IS Management Handbook, 8th Edition

943 Pages·2003·4.905 MB·English

by  Carol V. Brown, Heikki Topi

IS
Management
HANDBOOK
8 EDITION
TH
OTHER AUERBACH PUBLICATIONS
The ABCs of IP Addressing Information Security Policies,
Gilbert Held Procedures, and Standards:
ISBN: 0-8493-1144-6 Guidelines for Effective Information
The ABCs of TCP/IP Security Management
Gilbert Held Thomas R. Peltier
ISBN: 0-8493-1463-1 ISBN: 0-8493-1137-3
Building an Information Security Information Security Risk Analysis
Awareness Program Thomas R. Peltier
Mark B. Desman ISBN: 0-8493-0880-1
ISBN: 0-8493-0116-5 A Practical Guide to Security Engineering
The Complete Book of Middleware and Information Assurance
Judith Myerson Debra Herrmann
ISBN: 0-8493-1272-8 ISBN: 0-8493-1163-2
Computer Telephony Integration, The Privacy Papers:
2nd Edition Managing Technology and Consumers,
Employee, and Legislative Action
William A. Yarberry, Jr.
ISBN: 0-8493-1438-0 Rebecca Herold
ISBN: 0-8493-1248-5
Global Information Warfare:
How Businesses, Governments, and Securing and Controlling Cisco Routers
Others Achieve Objectives and Attain Peter T. Davis
Competitive Advantages ISBN: 0-8493-1290-6
Andy Jones, Gerald L. Kovacich, Securing E-Business Applications and
and Perry G. Luzwick Communications
ISBN: 0-8493-1114-4 Jonathan S. Held and John R. Bowers
Information Security Architecture ISBN: 0-8493-0963-8
Jan Killmeyer Tudor Securing Windows NT/2000:
ISBN: 0-8493-9988-2 From Policies to Firewalls
Information Security Management Michael A. Simonyi
Handbook, 4th Edition, Volume 1 ISBN: 0-8493-1261-2
Harold F. Tipton and Micki Krause, Editors Six Sigma Software Development
ISBN: 0-8493-9829-0 Christine B. Tayntor
Information Security Management ISBN: 0-8493-1193-4
Handbook, 4th Edition, Volume 2 A Technical Guide to IPSec Virtual Private
Harold F. Tipton and Micki Krause, Editors Networks
ISBN: 0-8493-0800-3 James S. Tiller
Information Security Management ISBN: 0-8493-0876-3
Handbook, 4th Edition, Volume 3 Telecommunications Cost Management
Harold F. Tipton and Micki Krause, Editors Brian DiMarsico, Thomas Phelps IV,
ISBN: 0-8493-1127-6 and William A. Yarberry, Jr.
Information Security Management ISBN: 0-8493-1101-2
Handbook, 4th Edition, Volume 4
Harold F. Tipton and Micki Krause, Editors
ISBN: 0-8493-1518-2
AUERBACH PUBLICATIONS
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IS
Management
H A N D B O O K
8 EDITION
TH
Carol V. Brown
Heikki Topi
EDITORS
AUERBACH PUBLICATIONS
A CRC Press Company
Boca Raton London New York Washington, D.C.
This edition published in the Taylor & Francis e-Library, 2005.
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Library of Congress Cataloging-in-Publication Data
Information systems management handbook / editors, Carol V. Brown, Heikki Topi. — 8th ed.
p. cm.
ISBN 0-8493-1595-6
1. Information resources management — Handbooks, manuals, etc. I. Brown, Carol V.
(Carol Vanderbilt), 1945– II. Topi, Heikki.
T58.64.I5338 2003
658.4(cid:100)038—dc21 2003041798
This book contains information obtained from authentic and highly regarded sources. Reprinted material
is quoted with permission, and sources are indicated. A wide variety of references are listed. Reasonable
efforts have been made to publish reliable data and information, but the author and the publisher cannot
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International Standard Book Number 0-8493-1595-6
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ISBN 0-203-50427-5 Master e-book ISBN
ISBN 0-203-58711-1 (Adobe eReader Format)
Contributors
SANDRA D. ALLEN-SENFT, Corporate IS Audit Manager, Farmers Insurance, Alta
Loma, California
BRIDGET ALLGOOD, Senior Lecturer, Information Systems, University College,
North Hampton, England
BARTON S. BOLTON, Consultant, Lifetime Learning, Upton, Massachusetts
BIJOY BORDOLOI, Professor, School of Business, Southern Illinois University-Ed-
wardsville, Edwardsville, Illinois
BRENT J. BOWMAN, Associate Professor, College of Business Administration,
University of Nevada-Reno, Reno, Nevada
THOMAS J. BRAY, President and Principal Security Consultant, SecureImpact,
Atlanta, Georgia
CAROL V. BROWN, Associate Professor, Kelley School of Business, Indiana Uni-
versity, Bloomington, Indiana
JANET BUTLER, Consultant, Rancho de Taos, New Mexico
DONALD R. CHAND, Professor, Bentley College, Waltham, Massachusetts
LEI-DA CHEN, Assistant Professor, College of Business Administration, Creight-
on University, Omaha, Nebraska
TIM CLARK, Senior Systems Engineer, Cylink Corporation, Santa Clara, Califor-
nia
HAMDAH DAVEY, Finance Manager, Tibbett Britten, United Kingdom
NICHOLAS ECONOMIDES, Professor, Stern School of Business, New York Universi-
ty, New York, New York
JOHN ERICKSON, Ph.D. Student, College of Business Administration, University
of Nebraska-Lincoln, Lincoln, Nebraska
MARK N. FROLICK, Associate Professor, Fogelman College of Business, Univer-
sity of Memphis, Memphis, Tennessee
FREDERICK GALLEGOS, IS Audit Advisor and Faculty Member, College of Busi-
ness Administration, California State Polytechnic University, Pomona,
California
TIMOTHY GARCIA-JAY, Project Director, St. Mary’s Hospital, Reno, Nevada
JAMES E. GASKIN, Consultant, Mesquite, Texas
HAYWOOD M. GELMAN, Consulting Systems Engineer, Cisco Systems, Lexington,
Massachusetts
ROBERT L. GLASS, President, Computing Trends, Bloomington, Indiana
v
Information Systems Management Handbook
FRITZ H. GRUPE, Professor, College of Business Administration, University of
Nevada-Reno, Reno, Nevada
UMA G. GUPTA, Dean, College of Technology, University of Houston, Houston,
Texas
GARY HACKBARTH, Assistant Professor, College of Business, Iowa State Univer-
sity, Ames, Iowa
LINDA G. HAYES, Chief Executive Officer, WorkSoft, Inc., Dallas, Texas
ROBERT L. HECKMAN, Assistant Professor, School of Information Studies, Syra-
cuse University, Syracuse, New York
LUKE HOHMANN, Consultant, Luke Hohmann Consulting, Sunnyvale, California
RAY HOVING, Consultant, Ray Hoving and Associates, New Tripoli, Pennsylva-
nia
ZHENYU HUANG, Ph.D. Student, Fogelman College of Business, University of
Memphis, Memphis, Tennessee
CARL B. JACKSON, Vice President, Business Continuity Planning, QinetiQ Trust-
ed Information Management Corporation, Worcester, Massachusetts
RON JEFFRIES, Consultant, Xprogramming.com
DIANA JOVIN, Market Development Manager, NetDynamics, Inc., Menlo Park,
California
RICHARD M. KESNER, Director of Enterprise Operations, Northeastern Universi-
ty, Boston, Massachusetts
WILLIAM J. KETTINGER, Director, Center for Information Management and Tech-
nology Research, The Darla Moore School of Business, University of
South Carolina, Columbia
WILLIAM R. KING, Professor, Katz Graduate School of Business, University of
Pittsburgh, Pittsburgh, Pennsylvania
CHRISTOPHER KLAUS, Founder and Chief Technology Officer, Internet Security
Systems, Atlanta, Georgia
RAVINDRA KROVI, Associate Professor, College of Business Administration, Uni-
versity of Akron, Akron, Ohio
WILLIAM KUECHLER, Assistant Professor, College of Business Administration,
University of Nevada-Reno, Reno, Nevada
MIKE KWIATKOWSKI, Consultant, Dallas, Texas
RICHARD B. LANZA, Manager of Process, Business and Technology Integration
Team, American Institute of Certified Public Accountants, Falls Church,
Virginia
JOO-ENG LEE-PARTRIDGE, Associate Professor, National University of Singapore,
Singapore
LISA M. LINDGREN, Consultant, Gilford, New Hampshire
LOWELL LINDSTROM, Vice President, Business Coach, Object Mentor, Vernon
Hills, Illinois
ALDORA LOUW, Senior Associate, Global Risk Management Solutions Group,
PricewaterhouseCoopers, Houston, Texas
JERRY LUFTMAN, Professor, Howe School of Technology Management, Stevens
Institute of Technology, Hoboken, New Jersey
vi
Contributors
ANNE P. MASSEY, Professor, Kelley School of Business, Indiana University,
Bloomington, Indiana
PETER MELL, Computer Security Division, National Institute of Standards and
Technology, Gaithersburg, Maryland
N. DEAN MEYER, President, N. Dean Meyer Associates, Ridgefield, Connecticut
JOHN P. MURRAY, Consultant, Madison, Wisconsin
STEFAN M. NEIKES, Data Analyst, Tandy Corporation, Watuga, Texas
FRED NIEDERMAN, Associate Professor, School of Business and Administration,
Saint Louis University, St. Louis, Missouri
STEVE NORMAN, Manager, Oracle Corporation; and Honorarium Instructor,
University of Colorado at Colorado Springs, Colorado Springs, Colorado
POLLY PERRYMAN KUVER, Consultant, Boston, Massachusetts
MAHESH RAISINGHANI, Director of Research, Center for Applied Technology and
Faculty Member, E-Commerce and Information Systems Department,
Graduate School of Management, University of Dallas, Dallas, Texas
T.M. RAJKUMAR, Associate Professor, School of Business Administration, Mi-
ami University, Oxford, Ohio
V. RAMESH, Associate Professor, Kelley School of Business, Indiana University,
Bloomington, Indiana
C. RANGANATHAN, Assistant Professor, College of Business Administration, Uni-
versity of Illinois-Chicago, Chicago, Illinois
VASANT RAVAL, Professor, College of Business Administration, Creighton Uni-
versity, Omaha, Nebraska
DREW ROBB, Freelance Writer and Consultant, Los Angeles, California
STUART ROBBINS, Founder and CEO, KMERA Corporation; and Executive Direc-
tor, The CIO Collective, California
JOHN F. ROCKART, Senior Lecturer Emeritus, Sloan School of Management,
Massachusetts Institute of Technology, Cambridge, Massachusetts
JEANNE W. ROSS, Principal Research Scientist, Center for Information Systems
Research, Sloan School of Management, Massachusetts Institute of Tech-
nology, Cambridge, Massachusetts
HUGH W. RYAN, Partner, Accenture, Chicago, Illinois
SEAN SCANLON, E-Architect, FCG Doghouse, Huntington Beach, California
WILLIAM T. SCHIANO, Professor, Bentley College, Waltham, Massachusetts
S. YVONNE SCOTT, Assistant Director, Corporate Information Systems, GATX
Corporation, Chicago, Illinois
ARIJIT SENGUPTA, Assistant Professor, Kelley School of Business, Indiana Uni-
versity, Bloomington, Indiana
NANCY SETTLE-MURPHY, President, Chrysalis International Inc., Boxborough,
Massachusetts
NANCY C. SHAW, Assistant Professor, School of Management, George Mason
University, Fairfax, Virginia
JAMES E. SHOWALTER, Consultant, Enterprise Computing, Automotive Industry
Business Development, Sun Microsystems, Greenwood, Indiana
vii
Information Systems Management Handbook
KENG SIAU, Associate Professor, College of Business Administration, Universi-
ty of Nebraska-Lincoln, Lincoln, Nebraska
JANICE C. SIPIOR, Associate Professor, College of Commerce and Finance, Villanova
University, Villanova, Pennsylvania
SUMIT SIRCAR, Professor, Farmer School of Business Administration, Miami
University, Miami, Ohio
SCOTT SWEENEY, Associate, CB Richard Ellis, Reno, Nevada
PETER TARASEWICH, Assistant Professor, Northeastern University, Boston, Mas-
sachusetts
HEIKKI TOPI, Associate Professor, Bentley College, Waltham, Massachusetts
JOHN VAN DEN HOVEN, Senior Technology Advisor, Noranda, Inc., Toronto, On-
tario, Canada
ROBERT VANTOL, Senior E-Commerce Consultant, Web Front Communications,
Toronto, Ontario, Canada
ROBERTO VINAJA, Assistant Professor, College of Business Administration, Uni-
versity of Texas Pan American, Edinburg, Texas
LES WAGUESPACK, Professor, Bentley College, Waltham, Massachusetts
BURKE T. WARD, Professor, College of Commerce and Finance, Villanova Uni-
versity, Villanova, Pennsylvania
MERRILL WARKENTIN, Associate Professor, College of Business and Industry,
Mississippi State University, Mississippi State, Mississippi
JASON WEIR, Senior Researcher, HR.com, Aurora, Ontario, Canada
STEVEN M. WILLIFORD, President, Franklin Services Group, Inc., Pataskala,
Ohio
SUSAN E. YAGER, Assistant Professor, Southern Illinois University-Edwardsville,
Edwardsville, Illinois
WILLIAM A. YARBERRY, JR., Consultant and Technical Writer, Houston, Texas
ROBERT A. ZAWACKI, Professor Emeritus, University of Colorado and President,
Zawacki and Associates, Boulder, Colorado
MICHAEL ZIMMER, Senior Coordinator, Ministry of Health Services and Ministry
of Health Planning, Government of British Columbia, Victoria, British Co-
lumbia, Canada
viii
Contents
SECTION 1 ACHIEVING STRATEGIC IT ALIGNMENT . . . . . . . . . . . . . . 1
STRATEGIC IT CAPABILITIES
1 Assessing IT–Business Alignment. . . . . . . . . . . . . . . . . . . . . . 7
Jerry Luftman
2 IT Capabilities, Business Processes, and Impact
on the Bottom Line. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
William R. King
3 Facilitating Transformations in IT: Lessons Learned
along the Journey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Steve Norman and Robert A. Zawacki
4 Strategic Information Technology Planning and the Line
Manager’s Role . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Robert L. Heckman
5 Running Information Services as a Business. . . . . . . . . . . . 47
Richard M. Kesner
6 Managing the IT Procurement Process . . . . . . . . . . . . . . . . 73
Robert L. Heckman
7 Performance Metrics for IT Human Resource Alignment . . .89
Carol V. Brown
8 Is It Time for an IT Ethics Program?. . . . . . . . . . . . . . . . . . 101
Fritz H. Grupe, Timothy Garcia-Jay, and William Kuechler
IT LEADERSHIP ROLES
9 The CIO Role in the Era of Dislocation. . . . . . . . . . . . . . . . 111
James E. Showalter
10 Leadership Development: The Role of the CIO. . . . . . . . . 119
Barton S. Bolton
11 Designing a Process-Based IT Organization . . . . . . . . . . . 125
Carol V. Brown and Jeanne W. Ross
ix