Doing Business 101
Developing and Maintaining Information Partnerships 104
The Allegis Example 104
Benefits of Information Partnering 105
Types of Information Partnership 106
Summary 109
5．Information,Organization,and Control 112
The Organization Design Challenge of the 1990s 112
From Control to Learning 116
From Autonomy to Collaboration 120
Information,Organization,and Control in a Retail Bank 125
Information,Organization,and Control in the Supermarket 126
Targeted Opportunities 127
Communicating Organizational Priorities 127
Meaningful Budgets 128
Effective Incentive Systems 129
Solutions for Production 130
Facts to Make the Sale 131
Adaptation to Change 131
Summary 132
6．IT Architecture:Evolution and Alternatives 134
The Evolution of IT Architecture 137
Era 1—The Mainframe(1950s to 1970s) 139
Era 2—The Microcomputer(Late 1970s and 1980s) 143
Era 3—Distributed Information Systems(Late 1980s to Present) 144
Era 4—Ubiquitous 147
Value Creation in a Distributed IT Environment 148
IT Architecture Implementation Issues in the 1990s 155
Merging the Islands of Automation 155
Managing Global Telecommunications 158
Managing the IT Legacy 159
Assimilating Emerging Information Technologies 160
Summary 164
7．Organizing and Leading the Information Technology Function 165
Organization Issues in IT Development 165
Some Examples 167
Implications 169
Pressures toward User Dominance 169
Pent-Up User Demand 169
Competitive and Service Growth in the IT Market 170
User Control 171
Fit with the Organization 171
User Learning 172
Summary 172
Pressures Toward IT Control 172
Staff Professionalism 172
Feasibility Study Concerns 174
Corporate Database System 175
Fit with the Corporate Structure and Strategy 176
Cost Analysis 176
Summary 177
Coordination and Location of IT Policy 177
IT Responsibilities 178
User Responsibilities 179
General Management Support and Policy Overview 180
Summary 181
8．Information Technology Operations 183
Changing Operations Environment 184
A Focused Service Organization Alternative-—An Example 185
Alternative Organizations 186
Developing an Operations Strategy 187
Technology Planning 188
Measuring and Managing Capacity 194
Managing the IT Operations Workforce 196
Selection Factors for Operations Manager and Staff 198
Human Issues in Managing the Workforce 199
Production Planning and Control 200
Setting Goals 200
Establishing Priorities 200
Strategic Impact of IT Operations 201
Implementing Production Control and Measurement 202
Security 203
Privacy 204
The Roots of the Privacy Issue 205
The Implications 206
Summary 209
9．Information Technology Management Processes 211
Management Control 211
IT Evolution and Management Control 213
Software Issues 213
Operations Issues 213
Corporate Control Process 215
Strategic Impact of IT on the Corporation 216
Looking Ahead:Other Aspects of Control 217
Results Control Architecture 218
Unallocated Cost Center 218
Allocated Cost Center and Charge-Out 219
Profit Center 224
Financial Reporting Process 225
Nonfinancial Reporting Process 227
IT Audit Function 228
Summary 229
Planning—A Contingent Focus 229
Pressures toward IT Planning 230
External(Corporate)Pressures 230
Internal(IT Process)Pressures 232
Limitations on IT Planning Results 234
Planning as a Resource Drain 234
Fit to Corporate Culture 235
Strategic Impact of IT Activities 235
Mismatches:Using the Strategic Grid 235
Corporate Environmental Factors That Influence Planning 239
Summary 241
10．Managing the Information Technology Resource through Strategic Partnerships 243
Why Outsourcing Alliances Are So Difficult 244
Outsourcing in Retrospect 245
Outsourcing in the 1990s 246
What Driyes Outsourcing? 247
When to Outsource IT 252
Position on the Strategic Grid 252
Development Portfolio 253
Organizational Learning 255
A Firm's Position in the Market 256
Current IT Organization 256
Structuring the Alliance 256
Contract Flexibility 257
Standards and Control 257
Areas to Outsource 258
Cost Savings 259
Supplier Stability and Quality 259
Management Fit 260
Conversion Problems 260
Managing the Alliance 261
The CIO Function 261
Performance Measurements 262
Mix and Coordination of Tasks 262
Customer-Outsourcer Interface 263
11．A Portfolio Approach to Information Technology Development 264
Project Risk 265
Elements of Project Implementation Risk 265
Project Categories and Degree of Risk 267
Assessing Risk of Individual Projects 268
Portfolio Risk 271
Summary 271
Project Management:A Contingency Approach 272
Management Tools 272
Influences on Tool Selection 273
Relative Contribution of Management Tools 278
Summary 278
12．Transnational IT Issues 280
Information Technology Impact on Transnational Firms 282
Geographic Transfer of Work 282
Global Networking and Expertise Sharing 283
Global Service Levels 283
Time-Based Competition 284
Cost Reduction 284
Country Diversity 285
Sociopolitical 285
Language 285
Local Constraints 285
Economics 286
Currency Issues 286
Autonomy 286
National Infrastructure 287
Summary 287
National IT Environment Issues 287
Availability of IT Professional Staff 287
Central Telecommunications 288
National IT Strategy 288
General Level of IT Sophistication 289
Size of Local Market 289
Data Export Control 289
Technological Awareness 290
Summary 290
Corporate Factors Affecting IT Requirements 290
Nature of the Firm's Business 291
Strategic Impact of IT 292
Corporate Organization 292
Company Technical and Control Characteristics 293
Other Considerations 294
Transnational IT Policy Issues 294
Guidance on Architecture 294
Central Hardware/Software Concurrence or Approval 295
Central Approval of Software Standards and Feasibility Studies 295
Central Software Development 296
IT Communications 297
Staff Rotation 298
Consulting Services 299
Central IT Processing Support 299
Technology Appraisal Program—An Example 300
Summary 301
13．The IT Business 302
"The IT Business"Analogy 302
The IT Marketing Mix 304
The Products 304
The IT Consumer 306
Costs 308
Channels of Distribution 310
Competition 312
Promotion 312
Price 313
The Role of the Board of Directors 315
The Role of the IT Chief Executive Officer 316
Summary 317
Annotated Bibliography 320
Index 325