Chapter 5 Electronic Commerce: New Ways of Doing Business
What You Will Learn in This Chapter
Introduction
The Internet
Internet Services
Distributed Ownership
Multiplicity of Devices
Open Standards
The Network: More than the Internet of Today
The eCommerce Vocabulary
eCommerce and eBusiness
The Enablers
Categorizing Electronic Commerce Initiatives
Manifestations of eCommerce and eBusiness
Business Models: Definition
Dominant Business Models
The Implications of eCommerce
Disintermediation
Reintermediation
Market Efficiency
Channel Conflict
Customer and Employee Self-Service
eCommerce: From Novelty to the Mainstream
The Web 2.0 Phenomenon
Web 2.0 Technologies
Web 2.0 and Business Innovation
Summary
Study Questions
Further Readings
Glossary
Part III The Strategic Use of Information Systems
Chapter 6 Strategic Information Systems Planning
What You Will Learn in This Chapter
Introduction
A Word about Strategic and Operational Planning
Strategic Alignment
Six Decisions Requiring Managerial Involvement
The Purpose of Strategic Information Systems Planning
Plans Enable Communication Plans Enable Unity of Purpose
Plans Simplify Decision Making over Time
The Strategic Information Systems Planning Process
Know Who You Are: Strategic Business Planning
Know Where You Start: Information Systems Assessment
Know Where You Want to Go: Information Systems Vision
Know How You Are Going to Get There: Information Systems Guidelines
Know How Well Equipped You Are to Get There: Information Systems SWOT From Planning to Action: Proposed Strategic Initiatives
Summary
Study Questions
Further Readings
Glossary
Chapter 7 Value Creation and Strategic Information Systems
What You Will Learn in This Chapter
Introduction
The Analysis of Added Value
The Benefits of Disciplined Analysis
The Definition of Value
Defining the Components of Value Created
Computing the Total Value Created
Appropriating the Value Created
The Definition of Added Value
Added Value in a Competitive Market
Pricing Considerations
The Relationship between Added Value and Competitive Advantage
How Is Added Value Created?
Two Ways to Create New Value
Some Considerations about the Analysis of Added Value
Strategic Information Systems
Definition: Strategic Information Systems
IT-Dependent Strategic Initiatives
Summary
Study Questions
Glossary
Chapter 8 Value Creation with Information Systems
What You Will Learn in This Chapter
Introduction
Traditional Models of Value Creation with IT
Industry Analysis
Value Chain
Customer Service Life Cycle
Traditional Models, Not “Old” Models
Emerging Frameworks
Virtual Value Chain
Value Creation with Customer Data
Crafting Data-Driven Strategic Initiatives
Conclusions
Summary
Study Questions
Further Readings
Glossary
Chapter 9 Appropriating IT-Enabled Value over Time
What You Will Learn in This Chapter
Introduction
Not All IT Is Created Equal
High-Speed Internet Access in Hotel Rooms
Business Intelligence at Caesars Entertainment
Big Data for Orange Juice
The Need for A Priori Analysis
Appropriating Value over Time: Sustainability Framework
Sustainable Competitive Advantage
Resource-Based View
Response Lag
Four Barriers to Erosion
The Holistic Approach
The Dynamics of Sustainability
Applying the Framework
Prerequisite Questions
Sustainability Questions
Making Decisions
Develop the IT-Dependent Strategic Initiative Independently
Develop the IT-Dependent Strategic Initiative as Part of a Consortium
Shelve the IT-Dependent Strategic Initiative
Prototyping
Agile Development
Outsourced Development
Buying Off-the-Shelf Applications
Definition
Build
Implementation
End-User Development
The Benefits of End-User Development
The Risks of End-User Development
Summary
Study Questions
Further Readings
Glossary
Chapter 12 Information System Trends
What You Will Learn in This Chapter
Introduction
The Mobile Platform
Characteristics of the Mobile Platform
Mobile Commerce
Location-Based Social Networking
Augmented Reality
Green IS
Digital Data Genesis and Streaming
Analyzing Digital Data Genesis Opportunities
Digital Data Streams: Value Comes in Little Streams
Anatomy of a DDS
The Internet of Things
Wearable Devices
Digital Manufacturing
Advanced Analytics
The Advent of Supercrunchers
Customer Managed Interactions
Open Source
Open Source: Definition
Open Source Is Open for Business
Advantages and Disadvantages of Open Source Software
Summary
Study Questions
Further Readings
Glossary
Chapter 13 Security, Privacy, and Ethics
What You Will Learn in This Chapter
Introduction
IT Risk Management and Security
Why Is Security Not an IT Problem?
Risk Assessment
Risk Mitigation
The Internal Threat
The External Threat
Responding to Security Threats
Managing Security: Overall Guidelines
Privacy
Privacy Defined
Privacy Risks
Safeguarding Privacy
Ethics
Ethics: Definition
Information Systems Ethics
Ensuring Ethical Uses of Information Systems
Summary
Study Questions
Further Readings
Glossary
Part V Cases
Case Study for Chapter 2: Troubleshooting Information Systems at the Royal Hotel
Case Study for Chapter 3: eLoanDocs: Riding the Tide of Technology without Wiping Out
Case Study for Chapter 4: Online Education
Case Study for Chapter 5: TripIt: The Traveler’s Agent
Case Study for Chapter 6: Outrigger Hotels and Resorts
Case Study for Chapter 7: Upscale Markets: Value Creation in a Mature Industry
Case Study for Chapter 8: HGRM: Bringing Back High Touch Hospitality
Case Study for Chapter 9: Duetto: Industry Transformation with Big Data
Case Study for Chapter 10: IT Planning at ModMeters
Case Study for Chapter 11: Project Management at MM
Case Study for Chapter 13: Giant Food and Elensys: Looking Out for Customers or Gross Privacy Invasions?
Index
information system and information technology resource and how these should be optimally deployed to achieve an organization’s objectives. In other words, this book treats IT like any other organizational resource an asset that general and functional managers alike need to understand enough to be able to plan for, select, deploy, and effectively manage with a keen eye to its strategic potential so as to be able to create and appropriate value for their organizations.
How This Book Is Organized
The book follows a progression designed to engage skeptical students while creating a sound long-term basis for decision making. I have been particularly sensitive to the audience with both the expository approach and content selection. The book uses a more colloquial and engaging writing style than traditional textbooks, with many examples and quotes centering on decision making by both general and functional managers. My students, as well as many of my colleagues’ students, have told us that this book has the colloquial style of a consulting report rather than the dry writing style of a textbook. This is important feedback for me, as it confirms my hunch that once the “dry reading” obstacle is removed, students can see what the course is really all about: a critical subject matter for modern managers delivering a set of tangible and practical skills that will help them be an asset for their organization. The opening minicases, written from the perspective of functional or general managers, reinforce this approach by clearly showing the relevance of the chapter’s content while helping foster discussion and generate momentum at the start of class.
The book’s content is organized into four sections, four stepping-stones that build upon one another in a sequential manner. Part I covers essential definitions and provides the conceptual foundation for the following chapters. Part II describes how new technologies have changed, and continue to change, the competitive landscape and social environment, thus creating both opportunities and new threats for established firms and start-ups. Part III carries the defining content of this book, offering actionable frameworks to help managers envision how to develop valueadding IT-dependent strategic initiatives and to gauge whether they can be protected so as to reap benefits in the long term. Part IV concludes the text by focusing on how to create and implement information systems at the core of any initiative. It also discusses common systems and major trends as well as security, privacy, and ethical considerations.
Finally, the book provides a number of full-length end-of-chapter cases, written by myself and colleagues, that were expressly designed to use the frameworks and debate the issues covered in the chapter. This tight parallel between content and cases has worked very well in my classes because students immediately see the applicability of the theories and concepts covered.
New for the Third Edition
For this third edition, I wanted Federico to join as coauthor of the book. With him, we developed the current edition, causing the text to undergo a major and probably timely update.
The world has changed rapidly since the previous edition I wrote four years ago, shaped by the ever increasing pervasiveness of IT. It has never been so compelling for students to understand the opportunities IT provides for creating new strategic initiatives.
With this edition, we account for these changes at the same time, respecting the plan I drew since the first installment of the book. All chapters underwent a careful update, and several new and current examples are introduced to engage students in critically reviewing the discussed concepts. Chapters 3 and 12 are those that underwent the most changes. We now cover themes such as big data and cloud computing and discuss emerging trends such as the Internet of Things, wearable computing, digital manufacturing, and advanced analytics.
We further introduced three new case studies, phasing out those that we felt lost their appeal and welcoming the suggestions from the second edition’s adopters. Thus, to complement Chapter 3, you find a brand new cloud-opportunity case
“eLoanDocs: Riding the Tide of Technology without Wiping Out.” To support Chapter 8, we have now a new case discussing the design, development, and platform opportunity of a custom-made strategic customer relationship management system
“HGRM: Bringing Back High Touch Hospitality.” For Chapter 9, we provide the case of a cloud-based revenue management system impacting, and probably changing, an entire industry “Duetto: Industry Transformation with Big Data.”
With this new edition, you will “feel at home” if you already used this book. We believe you will find the new content engaging for your students and supportive of a successful learning journey.
Supporting Resources
For this book, we have developed an extensive set of support resources, all available on the book’s website (http://www.is4managers.com). We really recommend you to join. You will find the standard set of materials, including the following:
• PowerPoint presentations for each chapter
• A test bank (to supplement the study questions at the end of each chapter)
• An instructor’s manual containing teaching notes for each of the opening minicases, along with tips and suggestions on how to use them to jump-start class with a high-energy discussion
Graham Peace, West Virginia University
Cynthia Ruppel, Nova Southeastern University
Paul Licker, Oakland University
Richard McCarthy, Quinnipiac University
Paul Pavlou, Temple University
John Scigliano, Nova Southeastern University
Michael Wade, IMD Lausanne
Erica Wagner, Portland State University
Ted Williams, University of Michigan, Flint
From the second edition,
Patrick Becka, Webster University, Louisville
Leida Chen, Creighton University
J. Michael Cummins, Georgia Tech
F. J. DeMicco, University of Delaware
David Dischiave, Syracuse University
Rassule Hadidi, University of Illinois, Springfield
Raymond Henry, Cleveland State University
Jeff Howells, University of Georgia
Shin-jeng Lin, Le Moyne College
Rodger Morrison, Troy University
Barbara Ozog, Benedictine University
Jeffrey Pullen, University of Maryland
Malu Roldan, San Jose State University
We also wish to thank the colleagues who provided input for the development of the new Edition 3.0. These include the following:
Michael Bliemel, Dalhousie University
Sophie Buer-Chemin, Grenoble École de Management
Mark Cecchini, University of South Carolina
Mitchell Church, Coastal Carolina University
Michael Cummins, Georgia Tech
Pierre Dal Zotto, Grenoble École de Management
Greg Dawson, Arizona State University
Patrick Fan, Virginia Tech
Alberto Francesconi, University of Pavia
Robert Gordon, Molloy College
Iris Lui, Ming Chuan University
Brandi N. Guidry Hollier, University of Louisiana at Lafayette
Alex Heckman, Franklin University
Paul Licker, Oakland University
Efrem Mallach, University of Massachusetts, Dartmouth
John Muraski, University of Wisconsin, Oshkosh
Mark Rosso, North Carolina Central University
James Stewart, Syracuse University
Andrew Walker, Grenoble School of Management
Last, but certainly not least, I would like to acknowledge Beth Lang Golub, who originally saw the opportunity for this book to be written and constantly supported its development.
Foreword
There tend to be two major approaches to teaching information systems. The technology perspective instructs students about hardware and software, and the focus is very much on information technology. The transformative approach assists students in identifying how information systems can transform an enterprise’s relationships with its key stakeholders, such as customers and suppliers. Under the transformative approach, the emphasis is on the information systems an enterprise can create and the value they can then unleash. Anyone can buy information technology, but it takes skill, vision, and persistence to create a transformative information system that can radically change an enterprise and even a society.
Gabe is a key member of the transformational school of information systems. His academic research and work with practitioners, the results of which are incorporated in this book, are directed at understanding and exploiting the transformative power of information systems. He has studied many examples of transformation, as you will find when you read some of the insightful cases in this book and the highly useful frameworks he presents. As you read this book, you will discover why information systems have been the major change engine for many enterprises and economies over the last five decades. Nothing else has had anywhere near the same influence on the way we live today.
As you develop your managerial skills, it is important that you realize that to become an organizational leader, you will need to demonstrate that you can design, lead, and execute transformational projects. Most of the morphing assignments you take on will require an intimate understanding of technology in organizations. Irrespective of which particular field is your area of concentration, you will find that at some point you will need to become deeply steeped in understanding how you can exploit one or more information technologies to create a new information system to generate a competitive advantage or superior customer experience. How well you integrate people, procedures, and information technology to create an information system will determine your success. This book is about developing your skills to successfully participate in, and possibly lead, an information systems–enabled project to create new opportunities for customer service and organizational growth. Read the book carefully, reflect on the frameworks and cases, incorporate the key insights into your model of the world, and above all, apply the knowledge gained to improve your organization’s performance.
Richard T. Watson
Part I
Foundations
In Part I, we lay the foundations for the study of information systems (IS). Although the press and commentators devote much attention to information technology (IT) and the (often substantial) IT investments that organizations make, modern general and functional managers don’t have the time, or often the inclination, to become IT experts. After all, that’s why organizations hire and pay IS and IT professionals.
Yet with information technology becoming pervasive in both business and society at large, modern general and functional managers can no longer abdicate their obligation to make decisions about this crucial organizational resource. The good news is that you can be an effective manager without knowing a huge amount about IT, without knowing in detail how the technology works, and without having to keep up with the barrage of new technologies that are constantly being commercialized. To be an effective general or functional manager, a proficient user of IT resources, and a productive partner of the firm’s information systems and technology professionals, you need a strong grounding in the fundamentals of IS management and decision making.
As we describe in Chapter 2, information systems are sociotechnical organizational systems that encompass technology, the people who will be using such technology, and the business processes they execute to accomplish their daily tasks and carry out business activities. User-managers can rely on IT professionals when it comes to choosing among programming languages or the appropriate structure of a new database being implemented, but general and functional managers must be able to design the appropriate information systems for their organization, plan and budget for the use of IT resources, and analyze whether or not a given information system creates a competitive advantage that can be protected.
This is not a book about IT and how it works. This is a book about information systems and the IS decisions that general and functional managers are routinely called on to make. In Part I, we lay the foundations upon which you will build your information systems knowledge.
• Chapter 1: Information Systems and the Role of General and Functional Managers. The first chapter defines some basic terms and makes the case for why general and functional managers must be intimately involved in information
systems decision making.
• Chapter 2: Information Systems Defined. The second chapter defines what an information system is (the central concept in this book), places this definition in the organizational context, and draws the crucial distinctions between IT and IS.
• Chapter 3: Organizational Information Systems and Their Impact. The third chapter categorizes the different information systems found in modern organizations and provides the vocabulary you need in order to communicate with other managers and the information systems professionals in your firm. This chapter also provides you with a foundation to consider the impact of various types of information technology on the organization.
Discovering Diverse Content Through Random Scribd Documents
The Project Gutenberg eBook of Jumalan etsijöitä
Produced by Tapio Riikonen
JUMALAN ETSIJÖITÄ
Kirj.
F. W. Farrar
Suomentanut
Heikki Impivaara
SISÄLLYS:
Esipuhe. Seneca. Epiktetos. Marcus Aurelius. Loppusana.
ESIPUHE.
Olen koettanut seuraavilla sivuilla laatia helppotajuisen esityksen kolmen suuren pakanallisen filosoofin elämästä ja mielipiteistä, sikäli kuin käytettävissäni oleva tila salli. Kirjan nimessä olen kutsunut heitä "Jumalaa etsiviksi", ja he ansaitsevat tosiaan tämän nimityksen, mikäli se voidaan antaa miehille, jotka uskomattoman
vaikeissa olosuhteissa ja siveellisesti turmeltuneessa yhteiskunnassa antausivat mitä vakavimpiin tutkimuksiin etsien totuuksia sellaisia, jotka voisivat tehdä heidän elämänsä "Herralle otolliseksi".
Jumalallinen lupaus "anokaa, niin teille annetaan; etsikää, niin te löydätte; kolkuttakaa, niin teille avataan", ei ole sovellettavissa yksinomaan kristikuntaan. Olisipa se tosiaan lemmetön ja ahdasmielinen maailmanhistorian käsityskanta, joka pyytää kieltää tunnustuksensa niiltä siveellisiltä periaatteilta ja siltä siveelliseltä elämältä, jota näkymätönnä työskentelevä Jumalan henki synnytti monessa pakanassa. Me tiedämme, että heidän joukossaan oli semmoisia, joiden hyveitten, huolimatta heidän hämärästä ja epätäydellisestä tiedostaan, pitäisi saada monikin kristitty häpeämään; meidän pitäisi teeskentelemättömän iloisina tunnustaa, että he "etsiessään Herraa, jos ehkä voisivat hapuilla hänen luokseen ja löytää hänet, tulivat käsittämään, sen syvän ja ylhäisen totuuden, jonka jotkut heidän omat runoilijansa ovat tulkinneet sanoen: 'me olemme myös hänen sukuansa'."
Epiktetos ja Marcus Aurelius eivät ainoastansa ole vanhanajan filosoofeista selvänäköisimmät moralistit, vaan vieläpä, jos luemme pois Sokrateen, parhaat ja puhtaimmat luonteet, mitä vanhalta ajalta on olemassa. Monessa suhteessa on Seneca aivan arvoton asetettavaksi heidän rinnallensa, enkä olekaan koettanut kaunistella hänen hirvittäviä epäjohdonmukaisuuksiansa. Mutta virheistänsä huolimatta hän kuitenkin oli hyväsydäminen ja hyväätarkoittava ihminen, ja meidän on pakko niitä vastaan, jotka hillittömästi ja epäjalosti tuomitsevat hänet, viitata Goethen rankaiseviin sanoihin:
Und steh' beschämt, wenn Du bekennen musst:
Ein guter Mensch in seinem dunkeln Drange
Ist sich des rechten Weges wohl bewusst.
Jos käytettävänäni olisi ollut enemmän tilaa, niin hänen kirjoitustensa lähempi tarkastelu, joka sisältyi alkuperäiseen suunnitelmaani, olisi kukaties voittanut hänelle lukijan arvonantoa enemmässä määrässä; mutta minä syvennyinkin hänen elämänsä yksityiskohtiin, siksi että tarkoitukseni oli lisäksi osoittaa, minkälainen roomalaismaailman siveellinen ja valtiollinen tila siihen aikaan oli ja minkälaisten vaikutelmain ilmapiirissä kristinuskon oli pakko työskennellä. Toiset kaksi elämäkertaa näyttänevät meille, kuinka, olkoon elämä millä kannalla tahansa, Jumalan armo on riittänyt antamaan ihmisille voimaa menestyksellä taistelemaan äärettömiä kiusauksia vastaan, — riittänyt tekemään puhtaaksi ja hurskaaksi jokaisen, ken sellaiseksi pyrki, — riittänyt lainaamaan nöyryyttä ja kärsivällisyyttä ja lempeyttä itsevaltiaalle roomalaiselle keisarille ja vapautta ja tyytyväisyyttä ja kuninkaallista ylevämielisyyttä vainotulle fryygialaiselle orjalle.
Toisinaan puhutaan ja kirjoitetaan kuin jos pakanallinen totuus ja kristillinen totuus olisivat kaksi eri asiaa; mutta totuus tulee yksin hänestä, joka on totuus itse, eikä juutalainen profeetta enempää kuin pakanallinen filosoofi ole voinut saavuttaa sitä tai toimia sen mukaan ilman Hänen apuansa. Lukija ei olisi käsittänyt tätä kirjaani, jos se hänestä olisi jonkinlainen stoalaisuuden ylistys kristinuskon kustannuksella tai että luonnollinen uskonto siinä asetetaan ilmoitetun vastakohdaksi. Varmasti tietämättöminkin saattaa niistä johtaa jokaisen pyhäkoulun opetuksen:
Hentokin ääni julistaa
Kirkasta totuutta saattaa;
Mökin mummo nyt opettaa, Min viisas, vaikk' kuolis', ei arvaa.
Vähäpätöisinkin kristitty lapsi olisi saattanut Senecalle. Musonius
Rufukselle, Epiktetokselle, Marcus Aureliukselle opettaa lohdutusta, kaitselmusta, toivoa, joka olisi kyennyt luomaan heidän elämäänsä valoa ja rauhaa sellaista, mitä he eivät ennen koskaan olleet kokeneet, tyynnyttämään heidän pelkonsa, lievittämään heidän kiusaustensa rajuuden ja huojentamaan heidän huoltensa taakan. Ja kuitenkin: kaikkine tietoinemme ja valistuksinemme olemme heistä paljon jäljellä; me olemme vähemmän ankaria vikojamme kohtaan, vähemmän valppaita, vähemmän itsensäkieltäviä ja vähemmän lempeitä toisiamme kohtaan. Me etevämpine lahjoinemme, varmempine toivoinemme, runsaampine armoneuvoinemme, jotka meille suodut ovat — millaisia meidän pitäisikään olla? Meidän olisi pitänyt päästä paljoa korkeammalle siveelliselle kannalle kuin he; mutta emmepä olekaan. Häpeällä ja surulla myöntäkäämme, että moniaat näistä pakanoista osoittivat olevansa ylevämpiä, jalompia, pyhempiä, vapaampia turhamaisuudesta, vapaampia vilpillisyydestä, hengessä rikkaampia, ymmärtäväisempiä muutamissa hyvinkin valaistuissa kohdissa kuin monet meistä. Aikamme onnettomuus on juuri siinä, että Kristinuskon korkea siveellinen ihanne on riistetty alas ja verhottu yleisillä, arkisilla, sovinnaisilla määräyksillä. Kukaties me seuratessamme pakanankin siveellistä pyrkimystä, nähdessämme, miten pitkälle hän pääsi hyveessä ja lujamielisyydessä, edes jossakin vähässä määrässä havahdumme itse toivomaan jotakin uskonnollisessa ja siveellisessä suhteessa korkeampaa ja jalompaa kuin mihin tavallisesti on totuttu. Siinä tapauksessa näitä rivejä ei ole kirjoitettu aivan suotta.
