Managing Information Systems Ten Essential Topics 1st Edition Jun Xu
- 1. Managing Information Systems Ten Essential Topics 1st Edition Jun Xu download https://ebookname.com/product/managing-information-systems-ten- essential-topics-1st-edition-jun-xu/ Get Instant Ebook Downloads – Browse at https://ebookname.com
- 2. Instant digital products (PDF, ePub, MOBI) available Download now and explore formats that suit you... Channel Coding in 5G New Radio 1st Edition Jun Xu https://ebookname.com/product/channel-coding-in-5g-new-radio-1st- edition-jun-xu/ Managing and Using Information Systems 5th Edition Keri E. Pearlson https://ebookname.com/product/managing-and-using-information- systems-5th-edition-keri-e-pearlson/ Strategic Information Management Challenges and Strategies in Managing Information Systems 3rd Edition Robert D Galliers https://ebookname.com/product/strategic-information-management- challenges-and-strategies-in-managing-information-systems-3rd- edition-robert-d-galliers/ The Emerald Handbook of Crime Justice and Sustainable Development 1st Edition Jarrett Blaustein https://ebookname.com/product/the-emerald-handbook-of-crime- justice-and-sustainable-development-1st-edition-jarrett- blaustein/
- 3. The Essential Garden Design Workbook 2 Rev Upd Edition Rosemary Alexander https://ebookname.com/product/the-essential-garden-design- workbook-2-rev-upd-edition-rosemary-alexander/ The Italian Army 1940 45 2 Africa 1940 43 Philip Jowett https://ebookname.com/product/the-italian- army-1940-45-2-africa-1940-43-philip-jowett/ Intellectual Property in Australia Sixth Edition. Edition Andrew John Stewart https://ebookname.com/product/intellectual-property-in-australia- sixth-edition-edition-andrew-john-stewart/ Nazarene Youth Goes International Adults and Youth Making a Difference Around the World 1st Edition Gary Sivewright https://ebookname.com/product/nazarene-youth-goes-international- adults-and-youth-making-a-difference-around-the-world-1st- edition-gary-sivewright/ Poetical Passages in the Erdeni Yin Tob■i John R. Krueger https://ebookname.com/product/poetical-passages-in-the-erdeni- yin-tobci-john-r-krueger/
- 4. The Activity Kit for Babies and Toddlers at Risk How to Use Everyday Routines to Build Social and Communication Skills 1 Reprint Edition Deborah Fein https://ebookname.com/product/the-activity-kit-for-babies-and- toddlers-at-risk-how-to-use-everyday-routines-to-build-social- and-communication-skills-1-reprint-edition-deborah-fein/
- 5. Managing Information Systems: Ten Essential Topics Jun Xu Southern Cross Business School, Southern Cross University Gold Coast, Australia Mohammed Quaddus Graduate School of Business, Curtin University Perth, Australia AMSTERDAM – PARIS – BEIJING
- 6. Atlantis Press 8, square des Bouleaux 75019 Paris, France For information on all Atlantis Press publications, visit our website at: www.atlantis-press.com Copyright This book, or any parts thereof, may not be reproduced for commercial purposes in any form or by any means, electronic or mechanical, including photocopying, recording or any information storage and retrieval system known or to be invented, without prior permission from the Publisher. ISBNs Print: 978-94-91216-88-6 E-Book: 978-94-91216-89-3 c 2013 ATLANTIS PRESS
- 7. Preface Information systems have become an essential part and a major resource of the organiza- tion; and they can radically affect the structure of an organisation, the way it serves cus- tomers, and the way it helps people in the organization to communicate both internally and externally, and the way an organisation runs its business. Managing information systems effectively and efficiently has become an important part of the life of 21st century managers. This book is about managing information systems and focuses on relationships between in- formation, information systems, people and business. The impacts, roles, risks, challenges as well as emerging trends of information systems are an important element of the book. At the same time, many strategic and contemporary uses of information systems such as implementing enterprise planning systems for improving internal operation, adopting cus- tomer relationship management systems and supply chain management systems to enhance relations with customers and suppliers/partners respectively, and establishing knowledge management systems for better managing organizational knowledge resources as well as using different information systems for supporting managers’ decision making in all levels are an integral part of the book. In addition, essential and critical information systems man- agement skills including using information systems for competitive advantages, planning and evaluating information systems, developing implementing information systems, and managing information systems operation are a critical part of the book. This book has ten chapters. Chapter 1 looks at foundations of information sys- tem/information technology and discusses topics such as the importance of information systems, key concepts of information systems, information systems competence for man- agers, critical issues of information systems, and emerging trends future directions of in- formation systems. In Chapter 2 an important dimension of managing information systems, how information systems can help organisations gain competitive advantages, is discussed. iii
- 8. iv Managing Information Systems: Ten Essential Topics Organisations can apply strategic planning tools such as Porter’s five forces and value chain to analyse their competitive position, examine their competitive advantages, and identify relevant competitive strategies. Information systems can play a very important role in the success of an organisation’s identified competitive strategies. Chapter 3 studies the importance of good information systems planning, which is critical for the strategic use and success of information systems in the organization. Chapter 3 also looks at another important aspect of information systems management: evaluation of initia- tives/investments of information systems. There is an old saying: ‘If you cannot measure it, you cannot manage it’. Through systematic assessment of their information systems initiatives/investments, organizations can be effective in choosing right information sys- tems projects and managing their chosen initiatives/investments. In order to measure the performance of information systems, organisations could use a set of metrics (such as net present value, return of investment, internal rate of return, payback period, and total cost of ownership)., Meanwhile organisations should look beyond financial metrics, and take into consideration of financial and non-financial data, qualitative and quantitative information, tangible and intangible costs/benefits, and formal and informal processes. Chapter 4 looks at developing and implementing information systems. Correctly developed information systems can significantly contribute to the success of the business (i.e., enhanc- ing competitive advantages, improving business performance). On the other hand, a poorly developed and implemented information system can have a damaging effect on business performance and can even cause a business to fail. To ensure successfully develop and implement information systems organizations need to adopt systems development life cy- cle (or its variations), which includes such activities as systems planning, analysis, design, development, testing, implementation, and maintenance. In addition, while organizations are developing and implementing information systems they have to pay close attention to such areas as project management, change management, and risk management, these areas are critically associated with the success of information systems development and imple- mentation. Chapter 5 discusses the importance of managing organization’s knowledge re- sources/assets. Effectively managing and leveraging knowledge assets, has critical im- plications for business performance and sustainable business growth. Information systems such as knowledge management systems could assist in organization’s efforts of capturing,
- 9. Preface v storing, disseminating, utilizing and creating knowledge. On a related note, Chapter 5 also discusses data resources management. As a result of global connectedness, the wide adop- tion of computing tools mobile devices, the rapid advancement of Internet technologies, and more powerful computing capability, gathering and analysing large (or large large) vol- ume of data is quickly becoming popular among organizations for reasons such as better understanding customers, and better utilizing data resources computing infrastructure. Chapter 6 touches on the information systems infrastructure management and discusses hardware, software, networks and telecommunications management. Hardware is a vital part of computer systems and provides the underlying physical foundation for firms’ in- formation systems infrastructure. Other infrastructure components of software, networks and telecommunications require hardware for their storage and operation. To be useful, hardware needs software, which gives instructions that control the operation of a computer system. Networks and Telecommunications enable large and small businesses to commu- nicate internally between staff and externally with customers, suppliers, business partners, strategic alliances and others. Making the right decision in relation to information systems infrastructure is vital to the success of the business. Chapter 7 deals with functional information systems and discusses cross-functional infor- mation systems. Traditionally businesses are operated by dividing the organisation into var- ious functions (i.e., accounting, marketing, finance, productions/operations management, human resources management) in a silo structure with each having its own information sys- tems and tending to work in isolation. In order to deal with these problems of silo approach (i.e., information recreation, information errors, communication gaps among departments, loss of information arising from inaccurate information and not-timely shared information, and lack of consistent services to customers), managers need to think beyond the walls of the organisation. Thus there is a need for a cross-functional approach, which focuses on business process and customer services. Cross-functional information systems are a strategic way to use information systems to share information resources and focus on accomplishing fundamental business processes in concert with the company’s customer, supplier, partner, and employee stakeholders. Some typical examples of cross-functional information systems include: enterprise resource plan- ning systems, customer relationship management systems, supply chain management sys- tems, and knowledge management systems. These four systems have different focuses:
- 10. vi Managing Information Systems: Ten Essential Topics enterprise resource planning systems emphasize on internal efficiency; customer relation- ship management systems concentrate on customer relations; supply chain management systems focus on managing relations with suppliers and business partners; and knowledge management systems facilitate managing tacit and explicit knowledge of the organization. Meanwhile these four systems are inter-related (i.e., accurate information is critical to the success of supply chain management systems and enterprise planning systems; knowledge sharing facilitated by knowledge management systems is important to all the aspect of busi- ness including the success of supply chain management systems, enterprise planning sys- tems, customer relationship management systems). Chapter 7 also has a close at enterprise planning systems and discusses implementation issues and emerging trends of enterprise resource planning systems. Chapter 8 looks at various aspects of customer relationship management systems and supply chain management systems, including benefits, types of systems/applications, challenges issues of implementation, and future trends. Chapter 9 reviews information systems for supporting decision making. Organisations to- day can no longer use a ‘cook book’ approach to decision making. In order to succeed in business today, companies need information systems that support the diverse decision- making needs of their operations. The massive volume of available data generated by billions of connected devices and human minds has further strengthened the role of infor- mation systems for decision-making support. Providing information and support for all levels of management decision making is no easy task. Therefore, information systems must be designed to produce a variety of information products to meet the changing needs of decision makers throughout an organisation. Examples of information systems for deci- sion making cover management information systems, decision support systems, executive information systems, artificial intelligence applications, data warehousing data mining, and business intelligence/business analytics. Chapter 10 looks at managing information systems function and operation. The success of information systems in the organization heavily rely on good management. Good informa- tion systems management examines and works on enterprise information systems opera- tion/function management, global information systems management, information systems in mergers and acquisitions, information skills talent management, information systems governance, and global virtual team management. Chapter 10 also discusses information systems outsourcing management by looking at such areas as advantages and disadvantages
- 11. Preface vii of insourcing, outsourcing, and offshore-sourcing; critical capabilities, challenges, issues, and critical success factors of outsourcing. We would like to thank Dr Chad Lin, Curtin University, Australia and Dr Daniel O’Sheedy, Photon Group, Australia, for their kind assistance in reviewing the book. Finally we would like to thank Atlantis Press and Springer for opportunity of working on the book, and thank Zeger Karssen, Publishing Director, Atlantis Press, for overseeing the publishing process of the book and for giving us such a wonderful publishing experience. Jun Xu and Mohammed Quaddus Gold Coast and Perth, Australia November 2012
- 12. Contents Preface iii 1. Foundation 1 1.1 Managing Information as a Strategic Resource . . . . . . . . . . . . . . . 1 1.2 Key Concepts of Information Systems . . . . . . . . . . . . . . . . . . . 2 1.3 Information Systems Competence for Managers . . . . . . . . . . . . . . 4 1.4 Critical Issues of Information Systems Management . . . . . . . . . . . . 5 1.5 Emerging Trends and Future Directions . . . . . . . . . . . . . . . . . . 13 1.6 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 2. Information Systems for Competitive Advantages 27 2.1 Competitive Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 2.2 Value chain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 2.3 Business Eco-systems and Co-opetition (Competition Cooperation) . . 31 2.4 Innovation Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 2.5 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 3. Information Systems Planning and Evaluation 41 3.1 Strategic Alignment of Information Systems Plan with Business Strategy 41 3.2 Measuring the Success of Information Systems Initiatives/Investments . . 45 3.3 Financially Justifying Information Systems Investments . . . . . . . . . . 46 ix
- 13. x Managing Information Systems: Ten Essential Topics 3.4 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 4. Developing and Implementing Information Systems 53 4.1 Systems Analysis and Design . . . . . . . . . . . . . . . . . . . . . . . . 53 4.2 Project management, Change Management and Risk Management . . . . 58 4.3 Internal Development, Outsourcing, Acquisition and Use of Application Service Providers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 4.4 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 5. Managing Organization’s Knowledge Resources 67 5.1 Data, Information and Knowledge . . . . . . . . . . . . . . . . . . . . . 67 5.2 Database, Data Warehouse and Data Mining . . . . . . . . . . . . . . . . 68 5.3 The Phenomenon of Big Data . . . . . . . . . . . . . . . . . . . . . . . 72 5.4 Knowledge Management and Knowledge Management Systems . . . . . 76 5.5 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 6. Managing Infrastructure for Information Systems 85 6.1 Hardware and Software Management . . . . . . . . . . . . . . . . . . . 85 6.2 Networks and Telecommunications Management . . . . . . . . . . . . . 90 6.3 Wireless Communication . . . . . . . . . . . . . . . . . . . . . . . . . . 93 6.4 Management challenges . . . . . . . . . . . . . . . . . . . . . . . . . . 94 6.5 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106 Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106 7. Using Information Systems for Enhancing Internal Operation 109 7.1 Functional and Cross-functional Information Systems . . . . . . . . . . . 109 7.2 Enterprise Resource Planning Systems . . . . . . . . . . . . . . . . . . . 111 7.3 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118 Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118
- 14. Contents xi 8. Using Information Systems for Improving External Relations 121 8.1 Customer Relationship Management Systems . . . . . . . . . . . . . . . 121 8.2 Supply Chain Management Systems . . . . . . . . . . . . . . . . . . . . 131 8.3 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136 Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136 9. Using Information Systems for Supporting Decision Making 139 9.1 Enabling the Organization-Decision Making . . . . . . . . . . . . . . . . 139 9.2 Information Systems for Decision Support . . . . . . . . . . . . . . . . . 141 9.3 Business Intelligence/Business Analytics . . . . . . . . . . . . . . . . . 145 9.4 Management Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . 147 9.5 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148 Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148 10. Information Systems Operation Management 149 10.1 Enterprise Information Systems Operation Management . . . . . . . . . 149 10.2 Outsourcing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158 10.3 Global Information Systems Operation Management . . . . . . . . . . . 162 10.4 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164 Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165
- 15. Chapter 1 Foundation In this chapter, we will explain the importance of management of information resources, discuss the key concepts of information systems, explain information systems competence for man- agers, discuss critical issues of information systems, and discuss emerging trends and future directions of information systems. 1.1 Managing Information as a Strategic Resource Efficient and strategic use of information holds the key to enhanced competitiveness, in- creased efficiency, better resource allocation, and improved effectiveness. Information re- source is different with traditional tangible resources. Eaton and Bawden (1991) suggest some key distinctions between information as a resource and traditional tangible resources. They are: • Value of information: it is difficult to quantify the value of information. For example, the same piece of information (i.e., information about the share price of Google) could lead to different impacts (positive or neutral or negative), and could have different values (small or large). • Consumption of information: information has the characteristics of ‘self- multiplicative’, which basically says the information will not be lost or diminished when it is provided to others. This feature makes information resources fundamentally different with other (tangible and commodity) resources. For example, if I have a piece of informa- tion, I will still have it even after I share it with you; but if I have a tangible item (i.e., five dollars, one apple), if I share with others, then I won’t have the same item (i.e., less than five dollars, not having the same whole apple I had before). • Dynamics of information: information is a dynamic source for change. We need infor- mation to make changes and improve the way we do things. For example, by collecting J. Xu and M. Quaddus, Managing Information Systems, DOI: 10.2991/978-94-91216-89-3_1, Ó Atlantis Press 2013 1
- 16. 2 Managing Information Systems: Ten Essential Topics and analysing customer information, we can have better understanding customers’ needs and concerns, thus are able to provide better products and services to customers. • Life cycle of information: the life cycle of information is unpredictable; and information can have multiple life cycles. For example, how do you predict the information demand?; how do you predict the peaks and the troughs of information demand?; and how do you predict the declining and exit of information resources?. Information can be in one life cycle (being useful) then leaves (becoming irrelevant), but come back again in another life cycle later or enter other life cycles of information (for different stakeholders in different areas across various areas). • Individuality of information: information has situational uniqueness. Information can come from different approaches (i.e., first-hand and second-hand information) and can exist various formats (i.e., digital and non-digital formats). Other tangible resources tend to have the identifiable format and sources (i.e., petroleum in liquid formats and coming from the underground or the bottom of the ocean). 1.2 Key Concepts of Information Systems 1.2.1 The concept of information systems (IS)/information technology (IT) An information system includes all components and resources necessary to deliver infor- mation and information processing functions to the organisation and can be any organised combination of people, hardware, software, communication networks and data resources that collects, transforms and disseminates information within an organisation. Business professionals rely on many types of information systems that use a variety of information technologies, i.e. from simple manual (pen-and-pencil) hardware devices and informal (word-of-mouth) communication channels to complex computer-based systems (i.e. enter- prise resource planning systems). However, in today’s environment, when we talk about an information system, we refer to computer-based information systems, that use computer hardware and software, the Internet, and other telecommunication networks, and computer- based data resource management techniques to gather, manage and distribute information. The terms Information Technology (IT) and Information Systems (IS) will be used inter- changeably in this book. So far there is no universal classification of information systems applications. For ex- ample, information systems can be classified for the purpose of either serving business operations or supporting managerial decision making (O’Brien Marakas 2011, p. 13).
- 17. Foundation 3 On the other hand, information systems can be classified according to different needs at different organisational levels (i.e. strategic, management and operational levels) across various functions (i.e. sales and marketing, manufacturing and production, finance and ac- counting and human resources) (Laudon Laudon 2005, p. 43). People at different levels of an organisation have different information needs. The structure of a typical organisation is similar to a pyramid. The array of organisational activities occurs at different levels of the pyramid. People in the organisation have unique information needs and thus require various sets of information systems tools. For example information systems such as management information systems, decision support systems, executive information systems, suit differ- ent information needs of operational managers, middle managers, and senior managers. Functional information systems, such as accounting information systems; finance informa- tion systems; marketing information systems; productions/operations information systems; and human resource information systems, serve different business functions. Organisations are increasingly using cross-functional information systems, which fo- cus on cross-functional business process and emphasize customer services. Examples of cross-functional information systems include enterprise resource planning systems, cus- tomer relationship management systems, supply chain management systems, and knowl- edge management systems. 1.2.2 The concept of strategic information systems Strategic information systems are any kind of information systems that ‘support or shape the competitive position and strategies of a business enterprise’ (O’Brien Marakas 2011, p. 46), and they play strategic roles and provide effective support in organisations’ ef- forts for achieving competitive advantages (i.e. cost leadership, differentiation, innovation, growth, strategic alliance/partnership) (O’Brien Marakas 2011, p. 49). Some examples of strategic applications of information systems include: • use of enterprise resources planning systems for improving internal efficiency and effec- tiveness. • use of customer relationship management systems for acquiring, enhancing and retaining customers and supply chain management applications for more effectively and efficiently managing supply chains. • use of management information systems, decision support systems, executive informa- tion systems, and other information systems for decision support and better decision making.
- 18. 4 Managing Information Systems: Ten Essential Topics • use of collaboration systems and knowledge management systems for better intra and inter-organisational collaboration and knowledge sharing. 1.3 Information Systems Competence for Managers Information systems are a vital component for business success and a major functional area in business and therefore an essential field of study in many MBA programs. Informa- tion systems are an essential body of knowledge for business managers, professionals, and business students. As we argue information systems need to have a business view, busi- ness managers should participate in information systems decision-making for the following reasons (Pearlson Saunders 2004, p. 3): • Information systems have to be managed as a critical resource • Information systems provide an opportunity to make changes in the way people work together • Information systems work with almost every aspect of business • Information systems create business opportunities and new strategies • Information systems can assist in combating business challenges from competitors. Based on a survey of information systems competence for MBA graduates among ex- ecutives in 1995 (Ramakrishna et al. 1995), it is recommended that MBA graduates should equip themselves with such skills and knowledge as: general skills and knowledge of in- formation systems, hardware skills, software skills, knowledge of applications, systems development, and knowledge of related topics including privacy, security, legal aspects, and ethical issues. The focus on soft skills (i.e., project management and information skills/talent management), is the trend identified in the survey. The same trend can be observed in today’s business environment. Meanwhile, business managers need to be able to discuss and examine the roles and consequences of information systems in the organization. Some dimensions and questions they should look at and ask include (Silver, et al. 1995, p. 376): • What are an information system’s features? What does it do? • How does the information system match with the firm’s external environment? • How does the information system support the firm’s strategy? • How does the information system facilitate the firm’s business processes? • How does the information system work with the organisational structure and culture?
- 19. Foundation 5 • Is the organisation’s existing computing infrastructure suitable for the information sys- tem? • Does the information system enhance the infrastructure? Does it extend it? • How and how effectively was the system implemented? • Who are the users of the system and how do they use it? as intended? • What are the consequences of the information system for performance, people, and fu- ture flexibility? Did the system achieve its objectives? • Do we want to use the information system to improve our business process or reengineer our business process? 1.4 Critical Issues of Information Systems Management Organisations face various information systems management issues. Understanding these issues is very critical to the success of information systems in business. According to a recent study conducted by the Society of Information Management (SIM) in 2011, ten top IS/IT management concerns are (in the order): (1) IS/IT and business alignment; (2) Business agility and speed to market; (3) Business process re-engineering; (4) Busi- ness productivity and cost reduction; (5) IT strategic planning; (6) IS/IT reliability and efficiency; (7) Enterprise architecture; (8) Security and privacy; (9) Revenue-generating IS/IT innovations; and (10) IS/IT cost reduction (Luftman Ben-Zvi, 2011). In the same study, top application and technology developments were also identified. Top ten ap- plication and technology developments include (in the order): (1) Business intelligence; (2) Cloud computing; (3) Enterprise resource planning systems; (4) Mobile and wireless applications; (5) Customer relationship management systems; (6) Software as a service; (7) Virtualization; (8) Collaborative and workflow tools; (9) Enterprise application integra- tion/management; and (10) Data mining (Luftman Ben-Zvi, 2011). Meanwhile even though the key information systems management issues could be dif- ferent for different organisations in different countries (i.e. arising from the differences in types of companies, industries, governments regulations, IS/IT infrastructures, levels of sophistication, and cultures) and in different studies (i.e. resulting from differences in data collection methods, research subjects involved, and sample sizes), some common factors, which are basic to all businesses, can be identified: (1) focusing on customers; (2) build- ing and enhancing relationships with business partners and suppliers; (3) fostering collab- oration among people and teams across the organisation; and (4) improving operational
- 20. 6 Managing Information Systems: Ten Essential Topics efficiency and effectiveness; (5) enhancing business performance; (6) managing, develop- ing and evaluating information systems; (7) protecting information resources; (8) using information systems ethically; and (9) managing information systems organisation. In addition, according to one recent global survey of 1,469 senior executives of firms with different sizes and from different sectors and regions (reported in Brown Sikes 2012), some challenges organizations faced for the success of digital technologies include: • Organizational structure for successful deployment of digital technologies • Lack of technology and information systems • Lack of quality data • Lack of internal leadership • Difficulty in finding functional talent • Inappropriate business processes to take advantages of opportunities created by digital technologies • Lack of senior management support • Difficulty in finding technical talent 1.4.1 Management security ethical issues Security and ethical implications of information systems is a must for strategic manage- ment and use of information systems. Even though they are only ranked Number 8 in the SIM 2011 survey, they are actually very critical issues for organizations and could cause serious damage financially to the organization (for example, according to RSA Anti-Fraud Command Center (reported in Enterprise Management Associates 2012), phishing attacks alone cost businesses US$ 1.3 billion in 2011). Organisations have to take them seriously; otherwise they may face the consequence of going out of business. Today’s attackers are well organized and well informed, and they take advantages of latest advances in crimeware and hacking skills (Enterprise Management Associates 2012). The global connectedness has made managing security and ethical issues a much more challenging task. Laseter Johnson (2011) suggest that there are more than 5 billion de- vices connected to the Internet (a perpetrator needs only a single weakness in order to attack a system), accessing and serving up to 500 billion gigabytes of information and transmit- ting 2 trillion emails per day, furthermore 75% of emails are spam even though spam rate has been dropping in recent years. Every minute 42 new strains of malware (short for ma- licious software including viruses, worms, and Trojans) are generated, an average of 8,600 new websites with malicious code are developed each day, and half of the results for the
- 21. Foundation 7 top 100 daily search terms lead to malicious sites. Some major cyber technical attacks include: Malware, Unauthorized access, Denial of Services attack, Spam Spyware, Hi- jacking (servers and pages), and Botnets (Turban et al. 2012, p. 500; Laudon Laudon 2012, p. 246). And malware is number one cyber security concern. Another major issue is SPAM. Even though we do have solutions (i.e., Junk-mail filters, Automatic junk-mail deleters, Blocking certain URLs and e-mail addresses), it has been really challenging for controlling spamming since spammers send millions of e-mails, shifting Internet accounts to avoid detection and use different methods to find their victims. Some attacks require sophisticated techniques and technologies, most attacks are not sophisticated (i.e., preying on poor security practice and human weaknesses), and insiders’ breach could be more frequent and more harmful than that of outsiders. Effective security risk management procedures can be used to minimize their probability and impact. We as a society, which consists of individuals, institutions, businesses, and governments, need to work together to create an open but safe global community. Effective security management of information technology is very critical to the success of a business. Security of today’s networked enterprises is a major management challenge. Networked computer systems are highly vulnerable to various threats and failures, ranging from natural failure of hardware and software to misuse by information sysetms profes- sionals and end users; and security weaknesses could be identified and explored in many parts of business operations and many perspectives of the organization (Bailey, Kaplan Weinberg 2012; Laudon Laudon 2005, p. 523). The explosive growth of the Internet use by businesses and individuals has been accompanied by rising concerns of security breach and identity theft. Corporate and personal information is at a higher risk of theft and misuse than ever before as a result of the global connectedness. However organizations have not given sufficient attention to security issues. According to Carnegie Mellon 2012 CyLab’s global survey on how boards and senior management are governing their organizations’ information assets (digital assets) (cited in Westby 2012, p. 5), “57% of them are not analysing the adequacy of cyber insurance coverage or under- taking key activities related to cyber risk management to help them manage reputational and financial risks associated with the theft of confidential and proprietary data and secu- rity breaches”. In addition, on top of potential legal implications (more and sophisticated regulations for protecting information and privacy are being established around the world), the reputational and financial losses arising from a breach could be significant. The results of the survey also showed that the majority of organizations still lag in establishing key
- 22. 8 Managing Information Systems: Ten Essential Topics positions for properly looking at privacy, risk and security risks (such as Chief Information Security Officer, Chief Security Officer, Chief Privacy Officer, and Chief Risk Offier). The 2011 U.S. Cost of a Data Breach Study by Symantec and the Ponemom Institute (cited in Westby 2012, p. 11) indicated that the data breach cost firms an average of US$ 5.5 million per incident, and another recent study by Ponemom Institute (cited in Westby 2012, p. 11) pointed out a data breach could cost organizations 17-30% loss of brand and reputation, and such damage to corporate image could take them more than a year to recover. To deal with various security challenges arising from the use of information technol- ogy and protect our information resources, it requires a variety of security tools and de- fensive measures and a coordinated security management program, including hardware, software, policies, and procedures. Some security measures and tools adopted by organi- zations include: Biometrics (i.e., Vein ID, finger prints, Iris Scan, face recognition, speech recognition), password, swipe card other tools for physical access control, Antivirus software/applications, Virtual private networks, Firewalls, Identity management and access control systems, Encryption, Tokenization Key Management, Intrusion detection sys- tems, Online access control, Information Security Plan, Network security protocols, Data backup, Data loss prevention systems (for monitoring data moving on the corporate net- work), Information security plan, Regular security plan testing, Security plan compliance audit, Information systems control audit, Risk Management Cyber Risk Insurance, Security Privacy risks committees, C-level positions (i.e., Chief Information Officer, Chief Security/Information Security Officer, Chief Privacy Officer, Chief Risk Officer, Chief Trust Officer) (O’Brien Marakas 2011, p. 534 538; Laudon Laudon 2005; p. 542; Laseter Johnson 2011; Westby 2012, Authors’ own knowledge). Meanwhile, the larger the organisation and the more sensitive of the information (i.e., information in cer- tain government intelligence gathering agencies), the increased risk and costs of security breaches, and thus more comprehensive, systematic, integrated and sophisticated security (and privacy) measures need to be put into place. Westby (2012, p. 26) provides some recommendations for governing enterprise security management: • Establish a board Risk Committee for managing enterprise risks (including IT risks) and recruit directors with security, IT governance and cyber risk expertise. • Ensure privacy and security roles are separated and their responsibilities are appropri- ately assigned. • Establish a cross-organizational team and discuss privacy and security issues at least once every moth.
- 23. Foundation 9 • Create a culture of security and respect for privacy and view security and privacy as a corporate social responsibility. • Ensure the quality of security program by regularly reviews and taking into consideration of best practices and industry standards. • Ensure the security and privacy requirements to third parties and vendors. • Conduct annual audit of enterprise security program by relevant committees and act on identified gaps. • Require regular security and privacy reports for board and senior executives. • Assess cyber risks and potential loss valuations and Review adequacy of cyber insurance coverage. • Allocate sufficient resources for security and privacy programs Haag, Baltzan and Phillips (2008, pp. 330–339) suggest organisations can implement information security lines of defence through people first and technology second. They point out that most information security breaches result from people misusing an organisa- tion’s information either advertently or inadvertently. Their views are supported by Laseter and Johnson (2011), who believe the root causes of many security breaches are done by insiders. The first line of defence an organisation should follow is to create an informa- tion security plan detailing the various information security policies. Steps to creating an information security plan include (Haag, Baltzan Phillips 2008, p. 333): 1. Developing the information security policies 2. Communicating the information security policies 3. Identifying critical information assets and risks 4. Testing and re-evaluating risks 5. Obtaining stakeholder support. Information systems should be periodically examined, or audited, by a company’s in- ternal auditing staff or external auditors from professional accounting firms. Such audits should review and evaluate whether proper and adequate security measures and manage- ment policies have been developed and implemented (Laudon Laudon 2005, p. 542). Many of the detrimental effects of information technology are caused by individuals or businesses that are not accepting ethical responsibility for their actions. Managers, busi- ness professionals, and information systems specialists as well as end users must accept their ethical responsibilities and practice ethically. Protecting private information is an in- creasingly challenging and critical issue in today’s networked economy. For example, a
- 24. 10 Managing Information Systems: Ten Essential Topics personal e-health record could include such information as: (1) demographic information (including your name, date of birth, vital statistics such as height, weight, blood pressure, and pulse rate), (2) a list of emergency contacts as well as contacts for all of your health care providers, (3) information about your health insurance, (4) a brief history of your health, along with a list of illness and conditions your parents, grandparents, and siblings ever had, (5) information about allergies or sensitivities to medications, (6) a dated list of signifi- cant illness and hospitalizations, (7) your current health conditions and how they are being treated, (8) an inventory of the medication you take, including dosages and frequency, (9) a dated list of immunizations, and (10) copies of your living will and durable power of at- torney for health care, if you have them (Halamak 2009). According to one recent survey of Harris Poll (cited in Sadauskas 2012) looking at how comfortable consumers are with the way of Facebook, Amazon and Google are handling their personal data, 66% of survey participants were comfortable with Amazon’s use of previous visits for recommendations while only 41% and 33% of respondents agree with Google’s use of prior website visits for displaying advertisements and Facebook’s use of private data for advertising purposes. Ethics are ‘the principles and standards that guide our behavior toward other people’ (Haag, Baltzan Phillips 2008, p. 344). O’Brien Marakas (2011, p. 531) suggest that when making ethical decisions in business issues, managers can look at several important ethical dimensions, such as equity, rights, honesty and exercise of corporate power. Even though there are some information related laws, organisations often face the dilemma of being ethical versus being legal. This is complicated by the fact that information systems are emerging, changing and growing in such unexpected ways (Haag, Baltzan Phillips 2008, p. 344). Laudon Laudon (2005 p. 154) suggest some technology trends which raise ethical issues for information systems use. They are: • Computing power doubles every month: organisations increasingly depend on computer systems for critical operations • Rapidly declining data storage costs: organisations can easily maintain detailed infor- mation on individuals • Data analysis advances: companies have the ability to analyse vast quantities of data gathered on individuals to develop detailed profiles of individual behaviour • Networking advances and the Internet: it is much easier to copy data from one location to another and to access personal data from remote locations. Organisations strive to build a corporate culture based on ethical principles that employ- ees can understand and implement. Policies and procedures addressing the ethical issues of
- 25. Foundation 11 the use of information technology, including ethical computer use policy, information pri- vacy policy, acceptable use policy, email privacy policy, Internet use policy, and anti-spam policy, should be established. Haag, Baltzan andPhillips (2008, p. 348) state ‘These poli- cies set employee expectations about the organization’s practices and standards and protect the organization from misuse of computer systems and computing resources’. They also point out that ‘Information has no ethics’ (p. 346). Individuals form the only ethical com- ponent of an information system. How they use the system, how they are affected by the system and how their use of the system affects other people is largely determined by their ethics. 1.4.2 Other critical information systems management issues On top of the above mentioned issues, some other critical information systems issues in- clude: • Digital Divide: Today more than 70% of the world’s citizens live in the societies which are just in the beginning stage of digitization (Mainardi 2012). The Networked Readiness Index reflects the degree of to which economies leverage ICT for enhanced competitiveness and is measured by four dimensions of environment (political and regulatory environment, business and innovation environment), readiness (infrastructure and digital content, afford- ability, skills), usage (individual usage, business usage, and government usage), impact (economic impacts and social impacts) (Dutta, Bilbao-Osorio Geiger 2012, pp. 3–7). Most of advanced economies (i.e., Sweden, Singapore, Finland, Denmark, Switzerland, Netherlands, Norway, United States, Canda, and United Kingdom are top 10 NRI coun- tries) have high Networked Readiness Index, and many sub-saharan African countries have very low ICT readiness with main reason of insufficient development of ICT infrastructure, which still remains very costly. In addition, for Baby Boomers, Generation Y, Generation X, Generation C, So called “Digital Natives”, 21st Centuriers, and beyond, what are their relations with IS/IT?. As Kleiner (2012) argues for digital generation (those under 25 and are always-on), digital channel is definitely preferred way of doing everything, and having to go offline is viewed as an annoyance. • Internet Governance: Open access approaches and infrastructure sharing are likely to be the foundations for future network (Biggs et al. 2012, p. 51). Some countries (e.g., Australia, Malaysia, Qatar, Singapore) have embarked on creating entirely new national broadband networks (deploying fibre optic technology throughout the core network), and investments in those networks are huge (e.g., Australia’s NBN will cost AU$ 43 billion).
- 26. 12 Managing Information Systems: Ten Essential Topics Currently we are in a mixed mode policy environment where self-regulation, through a va- riety of Internet policy and technical bodies, co-exists with limited government regulation. As Eric Smith, Former CEO and now Chairman of Google argues (reported in Manyika 2008), there will not be easy to establish international agreement on Internet governance (for example, what is appropriate or legal in one country could be inappropriate and il- legal in another country) since various legal and political challenges will be involved. It is not ture that the Internet cannot be controlled – in fact, the Internet can be very easily controlled, monitored, and regulated from a central location (such as done by China, Sin- gapore, and others). Primary questions are: (1) who will control Internet and e-commerce and (2) what elements will be controlled and how. Internet Neutrality/Net Neutrality: Cur- rently all Internet traffic treated equally (or neutrally)—all activities charged the same rate, no preferential assignment of bandwidth. However firms such as telcoms would like to be able to charge differentiated prices based on the amount of bandwidth consumed by the content-in other words, Internet usage should be charged as the usage of other utilities such as electricity, water, gas, especially for heavy users. • Work-life balance: nowadays the line between leisure and work has become blurred. The technologies and the networks have made the work and the home life inseparable-for example, how often do you check your mobile phone? Your email accounts? Your social network pages? Surfing the net? • Less-human: “Nobody knows you are a dog on the web” (have we become less human and more represented only by a series of the number of 0 and the number of 1?; have the technologies and the Internet made us stupid?; have we lost our ability of writing and thinking and over relied on computing devices and the Web?; how much do you believe statements/concept such as the Internet is a brain?; the network is a computer?; the Web is the Internet?; and the hybrid human or machine-the mix of human flesh and IS/IT?). • Digital referencing and monitoring: One recent CareerBuilder survey (reported in Fer- guson 2012) indicated that employers have been searching information on job applicants and interview candidates online and using such information for hiring decision. Survey re- spondents (from HR departments/functions) suggested they have used online information for not hiring a candidate, the reported such information for not hiring decision includes: 49% shared provocative or in appropriate photos or information, 45% listed information about drinking or using drugs, 35% had poor communication skills, 33% had mouthed a previous employer, and 28% made discriminatory comments. In addition, applications
- 27. Foundation 13 (i.e., Digital Mirror) are now available for organizations to model people’s digital commu- nication style and monitor their digital behaviour at work (Ferguson 2012). • Long Tail versus Power Law: as Eric Smith, Former CEO and now Chairman of Google argues (reported in Manyika 2008) while organizations need both tails (referring to long tail theory suggested by Chris Anderson in his book titled ‘The Long Tail: why the Future of Business is Selling Less for More”) and heads, the majority of revenue remains in the head (i.e., some core products and services for a business). He also suggests the Internet will likely follow the power law and lead to more concentration (i.e., a few major players and brands). His views are supported by Elberse (2008), who suggests organizations should focus on their most popular products and services since most of the revenue will come from them, and the niche products (in the long tail) should not be the focus unless the organization wants to satisfy the appetite of its heavy and frequent customers, who are interested in products and services in both the head and then the tail. 1.5 Emerging Trends and Future Directions In the 21st century, organisations are facing more uncertainty than ever. Technological change is one of the primary sources of this uncertainty. Haag, Baltzan and Phillips (2008, p. 430) state that good understanding of emerging trends and new technologies can provide organizations with valuable strategic advantages. Those organizations that can most effec- tively grasp the deep currents of technological evolution are in the better position to protect them against sudden and fatal technological obsolescence. For them, technologies that will have the greatest impact on future business include digital ink, digital paper, teleliving, al- ternative energy sources, and autonomic computing, and trends that will have the greatest impact on future business include (Haag, Baltzan Phillips 2008, pp. 431–435; 435–439): • The world’s population will double in the next 40 years’ mostly in developing countries. • The population in developed countries is living longer. • Growth in information industries creates a knowledge-dependent global society. • The global economy is becoming more integrated. • The economy and society are dominated by technology. • Pace of technological innovation is increasing. • Time is becoming one of the most precious commodities.
- 28. 14 Managing Information Systems: Ten Essential Topics 1.5.1 Ten working forces in 2020 According to research into the workplace of the future, Fredette et al. (2012, pp. 116–117) suggest ten working forces in 2020: • Demographics: there will be five generations working side by side • The knowledge economy: except domain knowledge, a significant more complex set of interdisciplinary skills will be required. • Globalization: by 2020, companies will rely on global marketplace rather than domestic or even international marketplace to fuel growth. • The digital workplace: employees will find easier to create and access digital assets of the organization. • Mobile technology: organizations could do more via mobile (smart) phones. • Culture of connectivity: Hyper-connectivity will result in a connectivity culture in busi- nesses and in our personal life. • Participation: improved collaboration and knowledge/information sharing will foster a participating society. • Social learning: Learning 3.0 (also called social learning), which incorporates social me- dia, gaming, real-time feedback and simulation, would be used for teaching and learning purposes. • Corporate social responsibilities: an increased cultural intelligence and a deeper appre- ciation of the relationship between business and society. • The Millennial generation: This generation has grown up with hyper-connectivity and embracing it is an integral part of their life. 1.5.2 Technology-enabled threats and trends According to a recent global survey of 864 executives from different industries and regions (reported in Roberts Sikes 2011), some technology-enabled threats to organizations in- clude (in the order): • Rising customer expectations (for better or differentiated services) • Significant changes in delivery costs (competitors’ delivering for significantly less) • Developing new offerings outside the business’s traditional scope (i.e., mobile payment systems) • Significantly improved products or services (including substitutes) from competitors with existing or lower prices
- 29. Foundation 15 • Emergence of new channels or points of purchase • Increased bargaining power for customers as a result of the easy access to the information • Increased use of third-party computing resources/infrastructure The survey results also indicate measures organizations have taken or plan to take in response to continuing economic uncertainty. Those measures include: • Increasing infrastructure consolidation or virtualization • Looking to information systems as a lever to reduce costs in other areas of the business • Focusing on efficiency improvements in application development (i.e., lean approach and process streamlining) • Renegotiating existing vendor contracts • Increasing outsourcing and/or offshoring • Reducing demand by cancelling or deferring projects/activities • Rationalizing or eliminating services or/and reducing service levels • Changing the scope of projects to reduce costs Bughin, Chui and Manyika (2010) present ten technology-enabled business trends ex- ecutives need to understand and respond to: • Wide adoption of distributed co-creation: organizations need to effectively use online communities to develop, market, and support products and services. • Making the network the organization: networked organizations need to have embrace open innovation and take full advantage of the opportunities of tapping into a world of talent” (accessing expertise within and outside the organization). They also need to break down silos in the organization and focus on the orchestration of the tasks rather than exist- ing organizational structure and the ownership of workers. • Deeper collaboration: organizations need to leverage the productivity of knowledge workers by having technologies such as video conferencing, shared workspaces, virtual teams, and virtual organizations. • The growing Internet of Things: organizations need to utilizing the ability of capturing, computing, communicating, and collaborating information at large scale in real time pro- vided by radio frequency identification tags, sensors and similar things embedded in the devices to improved capabilities of information collection analysis and monitoring responding. • Using Big Data for experimenting and business intelligence: organizations need to ef- fectively collect data from various sources (especially social data), analyse data, understand
- 30. Exploring the Variety of Random Documents with Different Content
- 31. remain freely available for generations to come. In 2001, the Project Gutenberg Literary Archive Foundation was created to provide a secure and permanent future for Project Gutenberg™ and future generations. To learn more about the Project Gutenberg Literary Archive Foundation and how your efforts and donations can help, see Sections 3 and 4 and the Foundation information page at www.gutenberg.org. Section 3. Information about the Project Gutenberg Literary Archive Foundation The Project Gutenberg Literary Archive Foundation is a non-profit 501(c)(3) educational corporation organized under the laws of the state of Mississippi and granted tax exempt status by the Internal Revenue Service. The Foundation’s EIN or federal tax identification number is 64-6221541. Contributions to the Project Gutenberg Literary Archive Foundation are tax deductible to the full extent permitted by U.S. federal laws and your state’s laws. The Foundation’s business office is located at 809 North 1500 West, Salt Lake City, UT 84116, (801) 596-1887. Email contact links and up to date contact information can be found at the Foundation’s website and official page at www.gutenberg.org/contact Section 4. Information about Donations to the Project Gutenberg Literary Archive Foundation Project Gutenberg™ depends upon and cannot survive without widespread public support and donations to carry out its mission of increasing the number of public domain and licensed works that can be freely distributed in machine-readable form accessible by the widest array of equipment including outdated equipment. Many
- 32. small donations ($1 to $5,000) are particularly important to maintaining tax exempt status with the IRS. The Foundation is committed to complying with the laws regulating charities and charitable donations in all 50 states of the United States. Compliance requirements are not uniform and it takes a considerable effort, much paperwork and many fees to meet and keep up with these requirements. We do not solicit donations in locations where we have not received written confirmation of compliance. To SEND DONATIONS or determine the status of compliance for any particular state visit www.gutenberg.org/donate. While we cannot and do not solicit contributions from states where we have not met the solicitation requirements, we know of no prohibition against accepting unsolicited donations from donors in such states who approach us with offers to donate. International donations are gratefully accepted, but we cannot make any statements concerning tax treatment of donations received from outside the United States. U.S. laws alone swamp our small staff. Please check the Project Gutenberg web pages for current donation methods and addresses. Donations are accepted in a number of other ways including checks, online payments and credit card donations. To donate, please visit: www.gutenberg.org/donate. Section 5. General Information About Project Gutenberg™ electronic works Professor Michael S. Hart was the originator of the Project Gutenberg™ concept of a library of electronic works that could be freely shared with anyone. For forty years, he produced and distributed Project Gutenberg™ eBooks with only a loose network of volunteer support.
- 33. Project Gutenberg™ eBooks are often created from several printed editions, all of which are confirmed as not protected by copyright in the U.S. unless a copyright notice is included. Thus, we do not necessarily keep eBooks in compliance with any particular paper edition. Most people start at our website which has the main PG search facility: www.gutenberg.org. This website includes information about Project Gutenberg™, including how to make donations to the Project Gutenberg Literary Archive Foundation, how to help produce our new eBooks, and how to subscribe to our email newsletter to hear about new eBooks.
- 34. Welcome to our website – the ideal destination for book lovers and knowledge seekers. With a mission to inspire endlessly, we offer a vast collection of books, ranging from classic literary works to specialized publications, self-development books, and children's literature. Each book is a new journey of discovery, expanding knowledge and enriching the soul of the reade Our website is not just a platform for buying books, but a bridge connecting readers to the timeless values of culture and wisdom. With an elegant, user-friendly interface and an intelligent search system, we are committed to providing a quick and convenient shopping experience. Additionally, our special promotions and home delivery services ensure that you save time and fully enjoy the joy of reading. Let us accompany you on the journey of exploring knowledge and personal growth! ebookname.com