Managing And Using Information System, 5th Edition Solution Manual

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Chapter1:The Information SystemsStrategy TriangleOverviewThis chapter presents a very simple framework, the Information Systems Strategy Triangle, whichlinks business strategy with organizational strategy and information strategy.The chapter describesthis model, and builds on several other popular strategy models and organizational models. Thegoal of this chapter is to make sure every student has a basic understanding of both strategy andorganizations. For studentsfamiliar withbusinessstrategy and organizational behavior, this chapteris a review of key points from those two fields.Discussion Opener:One of the first slidesof each chapter, following the title or agenda slide (ifpresent),provides discussion questions that cover the opening case. It would be a good idea to setthe tone for the entire course by putting students on notice that they should read the chapters beforecoming to class. The “notes” portion of the slide deck provide brief answers that instructors can seeif they use a multi-screen approach. In PowerPoint2016 or earlier, after enabling the externalscreen as an extended monitor,make sure to click the “set up slide show” icon and choose “Usepresenter view.” The notes will show up on your screen while the presentation will show up on themain projector.Note:If you provide slides to the students, youshoulddelete the brief answers on the opening slidefor each chapter.AlternateDiscussionOpener:Why shouldgeneral managers have a broad understanding ofinformation systems? How can that knowledge be helpful in their careers?Key Points in ChapterTheInformation Systems Strategy Trianglein Figure 1.1links business strategy withorganizational strategy and information strategy. The triangle isusedto suggest that allthreepointsmust bein balance in any organizationto have optimal efficiency and effectiveness.An imbalancecan lead toorganizational tension or possiblyacrisis.A company is out of “alignment” whenitsbusiness strategy is not supported bytheIS.There are several implications from this model. First,business strategy drivesorganizational and information strategy.Second, organizational strategymust complement business strategy. Third, information strategy must complement businessstrategy. Fourth, organizational and information strategy should complement each other. Finally, ifa change is made to one corner of the triangle, it is necessary to evaluate the other two corners toensure balance is maintained. That means that if the business strategy is changed (i.e. such asbecoming a "bricks and clicks" company),then the manager must also consideraredesign of both

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the organization (i.e. do we have people that can be successful in this new strategy) and theinformation systems (i.e. do we have the capability to process inquiries takenoffofthe Web).Strategyis defined andis tied tothemissionof the organization. Examples ofmission statementsare provided in the text(Figure 1.2), along with adiscussion of how Dell has creatively adjusted itsbusiness strategy to meet the rapidly changing computer industry.There are several ways to describebusiness strategy. This chapter summarizes two well-acceptedmodels:the Porter generic strategies framework anddynamic frameworks such astheGoeltzhypercompetitionmodelandblue oceanstrategy concept. Current examples are offered toillustrate the models.The Porter generic strategies framework (Differentiation, Cost Leadership, Focus) has spawnedmany variants. Acost leadershipfocusmeans that the companymaintains above averageperformance by selling products that are comparable in quality (i.e. the customer perceives relativevalue), but at a lower pricein the marketplace.Differentiationstrategy involves uniqueness of theproduct in the marketplace in someappreciable qualitativedimension. Afocusedstrategy directsproducts to meet the specific needs of a particular segment of the market, either based on cost focusor differentiation focus.Dynamic environment strategiesare useful to study.One example isthehypercompetitionconceptwhich asserts that it is more important to disrupt thanto attempt tosustain an advantage. Another is thecreative destructionstrategy, which focuses on whatcompetitors might do to attempt to destroy the firm, and then what moves should be taken tocounteract those attacks. Finally, ablue oceanapproach flies in the face of thered oceanapproach(which takes emphasis away from carving a market into smaller fragments. The blue ocean strategyattempts to redefine, or even expand an industry, by creating new products or product categories.Competitive advantage is a moving target; companies must be ready to adjust quicklyto changes inthe marketplace.In this environment, agility becomes the competitive advantage.Chapter 2discusses strategic use of information resources, building on these and other models.The chapter alsodescribes themanagerial leversmodel(Figure 1.5). Thatcomprehensivemodellinksorganizational structure variables, control variables,and cultural variables.Decision makerscan manipulate the managerial levers to effect change within the organization.Chapters3, 4, and 5discuss the managerial levers in greater detailand apply the organizational strategy frameworks toassessing the impact of IS.TheISstrategyprovides the plan for information services, andsupports the business strategythrough needs fulfillment. Figure 1.6provides a basicframeworkshowingthe four components ofthe information system, the hardware, software, networking and data, and the key managerialconcerns for each:what, who,and where.“Social Business Lens: Building a Social Business Strategy”–Variations on the Social BusinessStrategy includecollaboration(bringing people together to share ideas, information, andexpertise),engagement(increase perceived attachment through increased interaction), andinnovation(development of new ideas). Example: National Instruments (ni.com) has created a‘branded community’ to collect and disseminate new ideas.

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OptionalDiscussion Question:How can we recognize a misalignment between business strategyand IS strategy?Do you have any examples from internships or work experiences?Illustrative Answers toChapterDiscussionQuestionsThis is a summary chapter of the key models for the information systems strategy triangle, sodiscussion questions were provided to get students focused on and thinking about using thesemodels. Below are some sample answers, but expect creative answers from your students that arenot represented here. We encourage you to postsome of your best answersto the online communitywebpage andshare them with other instructors.1. Why is it important forbusiness strategy to drive organizational strategy and IS strategy? Whatmight happen if business strategy was not the driver?Ans: The primary point in this chapter is that in any well-run organization, the business strategydrives the rest of the operational strategy, andinformationsystems areno different.The businessstrategy defines the goals and objectives based on the organizational capabilities and structure.Information systems are intended to enable and facilitate successful realization of the goals andobjectives. Technology for its own sake is not usually a good investment.However, typically,managers seem to think that changing or upgrading an information system (or even a component ofan information system) will only positively impact a business.This is commonly referred to as the“Technological Imperative.”Quite the opposite, in fact, is true. By making changes inorganizational strategy or IT strategy first, the triangle is "out of balance" and there will beconsequences in the affected areas. For example, building a virtual organization, but not changingthe business strategy to something like "ensuring our people are productive and have the widestpossible work place opportunities" can lead to significant disconnects between workers, theirmanagers, and their customers. And, worse, without supplying the virtual worker with theappropriate information system (a computer at home, a laptop, etc.) will lead to a decrease inproductivity by the virtual worker, and a major disruption of business operations.Therefore,allowing IS strategy to drive business strategy could easily lead to poor implementations withdisappointing outcomes (i.e. wasted resources).2.In 2015, the NFL decided to hand out Microsoft Surface tablets to all coaches for use duringgames, and there are reports that in the future, they will add HoloLens devices to provideaugmented reality. A HoloLens device is a high-definition, head-mounted display that allowscoaches to see the plays with text and animation superimposed right on the live images. If the NFLsimply handed them out without making any other formal changes in organization strategy orbusiness strategy, what might be the outcome? What unintended consequences might occur?Ans:coachesmight not use them,withouttraining andmodifications totheir jobs. They may beaccustomedtoa manual,voice andpaper system and resist moving to thetabletdevices.Theymight not appreciate the added benefits of thedynamic animation, choosing familiar business

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processes instead.If they do usethe devices, there will eventually be strain on the rest of theorganization if it doesn'tadapt to this new technology.For example, messaging might becomeineffective ifa head coach onlyusesvoice messaging and special team coaches use animation tosimulate plays. The head coach will never see those plays and coordination will suffer.Supportsystemsmustalso be redesigned. It does acoachlittle good to have togive up the device during agame for repairs, and asufficient quantity of ready-to-use backups should be available.Minorproblems could be disastrous, and some moderate troubleshooting skills should be provided tocoaches.Employees are adept at creating their own “workarounds,” particularly when they do notsupport a mandatory change.3. Consider a traditional manufacturing companythatwanted tobuild a social business strategy.What might be a reasonable business strategy,and how would organizational and IS strategy needto change?How would this differ for a restaurant chain? A consumer-products company? A non-profit?Ans: A reasonable business strategy might be to provide what the customer wants when thecustomer wants it.The idea is to use the Web as a mechanism to connect to customers, to take theirorders, to provide services when the customer wants them,and to link with suppliers and partners.To do that,the organization would have to beactively engaged andresponsive, and would have toinclude elements of empowerment and authorityfor the employees tasked with monitoring thesocial network. It would not work to have a centralized decision making authority if theorganization wants to be responsive because it would take too long to getappropriateinformationandcommunicatedecisions back to the field. The manufacturing process might be organizedaround build-to-order rather than on market analysis and product histories, but then there wouldneed to be a series of organizational processes and people that would be in place to make sure themanufacturing company is able to actually build the products when they are ordered. The ISstrategy to support this business strategy would be one of rethinking the use of the Web as a toolfor delivering information to customers, suppliers and employees.One direct value of socialnetworks is the involvement of customers in the design and operation of the product. It isimperative that the company listen to the customer. In all of the instances listed, organizationscould usesocial networkingtechnologies to advertise, set up discussion groups, monitordiscussions on social networking sites, usevisualizationtools to promote products and services, etc.The business strategy would need to adapt to listening to the customer, rather than “if we build it,they will come.”A restaurant chain could provide incentives for customers to join the socialnetwork (e.g. coupons, special orders, preferred seating, etc.). Service industries are often moreagile than manufacturing firms, so implementing changes identified by customers could be nearlyinstantaneous. Consumer-products companies would be expected to respond to customernotifications rapidly. Customers who take the time to provide personal opinions are usually in thetwo extremes: either very happy with their experience or very unhappy. The latter group willimpatiently demand action, or they will be likely to broadcast their negative views to a wideaudience.Sensitivity in the company’s reply will be critical. A non-profit would be open tolearning new ways to attract contributions and volunteers. The level of creativity from a socialnetwork could far exceed the capabilities of staff members. Responding to comments can createmomentum and greater interest. View social networking as enhanced word-of-mouth, and don’tunderestimate the impact of the media.

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4. This chapter describes key components of an IS strategy. Describe the IS strategy of aconsulting firm using the matrix framework.Ans: The matrix framework is a very simple structure for decomposing the confusing ISarchitecture of an organization. For a consulting firm, some of the components would look like this:ElementWhatWhoWhereHardwareTabletsandservers tostore information, alongwith necessaryback updevicesConsultants have their owntablets, managed by thecentralized IS dept,whichalso "owns" the serversTabletsare mobile,traveling withconsultants. Serversare fixed at corporateoffices.SoftwareOffice suite,collaboration toolsConsultants have thesoftware on theirtablets, butsoftware is managedcentrally by the IS groupAllsoftwareresidesonthe mobile devicesbut is backed up onservers.Somecorporate applicationsmightonlybeon theservers.NetworkingInternet, hard wiredconnections from office,dial up and/or highbandwidth lines fromremote (home andclient) locations(e.g.secure VPN)ISP service is obtained fromAT&T or AOL or otherprovider who hasinternational access numbersfor dialing in. Company hasown IS group provide thenecessaryservers to beconnected to the InternetGlobal access isneeded. Nodes are notmanaged by theconsulting company,but by the ISP theycontract with.DataEngagement data suchas details of the workdone for clients, clientdata with info aboutwho the client is,previous engagementsdone for them, etc., andpersonnel data soconsultants can beidentified andassignedto projects (billablework hours)All data is "owned" by thecompany, but is madeavailable to any consultanton an as-needed basisData reside on theservers, but are"replicated" to thetabletsas needed.Information is notconsidered part of thecompany until it is onthe servers, thereforeinformation onlyresiding on thetabletswould not berecognized untiluploaded to theservers.5. What does this tip from Fast Company mean: “The job of the CIO is to provide organizationaland strategic flexibility”?

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Ans: The job of the CIO does not just narrowly involveinformation systems (IS) or solely focus ondeveloping IS strategy. Rather the CIO must work with top level executives and functionalsupervisorstoensure that the IS strategy is aligned with the business and organizational strategy.Aparticular challenge for the CIO is to ensure that the IS architecture and infrastructure can supportthe business and organizational strategy. In making long-term decisions about IS architecture, theCIO must attempt to promote flexibility in the future with scalable architecture that meets theorganization’s present and future needs.Being responsive to the needs of the business will create amutual benefit for all stakeholders.Further Discussion Questions1.How can managers determine an imbalance between the three strategies in theInformationSystems Strategy Triangle?How might corrections be made before the imbalance leads to acatastrophic failure?2.a. Imagine that you purchase an expensive home appliance. The first time you use the device,sparks literally fly, and the device shuts down automatically. You read on the box that the companyengages in social networking using a dedicated site. Would you use the social networking site toshare your concerns?Why/why not? What do you expect to happen in this instance?b. Now imagine that you are the corporate representative assigned to respond to the customerfeedback provided in part a.What is the appropriate way to engage this irate customer?(“Ignore it;hope it goes away”?)3.Many companies have created corporate Facebook pages/groups. From your experience, arethose pageswell-utilized?What characteristics might lead some pages to be used widely and whatcharacteristics would lead them to be abandoned?How might a company motivate customers tointeract with it using social networkingtechnologies?How would the organizational and ISstrategies need to change to increase the effectiveness of this social business strategy?CasesCase Study 1-1:Lego1.Howdidtheinformation systems and the organization design changes implemented byKnudstorp align with the changes in business strategy?Ans: Knudstorp determined that the way to save the company was to focus on productivity andprofits. The organizational strategy included incentives for employees, encouraging them todevelop profitable new product ideas. From the modeler approach, the IS strategy followed thesame pattern. The infrastructure was streamlined and the systems supported a more responsiveproduct ordering/operations/shipping business process. The entire company adapted to the newgoals and objectives, focusing on key performance indicators of creating products that were well-received by customers.2.Which of the generic strategies does Lego appear to be using on this case? Provide support foryour choice.

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Ans: Lego appears to be following a differentiated focused strategy. These are toys designed forcreative play. They are high quality, and not the cheapest products on the market. However, theyare designed to appeal to a variety of customers–themes to capture movie followers (e.g. StarWars), video games, and creative artists. Each product line can be targeted toward a particulargroup.3.Are changes implemented by Knudstorp an indication ofhypercompetition? Defend yourposition.Ans: This would be a hypercompetition strategy since the market continues to change rapidly, andLego must keep pace with the market. Also, the company is attempting to dynamically adapt to therapid pace of change. Entering into new markets with innovative product offerings is one way tostay ahead of the competition.4.What advice would you give Knudstorp to keep Lego competitive, growing, and relevant?Ans: Student responses will vary. Answers should be creative and reflect deep, critical thinking. Ingeneral, Lego should remain financially viable through cost cutting practices, automation using IT,and innovative product designs based on sound marketing studies and focus groups. Removeproducts from inventory if they are not selling well, or if they are not resulting in financial profits.Higher margin products should be added to the portfolio to help secure the company’s future.Case Study 1-2:Google1.How is Google’s mission statement related to its businessstrategy?Ans:Google’s primary goal is to organize the world’s information and make it universallyaccessible and useful (mission statement). Google continues to take risks and expand into newmarkets to further its reach into the information world. It takes advantage of new avenues to expandits market share by making information freely available on its Intranet, and by willing to take risksby investing in speculative and strange projects if they see a large potential payoff.2.How does Google’s information systems strategy support its business strategy?Ans:Through openness andinnovation. It permits users to download their own software, maintainsofficial and unofficial blogs, and buys and makes software to suit the needs of the business. ITencourages innovation by allowing employees to spend 20% of their time on a project of their ownchoosing. This “flexible” IT structure supports the innovation and creativity that its businessstrategy espouses.3.How does Google’sorganizational strategy supportits business strategy?Ans:Google has a culture of innovation and creativity. However, it still provides a level ofstructure when making decisions. Specifically, Google’s mission statement relates to its businessstrategy by making data on all ongoing projects and systems available to all of its employees

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through its corporate Intranet. Any employee can see what is transpiring in other areas and can lenda hand through Google’s “free day” policy and other open work-environment strategies.4.Which of Porter’s three generic strategies does Google appear to be using basedon this case?Provide a rationale for your response.Ans:Differentiation, though one may argue that cost leadership is also utilized with its veryreasonable ad costs. However, through the use of its innovative processes and unique businessmodel, Google has differentiated itself from its competitors by keeping a clean and simple interface(which most of the other search engines have emulated), and by continuing to invest in itsemployees to provide innovation on a large scale.5.Analyze Google’s strategy and the type of market disruption it has created using a dynamicenvironment perspective.Ans: In some form or another Google has utilizeda blue ocean strategy, whichchanges an entireindustry. Google has addednew products that provide value to its customers (AdSense, etc.).It iscontinually seeking out new knowledge through its innovative management styles and by itswillingness to invest in risky projects that have a high-return potential. Googleconstantly innovatesby setting limitations on how long it will take to make changes to its products and services.Through this innovative approach,it is able to stay on the cutting edge of technology and lead thismarket oftheIT world. Through its new products and services (AdSense, GoogleApps, etc.) and itslow cost marketing,itchangescompetition by finding new and better ways to serve its customers.SupplementalCasesGoogle Inc.by Edelman, B., and Eisenmann, T.R., Harvard Business School.9-910-036, 21 pages,2011 (setting: US)This case study provides a glimpse of Google’s history and is a good compliment to the mini-caseprovided in the chapter. The authors discuss the strategic focus and competition with Yahoo! andMicrosoft. Students will be required to recommend a course of action for the company goingforward.Airbnb (A)by Edelman, B., and Luca, M., Harvard Business School. 9-912-019, 7 pages, 2012(setting: US)Airbnb is an online apartment rental site. This case study explores the online reputation servicedeveloped to address trust issues in the apartment rental business.Students will investigate thetradeoff between complexity/simplicity and amount of information necessary.Introducing Expert Systems at The Corporationby Liebowitz J., Idea Publishing Group.IT5555, 8 pages (setting: US)

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This case study highlights the concept the “management” of the technology is usually the limitingfactor causing the demise of a project rather than the “technology” itself. This real case studyinvolves creating an awareness of a new technology within the company and trying to start a much-needed project using this technology.Risks and Rewards at Frontier Communications: Improving Customer Service UsingClient/Server TechnologybyMathieson, K. and T. Toland , Idea Publishing Group. IT5561, 11pages (setting: US)The case shows how a firm can improve a critical business function with new technology. Inaddition, the case shows that a firm can use new technology to build mission-critical informationsystems and examines the risks and benefits of restructuring.Business Reeingineering at a Large Government AgencybyMcGarry, N.and T. Beckman, IdeaPublishing Group.IT5562, 25 pages (setting: US)This case describes the difficulties and successes encountered in a reengineering effort. A team ofconsultants undertook reengineering the delivery of compensation and benefits at a large quasi-governmental agency. Benefits included six programs which accounted for time-intensiveprocesses such as “cafeteria plan,” options enrollment period where information is dispersed toassist employees in plan selection,and retirement accounts.End-User computing at BRECI: The Ordeals of a One-Person IS Departmentby Moffitt, K.Idea Publishing Group.IT5563, 11 pages (setting: US)The intention of the case study is to show an unsuccessful attempt at the introduction and use ofinformation technology in a small business, leading to the finding that the application andunderstanding of technology is lacking in many small businesses that could benefit greatly from itsuse.Implementing a Wide-Area Network at a Naval Air Station: A Stakeholder AnalysisHocevar,S.P., B.A. Frew, and V.C. Bayer. Idea Publishing Group. IT5568, 13 pages (setting: US)This case study illustrates the use of a non-traditional approach to determine the requirements forthe Naval Air Systems Team Wide-Area Network (NAVWAN). It is considered to be non-traditional because the case data enable the use of Stakeholder Analysis and SWOT (strengths,weaknesses, opportunities, threats) assessments to determine the requirements instead of askingfunctional proponents about function and data requirements.Reengineering the Selling Process in a ShowroombyCrnkovic, J., N. Janicijevic, and G.Petkovic, Idea Publishing Group. IT5630, 14 pages (setting: Yugoslavia)The case study describes a process of successful re-engineering of a small Yugoslavian showroomwholesale company (“Wissol”) during the period of economy in transition. An establishedorganizational solution was not supported by adequate IS support. It opens possibilities fordesigninganIS prototype and for planning future steps in IT and IRM.

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Enterprise Wide Strategic Information Systems Planning for Shanghai Bell CorporationbyLong, Y., F. Fui-hoon Nah, and Zhanbei Shu. Idea Publishing Group. IT5581, 16 pages (setting:China)This case examines Shanghai Bell Corporation, Limited, a leading telecommunications enterpriselocated in Shanghai, China, and its initiative to develop its new generation InformationTechnology/Information Systems (IT/IS) plan. The issues covered include alignment of IT strategywith evolving business needs, application of a methodology to develop the enterprise-wide strategicIT/IS plan, and the evaluation of strategic planning project success.Sun Microsystems, Inc: Web Services Strategyby Eisenmann, T. R., Suarez, F. F. HarvardBusiness School Publishing. 2005 (20 pages)Microsoft and IBMhaveexcluded Sun Microsystems from the board of the Web ServicesInteroperability Organization (WS-I), an industry consortium that will shape the evolution of Webservices standards. Sun managers must decide whether to join WS-I as a contributing member--aless influential role that lacks the veto and agenda-setting powers of a board position. Sun hasrecruited leading IT vendors--including several WS-I board members--to create technologies thatcompete with proposed standards jointly developed by Microsoft and IBM.Volkswagen of America: Managing IT Prioritiesby Austin, R. D., Ritchie, W. & Garrett, G.Harvard Business School Publishing. 2005 (19 pages)Describes the efforts of Volkswagen of America, the U.S. subsidiary of Volkswagen AG, to arriveat a process for setting IT funding priorities so that they align with business priorities and thecompany's overall strategy.Kemps LLC: Introducing Time-Driven ABCby Robert S Kaplan. Harvard Business SchoolPublishing; 08/03/2005(10 pages)Managers use the information to enhance process efficiencies, negotiate new terms with customers,and attempt to win new business. The company now faces some crucial decisions about how toforge new relationships with key customers.Supplemental Readings/ArticlesColtman, Tim R., et al. "Strategic IT alignment: twenty-five years on."Journal of InformationTechnology(2015).Martinez-Simarro, D., Devece, C., & Llopis-Albert, C. (2015). How information systemsstrategy moderates the relationship between business strategy and performance.Journal ofBusiness Research,68(7), 1592-1594.

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Kim, W. C., & Mauborgne, R. (2015).Blue Ocean Strategy, Expanded Edition: How to CreateUncontested Market Space and Make the Competition Irrelevant. Harvard Business ReviewPress.Sakas, Damianos, Dimitris Vlachos, and Dimitris Nasiopoulos. "Modelling strategicmanagement for the development of competitive advantage, based on technology."Journal ofSystems and Information Technology16.3 (2014): 187-209.Gerow, Jennifer E., et al. "Looking Toward the Future of IT-Business Strategic Alignmentthrough the Past: A Meta-Analysis."Mis Quarterly38.4 (2014): 1059-1085.Lee, Dongwon, and Sunil Mithas. "IT Investments, Alignment and Firm Performance:Evidence from an Emerging Economy." (2014).Chae, H. C., Koh, C. E., & Prybutok, V. R. (2014). Information technology capability andfirm performance: contradictory findings and their possible causes.MISQuarterly,38(1),305-326.Learning to Compete: IT's Next TransformationfromEMChttp://www.emc.com/microsites/cio/articles/learning-to-compete/pwf.htmThis white paper coversthe changing relationship between IT and business.Rapid implementation,efficiency, and reliability are the clear expectations. There is competition for IT solutions notpresent in years past. Alignment with the business users’ needs is critical to attracting internalclients. These changes lead to operational changes as well.Andrew McAfee and Erik Brynjolfsson, “Investing in the IT that makes a competitivedifference,” Harvard Business Review, July 2008.This articleprovides practical advice for managers to create a sustainable competitive advantagethrough a strategic use of technology. The three key points are:deploy an enterprise technologythat is integrated, innovate by improving work processes, and propagate those successes throughoutthe company. It is important to continue these endeavors to stay ahead of the competition.Brad Wyckoff and David Thompson, “Unlocking the Value of IT” Harvard Business Review.May 25, 2010.www.hbr.orgOrganizations must become information-centric(predictive) rather than system-centric (historical).In order to facilitate competitive advantage, data must be pushed out to the decision makersthroughout the organization. This article exposes the gap that exists between what companies sayabout the value of this critical asset and what they are actually doing with their data.Shayndi Raice, “Is Facebook Ready for the Big Time?” Wall Street JournalJanuary 14-15,2012, B1.

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The article features an interview with Mark Zuckerberg, Chief Executive of Facebook, and SherylSandberg, former Google Inc. executive. They discuss the initial public offering for the socialnetworking company and the original purpose behind the product.Warren McFarland & Richard Nolan, “InformationTechnology and the Board of Directors”Harvard Business Review.83(3):2005.Most boards remain largely in the dark when it comes to IT spending and strategy, despite the factthat corporate information assets can account for more than 50% of capital spending. This articlespells out the conditions under which boards need to change their level of involvement in ITdecisions, explaining how members can recognize their firms' IT risks.Tarun Khanna, Krishna G Palepu & Sinha, Jayant “Strategies That Fit Emerging Markets”Harvard BusinessReview.83(2):2005.If Western companies don't come up with good strategies for engaging with emerging markets, theyare unlikely to remain competitive. The best way to do this, the authors have found, is by using thefive contexts framework. The five contexts are a country's political and social systems, its degree ofopenness, its product markets, its labor markets, and its capital markets.Robert S. Kaplan and David P. Norton, “Having troubles with your strategy? Then map it.”Harvard Business Review. 78(5): 167-176. 2000 Sep/Oct.A workforce needs clear and detailed information to execute a business strategy successfully. Untilnow, there have not been many tools that can communicate both an organization’s strategy and theprocesses and systems needed to implement that strategy. But Kaplan and Norton, the creators ofthe balanced scorecard, have adapted that seminal tool to create strategy maps.BooksGalliers, Robert D., and Dorothy E. Leidner.Strategicinformation management: challengesand strategies in managing information systems. Routledge, 2014.R.D. Austin,R.L. Nolan, andS. O'Donnell,The Adventures of an IT Leader. MA: HarvardBusiness School Press, 2009.N.G.Carr,Does IT Matter? Information Technology and the Corrosion of CompetitiveAdvantageMA: Harvard Business School Press, 2002.R. D'Aveni,Hypercompetition: Managing the Dynamics of Strategic Maneuvering. New York:Free Press, 1994.P. Evans and T. Wurster,Blown to Bits.Boston, MA: Harvard Business School Press, 2000.B. Girard,The Google Way. San Francisco, CA: No Starch Press, Inc., 2009.

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F. Hogue, V. Sambamurthy, R. Zmud, T. Trainer, and C.Wilson,Winning the 3-Legged Race.Upper Saddle River, NJ: Prentice Hall, 2005.M. Porter,Competitive Advantage. New York: Free Press, 1985.M. Porter,Competitive Strategies. New York: Free Press, 1998.Websiteswww.bp.comBP is a global petrochemical company. The website includes a tab featuring the innovative uses oftechnology, from seismic imaging to biofuels.Links also update the cleanup from the Gulf ofMexico oil spill that occurred in April 2010.Ritz-Carlton Gold Standards:http://corporate.ritzcarlton.com/en/About/GoldStandards.htmThe website describes the values and philosophy for the premier hotel chain.www.cisco.comTheCisco website is an excellent source of additional information on theimportance of linking business, organizational and IT strategy. Look at the annual report letter fromthe CEO, and at the numerous cultural and organizational references Cisco describes as part of theirvarious programs and opportunities.www.cio.comCIO and CIO.com are published by CXO Media Inc. to meet the needs of CIOs(Chief Information Officers) and other information executives. CIO is read by more than 140,000CIOs and senior executives who oversee annual IT budgets in excess of $175 million. CIO.comserves over 12 million pages annually.www.google.comFounded in 1998, the statementfromthe website is,“Google’s mission is to organize the world’sinformation and make it universally accessible and useful.”Visitors can learn a detailed history ofthe company, from the original search engine to the IPO in 2004 and, more recently, the launch ofGoogle+. This website is a valuable companion to the case study.NewsAugust 17, 2015: Microsoft is offering a free upgrade to customers who want to move to Windows10, and a recentComputerworldarticle (athttp://www.computerworld.com/article/2971728/it-industry/free-windows-10-upgrade-will-have-no-financial-impact-on-microsoft.html) states that itwill not be a financial problem for Microsoft. Have students read the brief article and answer thesequestions: (1) How many of you use Windows? Apple's OSX? Linux? Why did you choose yourplatform? [A big discussion will ensue; cut it off after 5 minutes] (2) Which of the three sources of

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competitive advantage is Microsoft trying to address with the free update? Why? (3) What otherreasons are offered in the article to explain Microsoft's action? Do you believe those explanations?Dec 29, 2014: A new Microsoft seems to be looming in the future. A cynical but interestingdiscussion of the upcoming changes Microsoft is hinting about is available on Computerworld athttp://www.computerworld.com/article/2863914/microsoft-will-surprise-in-2015.html.Askstudents to read it and ask them the following: (1) Where did Microsoft earn most of the revenuegrowth in the most recent quarter? (2) What are advantages and disadvantages for Microsoft oftheir decision to offer iPad and Android users Microsoft Office? [Discussion will probably reflectthat although it would cut into Microsoft's revenues by diminished Windows 7 or 10 sales alongwith diminished PC sales, the monthly business pricing ($12.50 to $15 a month) and personalpricing ($6.99 per month) are such that it should make up for those lost revenues over the longerterm. It might also be limited in features to some extent and then stimulate PC sales. These basicissues could stimulate a nice detailed discussion of probable market sizes and revenues] (3) GivenNadella's statement "I love Linux," what do you think Microsoft will do with Linux?

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Chapter 2: Strategic Use of InformationResourcesChapter OverviewA long-standing management topic for information systems courses is the use ofinformation and information systems for strategic advantage. The triangle model ofchapter 1 sets up this discussion by making the link between IT and business strategy.This chapter explores some of these concepts, building on the classic Porter models.Discussion Opener:On the PowerPoint slides, there are questions from the Zaracase.Alternate Discussion Opener:Whyare we concerned with the alignment of business,organizational, and information strategies? How can that knowledge be helpfultoyou in yourcareer?Key Points in ChapterInnovative use of a firm’s information resources can provide companies with substantialadvantages over competitors. The introduction to this chapter explores Zara, aglobalretail andapparel manufacturerbased in Spainthathassuccessfully implementedthisideaby having a continuous flow of new products that are typically limited in supply.Zara has created a system that draws its clientele intoitsstores, on average, 17 times peryear as compared to 4 times per year for most stores.Thisis made possibleby aligning itsIS model with its business model.The conclusion is that a company can achievesubstantial advantage over its competitors through innovative use of its informationresources.The evolution of information resources for business advantages is explored. Building ontheerasmodel of Harvard Business School professors Applegate, McFarlan andMcKenney, this model succinctly summarizes how IT has been used to create efficiency,effectiveness, strategic gain,and value. This model is useful to show how leading edgecompanies have engaged IT for more than just automation of activities and removal ofpaper from the business. The model also incorporates the economics of information vs.the economics of things that was discussed inChapter1.The text explains some of thekey components ofeachera.Students might be engaged in discussion as to what abusiness's objectives are and how IT can help achieve those objectives, based on the

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