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Industry experts believe blockchain is a technology that has the potential to affect the business of most IT professionals in the next five years. Pick an industry you feel will be most affected by blockchain and how blockchain may be used in that industry. As an IT manager, how would you embrace blockchain? For instance, how would training occur for your team, what strategies might you use, what security methods may you recommend be used?Your Assignment paper should meet the following requirements:Paper need to be five to six pages in length, not including the required cover page and reference page.Must be in APA format, Follow APA6 guidelines. Your paper should include an introduction, a body with fully developed content, and a conclusion.Support your answers with the readings from the course and at least three scholarly journal articles to support your positions, claims, and observations, in addition to your textbook.Be clearly and well-written, concise, and logical, using excellent grammar and style techniques.Note: must be 100\% own work and there should be no plagiarism at all. Please do not refer to any of the previous student papers text___managing_and_using_information_systems_a.pdf Unformatted Attachment Preview 4 TH EDITION Managing and Using Information Systems A Strategic Approach KERI E. PEARLSON KP Partners CAROL S. SAUNDERS University of Central Florida JOHN WILEY & SONS, INC. To Yale & Hana To Rusty, Russell &Kristin VICE PRESIDENT & EXECUTIVE PUBLISHER EXECUTIVE EDITOR EDITORIAL ASSISTANT MARKETING MANAGER DESIGN DIRECTOR SENIOR DESIGNER SENIOR PRODUCTION EDITOR SENIOR MEDIA EDITOR PRODUCTION MANAGEMENT SERVICES Don Fowley Beth Lang Golub Lyle Curry Carly DeCandia Harry Nolan Kevin Murphy Patricia McFadden Lauren Sapira Pine Tree Composition This book is printed on acid-free paper. Copyright  2010 John Wiley & Sons, Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc. 222 Rosewood Drive, Danvers, MA 01923, website www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030-5774, (201) 748-6011, fax (201) 748-6008, website www.wiley.com/go/permissions. To order books or for customer service please, call 1-800-CALL WILEY (225-5945). ISBN 978-0-470-34381-4 Printed in the United States of America 10 9 8 7 6 5 4 3 2 1 ! Preface Information technology and business are becoming inextricably interwoven. I don’t think anybody can talk meaningfully about one without the talking about the other.1 Bill Gates Microsoft I’m not hiring MBA students for the technology you learn while in school, but for your ability to learn about, use and subsequently manage new technologies when you get out. IT Executive Federal Express Give me a fish and I eat for a day; teach me to fish and I eat for a lifetime. Proverb Managers do not have the luxury of abdicating participation in information systems decisions. Managers who choose to do so risk limiting their future business options. Information systems are at the heart of virtually every business interaction, process, and decision, especially when one considers the vast penetration of the Web in the last few years. Managers who let someone else make decisions about their information systems are letting someone else make decisions about the very foundation of their business. This is a textbook about managing and using information, written for current and future managers as a way of introducing the broader implications of the impact of information systems. The goal of this book is to assist managers in becoming knowledgeable participants in information systems decisions. Becoming a knowledgeable participant means learning the basics and feeling comfortable enough to ask questions. It does not mean having all the answers nor having a deep understanding of all the technologies out in the world today. No text will provide managers with everything they need to know to make important information systems decisions. Some texts instruct on the basic technical background of information systems. Others discuss applications and their life cycle. Some take a comprehensive view of the management information systems (MIS) field and offer readers snapshots of current systems along with chapters describing how those technologies are designed, used, and integrated into business life. This book takes a different approach. This text is intended to provide the reader with a foundation of basic concepts relevant to using and managing information. It is not intended to provide a comprehensive treatment on any one aspect of MIS, 1 http://www.woopidoo.com/business quotes/authors/bill-gates-quotes.htm. iii iv Preface for certainly each aspect is itself a topic of many books. It is not intended to provide readers with enough technological knowledge to make them MIS experts. It is not intended to be a source of discussion of any particular technology. This textbook is written to help managers begin to form a point of view of how information systems will help, hinder, and create opportunities for their organizations. The idea for this text grew out of discussions with colleagues in the MIS area. Many faculty use a series of case studies, trade and popular press readings, and Web sites to teach their MIS courses. Others simply rely on one of the classic texts, which include dozens of pages of diagrams, frameworks, and technologies. The initial idea for this text emerged from a core MIS course taught at the business school at the University of Texas at Austin. That course was considered an ‘‘appetizer’’ course—a brief introduction into the world of MIS for MBA students. The course had two main topics: using information and managing information. At the time, there was no text like this one, hence students had to purchase thick reading packets made up of articles and case studies to provide them with the basic concepts. The course was structured to provide the general MBA with enough knowledge of the field of MIS that they could recognize opportunities to use the rapidly changing technologies available to them. The course was an appetizer to the menu of specialty courses, each of which went much deeper into the various topics. But completion of the appetizer course meant that students were able to feel comfortable listening to, contributing to, and ultimately participating in information systems decisions. Today many students are digital natives—people who have grown up using information technologies all of their lives. That means that students come to their courses with significantly more knowledge about things like personal computers, cell phones, texting, the Web, social networking, file downloading, online purchasing, and social media than their counterparts in school just a few years ago. This is a significant trend that is projected to continue; students will be increasingly knowledgeable in personally using technologies. That knowledge has begun to change the corporate environment. Today’s digital natives expect to find information systems in corporations that provide at least the functionality they have at home. At the same time, they expect to be able to work in ways that take advantage of the technologies they have grown to depend on for social interaction, collaboration, and innovation. This edition of the text has been completely edited with this new group of students in mind. We believe the basic foundation is still needed for managing and using information systems, but we understand that the assumptions and knowledge base of today’s students is significantly different. This book includes an introduction, 12 chapters of text and minicases, and a set of case studies and supplemental readings on a Web site. The introduction makes the argument introduced in this preface that managers must be knowledgeable participants in information systems decisions. The first few chapters build a basic framework of relationships between business strategy, information systems strategy, and organizational strategy and explore the links between these strategies. Readers will also find a chapter on how information Preface v systems relate to business transformation. Supplemental materials, including longer cases from all over the globe, can be found on the Web. Please visit http://www.wiley.com/college/pearlson for more information. General managers also need some foundation on how IT is managed if they are to successfully discuss their next business needs with IT professionals who can help them. Therefore, the remaining chapters describe the basics of information architecture and infrastructure, the sourcing of information systems, the organization and governance of the MIS function, the ethical issues, the funding of information systems resources, project management, and business analytics and knowledge management. No text in the field of MIS is current. The process of writing the chapters, coupled with the publication process, makes a text somewhat out-of-date prior to delivery to its audience. With that in mind, this text is written to summarize the ‘‘timeless’’ elements of using and managing information. Although this text is complete in and of itself, learning is enhanced by coupling the chapters with the most current readings and cases. Students are encouraged to search the Web for examples and current events that further clarify the issues at hand. The format of each chapter begins with an example case and the basic language for a set of important management issues. This is followed up with a set of managerial concerns related to the topic. Each chapter then has a food for thought section on an additional, but relatively new, topic. The chapter concludes with a set of study questions, key words, and case studies. This is the fourth edition of this text, and this version includes several significant additions and revisions. Gone is the chapter on ‘‘doing business on the Internet’’ because after all, virtually every business now uses the Internet. Instead, this edition has a new chapter on sourcing. Major changes include a new focus on Web 2.0 (Chapter 2); new framework of managerial levers (Chapter 3); new discussion on collaboration (Chapter 4); alignment and business processes (Chapter 5); SOA WOA, SaaS, enterprise architecture, and cloud computing (Chapter 6); sourcing (Chapter 7); new IT governance framework (Chapter 8); security and compliance (Chapter 9); new discussion of business cases (Chapter 10); new focus on managing business projects (Chapter 11); and on business analytics and business intelligence (Chapter 12). Many of the older cases have been replaced with newer examples throughout the text, and many of the food for thought issues are new. Who should read this book? General managers interested in participating in information systems decisions will find this a good reference resource for the language and concepts of MIS. Managers in the information systems field will find this book a good resource for beginning to understand the general manager’s view of how information systems affect business decisions. And MIS students will be able to use the readings and concepts in this book as the beginning point in their journey to become informed and successful business people. The information revolution is here. Where do you fit in? Keri E. Pearlson and Carol S. Saunders ! Acknowledgments Books of this nature are written only with the support of many individuals. We would like to personally thank several individuals who helped with this text. Although we’ve made every attempt to include everyone who helped make this book a reality, there is always the possibility of unintentionally leaving some off. We apologize in advance if that is the case here. Philip Russell Saunders came to our rescue when we were in a pinch by researching various topics, finding cases, and verifying examples from previous editions. We really appreciate his efforts. We also appreciate the considerable efforts of Mihir Parikh at the University of Central Florida. Mihir wrote many of the new cases that appear in this fourth edition of the text. Thanks also go to Craig Tidwell who updated the teaching materials. We also want to acknowledge and thank pbwiki.com. Without their incredible, and free, wiki, we would have been relegated to e-mailing drafts of chapters back and forth. For this edition, we wanted to use Web2.0 tools as we wrote about them. We have been blessed with the help of our colleagues in this and in previous editions of the book. They helped us by writing cases and reviewing the text. Our thanks continue to go out to Jonathan Trower, Espen Andersen, Janis Gogan, Ashok Rho, Yvonne Lederer Antonucci, E. Jose Proenca, Bruce Rollier, Dave Oliver, Celia Romm, Ed Watson, D. Guiter, S. Vaught, Kala Saravanamuthu, Ron Murch, John Greenwod, Tom Rohleder, Sam Lubbe, Thomas Kern, Mark Dekker, Anne Rutkowski, Kathy Hurtt, Kay Nelson, and John Butler. In addition, the students of the spring 2008 Technology Management and summer 2008 Information Resource Management classes at the University of Central Florida provided comments that proved helpful in writing some cases and making revisions. Though we cannot thank them by name, we also greatly appreciate the comments of the anonymous reviewers who have made a mark on this edition. The book would not have been started were it not for the initial suggestion of a wonderful editor at John Wiley & Sons, Inc., Beth Lang Golub. Her persistence and patience have helped shepherd this book through many months of creation, modification, evaluation, and production, and she will shepherd it through translation into other languages. Special thanks go to Maria Guarascio, who very cheerfully and very competently helped us through the revision process. We also appreciate the help of (Jennifer Snyder, Lorraina Raccuia, Gitti Lindner, and Sujin Hong) and others at Wiley, who have made this edition a reality. From Keri: Thank you to my husband, Dr. Yale Pearlson, and my daughter, Hana Pearlson. Their patience with me while I worked on this project was incredible. They celebrated and commiserated the ups and downs that came with the process of writing this book. I love you guys! From Carol: Rusty, thank you for being my compass (always keeping me headed in the right direction) and my release valve (patiently walking me through stressful times). I couldn’t do it without you. I love you, Russell, and Kristin very much! vi ! About the Authors Keri E. Pearlson Dr. Keri E. Pearlson is president of KP Partners, a consultancy specializing in creating leaders skilled in the strategic use of information systems and organizational design in the Web 2.0 world. Dr. Pearlson has held various positions in academia and industry. She was a member of the information systems faculty at the Graduate School of Business at the University of Texas at Austin, where she taught management information systems courses to MBAs and executives. She was a research director at the Research Board, held positions at the Harvard Business School, CSC-Index’s Prism Group, nGenera (formerly the Concours Group), AT&T, and Hughes Aircraft Company. She is co-author of Zero Time: Providing Instant Customer Value—Every Time, All the Time (John Wiley & Sons, 2000). Her work has been published in Sloan Management Review, Academy of Management Executive, Information Resources Management Journal, and Beyond Computing. Many of her case studies have been published by Harvard Business School Publishing and are used all over the world. Dr. Pearlson holds a Doctorate in Business Administration (DBA) in Management Information Systems from the Harvard Business School and both a Master’s Degree in Industrial Engineering Management and a Bachelor’s Degree in Applied Mathematics from Stanford University. Carol S. Saunders Dr. Carol S. Saunders is professor of MIS at the University of Central Florida in Orlando, Florida. She served as General Conference Chair of the International Conference on Information Systems (ICIS) in 1999 and Telecommuting in 1996. She was the chair of the ICIS Executive Committee in 2000. She was editor-in-chief of MIS Quarterly and is a Fellow of the Association of Information Systems (AIS). Her current research interests include the impact of information system on power and communication, virtual teams, virtual worlds, time, information overload, sourcing, and interorganizational linkages. Her research is published in a number of journals including MIS Quarterly, Information Systems Research, Journal of MIS, Communications of the ACM, Academy of Management Journal, Academy of Management Review, Communications Research, and Organization Science. vii ! Contents Introduction 1 The Case for Participating in Decisions about Information Systems 2 What If A Manager Doesn’t Participate? 5 What Skills Are Needed to Participate Effectively in Information Technology Decisions? 7 Basic Assumptions 9 Food for Thought: Economics of Information Versus Economics of Things 16 Summary 18 Key Terms 18 Discussion Questions 19 Case Study I-1: Terry Cannon, MBA 19 Case Study I-2: Anyglobal Company Inc. 21 ! CHAPTER 1 The Information Systems Strategy Triangle 22 Brief Overview of Business Strategy Frameworks 25 Brief Overview of Organizational Strategies 34 Brief Overview of Information Systems Strategy 37 Food for Thought: The Halo Effect and Other Business Delusions Summary 40 Key Terms 40 Discussion Questions 41 Case Study 1-1: Roche’s New Scientific Method 41 Case Study 1-2: Google 43 ! CHAPTER 2 Strategic Use of Information Resources 46 Evolution of Information Resources 47 Information Resources as Strategic Tools 48 How Can Information Resources Be Used Strategically? 52 Strategic Alliances 66 Risks 68 Food for Thought: Co-creating IT and Business Strategy 69 viii 38 Contents Summary 71 Key Terms 71 Discussion Questions 71 Case Study 2-1: Lear Won’t Take A Backseat Case Study 2-2: Zipcar 74 ! CHAPTER 3 ix 73 Organizational Impacts of Information Systems Use 76 Information Technology and Organizational Design 77 Information Technology and Management Control Systems 85 Information Technology and Culture 89 Food for Thought: Immediately Responsive Organizations 92 Summary 93 Key Terms 94 Discussion Questions 94 Case Study 3-1: US Air and America West Merger Case 94 Case Study 3-2: The FBI 96 ! CHAPTER 4 Information Technology and the Design of Work 98 Work Design Framework 101 How Information Technology Supports Communication and Collaboration 102 How Information Technology Changes the Nature of Work 108 How Information Technology Changes Where Work Is Done and Who Does It 115 Virtual Teams 120 Gaining Acceptance for IT-Induced Change 125 Food for Thought: Security With Remote Workers 127 Summary 129 Key Terms 130 Discussion Questions 130 Case Study 4-1: Automated Waste Disposal, Inc. 131 Case Study 4-2: Virtually There? 132 ! CHAPTER 5 Information Technology and Changing Business Processes Silo Perspective Versus Business Process Perspective 135 The Tools for Change 141 Shared Services 145 Enterprise Systems 147 Integrated Supply Chains 152 Food for Thought: Is ERP a Universal Solution? 155 134 x Contents Summary 157 Key Terms 158 Discussion Questions 158 Case Study 5-1: Santa Cruz Bicycles 159 Case Study 5-2: Boeing 787 Dreamliner 160 ! CHAPTER 6 Architecture and Infrastructure 162 From Vision to Implementation 163 The Leap from Strategy to Architecture to Infrastructure 165 Architectural Principles 171 Enterprise Architecture 171 Other Managerial Considerations 174 From Strategy to Architecture to Infrastructure: An Example 181 Food for Thought: Cloud Computing 183 Summary 186 Key Terms 187 Discussion Questions 187 Case Study 6-1: Hasbro 188 Case Study 6-2: Johnson & Johnson’s Enterprise Architecture 189 ! CHAPTER 7 Information Systems Sourcing 190 Sourcing Decision Cycle Framework 192 Insourcing 193 Outsourcing 193 Outsourcing Abroad 198 Backsourcing 206 Outsourcing Models 207 Food for Thought: Outsourcing and Strategic Networks 211 Summary 212 Key Terms 212 Discussion Questions 213 Case Study 7-1: Sodexho Asia Pacific 213 Case Study 7-2: Overseas Outsourcing of Medical Transcribing ! CHAPTER 8 215 Governance of the Information Systems Organization Understanding the IS Organization 219 What a Manager Can Expect from the IS Organization 224 What the IS Organization Does Not Do 230 IT Governance 231 Food for Thought: CIO Leadership Profiles 240 218 Contents Summary 241 Key Terms 242 Discussion Questions 242 Case Study 8-1: IT Governance at UPS 242 Case Study 8-2: The Big Fix at Toyota Motor Sales (TMS) ! CHAPTE ... Purchase answer to see full attachment