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Managing and Using Information Systems: A Strategic Approach, 5th Edition

August 2012, ©2013
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Pearlson and Saunders', Managing and Using Information Systems: A Strategic Approach, Fifth Edition, conveys the insights and knowledge MBA students need to become knowledgeable and active participants in information systems decisions. This text is written to help managers begin to form a point of view of how information systems will help, hinder, and create opportunities for their organizations. It is intended to provide a solid foundation of basic concepts relevant to using and managing information.

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Table of Contents

Introduction 1

The Case for Participating in Decisions about Information Systems 3

What If a Manager Doesn’t Participate? 6

Social Business Lens 8

Skills Needed to Participate Effectively in Information

Technology Decisions 9

Basic Assumptions 11

Economics of Information Versus Economics of Things 17

Summary 19

Key Terms 20

Discussion Questions 20

Case Study I-1: Terry Cannon, MBA 20

Case Study I-2: Anyglobal Company Inc. 22

CHAPTER 1 The Information Systems Strategy Triangle 23

Brief Overview of Business Strategy Frameworks 26

Brief Overview of Organizational Strategies 33

Social Business Lens: Building a Social Business Strategy 34

Brief Overview of Information Systems Strategy 36

Summary 37

Key Terms 38

Discussion Questions 39

Case Study 1-1: Lego 39

Case Study 1-2: Google 41

CHAPTER 2 Strategic Use of Information Resources 44

Evolution of Information Resources 45

Information Resources as Strategic Tools 47

How Can Information Resources Be Used Strategically? 51

Social Business Lens: Social Capital 64

Strategic Alliances 64

Risks 66

Co-Creating IT and Business Strategy 68

Summary 69

Key Terms 70

Discussion Questions 70

Case Study 2-1: Groupon 71

Case Study 2-2: Zipcar 72

CHAPTER 3 Organizational Strategy and Information Systems 74

Information Systems and Organizational Design 78

Social Business Lens: Social Networks 85

Information Systems and Management Control Systems 85

Information Systems and Culture 89

Summary 95

Key Terms 96

Discussion Questions 96

Case Study 3-1: The Merger of AirTran by Southwest Airlines:

Will the Organizational Cultures Merge? 97

Case Study 3-2: The FBI 98

CHAPTER 4 Information Systems and the Design of Work 100

Work Design Framework 102

How Information Technology Supports Communication and Collaboration 104

How Information Technology Changes the Nature of Work 104

Social Business Lens: Activity Streams 113

How Information Technology Changes Where and When Work Is

Done and Who Does It 116

Gaining Acceptance for IT-Induced Change 128

Summary 130

Key Terms 131

Discussion Questions 132

Case Study 4-1: Trash and Waste Pickup Services, Inc. 132

Case Study 4-2: Social Networking: How does IBM Do It? 133

CHAPTER 5 Information Systems for Managing Business Processes 135

Silo Perspective versus Business Process Perspective 137

Building Agile and Dynamic Business Processes 142

Changing Business Processes 143

Workflow and Mapping Processes 145

Enterprise Systems 148

Social Business Lens: Crowdsourcing Changes Innovation Processes 161

Summary 162

Key Terms 163

Discussion Questions 163

Case Study 5-1: Santa Cruz Bicycles 164

Case Study 5-2: Boeing 787 Dreamliner 165

CHAPTER 6 Architecture and Infrastructure 167

From Vision to Implementation 168

The Leap from Strategy to Architecture to Infrastructure 170

From Strategy to Architecture to Infrastructure: An Example 177

Architectural Principles 180

Enterprise Architecture 180

Virtualization and Cloud Computing 183

Other Managerial Considerations 185

Social Business Lens: Building Social-Mobile Applications 192

Summary 192

Key Terms 193

Discussion Questions 193

Case Study 6-1: Enterprise Architecture at American Express 194

Case Study 6-2: The Case of Extreme Scientists 195

CHAPTER 7 The Business of IT 197

Organizing to Respond to Business Demand: A Maturity Model 198

Understanding the IT Organization 199

What a Manager Can Expect from the IT Organization 199

Managing IT Activities Globally 203

What the IT Organization Does Not Do 205

Chief Information Officer 206

Social Business Lens: Community Management 208

Building a Business Case 209

IT Portfolio Management 213

Valuing IT Investments 215

Monitoring IT Investments 218

Funding IT Resources 222

How Much Does IT Cost? 226

Summary 231

Key Terms 233

Discussion Questions 233

Case Study 7-1: Troon Golf 234

Case Study 7-2: Balanced Scorecards at BIOCO 235

CHAPTER 8 Governance of the Information Systems Organization 236

IT Governance 237

IT Governance and Security 244

Social Business Lens: The Consumerization of Technology 248

Decision-Making Mechanisms 248

Governance Frameworks for Control Decisions 251

Summary 257

Key Terms 257

Discussion Questions 257

Case Study 8-1: IT Governance at University of the Southeast 258

Case Study 8-2: The Big Fix at Toyota Motor Sales (TMS) 259

CHAPTER 9 Information Systems Sourcing 261

Sourcing Decision Cycle Framework 262

Social Business Lens: iCloud 274

Outsourcing and Strategic Networks 283

Summary 284

Key Terms 285

Discussion Questions 285

Case Study 9-1: Crowdsourcing at AOL 285

Case Study 9-2: Altia Business Park 286

CHAPTER 10 Managing IT Projects 288

What Defines a Project? 290

What is Project Management? 292

Project Elements 295

IT Projects 301

IT Project Development Methodologies and Approaches 303

Social Business Lens: Mashups 311

Managing IT Project Risk 312

Summary 319

Key Terms 320

Discussion Questions 320

Case Study 10-1: Implementing Enterprise Change Management at Southern Company 321

Case Study 10-2: Dealing with Traffic Jams in London 322

CHAPTER 11 Knowledge Management, Business Intelligence, and Analytics 325

Knowledge Management, Business Intelligence, and Business Analytics 327

Data, Information, and Knowledge 330

Knowledge Management Processes 335

Business Intelligence 335

Competing with Business Analytics 336

Components of Business Analytics 338

Big Data 340

Social Analytics 342

Social Business Lens: Social Graphs 344

Caveats for Managing Knowledge and Business Intelligence 345

Summary 345

Key Terms 346

Discussion Questions 346

Case Study 11-1: Stop & Shop’s Scan It! App 347

Case Study 11-2: Business Intelligence at CKE Restaurants 348

CHAPTER 12 Using Information Ethically 350

Responsible Computing 352

Corporate Social Responsibility 356

PAPA: Privacy, Accuracy, Property, and Accessibility 359

Social Business Lens: Personal Data 363

Security and Controls 369

Summary 371

Key Terms 372

Discussion Questions 372

Case Study 12-1: Ethical Decision Making 372

Case Study 12-2: Midwest Family Mutual Goes Green 375

Glossary 377

Index 387

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Author Information

About the Authors

DR. KERI E. PEARLSON is president of KP Partners, a CIO advisory services firm specializing in executive education and management coaching in the area of strategic use of information systems and organizational design. A former faculty member of the Graduate School of Business at the University of Texas at Austin, Dr. Pearlson is the co-author of Zero Time: Providing Instant Customer Value—Every Time, All the Time (John Wiley & Sons, 2000). Dr. Pearlson holds a Doctorate in Business Administration (DBA) in Management Information Systems from the Harvard Business School and both a Master's Degree in Industrial Engineering Management and a Bachelor's Degree in Applied Mathematics from Stanford University.

DR. CAROL S. SAUNDERS is professor of Management at the University of Central Florida in Orlando, Florida and Schoeller Senior Fellow (2012) at the University of Erlangen-Nuremburg. She served as General Conference Chair of the International Conference on Information Systems (ICIS) in 1999 and Telecommuting '96. She was editor-in-chief of MIS Quarterly from 2005-2007. She has received the Association of Information Systems (AIS) LEO award for lifetime accomplishments and is a Fellow of the AIS. Dr. Saunders holds a Ph.D. in Organizational Behavior and Management from the University of Houston and an MBA from the University of North Carolina at Chapel Hill. In addition to her academic positions, Dr. Saunders has worked for IBM and EXXON Company, U.S.A.

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New To This Edition

  • Each chapter now features a new textbox called Social Business Lens, which presents a topic related to the chapter that has enabled, or is fundamental to using, social tools in the enterprise.
  • Many chapters also feature a Geographic Lens textbox, which relates a current global issue to the topic of the chapter.
  • Food For Thought sections are now integrated into the chapter or moved to the book's companion website.
  • Significant revisions to both the Business of IT chapter and the Governance chapter.
  • For Instructors: The Pearlson and Saunders Faculty Hub, a community website and collaboration space, facilitates connections among instructors and offers a place to share teaching materials, ideas, and creative projects.
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The Wiley Advantage

  • Designed as an MBA-level foundational book on IS concepts from which professors can build in their own selection of cases and readings.
  • Covers the key, fundamental issues that managers need to be knowledgeable and active participants in information systems decisions. 
  • Uses the IS Strategy Triangle as a unifying theme to show the strategic context of all topics.
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Instructors Resources
Wiley Instructor Companion Site
Faculty Hub Sign Up
Faculty Hub Returning Members
Instructor’s Companion Site
Instructor's Manual
PowerPoint Slides
Test Bank
Image Gallery
Case Notes
Outsourcing Minicases
Request a print evaluation copy
Contact us
Contact your Wiley Representative
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Students Resources
Wiley Student Companion Site
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Purchase Options
Managing and Using Information Systems: A Strategic Approach, 5th Edition
ISBN : 978-1-118-28173-4
416 pages
August 2012, ©2013
$88.95   BUY

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