The Strategic Management of Information Systems, Building a Digital Strategy, 4th Edition
April 2016, ©2016
- A comprehensively updated revision of a book regarded by many as one the leading and authoritative titles for practitioners, academics and students in the domain of information systems and technology (IS/IT) strategy.
- Presents a structured framework with tools, techniques and ways of thinking which provide a practical approach to building a digital strategy, expressed primarily in the language of business and management.
- Brings together the implications of the significant advances in IT and the most useful current thinking, research, and experiences concerning the business impact and strategic opportunities created by IS/IT.
- Peppard and Ward discuss the key questions that managers have to grapple with of where, when and how to invest in IS/IT, which is why a IS/IT (or digital) strategy is required.
Preface to the Fourth Edition ix
About the Authors xvii
1 The Evolving Role of Information Systems and Technology in Organizations: A Strategic Perspective 1
Information Systems (IS), Information Technology (IT) and ‘Digital’ 2
‘Digital Disruption’: The Impact of IS/IT 7
A Three ]era Model of Evolving IT Application in Organizations 15
A Classification of the Strategic Uses of IS/IT 17
Success Factors in Strategic Information Systems 25
A Portfolio Management Perspective on IS/IT Investments 27
What Is an IS/IT or Digital Strategy? 29
From Strategic Alignment to Strategy Co ]evolution 35
Digital Strategies for the 21st Century: Building a Dynamic Capability to Leverage IS/IT 39
2 An Overview of Strategic Management and the IS/IT Strategy Implications 49
The Evolving Nature of Strategic Management in Organizations 50
Scope of Strategy Development 54
A Framework for Strategy Formulation 55
Where to Compete 57
How to Gain an Advantage 60
What Assets do We Have? What Assets are Required? 77
How to Change – the Need for Dynamic Capabilities 81
Strategy Implementation 82
3 Establishing an Effective Process for Developing Information Systems and Technology (or Digital) Strategies 87
Some Definitional Clarity 88
The Evolution of the IS/IT Strategy Process: From Technology Deployment to Strategic Focus 89
The Business Context for Developing and Managing the Strategy 94
Establishing an Effective Process: Continuous and Flexible 97
Setting the Scope for the Strategy 104
A Framework for IS/IT Strategy Formulation 108
Other Deliverables from the IS/IT Strategy Process 119
4 IS/IT Strategic Analysis: Achieving Alignment with Business Operations and Strategy 125
Understanding the Current Situation 126
The Business Operating Model: Processes, Activities and Key Entities 130
Organizational Environment 136
Examining the Existing IS/IT Environment 139
Information and Systems to Meet Current Business Objectives: the Use of Balanced Scorecards and Critical Success Factors 146
Process Analysis 153
Redesigning Processes 158
Evaluating the Gap between Existing and Required IS/IT Environments 161
5 Innovating with Technology, Systems and Information 165
Understanding What It Means to Innovate with IT 166
The Process of Digital Business Innovation 168
The ‘push’ and ‘pull’ of Innovating with IS/IT 173
Getting Management Attention for Ideas and Innovations 177
Joining the Dots: the Search for Ideas 180
Innovating by Leveraging Information: Exploration and Exploitation 184
The Big Data Challenge 188
Discovering Strategic IS/IT Opportunities from Information 191
Building an Analytic Capability 198
6 Exploiting Information Systems for Strategic Advantage 207
Achieving and Sustaining Advantages across the Value Disciplines 208
Exploring New Value Propositions: Informating Products and Services 210
Analysis of Competitive Forces to Identify IS/IT Opportunities and Threats 216
Value Chain Analysis 220
Customer Life ]cycle Management and the Value Chain 228
From Value Chain to Value Network 235
The Internal Value Chain 239
The Uses of Value Chain Analysis 244
7 Determining the Business Information Systems Strategy 251
Business Strategy and IS/IT 252
Tools for IS/IT Strategy Formulation and Their Relationships 256
A Framework for Using the Tools and Techniques Effectively 258
Identifying how IS/IT Could Impact the Business Strategy 260
Establishing the Relative Priorities for IS/IT Investments 265
Large Organizations, Multiple SBUs and Strategy Consolidation 270
8 Managing the Portfolio of Business Applications 273
Conclusions from Various Portfolio Models 275
Classifying the Applications in the Portfolio 277
Reconciling Demand and Supply Issues in the Portfolio 280
Generic Application Management Strategies 282
Portfolio Management Principles Applied to the Application Portfolio 291
Aligning Development Approaches to the Portfolio Segments 298
The ‘Special Case’ of Enterprise Systems 304
Managing Application Portfolios in Multi ]unit Organizations 306
9 Justifying and Managing Information Systems and Technology Investments 311
Investment and Priority Setting Policies 313
Justifying and Evaluating IS/IT Investments 314
Justifying Business Applications 322
Justifying Infrastructure Investments 326
Assessing and Managing Investment Risks 332
Managing the Portfolio of Investments 336
Setting Priorities amongst IS/IT Investments 338
Organizational IS/IT Portfolio and Investment Management Maturities 344
10 An Organizing Framework for the Strategic Management of IS/IT 353
The Strategic Management Requirement 354
Positioning and Managing IS/IT in an Organization 356
From a Functional View of IS/IT to an Organization ]wide Perspective – Capability and Competences 359
IS/IT Governance and Why It is Important 366
What Decisions Need to be Governed? 371
Creating the Organizing Framework for IS/IT Decision Making 374
Instruments of Governance 375
11 Strategic Management of IS/IT Services and IT Infrastructure 395
Creating and Sustaining Business Change: Projects and Services 396
The Need for the Strategic Management of IS/IT Services and IT Infrastructure 397
IS/IT Service Categories 400
Managing Operational and Value ]enabling Services 410
Strategies for Managing IT Infrastructure and Infrastructure Services 414
Understanding and Managing IT Risks 420
Sourcing of IS/IT Resources and Services 423
Business Process Outsourcing 434
Innovation and Outsourcing 436
Back ]sourcing and Switching Suppliers 438
12 The Strategic Management of Information Systems: Quo Vadis? 445
The Evolution of IS/IT Strategy in Theory and Practice 447
A Brief Résumé of some Core Ideas 452
Building an IS/IT or Digital Capability 455
From Creating IS/IT Assets to Improving Organizational Performance: Joining the Means to the Ends 458
Achieving Alignment: a Multi ]themed Perspective 459
The Co ]evolution of Business and Digital Strategies 463
The Opportunity for CIOs to Have a Key Strategic Role 466
John Ward is Emeritus Professor at Cranfield University, School of Management. He was previously Professor of Strategic Information Systems and was Director of Cranfield’s IS Research Centre from 1993–2004. He has published many papers in leading academic and business journals and is also co-author of Benefits Management: How to Increase the Business Value of your IT Projects, published by John Wiley. Prior to joining Cranfield he worked in industry for 15 years and he has acted as a consultant to a range of major international corporations and public sector organisations. He is a Fellow of the Chartered Institute of Management Accountants and served two terms as President of the UK Academy for Information Systems.
This revision represents a major overhaul of the title both in terms of content and presentation:
- The title has been changed from Strategic Planning for Information Systems to Strategic Management of Information Systems which is more relevant in terms of current business terminology and reflects more accurately what is required to successfully leverage information systems and technology.
- This edition considers both the implications of the developments in IS/IT and the most useful of the recent thinking and experiences concerning both business and IS/IT strategic management
- The text design and layout have been vastly improved: the current edition was published as a hardback with a one-colour text design more in the style of a monograph whereas the new edition will be published as a paperback with a much more accessible two-colour text design
- Helps the reader address the key questions of where, when and how to invest in new technologies.
- Considers how digital or IS/IT strategic management development can be brought about and then sustained.
- Provides a structured framework and practical approach, expressed primarily in the language of business and management.
- Peppard and Ward have numerous years’ experience as leading writers, researchers and educators in the field of information technology.
- Wiley E-Texts are powered by VitalSource and accessed via the VitalSource Bookshelf reader, available online and via a downloadable app.
- Wiley E-Texts are accessible online and offline, and can be read on a variety of devices, including smartphones and tablets.
- Wiley E-Texts are non-returnable and non-refundable.
- Wiley E-Texts are protected by DRM. For specific DRM policies, please refer to our FAQ.
- WileyPLUS registration codes are NOT included with any Wiley E-Text. For informationon WileyPLUS, click here .
- To learn more about Wiley E-Texts, please refer to our FAQ.
- E-books are offered as e-Pubs or PDFs. To download and read them, users must install Adobe Digital Editions (ADE) on their PC.
- E-books have DRM protection on them, which means only the person who purchases and downloads the e-book can access it.
- E-books are non-returnable and non-refundable.
- To learn more about our e-books, please refer to our FAQ.