Campbellsville University Information Systems Questions QUESTION 1 How did the information systems and the organization design changes implemented by Knu

Campbellsville University Information Systems Questions QUESTION 1 How did the information systems and the organization design changes implemented by Knudstorp align with the changes in business strategy? QUESTION 2 Which of the generic strategies does Lego appear to be using on this case? Provide support for your choice. QUESTION 3 Are changes implemented by Knudstorp an indication of hypercompetition? Defend your position. QUESTION 4 What advice would you give Knudstorp to keep Lego competitive, growing, and relevant? Need a case study for each question with at lease 70 – 100 words and one reference in APA format. the case study is mentioned in chapter 6 in attached text book. Managing and Using Information Systems:
A Strategic Approach – Sixth Edition
Keri Pearlson, Carol Saunders,
and Dennis Galletta
© Copyright 2016
John Wiley & Sons, Inc.
Chapter 6
Architecture and
Mohawk Paper
• What did Mohawk paper see as an opportunity?
• What did they do?
• What was the result?
© 2016 John Wi ley & Sons, Inc.
From Vision to Implementation
• Architecture translates strategy into infrastructure
• Home architect develops a blueprint of a proposed
house—based on customer
• Business architect develops a blueprint of a company’s
proposed systems—based on strategy
• This “blueprint” is used for translating business strategy
into a plan for IS.
• The IT infrastructure is everything that supports the
flow and processing of information (hardware,
software, data, and networks).
© 2016 John Wi ley & Sons, Inc.
From abstract to concrete
– building vs. IT
The Manager’s Role
• Must understand what to expect from IT
architecture and infrastructure.
• Must clearly communicate business vision.
• May need to modify the plans if IT cannot
realistically support them.
• Manager MUST be involved in the decision making
© 2016 John Wi ley & Sons, Inc.
From Strategy to Architecture
• Manager starts out with a strategy.
• Strategy is used to develop more specific goals
• Business requirements must be determined for each
goal so the architect knows what IS must accomplish.
© 2016 John Wi ley & Sons, Inc.
•Strategy: Be a customer-oriented company
•Goal: 30-day money back guarantee
• Business Requirement: ability to track purchases
• Business Requirement: ability to track problems
•Goal: Answer email questions within 6 hours
• Business Requirement: Ability to handle the volume
© 2016 John Wi ley & Sons, Inc.
From Business Requirements to Architecture
© 2016 John Wi ley & Sons, Inc.
The Example Continues
•Business Requirement: Ability to track
• Architectural Requirement:
• Database that can handle all details of more than a 30-day
© 2016 John Wi ley & Sons, Inc.
From Architecture to Infrastructure
• Adds more detail to the architectural plan.
• actual hardware, software, data, and networking
• Components need coherent combination
© 2016 John Wi ley & Sons, Inc.
From Architecture to Infrastructure
© 2016 John Wi ley & Sons, Inc.
The Example Continues
Architectural Requirement: Database that can
handle all details of more than a 30-day history
Functional Specification: be able to hold 150,000
customer records, 30 fields; be able to insert 200 records
per hour
? Hardware specification: 3 gigaherz Core 2 Duo Server
? Hardware specification: half terabyte RAID level 3 hard
drive array
? Software specification: Apache operating system
? Software specification: My SQL database
? Data protocol: IP (internet protocol)
© 2016 John Wi ley & Sons, Inc.
A Framework for the Translation
• Considerations for moving from strategy to
architecture to infrastructure:
• Hardware – physical components
• Software – programs
• Network – software and hardware
• Data – utmost concern: data quantity & format
• What-who-where is a useful framework
© 2016 John Wi ley & Sons, Inc.
Information systems analysis framework.
What hardware does
Who manages it?
the organization have? Who uses it?
Who owns it?
Where is it
located? Where is
it used?
What software does
Who manages it?
the organization have? Who uses it?
Who owns it?
Where is it
located? Where is
it used?
What networking does Who manages it?
the organization have? Who uses it?
Who owns it?
Where is it
located? Where is
it used?
What data does the
organization have?
Where is it
located? Where is
it used?
Who manages it?
Who uses it?
Who owns it?
Figure 6.3 Infrastructure and architecture analysis framework with sample questions.
Common IT Architecture Configurations
• Centralized architecture – All purchases, support,
and management from data center
• Decentralized architecture – uses multiple servers
perhaps in different locations
• Service-Oriented architecture – uses small chunks
of functionality to build applications quickly.
• Example: e-commerce shopping cart
• Software-Defined architecture – instantly
reconfigures under load or surplus
© 2016 John Wi ley & Sons, Inc.
Software-Defined Architecture
• Birdbath example: Thanks to the Oprah Winfrey show,
sales went from 10 per month to 80,000.
• Increased sales seen as an attack with static system
• Adaptive system warns other parts of sales fluctuations,
preventing lost sales
• Famous Coffee Shop example:
• WiFi shares lines with production systems; problems in one
can be shunted to another
• Also, coffee bean automatic reordering; spot market
• High potential for decreasing costs
© 2016 John Wi ley & Sons, Inc.
New Technologies
• Peer to peer architecture: Allows networked computers
to share resources without a central server
• Wireless (mobile) infrastructure: allows communication
without laying wires
• Web-based architecture: places information on web
servers connected to the Internet
• Cloud-based architecture: places both data and
processing methods on servers on the Internet,
accessible anywhere
• Capacity-on-demand: enables firms to make available
more processing capacity or storage when needed
© 2016 John Wi ley & Sons, Inc.
Architectural Principles
Fundamental beliefs about how the architecture should function
© 2016 John Wi ley & Sons, Inc.
Enterprise Architecture (EA)
• The “blueprint” for all IS and interrelationships in the
• Four key elements:
• Core business processes
• Shared data
• Linking and automation technologies
• Customer groups
• One example is TOGAF (The Open Group Architecture
• Methodology and set of resources for developing an EA
• Specifications are public
• Business and IT leaders develop EA together
© 2016 John Wi ley & Sons, Inc.
Virtualization and Cloud Computing
• Cloud computing refers to:
• Resources that are available “on the Internet”
• No software for the organization to develop or install (only
web browser)
• No data for the organization to store (it stays somewhere in
the Internet “cloud”)
• The provider keeps and safeguards programs and data
• This is “infrastructure as a service” (IaaS)
• Also available is SaaS (Software as a service)
• And there is also PaaS (Platform as a service)
• Utility Computing: Pay only for what you use (like
Source: Computerworld Aug 4, 2008
power, lights)
© 2016 John Wi ley & Sons, Inc.
Examples of Systems Provided in the
• Just some examples
• Word processing; spreadsheeting; email (Google Docs: $50
per user annually)
• Buying/selling Financial services (
• Email (Gmail, Hotmail)
• Social networking (Facebook)
• Business networking (LinkedIn)
• Music (iTunes)
• Storage (Amazon’s Simple Storage Service—S3)
• A server (Amazon’s Elastic Compute Cloud—EC2)
Source: Computerworld Aug 4, 2008 and CRN website
© 2016 John Wi ley & Sons, Inc.
Assessing Strategic Timeframe
• Varies from industry to industry
• Level of commitment to fixed resources
• Maturity of the industry
• Cyclicality
• Barriers to entry
• Also varies from firm to firm
• Management’s reliance on IT
• Rate of advances affecting the IT management counts on
© 2016 John Wi ley & Sons, Inc.
Assessing Adaptability
• Guidelines for planning adaptable IT architecture
and infrastructure
• Plan for applications and systems that are independent
and loosely coupled
• Set clear boundaries between infrastructure components
• When designing a network architecture, provide access to
all users when it makes sense to do so
© 2016 John Wi ley & Sons, Inc.
Assessing Scalability
• Scalability refers to how well a component can
adapt to increased or decreased demand
• Needs are determined by:
• Projections of growth
• How architecture must support growth
• What happens if growth is much higher than projected
• What happens if there is no growth
© 2016 John Wi ley & Sons, Inc.
Other Assessments
• Standardization – Common, shared standards are
easy to plug in
• Maintainability – Can the infrastructure be
• Security – Decentralized architecture is more
difficult to secure
© 2016 John Wi ley & Sons, Inc.
Assessing Financial Issues
Quantify expected return on investment
Can be difficult to quantify
Quantify costs
Determine life cycles of components
Quantify benefits
Quantify risks
Consider ongoing dollar costs and benefits
© 2016 John Wi ley & Sons, Inc.
Managing and Using Information Systems:
A Strategic Approach – Sixth Edition
Keri Pearlson, Carol Saunders,
and Dennis Galletta
© Copyright 2016
John Wiley & Sons, Inc.
bgloss.indd 312
11/26/2015 7:40:39 PM
Managing and Using
Information Systems
Sixth Edition
Keri E. Pearlson
KP Partners
Carol S. Saunders
W.A. Franke College of Business
Northern Arizona University
Dr. Theo and Friedl Schoeller Research Center for Business and Society
Dennis F. Galletta
Katz Graduate School of Business
University of Pittsburgh, Pittsburgh, PA
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George Hoffman
Lise Johnson
Jennifer Manias
Kyla Buckingham
Allison Morris
Amanda Dallas
Don Fowley
Gladys Soto
Nichole Urban
Anna Melhorn
Christopher DeJohn
Puja Katariwala
Kevin Holm
Nicole Repasky
Loganathan Kandan
This book was set in 10/12 Times Roman by SPi Global and printed and bound by Courier Kendallville.
This book is printed on acid free paper.
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ISBN: 978-1-119-24428-8 (BRV)
ISBN: 978-1-119-24807-1 (EVALC)
Library of Congress Cataloging-in-Publication Data
Names: Pearlson, Keri E. | Saunders, Carol S. | Galletta, Dennis F.
Title: Managing and using information systems: a strategic approach / Keri
E. Pearlson, Carol S. Saunders, Dennis F. Galletta.
Description: 6th edition. | Hoboken, NJ : John Wiley & Sons, Inc., [2015] |
Includes index.
Identifiers: LCCN 2015041210 (print) | LCCN 2015041579 (ebook) | ISBN 9781119244288 (loose-leaf : alk. paper) |
ISBN 9781119255208 (pdf) | ISBN 9781119255246 (epub)
Subjects: LCSH: Knowledge management. | Information technology—Management. |
Management information systems. | Electronic commerce.
Classification: LCC HD30.2 .P4 2015 (print) | LCC HD30.2 (ebook) | DDC 658.4/038011—dc23
LC record available at
Printing identification and country of origin will either be included on this page and/or the end of the book. In addition, if the ISBN on this
page and the back cover do not match, the ISBN on the back cover should be considered the correct ISBN.
Printed in the United States of America
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To Yale & Hana
To Rusty, Russell, Janel & Kristin
To Carole, Christy, Lauren, Matt, Gracie, and Jacob
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Information technology and business are becoming inextricably interwoven. I don’t think anybody can talk
meaningfully about one without the talking about the other.
Bill Gates
I’m not hiring MBA students for the technology you learn while in school, but for your ability to learn about, use
and subsequently manage new technologies when you get out.
IT Executive
Federal Express2
Give me a fish and I eat for a day; teach me to fish and I eat for a lifetime.
Managers do not have the luxury of abdicating participation in decisions regarding information systems (IS).
Managers who choose to do so risk limiting their future business options. IS are at the heart of virtually every
business interaction, process, and decision, especially when the vast penetration of the Web over the last 20 years
is considered. Mobile and social technologies have brought IS to an entirely new level within firms and between
individuals in their personal lives. Managers who let someone else make decisions about their IS are letting
someone else make decisions about the very foundation of their business. This is a textbook about managing and
using information written for current and future managers as a way to introduce the broader implications of the
impact of IS.
The goal of this book is to assist managers in becoming knowledgeable participants in IS decisions. Becoming
a knowledgeable participant means learning the basics and feeling comfortable enough to ask questions. It does
not mean having all the answers or having a deep understanding of all the technologies out in the world today. No
text will provide managers everything they need to know to make important IS decisions. Some texts instruct on
the basic technical background of IS. Others discuss applications and their life cycles. Some take a comprehensive
view of the management information systems (MIS) field and offer readers snapshots of current systems along with
chapters describing how those technologies are designed, used, and integrated into business life.
This book takes a different approach. It is intended to provide the reader a foundation of basic concepts relevant
to using and managing information. This text is not intended to provide a comprehensive treatment on any one
aspect of MIS, for certainly each aspect is itself a topic of many books. This text is not intended to provide readers
enough technological knowledge to make them MIS experts. It is not intended to be a source of discussion of any
particular technology. This text is written to help managers begin to form a point of view of how IS will help or
hinder their organizations and create opportunities for them.
The idea for this text grew out of discussions with colleagues in the MIS area. Many faculties use a series of
case studies, trade and popular press readings, and Web sites to teach their MIS courses. Others simply rely on one
of the classic texts, which include dozens of pages of diagrams, frameworks, and technologies. The initial idea for
this text emerged from a core MIS course taught at the business school at the University of Texas at Austin. That
course was considered an “appetizer” course—a brief introduction into the world of MIS for MBA students. The
course had two main topics: using information and managing information. At the time, there was no text like this
Bill Gates, Business @ the Speed of Thought. New York: Warner Books, Inc. 1999.
Source: Private conversation with one of the authors.
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one; hence, students had to purchase thick reading packets made up of articles and case studies to provide them the
basic concepts. The course was structured to provide general MBA students enough knowledge of the MIS field so
that they could recognize opportunities to use the rapidly changing technologies available to them. The course was
an appetizer to the menu of specialty courses, each of which went much more deeply into the various topics. But
completion of the appetizer course meant that students were able to feel comfortable listening to, contributing to,
and ultimately participating in IS decisions.
Today, many students are digital natives—people who have grown up using information technologies (IT) all
of their lives. That means that students come to their courses with significantly more knowledge about things such
as tablets, apps, personal computers, smartphones, texting, the Web, social networking, file downloading, online
purchasing, and social media than their counterparts in school just a few years ago. This is a significant trend
that is projected to continue; students will be increasingly knowledgeable the personal use of technologies. That
knowledge has begun to change the corporate environment. Today’s digital natives expect to find in corporations
IS that provide at least the functionality they have at home. At the same time, these users expect to be able to work
in ways that take advantage of the technologies they have grown to depend on for social interaction, collaboration,
and innovation. We believe that the basic foundation is still needed for managing and using IS, but we understand
that the assumptions and knowledge base of today’s students is significantly different.
Also different today is the vast amount of information amassed by firms, sometimes called the “big data” problem. Organizations have figured out that there is an enormous amount of data around their processes, their interactions with customers, their products, and their suppliers. These organizations also recognize that with the increase
in communities and social interactions on the Web, there is additional pressure to collect and analyze vast amounts
of unstructured information contained in these conversations to identify trends, needs, and projections. We believe
that today’s managers face an increasing amount of pressure to understand what is being …
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