Table of Contents

Foreword viii

Preface xi

Acknowledgment xxix

Chapter I Theories and Models of Business Firms 1

Introduction 1

Resource-Based Theory of the Firm 2

Activity-Based Theory of the Firm 3

Value Configuration of the Firm 4

The Firm as a Value Chain 4

The Firm as a Value Shop 5

The Firm as a Value Network 8

Comparison of Value Configurations 9

Business Model of the Firm 10

E-Business Models 14

Appropriate E-Business Models for E-Strategies 22

Summary 27

References 29

Chapter II Strategic Management Principles 31

Introduction 31

Basic Principles of Strategy 32

Corporate Strategy 34

Strategic Management 35

Strategic Planning 39

Measurement of Competitive Strategy 40

Resource-Based Strategy 44

Activity-Based Strategy 46

Ethics in IT 47

Business Strategy Analysis 49

Analyzing Needs for Change: The Strategy 62

E-Strategy 64

Summary 69

References 70

Endnotes 72

Chapter III Strategic Alignment, IT Value, and Organizational Analysis 73

Introduction 73

Strategic Alignment 74

IT Value and Organizational Analysis 77

Summary 99

References 100

Chapter IV Critical Success Factors of IT Strategy 102

Introduction 102

IT and Business as One 103

Acting as One Behaviorally 107

Acting as One Organizationally 108

Overview of the Critical Success Factors 110

Strategy Direction Setting Alignment 114

Strategic Planning Alignment 116

Strategy Execution Alignment 121

Monitoring Business Outcomes Against Strategic Objectives 124

Recommendations 127

Summary 128

References 129

Endnote 130

Chapter V Strategic Alignment for Business Value Creation 131

Introduction 131

Strategic Alignment Principles 132

StrategyDirection 145

Strategic Planning 147

Strategy Execution 153

Business Outcome Monitoring 154

Global IT Strategy and Management 156

IT Strategy Map 159

Summary 163

References 164

Endnotes 166

Chapter VI Enterprise and Technology Architectures 167

Introduction 167

Enterprise Architecture Principles 169

Spewak Enterprise Architecture Planning (EAP) Methodology 171

Carbone Enterprise Architecture Toolkit 173

Industry and International Architecture Framework Standards 176

The Open Group Enterprise Architecture Framework 179

Ross-Weill-Robertson Model 182

Ross-Weill-Robertson Enterprise Architecture 186

Gartner Enterprise Architecture 186

Business Architecture 193

Information Architecture 197

Application Architecture 203

Technology Architecture 205

TOGAF Architecture Reference Models 211

Architecture Governance 212

Practice Experiences 214

Summary 218

References 219

Endnotes 221

Chapter VII Strategic Programs: Planning and Execution 222

Introduction 222

Cassidy Strategic Planning Model 223

Y Strategic Planning Model 226

Implementing Plan 235

Barriers to Implementation 237

Resources Needed for the Implementation 238

Implementation Predictors 241

IT Strategy Evaluation: Evaluating the Results 242

Enterprise Architecture Driven IT Strategic Plan 245

Summary 252

References 254

Endnotes 255

Chapter VIII Strategic IT Resources and Sourcing Strategy 256

Introduction 256

Characteristics of Strategic Resources 258

Strategic IT Resources 261

Outsourcing Definitions 265

IT Organizational Principles to Facilitate Outsourcing 267

Outsourcing Opportunities 268

Outsourcing Threats 270

IT Sourcing Options 276

Distinctive Nature of IT Sourcing 278

Sourcing Alternatives 280

IT Outsourcing Decisions 286

Outsourcing Performance 288

Transformational Outsourcing 289

Global Outsourcing 292

Dimensions of IT Outsourcing Strategy 295

Sourcing Theories 297

Theories of the Firm 298

Economic Theories 300

Relational Theories 301

Comparison of Theories 306

Case Examples: Sourcing Strategies 306

Summary 310

References 311

Endnote 314

Chapter IX The CIO Enabling IT Governance 315

Introduction 315

What is IT Governance? 315

Corporate Governance 317

Contracts in Governance 318

Governance and Management Roles 323

Why is IT Governance Important? 323

The Outsourcing Governance Model 325

How to Succeed as a Client 329

How to Succeed as a Vendor 329

CIO Leadership and IT Governance 329

The CIO Position 332

Hybrid Manager 337

Roles and Responsibilities 340

Leadership Behavior 342

CIO's Influence Behavior 343

Work Experience 346

The New CIO Leader 349

CIO Backgrounds 350

The CEO-CIO Relationship 351

Summary 352

References 353

Chapter X Business Innovation and Information Management 356

Introduction 356

Business Innovation Types 357

Characteristics and Scale of Innovation 363

Value of IT: Levels of Business Transformation Capabilities 367

Information Capabilities for Innovation 370

IT-Driven Business Innovation 375

IT Value in Disruptive Innovations 376

Innovative IT Management 378

Conditions for Innovation 379

Drivers of Innovation 381

Innovation Process and Infrastructure 382

Innovation Management Measurement 385

Summary 388

References 388

Endnotes 391

Chapter XI Innovation Driven Knowledge Management 392

Introduction: Knowledge Drives Innovation 392

Knowledge as a Strategic Resource 393

Characteristics of Knowledge 395

The Knowledge-Strategy Link 396

Approaches to Knowledge Management 398

The Economic School 398

The Organizational School 403

The Strategic School 409

Chief Knowledge Officer 412

IT Requirements of Knowledge Management 416

IS/IT in Knowledge Management 417

Knowledge Management Processes 419

Summary 424

References 425

Chapter XII Business-Aligned IT Strategy Case Example: CLP Group, Hong Kong 428

Introduction 428

CLP Group Company Profile 429

CLP Group Vision/Mission 430

Strategic Positioning 430

CLP Group Strategy 431

CLP IT Strategy 431

CLP Strategy Map 432

CLP Financial Perspective 433

CLP Customer Perspective 433

CLP Internal Perspective (Core Processes) 435

CLP Learning and Growth Perspective Information Capital (IT Strategy) 437

Commercial Benefits Delivered by CLP Group IT Strategy 454

Summary 456

References 457

Endnotes 457

About the Authors 459

Index 461