9781118890790

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Information technology is ever-changing, and that means that those who are working, or planning to work, in the field of IT management must always be learning. In the new edition of the acclaimed Information Technology for Management, the latest developments in the real world of IT management are covered in detail thanks to the input of IT managers and practitioners from top companies and organizations from around the world.

Focusing on both the underlying technological developments in the field and the important business drivers performance, growth and sustainability—the text will help students explore and understand the vital importance of IT’s role vis-a-vis the three components of business performance improvement: people, processes, and technology. The book also features a blended learning approach that employs content that is presented visually, textually, and interactively to enable students with different learning styles to easily understand and retain information. Coverage of next technologies is up to date, including cutting-edged technologies, and case studies help to reinforce material in a way that few texts can.

Preface xiii

Acknowledgments xviii

Part 1 Reshaping Enterprises and Consumers in the On-Demand Economy

1 Disruptive IT Impacts Companies, Competition, and Careers 1

Case 1.1 Opening Case: Uber and Airbnb Revolutionize Business Models in the On-Demand Economy 3

1.1 Doing Business in the On-Demand Economy 4

Growth of the On-Demand Economy 5

Digital Business Models 6

IT’s Role in the On-Demand Economy 7

IT Business Objectives 8

1.2 Business Process Improvement and Competitive Advantage 8

What Is a Business Process? 9

Improving Business Processes 9

Don’t Automate, Obliterate! 10

Gaining a Competitive Advantage 11

Software Support for BPM 13

1.3 IT Innovation and Disruption 13

Social–Mobile–Analytics–Cloud (SMAC) Model 13

Technology Mega Trends 14

Lessons Learned from Companies Using Disruptive Technologies 16

1.4 IT and You 17

On-Demand Workers 17

IT Adds Value to Your Performance and Career 19

Becoming an Informed IT User 21

Case 1.2 Business Case: The Internet of Things Comes to the NFL 23

Case 1.3 Video Case: Knowing More and Doing More 24

2 Information Systems, IT Architecture, Data Governance, and Cloud Computing 25

Case 2.1 Opening Case: Detoxing Location-Based Advertising Data at MEDIATA 27

2.1 IS Concepts and Classification 28

Components of an IS 29

Data, Information, Knowledge, and Wisdom 30

Types of ISs 31

Transaction Processing System (TPS) 32

Management Information System (MIS) 33

Decision Support System (DSS) 34

Executive Information System (EIS) 35

ISs Exist within Corporate Culture 36

2.2 IT Infrastructure, IT Architecture, and Enterprise Architecture 37

EA Helps to Maintain Sustainability 38

Developing an Enterprise Architecture (EA) 41

2.3 Information Management and Data Governance 42

Information Management Harnesses Scattered Data 43

Reasons for Information Deficiencies 43

Factors Driving the Shift from Silos to Sharing and Collaboration 45

Business Benefits of Information Management 45

Data Governance: Maintaining Data Quality and Cost Control 46

2.4 Data Centers and Cloud Computing 48

Data Centers 48

Integrating Data to Combat Data Chaos 50

Cloud Computing 52

Selecting a Cloud Vendor 52

Cloud Infrastructure 54

Issues in Moving Workloads from the Enterprise to the Cloud 54

2.5 Cloud Services and Virtualization 55

Anything as a Service (XAAS) Models 55

Going Cloud 58

Virtualization and Virtual Machines 58

Case 2.2 Business Case: Data Chaos Creates Risk 62

Case 2.3 Video Case: Cloud Computing at Coca-Cola Is Changing Everything 63

3 Data Management, Data Analytics, and Business Intelligence 65

Case 3.1 Opening Case: Coca-Cola Strategically Manages Data to Retain

Customers and Reduce Costs 66

3.1 Data Management and Database Technologies 69

Database Management Systems and SQL 69

DBMS and Data Warehousing Vendors Respond to Latest Data Demands 72

3.2 Centralized and Distributed Database Architectures 73

Garbage In, Garbage Out 75

Data Ownership and Organizational Politics 76

Data Life Cycle and Data Principles 77

Master Data and Master Data Management 78

3.3 Data Warehouses 79

Procedures to Prepare EDW Data for Analytics 80

Building a Data Warehouse 80

Real-Time Support from an Active Data Warehouse 81

3.4 Big Data Analytics and Data Discovery 83

Human Expertise and Judgment are Needed 85

Data and Text Mining 88

Creating Business Value 88

Text Analytics Procedure 90

Analytics Vendor Rankings 90

3.5 Business Intelligence and Electronic Records Management 91

Business Benefits of BI 92

Common Challenges: Data Selection and Quality 92

Aligning BI Strategy with Business Strategy 92

BI Architecture and Analytics 93

Electronic Records Management 94

Legal Duty to Retain Business Records 94

ERM Best Practices 94

ERM Benefits 95

ERM for Disaster Recovery, Business Continuity, and Compliance 95

Case 3.2 Business Case: Big Data Analytics is the “Secret Sauce” for Revitalizing McDonald’s 98

Case 3.3 Video Case: Verizon Improves Its Customer Experience with Data Driven Decision-Making 99

4 Networks, Collaborative Technology, and the Internet of Things 101

Case 4.1 Opening Case: Sony Builds an IPv6 Network to Fortify Competitive Edge 102

4.1 Network Fundamentals 104

Network Types 104

Intranets, Extranets, and Virtual Private Networks 105

Network Terminology 105

Functions Supported by Business Networks 106

Quality of Service 107

4.2 Internet Protocols (IP), APIs, and Network Capabilities 109

Comparing 3G, 4G, 4G LTE, and 5G Network Standards 110

Circuit versus Packet Switching 111

Application Program Interfaces and Operating Systems 111

4.3 Mobile Networks and Near-Field Communication 113

Increase in Mobile Network Traffic and Users 114

Higher Demand for High-Capacity Mobile Networks 115

Mobile Infrastructure 115

Two Components of Wireless Infrastructure 116

Business Use of Near-Field Communication 117

Choosing Mobile Network Solutions 118

4.4 Collaborative Technologies and the Internet of Things 119

Virtual Collaboration 120

Group Work and Decision Processes 120

The Internet of Things (IoT) 121

IoT Sensors, Smart Meters, and the Smart Grid 121

Case 4.2 Business Case: Google Maps API for Business 125

Case 4.3 Video Case: Small Island Telecom Company Goes Global 126

5 Cybersecurity and Risk Management Technology 127

Case 5.1 Opening Case: Yahoo Wins the Gold and Silver Medal for the Worst Hacks in History! 129

5.1 The Face and Future of Cyberthreats 130

Intentional Threats 132

Unintentional Threats 132

Hacking 133

Cyber Social Engineering and Other Related Web-Based Threats 134

Denial-of-Service 137

Insider and Privilege Misuse 137

Physical Theft or Loss 138

Miscellaneous Errors 138

New Attack Vectors 138

5.2 Cyberattack Targets and Consequences 139

“High-Profile” and “Under-the-Radar” Attacks 139

Critical Infrastructure Attacks 140

Theft of Intellectual Property 141

Identity Theft 142

Bring Your Own Device 142

Social Media Attacks 144

5.3 Cyber Risk Management 146

IT Defenses 146

Business Continuity Planning 149

Government Regulations 149

5.4 Defending Against Fraud 150

Occupational Fraud Prevention and Detection 151

General Controls 152

Internal Controls 153

Cyber Defense Strategies 153

Auditing Information Systems 155

5.5 Frameworks, Standards, and Models 155

Risk Management and IT Governance Frameworks 155

Industry Standards 157

IT Security Defense-In-Depth Model 157

Case 5.2 Business Case: Lax Security at LinkedIn Exposed 161

Case 5.3 Video Case: Botnets, Malware Security, and Capturing Cybercriminals 163

Part 2 Winning, Engaging, and Retaining Consumers for Growth

6 Search, Semantic, and Recommendation Technology 165

Case 6.1 Opening Case: Mint.com Uses Search Technology to Rank Above EstablishedCompetitors 166

6.1 Using Search Technology for Business Success 168

How Search Engines Work 168

Web Directories 168

How Crawler Search Engines Work 169

Why Search Is Important for Business 172

6.2 Organic Search and Search Engine Optimization 178

Strategies for Search Engine Optimization 178

Content and Inbound Marketing 180

Black Hat versus White Hat SEO: Ethical Issues in Search Engine Optimization 181

6.3 Pay-Per-Click and Paid Search Strategies 182

Creating a PPC Advertising Campaign 182

Metrics for Paid Search Advertising 184

6.4 A Search for Meaning—Semantic Technology 184

What Is the Semantic Web? 185

The Language(s) of Web 3.0 185

Semantic Web and Semantic Search 186

Semantic Web for Business 187

6.5 Recommendation Engines 188

Recommendation Filters 189

Case 6.2 Business Case: Deciding What to Watch—Video Recommendations at Netflix 195

Case 6.3 Video Case: Power Searching with Google 196

7 Web 2.0 and Social Technology 199

Case 7.1 Opening Case: Social Customer Service Takes Off at KLM 200

7.1 Web 2.0—The Social Web 201

The Constantly Changing Web 201

Invention of the World Wide Web 202

A Platform for Services and Social Interaction 202

Emergence of Social Applications, Networks, and Services 203

Why Managers Should Understand Web Technology 205

Communicating on the Web 206

Social Media Applications and Services 207

Social Media Is More than Facebook, YouTube, and Twitter 207

With Web 2.0, Markets are Conversations 209

7.2 Social Networking Services and Communities 210

The Power of the Crowd 212

Crowdfunding 212

Social Networking Services 213

Facebook Dominates Social Networking 214

Google Takes on Facebook with G+ 216

Be in the Now with Snapchat 217

And Now for Something Different: Second Life 218

Private Social Networks 219

Future of Social Networking Systems 220

7.3 Engaging Consumers with Blogs and Microblogs 220

What Is the Purpose of a Blog? 220

Blogging and Public Relations 222

Reading and Subscribing to Blogs 222

Blogging Platforms 222

Microblogs 223

Twitter 223

Tumblr Blogs 225

7.4 Mashups, Social Metrics, and Monitoring Tools 226

What Makes a Mashup Social 226

RSS Technology 227

Social Monitoring Services 227

7.5 Enterprise 2.0: Workplace Collaboration and Knowledge Sharing 229

Tools for Meetings and Discussions 230

Social Tools for Information Retrieval and Knowledge Sharing 230

Social Bookmarking Tools 231

Content Creation and Sharing 232

Case 7.2 Business Case: Facebook Helps Songkick Rock the Ticket Sales Industry 236

Case 7.3 Business Case: AT&T’s “It Can Wait” Campaign against Distracted Driving 237

8 Retail, E-commerce, and Mobile Commerce Technology 240

Case 8.1 Opening Case: Macy’s Races Ahead with Mobile Retail Strategies 241

8.1 Retailing Technology 243

Keeping Up with Consumer Demands and Behavior 243

The Omni-Channel Retailing Concept 244

8.2 Business-to-Consumer (B2C) E-commerce 246

Online Banking 246

International and Multiple-Currency Banking 246

Online Recruiting 246

Issues in Online Retailing 250

Online Business and Marketing Planning 250

8.3 Business-to-Business (B2B) E-commerce and E-procurement 251

Sell-Side Marketplaces 251

E-Sourcing 252

E-Procurement 252

Electronic Data Interchange (EDI) Systems 253

Public and Private Exchanges 253

8.4 Mobile Commerce 253

Information: Competitive Advantage in Mobile Commerce 255

Mobile Entertainment 258

Hotel Services and Travel Go Wireless 259

Mobile Social Networking 259

8.5 Mobile Transactions and Financial Services 260

Mobile Payment Systems 260

Mobile Banking and Financial Services 262

Short Codes 263

Security Issues 263

Case 8.2 Business Case: Chegg’s Mobile Strategy 266

Case 8.3 Video Case: Searching with Pictures Using MVS 267

Part 3 Optimizing Performance, Processes, and Productivity

9 Functional Business Systems 269

Case 9.1 Opening Case: Ducati Redesigns Its Operations 271

9.1 Business Management Systems and Functional Business Systems 272

Business Management Systems (BMSs) 273

Management Levels 273

Business Functions vs. Cross-Functional Business Processes 274

Transaction Processing Systems 275

9.2 Production and Operations Management Systems 277

Transportation Management Systems 278

Logistics Management 278

Inventory Control Systems 279

Computer-Integrated Manufacturing and Manufacturing Execution Systems 281

9.3 Sales and Marketing Systems 282

Data-Driven Marketing 284

Sales and Distribution Channels 284

Social Media Customer Service 284

Marketing Management 285

9.4 Accounting, Finance, and Regulatory Systems 286

Financial Disclosure: Reporting and Compliance 286

Fraud Prevention and Detection 289

Auditing Information Systems 291

Financial Planning and Budgeting 291

9.5 Human Resource Systems, Compliance, and Ethics 293

HR Information Systems 293

Management and Employee Development 295

HR Planning, Control, and Management 295

Case 9.2 Business Case: HSBC Combats Fraud in Splitsecond Decisions 297

Case 9.3 Video Case: United Rentals Optimizes Its Workforce with Human Capital Management 298

10 Enterprise Systems 300

Case 10.1 Opening Case: 3D Printing Drives the “Always- On” Supply Chain 301

10.1 Enterprise Systems 303

Implementation Challenges of Enterprise Systems 305

Investing in Enterprise Systems 305

Implementation of Best Practices 306

Enterprise Systems Insights 307

10.2 Enterprise Resource Planning (ERP) 307

Brief History of ERP 308

Technology Perspective 308

Achieving ERP Success 311

10.3 Supply Chain Management Systems 313

Managing the Flow of Materials, Data, and Money 315

Order Fulfillment and Logistics 315

Steps in the Order Fulfillment Process 315

Innovations Driving Supply Chain Strategic Priorities 316

10.4 Customer Relationship Management Systems 319

How are CRM Apps Different from ERP? Why are they Different? 319

CRM Technology Perspective 320

Customer Acquisition and Retention 320

CRM for a Competitive Edge 320

Common CRM Mistakes: How to Avoid Them 321

Justifying CRM 322

10.5 Enterprise Social Platforms 323

Growth of Enterprise Social Investments and Markets 323

Sharepoint 324

Oracle’s Social Network 326

Jive 326

Chatter 326

Case 10.2 Business Case: Lowe’s Fresh Approach to Supply Chain Management 328

Case 10.3 Video Case: Procter & Gamble: Creating Conversations in the Cloud with 4.8 Billion Consumers 329

11 Data Visualization and Geographic Information Systems 331

Case 11.1 Opening Case: Safeway and PepsiCo Collaborate to Reduce Stock Outages using Data Visualization 332

11.1 Data Visualization and Learning 334

Learning, Exploration, and Discovery with Visualization 336

Data Discovery Market Separates from the BI Market 336

How Is Data Visualization Used in Business? 340

Data Visualization Tools 341

11.2 Enterprise Data Mashups 342

Mashup Architecture 343

Why Do Business Users Need Data Mashup Technology? 344

Enterprise Mashup Technology 344

11.3 Digital Dashboards 345

Dashboards are Real Time 347

How Operational and Strategic Dashboards Work 348

Benefits of Digital Dashboards 348

11.4 Geographic Information Systems and Geospatial Data 349

Geocoding 350

GIS Is Not Your Grandfather’s Map 350

Infrastructure and Location-Aware Collection of Geospatial Data 350

Applying GIS in Business 351

Case 11.2 Visualization Case: Are You Ready for Football? 353

Case 11.3 Video Case: The Beauty of Data Visualization—Data Detective 353

Part 4 Managing Business Relationships, Projects, and Ethical Responsibilities

12 IT Strategy, Sourcing, and Strategic Technology Trends 354

Case 12.1 Opening Case: Intel Reaps Rewards from Sustainable IT Strategy 355

12.1 IT Strategic Planning 357

Value Drivers 358

IT Strategic Plan Objectives 358

IT and Business Disconnects 359

Corporate and IT Governance 359

Reactive Approach to IT Investments Will Fail 359

IT Strategic Planning Process 359

12.2 Aligning IT with Business Objectives 362

Achieving and Sustaining a Competitive Advantage 364

12.3 IT Sourcing Strategies 367

Sourcing and Cloud Services 368

Factors Driving Outsourcing 369

Outsourcing Risks and Hidden Costs 370

Offshoring 370

Outsourcing Life Cycle 371

Managing IT Vendor Relationships 373

Contracts: Get Everything in Writing 373

12.4 Balanced Scorecard 374

The Balanced Scorecard 374

Using the Balance Scorecard 375

Applying the BSC 377

12.5 Strategic Technology Trends 378

Strategic Technology Scanning 380

Finding Strategic Technologies 380

Case 12.2 Business Case: Cisco IT Improves Strategic Vendor Management 382

Case 12.3 Data Analysis: Third-Party versus Company- Owned Offshoring 383

13 Systems Development and Project Management 385

Case 13.1 Opening Case: Denver International Airport Learns from Mistakes Made in Failed Baggage- Handling System Project 386

13.1 System Development Life Cycle 388

Stages of the SDLC 388

13.2 Systems Development Methodologies 391

Waterfall Model 391

Object-Oriented Analysis and Design 392

Agile Methodology 392

The DevOps Approach to Systems Development 394

13.3 Project Management Fundamentals 395

What Is a Project? 396

Choosing Projects 396

The Triple Constraint 397

The Project Management Framework 397

13.4 Initiating, Planning, and Executing Projects 399

Project Initiation 400

Project Planning 400

Project Execution 403

13.5 Monitoring/Controlling and Closing Projects 404

Project Monitoring and Controlling 404

Project Closing or Post Mortem 407

Why Projects Fail 408

IT Project Management Mistakes 410

Case 13.2 Business Case: Steve Jobs’ Shared Vision Project Management Style 412

Case 13.3 Demo Case: Mavenlink Project Management and Planning Software 413

14 IT Ethics, Privacy, and Sustainability 417

Case 14.1 Opening Case: Lessons Learned: How Google Glass Raised Risk and Privacy Challenges 418

14.1 IT Ethics 420

Ethical versus Unethical Behavior 420

Competing Responsibilities 423

14.2 Privacy and Civil Rights 424

Privacy and the New Privacy Paradox 424

Social Media Recruiting 425

Legal Note: Civil Rights 426

Competing Legal Concerns 427

Financial Organizations Must Comply with Social Media Guidelines 428

14.3 Technology Addictions and Focus Management 430

Digital Distractions and Loss of Focus 430

Focus Management 430

14.4 ICT and Sustainable Development 432

Global Temperature Rising Too Much Too Fast 432

IT and Global Warming 433

Technology to Transform Business and Society 436

Next Wave of Disruption Will Be More Disruptive 438

Case 14.2 Business Case: Android Auto and CarPlay Keep Drivers Safe, Legal, and Productive 439

Case 14.3 Video Case: IT Ethics in the Workplace 440

Glossary 443

Organization Index 448

Name Index 450

Subject Index 451

What is included with this book?

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Information Technology for Management

Information Technology for Management

1118890795

Summary

Table of Contents

Supplemental Materials