Preface to the Fourth Edition ix
About the Authors xvii
1 The Evolving Role of Information Systems and Technology in Organizations: A Strategic Perspective 1
Information Systems (IS), Information Technology (IT) and ‘Digital’ 2
‘Digital Disruption’: The Impact of IS/IT 7
A Three?era Model of Evolving IT Application in Organizations 15
A Classification of the Strategic Uses of IS/IT 17
Success Factors in Strategic Information Systems 25
A Portfolio Management Perspective on IS/IT Investments 27
What Is an IS/IT or Digital Strategy? 29
From Strategic Alignment to Strategy Co?evolution 35
Digital Strategies for the 21st Century: Building a Dynamic Capability to Leverage IS/IT 39
Summary 43
Endnotes 44
2 An Overview of Strategic Management and the IS/IT Strategy Implications 49
The Evolving Nature of Strategic Management in Organizations 50
Scope of Strategy Development 54
A Framework for Strategy Formulation 55
Where to Compete 57
How to Gain an Advantage 60
What Assets do We Have? What Assets are Required? 77
How to Change – the Need for Dynamic Capabilities 81
Strategy Implementation 82
Summary 83
Endnotes 84
3 Establishing an Effective Process for Developing Information Systems and Technology (or Digital) Strategies 87
Some Definitional Clarity 88
The Evolution of the IS/IT Strategy Process: From Technology Deployment to Strategic Focus 89
The Business Context for Developing and Managing the Strategy 94
Establishing an Effective Process: Continuous and Flexible 97
Setting the Scope for the Strategy 104
A Framework for IS/IT Strategy Formulation 108
Other Deliverables from the IS/IT Strategy Process 119
Summary 122
Endnotes 123
4 IS/IT Strategic Analysis: Achieving Alignment with Business Operations and Strategy 125
Understanding the Current Situation 126
The Business Operating Model: Processes, Activities and Key Entities 130
Organizational Environment 136
Examining the Existing IS/IT Environment 139
Information and Systems to Meet Current Business Objectives: the Use of Balanced Scorecards and Critical Success Factors 146
Process Analysis 153
Redesigning Processes 158
Evaluating the Gap between Existing and Required IS/IT Environments 161
Summary 162
Endnotes 163
5 Innovating with Technology, Systems and Information 165
Understanding What It Means to Innovate with IT 166
The Process of Digital Business Innovation 168
The ‘push’ and ‘pull’ of Innovating with IS/IT 173
Getting Management Attention for Ideas and Innovations 177
Joining the Dots: the Search for Ideas 180
Innovating by Leveraging Information: Exploration and Exploitation 184
The Big Data Challenge 188
Discovering Strategic IS/IT Opportunities from Information 191
Building an Analytic Capability 198
Summary 201
Endnotes 202
6 Exploiting Information Systems for Strategic Advantage 207
Achieving and Sustaining Advantages across the Value Disciplines 208
Exploring New Value Propositions: Informating Products and Services 210
Analysis of Competitive Forces to Identify IS/IT Opportunities and Threats 216
Value Chain Analysis 220
Customer Life?cycle Management and the Value Chain 228
From Value Chain to Value Network 235
The Internal Value Chain 239
The Uses of Value Chain Analysis 244
Summary 247
Endnotes 248
7 Determining the Business Information Systems Strategy 251
Business Strategy and IS/IT 252
Tools for IS/IT Strategy Formulation and Their Relationships 256
A Framework for Using the Tools and Techniques Effectively 258
Identifying how IS/IT Could Impact the Business Strategy 260
Establishing the Relative Priorities for IS/IT Investments 265
Large Organizations, Multiple SBUs and Strategy Consolidation 270
Summary 272
Endnote 272
8 Managing the Portfolio of Business Applications 273
Conclusions from Various Portfolio Models 275
Classifying the Applications in the Portfolio 277
Reconciling Demand and Supply Issues in the Portfolio 280
Generic Application Management Strategies 282
Portfolio Management Principles Applied to the Application Portfolio 291
Aligning Development Approaches to the Portfolio Segments 298
The ‘Special Case’ of Enterprise Systems 304
Managing Application Portfolios in Multi?unit Organizations 306
Summary 309
Endnotes 309
9 Justifying and Managing Information Systems and Technology Investments 311
Investment and Priority Setting Policies 313
Justifying and Evaluating IS/IT Investments 314
Justifying Business Applications 322
Justifying Infrastructure Investments 326
Assessing and Managing Investment Risks 332
Managing the Portfolio of Investments 336
Setting Priorities amongst IS/IT Investments 338
Organizational IS/IT Portfolio and Investment Management Maturities 344
Summary 349
Endnotes 350
10 An Organizing Framework for the Strategic Management of IS/IT 353
The Strategic Management Requirement 354
Positioning and Managing IS/IT in an Organization 356
From a Functional View of IS/IT to an Organization?wide Perspective – Capability and Competences 359
IS/IT Governance and Why It is Important 366
What Decisions Need to be Governed? 371
Creating the Organizing Framework for IS/IT Decision Making 374
Instruments of Governance 375
Summary 391
Endnotes 392
11 Strategic Management of IS/IT Services and IT Infrastructure 395
Creating and Sustaining Business Change: Projects and Services 396
The Need for the Strategic Management of IS/IT Services and IT Infrastructure 397
IS/IT Service Categories 400
Managing Operational and Value?enabling Services 410
Strategies for Managing IT Infrastructure and Infrastructure Services 414
Understanding and Managing IT Risks 420
Sourcing of IS/IT Resources and Services 423
Business Process Outsourcing 434
Innovation and Outsourcing 436
Back?sourcing and Switching Suppliers 438
Summary 440
Endnotes 441
12 The Strategic Management of Information Systems: Quo Vadis? 445
The Evolution of IS/IT Strategy in Theory and Practice 447
A Brief Resume of some Core Ideas 452
Building an IS/IT or Digital Capability 455
From Creating IS/IT Assets to Improving Organizational Performance: Joining the Means to the Ends 458
Achieving Alignment: a Multi?themed Perspective 459
The Co?evolution of Business and Digital Strategies 463
The Opportunity for CIOs to Have a Key Strategic Role 466
Conclusion 468
Endnotes 469
Index 475
