Strategic Information Management - CA Sri Lanka

Strategic Information Management Challenges and strategies in managing information systems

Third edition Robert D. Galliers and Dorothy E. Leidner

OXFORD AMSTERDAM BOSTON LONDON NEW YORK PARIS SAN DIEGO SAN FRANCISCO SINGAPORE SYDNEY TOKYO

Butterworth-Heinemann An imprint of Elsevier Science Linacre House, Jordan Hill, Oxford OX2 8DP 200 Wheeler Road, Burlington MA 01803

First published 1994 Second edition 1999 Third edition 2003

Copyright ? 1994, 1999, R. D. Galliers, D. E. Leidner and B. Baker. All rights reserved Copyright ? 2003, R. D. Galliers and D. E. Leidner. All rights reserved

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Contents

List of contributors

ix

Preface

xi

Introduction: The Emergence of Information

Technology as a Strategic Issue

1

1 Developments in the Application of Information Technology

in Business

3

Information technology in business: from data processing to

strategic information systems

E. K. Somogyi and R. D. Galliers

(with a Postscript by R. D. Galliers and B. S. H. Baker)

Part One: Information Systems Strategy

27

2 The Evolving Information Systems Strategy

33

Information systems management and strategy formulation:

applying and extending the `stages of growth' concept

R. D. Galliers and A. R. Sutherland

3 Information Strategy

64

Assessment of information strategies in insurance companies

M. T. Smits, K. G. van der Poel and P. M. A. Ribbers

4 The Information Technology and Management

Infrastructure Strategy

89

Globalization and information management strategies

J. Karimi and B. R. Konsynski

5 Change Management Strategy

113

Change agentry ? the next information systems frontier

M. L. Markus and R. I. Benjamin

vi Contents

Part Two: Information Systems Planning

147

6 Information Systems Plans in Context: A Global Perspective 151 Understanding the global information technology environment: representative world issues P. C. Palvia and S. C. Palvia

7 Approaches to Information Systems Planning

181

Experiences in strategic information systems planning

M. J. Earl

8 The Information Systems Planning Process

216

Meeting the challenges of information systems planning

A. L. Lederer and V. Sethi

9 Evaluating the Outcomes of Information Systems Plans

239

Managing information technology evaluation ? techniques

and processes

L. P. Willcocks

Part Three: The Information Systems

Strategy?Business Strategy Relationship

261

10 Measuring the Information Systems?Business Strategy

Relationship

265

Factors that influence the social dimension of alignment

between business and information technology objectives

B. H. Reich and I. Benbasat

11 Information Systems?Business Strategy Alignment

311

The dynamics of alignment: insights from a punctuated

equilibrium model

R. Sabherwal, R. Hirschheim and T. Goles

12 Strategies in Response to the Potential of Electronic

Commerce

347

Market process reengineering through electronic market

systems: opportunities and challenges

H. G. Lee and T. H. Clark

13 The Strategic Potential of the Internet

376

Strategy and the Internet

M. E. Porter

Contents vii

14 Evaluating the Impact of IT on the Organization

404

The propagation of technology management taxonomies for

evaluating investments in information systems

Z. Irani and P. E. D. Love

Part Four: Information Systems Strategy and the

Organizational Environment

423

15 The Information Technology?Organizational Design

Relationship

427

Information technology and new organizational forms

R. Lambert and J. Peppard

16 Information Technology and Organizational Decision

Making

460

The effects of advanced information technologies on

organizational design, intelligence and decision making

G. P. Huber

17 The Information Technology?Organizational Culture

Relationship

497

Understanding information culture: integrating knowledge

management systems into organizations

D. E. Leidner

18 Information Systems and Organizational Learning

526

The social epistemology of organizational knowledge systems

B. T. Pentland

19 Information Technology and Customer Service

555

Redesigning the customer support process for the electronic

economy: insights from storage dimensions

O. A. El Sawy and G. Bowles

20 Information Technology and Organizational Performance

588

Beyond the IT productivity paradox

L. P. Willcocks and S. Lester

Author index

609

Subject index

617

Contributors*

B. S. H. Baker, Virgin Direct, UK (formerly Research Fellow in Business Innovation and Information Systems Strategies, Warwick Business School, Coventry, UK)

I. Benbasat, University of British Columbia, Vancouver, British Columbia, Canada

R. I. Benjamin, Robert Benjamin Consultants, Rochester, New York and School of Information Studies, Syracuse University, New York, USA

G. Bowles, Storage Dimensions, Milpitas, California, USA T. H. Clark, Hong Kong University of Science and Technology, Hong Kong,

China M. J. Earl, London Business School, UK (formerly with Oxford Institute of

Information Management, Templeton College, Oxford University, UK) O. A. El Sawy, University of Southern California, Los Angeles, California,

USA R. D. Galliers, London School of Economics, London, UK and Bentley

College, Waltham, Massachusetts, USA (formerly with Warwick Business School, Coventry, UK) T. Goles, University of Houston, Houston, Texas, USA R. Hirschheim, University of Houston, Houston, Texas, USA G. P. Huber, University of Texas at Austin, Texas, USA Z. Irani, Brunel University, Uxbridge, UK J. Karimi, University of Colorado, Denver, Colorado, USA B. R. Konsynski, Emory University, Atlanta, Georgia, USA (formerly with Harvard Business School, Boston, Massachusetts, USA) R. Lambert, Cranfield School of Management, Bedford, UK A. L. Lederer, University of Kentucky, Lexington, Kentucky, USA (formerly with Oakland University, Rochester, Michigan, USA) H. G. Lee, Hong Kong University of Science and Technology, Hong Kong, China

* Where a contributor's institution has changed since publication of their article, both their current and former affiliations are listed.

x Contributors

D. E. Leidner, Baylor University, Waco, Texas, USA (formerly with INSEAD, Fontainebleau, France)

S. Lester, Lloyd's Register, London and Oxford Institute of Information Management, Templeton College, Oxford University, UK

P. E. D. Love, Australian Agile Construction Initiative, Australia M. L. Markus, Bentley College, Waltham, Massachusetts, USA (formerly

with Claremont Graduate School, Claremont, California, USA) P. C. Palvia, University of Memphis, Tennessee, USA S. C. Palvia, Long Island University, New York, USA B. T. Pentland, Michigan State University, Michigan, USA J. Peppard, Cranfield School of Management, Bedford, UK K. G. van der Poel, Tilburg University, Tilburg, The Netherlands M. E. Porter, Harvard Business School, Boston, Massachusetts, USA B. H. Reich, Simon Fraser University, Vancouver, British Columbia,

Canada P. M. A. Ribbers, Tilburg University, Tilburg, The Netherlands R. Sabherwal, University of Missouri, St Louis, Missouri, USA V. Sethi, College of Business Administration, University of Oklahoma,

Norman, Oklahoma, USA M. T. Smits, Tilburg University, Tilburg, The Netherlands. E. K. Somogyi, The Farrindon Partnership, London, UK (formerly with PA

Computers & Telecommunications) A. R. Sutherland, Ess Consulting, Perth, Western Australia (formerly with

Corporate Systems Planning) L. P. Willcocks, Warwick Business School, Coventry, UK (formerly with

Oxford Institute of Information Management, Templeton College, Oxford University, UK and Erasmus University, Rotterdam, The Netherlands)

Preface

As with the first and second editions, this third edition of Strategic Information Management: Challenges and strategies in managing information systems aims to present the many complex and inter-related issues associated with the management of information systems, with a likely audience of MBA or other Master's level students and senior undergraduate students taking a course in strategic information management or something similar. Students embarking on research in this area should find the book of particular help in providing a rich source of material reflecting recent thinking on many of the key issues facing executives in information systems management. And like the first two editions, this third does not aspire to familiarize the reader with the underlying technology components of information systems nor enlighten the reader on expected trends in emerging technologies. While the second edition was a large departure from the first in the organization and readings, the third edition follows the same framework presented in the second edition while updating the chapters as much as possible. We will briefly recapture the organizing framework for those not familiar with the second edition.

The concept of `strategic information management' conveys manifold images, such as the strategic use of information systems, strategic information systems planning, strategic information systems . . . Our conceptualization of the term, and hence of the scope of the book, is presented in Figure 0.1.

The inner circle of the figure depicts the information systems (IS) strategy. Whether explicitly articulated, or not1 as appears to be frequently the case (Reich and Benbasat, 1996), without an IS strategy, the achievements of the IS in any given organization are likely to be more a result of hap and circumstance than a carefully guided intentional objective. Three of the dimensions of IS strategy proferred in Galliers (1991), drawing from Earl (1989), form the major topics of the readings in the first section of the book ? information, information technology (IT), and information management strategy, and the related change management strategy.

1 See also Ciborra et al. (2000).

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