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 Queens University
Heather A. Smith Queens 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
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Library of Congress Cataloging-in-Publication Data
McKeen, James D. IT strategy: issues and practices/James D. McKeen, Queens University, Heather A. Smith, Queens University.Third edition. pages cm ISBN 978-0-13-354424-4 (alk. paper) ISBN 0-13-354424-9 (alk. paper) 1. Information technologyManagement. I. Smith, Heather A. II. Title. HD30.2.M3987 2015 004.068dc23 2014017950
ISBN10: 0-13-354424-9 ISBN13: 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 BusinessIT Relationship 39
The Foundation of a Strong BusinessIT 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 BusinessIT 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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