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
The right of R. D. Galliers and D. E. Leidner to be identified as the authors of this work has been asserted in accordance with the Copyright, Designs and Patents Act 1988
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ISBN 0 7506 5619 0
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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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