INSY 707 Winter 2007

Transcription

1 STRATEGIC MANAGEMENT OF IT INSY 707 Winter 2007 PROFESSOR Name: Prof. Geneviève Bassellier Office: Bronfman 587 Office Hours: By appointment only Office Phone: (514) REQUIRED READINGS A course pack containing all the required articles is available at the bookstore. COURSE OVERVIEW As the scope of technology continues to broaden in organizations, the management of information technology (IT) and information systems (IS) becomes both more challenging and more critical. This seminar will provide students with a deep understanding of the theories and issues surrounding the strategic management of IT in organizations. This is one of the main research streams in the IS field and it has received significant research attention in the last 20 years. This course covers issues at different levels: organization, IT function, project, and individual. Although this seminar will focus on research conducted in Information Systems, it will be open to students from all areas. OBJECTIVE This course covers the strategic management of information technology and investigates the potential use of IT to improve organizational competitive advantage. Students are exposed to topics such as strategic alignment of IT, business value of IT, IT governance, IT sourcing, management of the IT function, IS project management. The articles are mainly drawn from the top IS journals such as MIS Quarterly, Information Systems Research, Journal of Management Information Systems, and Management Science. The focus is on providing an in-depth coverage of key issues related to the strategic management of IT.

2 COURSE CONDUCT The course is taught as a seminar for which students are asked to read between five and seven recent articles each week. Thus, having studied the assigned material, each student will be prepared to actively participate in the classroom discussion. Participation is evaluated through the quality of contribution to discussion. Students are expected to abide by university rules on ethical academic conduct. Plagiarism is not tolerated and will be dealt with accordingly. Late assignments are not accepted. ASSIGNMENTS The formal individual assignments for the course are the following: Critiques: Students will prepare a total of five critiques (3 to 5 pages, 1 ½ spaced, 12-point font). Each one will be the analysis of the papers of a particular theme. It will include a short summary of the topics covered, an evaluation and integration of the results, research methods, and techniques used in the studies and it will conclude on what is still unknown on that issue. Each critique should be handed in at the end of the corresponding theme. Paper review: During the semester, each student will review a paper that was submitted to a conference or a journal. Participants will have two weeks to hand in their review of that paper. Participation: Students are expected to participate in all class discussions and activities. The input of each student is critical to his/her own and colleagues learning. Student s participation will be evaluated through the quality of his/her contribution in class. Research proposal: Students will write a research proposal and present it at the end of the semester. The purpose of this project is to allow each student to explore in detail any of the topics covered in class. Students have to select a specific research idea and try to examine a particular issue. Participants will have to submit a short proposal by week 6 in order to discuss it and get it approved. GRADING Critiques (5) 35% Paper Review 15% Participation 25% Research Proposal Report 25% Total 100% 2

3 CURRICULUM SUMMARY Week Date Theme Competitive Advantage through IT 1 Jan. 09 Strategic Role of IT 2 Jan. 16 Strategic Alignment of IT 3 Jan. 23 Social Dimension of Strategic Alignment of IT 4 Jan. 30 Business Value of IT Management of the IT Function 5 Feb. 06 IT Governance 6 Feb. 13 Partnerships with Business Areas Management of IS Projects 7 Feb. 27 IT Risk Management 8 Mar. 06 Control Theory in Software Project Management Outsourcing of Information Systems Services 9 Mar. 13 Determinants of the Outsourcing Decision 10 Mar. 20 Managing the Outsourcing Relationship Management of IS Personnel 11 Mar. 27 Knowledge for IS and Business People 12 Apr. 3 IS Leadership 13 Apr. 10 Research Proposal Presentations 3

4 DETAILED CURRICULUM COMPETITIVE ADVANTAGE THROUGH IT Strategic deployment of IT is recognized for enhancing a company s competitive advantage and improving its operating performance. Students require a thorough understanding of the challenges faced by organizations when making decisions related to the choice and implementation of strategic IT Therefore, this theme is dedicated to better understanding the strategic role of IT, the importance of properly aligning IT with business strategy, and the business value of IT. Background Readings Boar, B.H. Strategic Thinking for Information Technology, Wiley, Callon, J.D. Competitive Advantage through Information Technology, McGrawHill, Scott-Morton, G. The Corporation of the 1990s: Information Technology and Organizational Transformation, Oxford University Press, New York, Week 1: Strategic Role of IT Bergeron, F., Buteau, C., and Raymond, L. Identification of Strategic Information Systems Opportunities, MIS Quarterly (15:1), 1991, pp Kettinger, W.J., Grover, V., Guha, S., and Segars, A.H. Strategic Information Systems Revisited: A Study in Sustainability and Performance, MIS Quarterly (18:1), 1994, pp King, W.R. and Teo, T.S.H. Key Dimensions of Facilitators and Inhibitors for the Strategic Use of Information Technology, Journal of Management Information Systems (12:4), 1996, pp Sambamurthy, V., Bharadway, A. and Grover, V. Shaping Agility through Digital Options: Reconceptualizing the Role of Information Technology in Contemporary Firms, MIS Quarterly (27:2), 2003, pp Ross, J.W. Creating a Strategic IT Architecture Competency: Learning in Stages, MIS Quarterly Executive (2:1), 2003, pp Segars. A.H., and Grover, V. Strategic Information Systems Planning Success: An Investigation of the Construct and its Measurement, MIS Quarterly (22:2), 1998, pp Cash, J.I., McFerland, F.W, McKenney, J.L., and Applegate, L.M. Effects of IT on Competition, Chapter 3, in Corporate Information Systems Management, Irwin, 1992, pp Earl, M.J. Experiences in Strategic Information Systems Planning, MIS Quarterly (17:1), 1993, pp

5 Porter, M.E., and Millar, V.E. How Information Gives you Competitive Advantage, Harvard Business Review, July-August 1985, pp Rockart, J.F., and Short, J.E. IT in the 1990s: Managing Organizational Interdependence, Sloan Management Review (30:2), 1989, pp Tapscott, D., and Caston, A. The New Promise of Information Technology, Business Quarterly (57:4), Summer 1993, pp Week 2: Strategic Alignment of IT Henderson, J.C., and Venkatraman, N. Strategic Alignment: Leveraging Information Technology for Transforming Organizations, IBM Systems Journal (38:2&3), 1999, pp Luftman, J., and McLean, E.R. Key Issues for IT Executives, MIS Quarterly Executive (3:2), 2004, pp Chan, Y. E., Huff, S. L., Copeland, D. G., and Barclay, D. W. Business Strategic Orientation, Information Systems Strategic Orientation, and Strategic Alignment, Information Systems Research (8:2), 1997, pp Croteau, A.-M., and Bergeron, F., An Information Technology Trilogy: Business Strategy, Technological Deployment and Organizational Performance, Journal of Strategic Information Systems (20:2), 2001, pp Luftman, J., and Brier, T., Achieving and Sustaining Business-IT Alignment, California Management Review (42:1), 1999, pp Bergeron, F., Raymond, L, and Rivard, S. Ideal Patterns of Strategic Alignment and Business Performance, Information & Management (41:8), 2004, pp Chan, Y.E. Why Haven t We Mastered Alignment? The Importance of Informal Organizational Structure, MIS Quarterly Executive (1:2), pp Sabherwal, R., and Chan, Y.E. Alignment Between Business and IS Strategies: A Study of Prospectors, Analyzers and Defenders, Information Systems Research (12:1), 2001, pp Scott-Morton, Annex D, "The Value Process Model". Scott-Morton, Annex E, "The Strategic Alignment Process". Scott-Morton, Chapter 6, "Business Strategy Development, Alignment, and Redesign". 5

6 Week 3: Social Dimension of Strategic Alignment of IT Reich, B.H., and Benbasat, I. Factors that Influence the Social Dimension of Alignment Between Business and Information Technology Objectives, MIS Quarterly (24:1), 2000, pp Ross, J.W., Beath, C.M., and Goodhue, D.L. Develop Long-Term Competitiveness through IT Assets, Sloan Management Review (38:1), 1996, pp Broadbent, M., and Weill, P. Management by Maxim: How Business and IT Managers Can Create IT Infrastructures, Sloan Management Review (38:3), 1997, pp Croteau, A.-M., and Raymond, L. Performance Outcomes of Strategic and IT Competencies Alignment, Journal of Information Technology (19:3), 2004, pp Kears, G.S., and Lederer A.L. A Resource-Based View of Strategic IT Alignment: How Knowledge Sharing Creates Competitive Advantage, Decision Sciences (34:1), 2003, pp Bensaou, M., and Michael, E. The Right Mind-Set for Managing Information Technology, Harvard Business Review (76:5), 1998, pp Tavakolian, H. Linking the Information Technology Structure with Organizational Competitive Strategy, MIS Quarterly (13:3), 1989, pp Van Der Zee, J.T.M., and De Jong B. Alignment is Not Enough: Integrating Business and Information Technology Management with the Balanced Business Scorecard, Journal of Management Information Systems (16:2), 1999, pp Week 4: Business Value of IT Brynjolfsson, E. The Productivity Paradox of Information Technology, Communications of the ACM (36:12), 1993, pp Bharadwaj, A.S. A Resource-Based Perspective on Information Technology Capability and Firm Performance: An Empirical Investigation, MIS Quarterly (24:1), 2000, pp Melville, N., Kraemer, K., and Gurbaxani, V. Information Technology and Organizational Performance: An Integrative Model of IT Business Value, MIS Quarterly (28:2), 2004, pp Wade, M., and Hulland, J. Review: The Resource-Based View and Information Systems Research: Review, Extension, and Suggestions for Future Research, MIS Quarterly (28:1), 2004, pp Davern, M.J., and Kauffman, R.J. Discovering Potential and Realizing Value from Information Technology Investments, Journal of Management Information Systems (16:4), 2000, pp

7 Chan, Y. E. IT Value: The Great Divide Between Qualitative and Quantitative and Individual and Organizational Measures, Journal of Management Information Systems (16:4), 2000, pp Sircar, S., Turnbow, J. L., and Bordoloi, B. A Framework for Assessing the Relationship Between Information Technology Investments and Firm Performance, Journal of Management Information Systems (16:4), 2000, pp MANAGEMENT OF THE IT FUNCTION The organization and structure of IT functions play an important role for organizational success and represent an enduring problem faced by senior executives. This theme will expose students to the role of the IT function in the organization and how the IT function interacts with other business areas. Background Readings Grant, R. Prospering in Dynamically-Competitive Environments: Organizational Capability as Knowledge Integration, Organization Science (7:4), 1996, pp Weill, P., and Ross, J. W. IT Governance : How Top Performers Manage IT Decision Rights for Superior Results, Boston, Ma. Harvard Business School Press, Week 5: IT Governance Peterson R, Crafting Information Technology Governance, Information Systems Management (21:4), 2004, pp Weill, P. Don t Just Lead, Govern: How Top-Performing Firms Govern IT, MIS Quarterly Executive (3:1), 2004, pp Weill P., and Ross J. A Matrixed Approach to Designing IT Governance, MIT Sloan Management Review (46:2), 2005, pp Brown, C.V. Redesigning the Emergence of Hybrid IS Governance Solutions: Evidence from a Single Case Site, Information Systems Research (8:1), 1997, pp Sambamurthy V., and Zmud R. Research Commentary: The Organizing Logic for an Enterprise's IT Activities in the Digital Era - A Prognosis of Practice and a Call for Research, Information Systems Research (11:2), 2000, pp Sambamurthy, V., and Zmud, R. Arrangements for Information Technology Governance: A Theory of Multiple Contingencies, MIS Quarterly (23:2), 1999, pp

8 Rondeau, A., Croteau, A.-M., and Luc D. Appréciation empirique d enjeux technologiques liés à la transformation organisationnelle dans le cadre du déploiement de l administration électronique, Systèmes d information et Management, 2005 (10:1), pp Schwarz, A., and Hirschheim, R. An Extended Platform Logic Perspective of IT Governance: Managing Perceptions and Activities of IT, The Journal of Strategic Information Systems (12:2), 2003, pp Week 6: Partnerships with Business Areas Faraj, S., and Sproull, L., Coordinating Expertise in Software Development Teams, Management Science (46:12), 2000, pp Feeny, D.F., and Willcocks, L.P. Core IS Capabilities for Exploiting Information Technology, Sloan Management Review (39:3), 1998, pp Henderson, J.C. Plugging into Strategic Partnerships: The Critical IS Connection, Sloan Management Review (31:3), 1990, pp Nelson, K., and Cooprider, J.G. The Contribution of Shared Knowledge to IS Group Performance, MIS Quarterly (20:4), 1996, pp Agarwal R, and Sambamurthy V. Principles and models for organizing the IT function, MIS Quarterly Executive (1:1), 2002, pp Sambamurthy, V. Bharadway, A, and Grover V. Shaping Firm Agility through Digital Options: Reconceptualizing the Role of IT in Contemporary Firms, MIS Quarterly (27:2), 2003, pp MANAGEMENT OF IS PROJECTS Managing software projects is one of the core competencies of IS professionals. Yet, it is a highly complex and risky task. Indeed, as the literature of the past 30 years shows, delivering the intended systems, both on time and within budget, has been a critical management issue and an enduring research topic. Indeed, despite the abundance of existing project management practices - be they project planning and control tools, software project risk management methods, or change management approaches -, the failure rate of such projects continues to be high. The sessions devoted to this theme will focus on two research streams: risk management and control theory. These streams delineate the causes of difficulties in this area and provide avenues for improved management of IS projects. 8

9 Background Readings Alter, S., and Ginzberg, M. Managing Uncertainty in MIS Implementation, Sloan Management Review (20:1), 1978, pp Boehm, B.W. Software Risk Management, The Institute of Electrical and Electronic Engineering, Brooks, F.P. The Mythical Man-Month, Addison-Wesley, McFarlan, F.W. Portfolio Approach to Information Systems, Harvard Business Review (September- October), 1981, pp Zmud, R.W. Management of Large Software Development Efforts, MIS Quarterly (4:2), 1980, pp Week 7: IT Risk Management Barki, H., Rivard, S., and Talbot, J., An Integrative Contingency Model of Software Project Risk Management, Journal of Management Information Systems (17:4), 2001, pp Keil, M., Cule, P.E., Lyytinen, K., and Schmidt, R.C. A Framework for Identifying Software Project Risks, Communications of the ACM (41:11), 1998, pp Lyttinen, K., Mathiassen, L., and Ropponen, J. Attention Shaping and Software Risk: A Categorical Analysis of Four Classical Risk Management Approaches, Information Systems Research (9:3), 1998, pp Wallace, L., Keil, M., and Rai, A. How Software Project Risk Affects Project Performance: An Investigation of the Dimensions of Risk and an Exploratory Model, Decision Sciences (35:2), 2004, pp Barki, H., Rivard, S., and Talbot, J. Toward an Assessment of Software Development Risk, Journal of Management Information Systems (10:2), 1993, pp Bernard, J.-G., Rivard, S., and Aubert, B.A., L'exposition au risque d'implantation de ERP: éléments de mesure et d'atténuation, Systèmes d'information et management (9 :2), 2004, pp Week 8: Control Theory in Software Project Management Henderson, J.C., and Lee, S. Managing I/S Design Teams: A Control Theories Perspective, Management Science (38:6), 1992, pp Kirsch, L.J. Deploying Common Systems Globally: The Dynamics of Control, Information Systems Research (15:4), 2004, pp Kirsch, L.J. Portfolios of Control Modes and IS Project Management, Information Systems Research (8:3), 1997, pp

10 Kirsch, L.J. The Management of Complex Tasks in Organizations: Controlling the Systems Development Process, Organization Science (7:1), 1996, pp Kirsch, L.J., Sambamurthy, V., Ko, D., and Purvis, R.L. Controlling Information Systems Development Projects: The View from the Client, Management Science (48:4), 2002, pp Scott, J.E., and Vessey, I. Managing Risks in Enterprise Systems Applications, Communications of the ACM (45:4), 2002, pp Beath, C.M. Managing the User Relationship in Information Systems Development Projects: A Transaction Governance Approach, Proceedings of the Eighth International Conference on Information Systems, Pittsburgh, PA, 1987, pp Beath, C.M. Strategies for Managing MIS Projects: A Transaction Cost Approach, Proceedings of the Fourth International Conference on Information Systems, Houston, Tx., ACM/SIGBDP, New York, NY, 1983, pp Nidumolu, S.R. A Comparison of the Structural Contingency and Risk-Based Perspectives on Coordination in Software-Development Projects," Journal of Management Information Systems (13:2), 1996, pp Nidumolu, S.R. Standardization, Requirements Uncertainty and Software Project Performance, Information & Management (31:3), 1996, pp Ropponen, J., and Lyytinen, K. Can Software Risk Management Improve System Development: An Exploratory Study, European Journal of Information Systems (6:1), 1997, pp OUTSOURCING OF INFORMATION SYSTEMS SERVICES Outsourcing is defined as the "significant contribution by external vendors of the physical and/or human resources associated with the entire or specific components of the IT infrastructure in the user organization 1 ". An outsourcing decision is highly complex and involves much more than the classic issues associated to the make or buy decision. Indeed, major changes are taking place in the software industry, which are affecting the way corporations develop and use their information systems. These changes are being driven by the emergence of Application Service Providers (ASPs), the new software business models that they can offer, as well as by the major trend toward offshore outsourcing. The sessions devoted to this theme will focus on the two broad streams of research in this area: studies that aim at 1 Loh, L., and Venkatraman, N. Diffusion of Information Technology Outsourcing: Influence Sources and the Kodak Effect, Information Systems Research (3:4), 1992, pp ; p

11 understanding and explaining the outsourcing decision, and studies that focus on the management of the outsourcing relationship. Background Readings Hirschheim, R., Heinzl, A., and Dibbern, J. (editors), Information Systems Outsourcing, Springer, Lacity, M.C., and Hirschheim, R., Beyond the Information Systems Outsourcing Bandwagon: The Insourcing Response, J. Wiley, Lacity, M.C., and Hirschheim, R., Information Systems Outsourcing: Myths, Metaphors and Realities, J.Wiley, Week 9: Determinants of the Outsourcing Decision Ang, S., and Cummings, L.L. Strategic Response to Institutional Influences on Information Systems Outsourcing, Organization Science (8:3), 1997, pp Ang, S., and Straub, D.W. Production and Transaction Economies and IS Outsourcing: A Study of the US Banking Industry, MIS Quarterly (22:4), 1998, pp Aubert, B.A., Rivard, S., and Patry, M. A Transaction Cost Model of IT Outsourcing, Information & Management (41:7), 2004, p Bahli, B., and Rivard, S. The Information Technology Outsourcing Risk: A Transaction Cost and Agency Theory-Based Perspective, Journal of Information Technology (18:13), 2003, pp De Looff, A.L. Information Systems Outsourcing Decision-Making: A Framework, Organizational Theories and Case Studies Journal of Information Technology (10:4), 1995, pp Lee, J.N., Miranda, S.M., and Kim, Y.M. IT Outsourcing Strategies: Universalistic, Contingency, and Configurational Explanations of Success, Information Systems Research (5:2), 2004, pp Ten, J.T.C., Cheon, M.J., and Grover, V. Decisions to Outsource Information Systems Functions: Testing a Strategy Theoretic Discrepancy Model, Decision Sciences (26:1), 1995, pp Week 10: Managing the Outsourcing Relationship Ho, V.T., Ang, S., and Straub, D., When Subordinates Become IT Contractors: Persistent Managerial Expectations in IT Outsourcing, Information Systems Research (14:1), pp

12 Kern, T., Willcocks L., and Lacity M.C. Application Service Provision: Risk Assessment and Mitigation, MIS Quarterly Executive (1:2), 2002, pp Levina, N., and Ross, J.W. From the Vendor s Perspective: Exploring the Value Proposition in Information Technology Outsourcing, MIS Quarterly (27:3), 2003, pp Koh, C., Ang, S., and Straub, D.W. IT Outsourcing Success: A Psychological Contract Perspective, Information Systems Research (15:4), 2004, pp Susarla, A., Barua, A., and Whinston, A.B. Understanding the Service Component of Application Service Provision: An Empirical Analysis of Satisfaction with ASP Services, MIS Quarterly (27:1), 2003, pp Aubert, B.A., Patry, M., and Rivard, S. A Framework for Information Technology Outsourcing Risk Management, forthcoming DataBase, Aubert, B.A., Patry, M., and Rivard, S. A Tale of Two Outsourcing Contracts An Agency- Theoretical Perspective, Wirtschaftsinformatik, (45:2), 2003, pp Aubert, B.A., Rivard, S., and Patry, M. A Transaction Cost Approach to Outsourcing Behaviour: Some Empirical Evidence, Information & Management, (30:2), 1996, pp Bandula J., Schwarz, A., and Hirschheim, R. Determinants of ASP Choice: An Integrated Perspective, European Journal of Information Systems (12:3), 2003, pp Bryson, N., and Ngwenyama, O.K. Structuring IS Outsourcing Contracts for Mutual Gain: An Approach to Analyzing Performance Incentive Schemes, Journal of the AIS (1:9), Choudhury, V., and Sabherwal, R. Portfolios of Control in Outsourced Software Development Projects, Information Systems Research (14:3), 2003, pp Lacity, M.C., and Willcocks, L.P. An Empirical Investigation of Information Technology Sourcing Practices: Lessons from Experience, MIS Quarterly (22:3), 1998, pp Lee, J.N., and Kim, Y.G. Effects of Partnership Quality on IS Outsourcing: Conceptual Framework and Empirical Validation, Journal of Management Information Systems (15:4), 1999, pp MANAGEMENT OF IS PERSONNEL This theme covers the importance and challenges of relevant IS skills in IT and non-it personnel, and the role of IS leaders. The role of IS personnel at all levels has evolved substantially in the last decade, and so have their knowledge requirements. This theme looks at taxonomies of knowledge for IS professionals, the emerging importance of IT knowledge in non-it people, and the leadership role of IT executives. 12

13 Week 11: Knowledge for IS and Business People Benbasat, I., Dexter, A., and Mantha, R. W. Impact of Organizational Maturity on Information System Skill Needs, MIS Quarterly (4:1), 1980, pp Bassellier, G. and Benbasat I. Business Competence of IT Professionals: Conceptual Development and Influence on IT-Business Partnerships, MIS Quarterly (28:4), 2004, pp Bassellier, G., Benbasat, I., and Reich, B.H. The Influence of Business Managers' IT Competence on Championing IT, Information Systems Research (14:4), 2003, pp Nelson, R. R. Educational Needs as Perceived by IS and End-User Personnel: A Survey of Knowledge and Skills Requirements, MIS Quarterly (15:4), 1991, pp Roepke, R., Agarwal, R., and Ferratt, T. W. Aligning the IT human resource with business vision: the leadership initiative at 3M, MIS Quarterly (24:2), 2000, pp Tiwana, A., Bharadwaj, A., and Sambamurthy, V. The Antecedents of Information Systems Development Capability in Firms: A Knowledge Integration Perspective, Proceedings of the Twenty Fourth International Conference on Information Systems, Week 12: IS Leadership Armstrong C.P., and Sambamurthy, V. Information Technology Assimilation in Firms: The Influence of Senior Leadership and IT Infrastructures, Information Systems Research (10:4), 1999, pp Gottschalk, P. Information System Executives: The Changing Role of New IS/IT Leaders, Informing Science (3:2), 2000, pp Earl, M. J., and Feeny, D.F. Is your CIO adding Value?, Sloan Management Review (35:3), 1994, pp Feeny, D.F., Edwards, B.R., and Simpson, K.M. Understanding the CEO/CIO Relationship, MIS Quarterly (16:4), 1992, pp Week 13: Research Proposal Presentations ACADEMIC INTEGRITY McGILL UNIVERSITY VALUES ACADEMIC INTEGRITY. THEREFORE ALL STUDENTS MUST UNDERSTAND THE MEANING AND CONSEQUENCES OF CHEATING, PLAGIARISM AND OTHER ACADEMIC OFFENCES UNDER THE CODE OF STUDENT CONDUCT AND DISCIPLINARY PROCEDURES (see for more information). 13