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IT STraTegy: ISSueS and PracTIceS

IT STraTegy: ISSueS and PracTIceS

IT STraTegy: ISSueS and PracTIceS

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IT STraTegy: ISSueS and PracTIceS

T h i r d E d i t i o n

James D. McKeen Queen’s University

Heather A. Smith Queen’s University

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Editor in Chief: Stephanie Wall Acquisitions Editor: Nicole Sam Program Manager Team Lead: Ashley Santora Program Manager: Denise Vaughn Editorial Assistant: Kaylee Rotella Executive Marketing Manager: Anne K. Fahlgren Project Manager Team Lead: Judy Leale Project Manager: Thomas Benfatti Procurement Specialist: Diane Peirano Cover Designer: Lumina Datamantics Full Service Project Management: Abinaya Rajendran at Integra Software Services, Pvt. Ltd. Cover Printer: Courier/Westford Composition: Integra Software Services, Pvt. Ltd. Printer/Binder: Courier/Westford Text Font: 10/12 Palatino LT Std

Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on appropriate page within text.

Copyright © 2015, 2012 and 2009 by Pearson Education, Inc., Upper Saddle River, New Jersey, 07458. Pearson Prentice Hall. All rights reserved. Printed in the United States of America. This publication is protected by Copyright and permission should be obtained from the publisher prior to any prohibited reproduction, storage in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or likewise. For information regarding permission(s), write to: Rights and Permissions Department.

Library of Congress Cataloging-in-Publication Data

McKeen, James D. IT strategy: issues and practices/James D. McKeen, Queen’s University, Heather A. Smith, Queen’s University.—Third edition. pages cm ISBN 978-0-13-354424-4 (alk. paper) ISBN 0-13-354424-9 (alk. paper) 1. Information technology—Management. I. Smith, Heather A. II. Title. HD30.2.M3987 2015 004.068—dc23 2014017950

ISBN–10: 0-13-354424-9 ISBN–13: 978-0-13-354424-4

10 9 8 7 6 5 4 3 2 1

CoNTENTS

Preface xiii

About the Authors xxi

Acknowledgments xxii

Section I Delivering Value with IT 1

Chapter 1 DeVelopIng anD DelIVerIng on The IT Value propoSITIon 2 Peeling the Onion: Understanding IT Value 3

What Is IT Value? 3

Where Is IT Value? 4

Who Delivers IT Value? 5

When Is IT Value Realized? 5

The Three Components of the IT Value Proposition 6 Identification of Potential Value 7 Effective Conversion 8 Realizing Value 9

Five Principles for Delivering Value 10 Principle 1. Have a Clearly Defined Portfolio Value Management

Process 11

Principle 2. Aim for Chunks of Value 11

Principle 3. Adopt a Holistic Orientation to Technology Value 11

Principle 4. Aim for Joint Ownership of Technology Initiatives 12

Principle 5. Experiment More Often 12 Conclusion 12? •? References 13

Chapter 2 DeVelopIng IT STraTegy for BuSIneSS Value 15 Business and IT Strategies: Past, Present, and Future 16

Four Critical Success Factors 18

The Many Dimensions of IT Strategy 20

Toward an IT Strategy-Development Process 22

Challenges for CIOs 23 Conclusion 25? •? References 25

Chapter 3 lInkIng IT To BuSIneSS MeTrICS 27 Business Measurement: An Overview 28

Key Business Metrics for IT 30

v

vi Contents

Designing Business Metrics for IT 31

Advice to Managers 35 Conclusion 36? •? References 36

Chapter 4 BuIlDIng a STrong relaTIonShIp wITh The BuSIneSS 38 The Nature of the Business–IT Relationship 39

The Foundation of a Strong Business–IT Relationship 41

Building Block #1: Competence 42

Building Block #2: Credibility 43

Building Block #3: Interpersonal Interaction 44

Building Block #4: Trust 46 Conclusion 48? •? References 48

Appendix A The Five IT Value Profiles 50

Appendix B Guidelines for Building a Strong Business–IT Relationship 51Case study:
Customer Service atDatatronics, (pages 246-250)
Please refer the case study in attached text book and answer
1. Outline the specific information that Matt should collect to build a case for improving
customer service at Datatronics.
2. Describe your top ideas for Matt to present to Joel next week.
3. How would Matt get Joel to support his ideas?
300 words APA format with intext citations and 2-3 references

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