Business Information Management Improving Performance Using Information Systems

734 Pages·2004·15.626 MB·English

by  Dave Chaffey, Steve Wood

Chaffey/Woods_ppr 19/10/2005 10:46 AM Page 1
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BUSINESS INFORMATION
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Information overload? You hold the key. Dr Dave Chaffeyhas 15
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years experience of developing e MANAGEMENT
Today it is estimated that the world’s total yearly creation of print,

information management UA
film, optical and magnetic content requires 8,500,000,000,000,000,000
solutions in industry and sT
bytes of storage.
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education. Dave is a visiting nI
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That is 1300MB for every man, woman and child alive – the equivalent g
lecturer at the Universities of
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of over 15 metres of books per person. And it is increasing by 30 per Cranfield, Leeds and Warwick. In
cent a year. Information Systems
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In every aspect of our lives we are suffering from information overload. Steve Woodlectures in r
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This is when we can see the potential value of information, but are information management at
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unable to derive value from it because of its volume and complexity. the School of Business a
Information, Liverpool John tiA DAVE STEVE
But organisations and the individuals within them must develop o
strategies to manage information as a resource in order to boost Moores University. He is an nG CHAFFEY WOOD
experienced information E &
their performance, and these are described and explained in this S
manager and has previously yM
innovative textbook.
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worked as Intranet and Extranet
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Business Information Managementtakes an applied, problem-solving Manager for HM Treasury. e
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approach, contextualizing all theory within contemporary examples m
from a wide range of organisations in the global environment. sT
“My impressions are very positive … the subject matter is up to date and the book
has good references throughout. It deals with the recent issues surrounding
knowledge management well and integrates this into the standard information
systems framework.”
David M Walters, University of Central Lancashire
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“The authors have done an excellent job. The examples are T A
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concrete and inspiring, making the book a comprehensive and V E
detailed presentation of the relevant aspects of Business E C

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Information Management today.”
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Professor Marjatta Maula, Tampere University of Technology O F
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Use the online resources
for this book at
www.pearson-books.com
An imprint of www.booksites.net/chaffey www.booksites.net/chaffey
BINM_A01.QXD 9/29/07 8:22 AM Page i
BUSINESS INFORMATION
MANAGEMENT
Visit the Business Information ManagementCompanion Website
at www.booksites.net/chaffeyto find valuable studentlearning
material including:
■ Learning outcomes for each chapter
■ Multiple choice questions for every chapter, with instant
feedback
■ Annotated weblinks to relevant, specific Internet resources to
facilitate in-depth independent research
■ Searchable online glossary
BINM_A01.QXD 9/29/07 8:22 AM Page ii
Dave Chaffey, BSc, PhD, MCIM has extensive Steve Wood, BA, MA, is a Senior Lecturer in Information
experience of working in industry on corporate Management, at the School of Business Information,
information systems projects for companies such as Liverpool John Moores University. Steve has worked at
Ford Europe, WH Smith, North West Water and the the University since 2001 teaching undergraduate and
Halifax Bank in roles varying from business/systems postgraduate modules on information management,
analyst, programmer and trainer to project manager. knowledge management, e-business and information
law. He is also Programme Leader for BSc E-Business
Between 1995 and 2001 he was senior lecturer in
Communications programme. Steve’s research interests
Information Systems in the Derbyshire Business School
include information auditing, content management
at the University of Derby. He was involved in teaching at
systems and freedom of information legislation. He is
undergraduate and postgraduate levels including a first
currently completing a PhD on the topic of business
year undergraduate module in Information Systems for
models for enterprise content management systems.
Business, a second year module in Systems Analysis and
Design, an HND module in Managing Business Steve also consults and trains on information
Computing, an MBA module in Information Management, management and e-business areas with SMEs and
an MSc in Strategic Management and more specialist large organizations, including DTI funded Knowledge
postgraduate modules in E-business and information Transfer Partnership programmes.
strategy and E-commerce communications.
Previously Steve worked for HM Treasury as intranet
Dave continues to lecture in E-business at UK Business and extranet manager, implementing the Treasury's
Schools including those at the Universities of Cranfield, e-business and knowledge management strategy.
Leeds and Warwick. As Director of Marketing Insights
Limited and E-marketing Director at marketing agency
Ripe, he is also a trainer and consultant with
organizations including 3M, BP, Tektronix, KPM Music
(EMI) and NCH where he assists in their adoption of
technology to support marketing. His specialism is the
use of web analytics metrics to inform organizational

performance improvement in E-marketing and E-CRM.
Dave is author or co-author of six other best-selling
business books for students and professionals:
E-business and E-commerce Management; Business
Information Systems; Internet Marketing: Strategy,
Implementation and Practice; Groupware, Workflow and
Intranets; eMarketing eXcellence and Total E-mail
Marketing. Dave has compiled a regularly updated
website of resources at www.davechaffey.comto
support students and delegates attending courses and
learning using his books.
BINM_A01.QXD 9/29/07 8:22 AM Page iii
BUSINESS INFORMATION
MANAGEMENT
Improving Performance using
Information Systems
DAVE CHAFFEY
STEVE WOOD
BINM_A01.QXD 9/29/07 8:22 AM Page iv
Pearson Education Limited
Edinburgh Gate
Harlow
Essex CM20 2JE
England
and Associated Companies throughout the world
Visit us on the World Wide Web at:
www.pearsoned.co.uk
First published 2005
© Marketing Insights Limited and Steve Wood 2005.
The right of Steve Wood to be identified as author of this work has been
asserted by him in accordance with the Copyright, Designs, and Patents Act 1988.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval
system, or transmitted in any form or by any means, electronic, mechanical, photocopying,
recording or otherwise, without either the prior written permission of the publisher or a
licence permitting restricted copying in the United Kingdom issued by the Copyright
Licensing Agency Ltd, 90 Tottenham Court Road, London W1T 4LP.
The programs in this book have been included for their instructional value. They have been
tested with care but are not guaranteed for any particular purpose. The publisher does not
offer any warranties or representations nor does it accept any liabilities with respect to the
programs.
All trademarks used herein are the property of their respective owners. The use of any
trademark in this text does not vest in the author or publisher any trademark ownership
rights in such trademarks, nor does the use of such trademarks imply any affiliation
with or endorsement of this book by such owners.
ISBN: 978-0-273-68655-2
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library.
Library of Congress Cataloging-in-Publication Data
Chaffey, Dave, 1963-
Business information management : improving performance using infomation systems /
Dave Chaffey, Steve Wood.
p. cm.
Includes bibliographical references and index.
ISBN 0-273-68655-0 (alk. paper)

1. Management information systems. 2. Information resources management. 3.
Business--Communication systems--Management. 4. Information
technology--Management. I. Wood, Steve. II. Title.
HD30.213.C43 2004
658.4'038'011--dc22
2004056728
10 9 8 7 6 5
09 08 07
Typeset in 9.5/12 pt Stone by 30.
Printed and bound by Mateu-Cromo Artes Graficas, Madrid, Spain.
The publisher’s policy is to use paper manufactured from sustainable forests.
BINM_A01.QXD 9/29/07 8:22 AM Page v
Brief contents
Preface xxiv
Guided tour of the book xxxii
Guided tour to student resources on the web xxxiv
Acknowledgements xxxvi
Part 01 INTRODUCTION
01 Introduction to information management 5
02 Software for information management 57
03 Technology for information management 115
Part 02 STRATEGY
04 Information management strategy 179
05 Knowledgement management strategy 221
06 Information systems strategy 273
Part 03 IMPLEMENTATION
07 Mana ging systems development 335
08 Managing change 383
09 Building an information architecture 435
Part 04 MANAGEMENT
10 Managing information quality 503
11 Managing information services quality 557
12 Managing ethical and legal issues 609
Glossary G1
Index I1
BINM_A01.QXD 9/29/07 8:22 AM Page vi
Chapter roadmap
Part 01
Chapter 01
Introduction to
INTRODUCTION
information
management
Chapter 02 Chapter 03
Software for Technology for
information information
management management
Part 02
Chapter 04
Information
STRATEGY
management
strategy
Chapter 05
Chapter 06
Knowledge
Information
management
systems strategy
strategy
Part 03
Chapter 07
IMPLEMENTATION Managing systems
development
Chapter 09
Chapter 08
Building an
Managing
information
change
architecture

Part 04
Chapter 10
Managing
MANAGEMENT
information
quality
Chapter 11
Chapter 12
Managing
Managing ethical
information
and legal issues
services quality
BINM_A01.QXD 9/29/07 8:22 AM Page vii
Detailed contents
Preface xxiv
Guided tour of the book xxxii
Guided tour to student resources on the web xxxiv
Acknowledgements xxxvi
Part 01 INTRODUCTION
01 Introduction to information management
Chapter at a glance • Objective • Learning outcomes • Management issues
Links to other chapters 5
Introduction 6
Information in today’s world 7
The information society 7
The information economy 8
The information age 9
Information in today’s organization 10
Information overload 10
■ RESEARCH INSIGHT 1.1 How much information? 11
Using information to support processes 13
Using information to create value 14
■ MINI CASE STUDY 1.1 Capital One creates value through information 15
■ ACTI VITY 1.1 Types of organizational information 18
Fundamentals of business information management 18
What is business information management? 19
Information resources 20
Information quality 23
■ ACTIVITY 1.2 Assessing information quality for the Lo-cost Airline Company 24
The data-to-information transformation process 24
Systems theory 26
■ ACTIVITY 1.3 Why are environment influences important? 28
Information types and sources 28
Online information sources 28
■ ACTIVITY 1.4 Smarter searching using Google 30
The information lifecycle 31
Records management 32
Decision-making theory 33
BINM_A01.QXD 9/29/07 8:22 AM Page viii
viii DETAILED CONTENTS
■ RESEARCH INSIGHT 1.2 How people process information. 34
From information to knowledge and from knowledge to information 35
■ DEBATE 1.1 39
■ CASE STUDY 1.1 Knowledge management in financial services 39
Technology resources 42
Software resources 42
Technology infrastructure resources 43
Information systems 43
E-business and e-commerce 44
Informatics 44
Does IT matter? 45
■ DEBATE 1.2 46
■ CASE STUDY 1.2 Has corporate IT failed to deliver? 47
People resources 49
Information orientation 50
Summary 50
Exercises 51
SELF-ASSESSMENT QUESTIONS 51
ESSAY AND DISCUSSION QUESTIONS 51
References 52
Further reading 54
Weblinks 54
02 Software for information management
Chapter at a glance • Objective • Learning outcomes • Management issues
Links to other chapters 57
Introduction 58
The main categories of software 59
Applications software 61
Categorizing applications by level of decision making 62
Enterprise applications 63

■ MINI CASE STUDY 2.1 Enterprise applications improve information access
at Minolta Europe 66
Document and records management systems 67
Departmental applications 68
Personal productivity or office software 68
Groupware 69
■ ACTIVITY 2.1 Options for using groupware to support student learning 70
Database systems 71
Systems software 71
Operating systems software 72
Network software 75
Development software 76
Selecting appropriate software 76
The software selection process 76
Criteria for selecting software 77
BINM_A01.QXD 9/29/07 8:22 AM Page ix
DETAILED CONTENTS ix
■ ACTIVITY 2.2 Selecting applications software for a small business 78
The make-buy-or-rent decision 78
■ ACTIVITY 2.3 On-demand computing 80
Best-of-breed or single-vendor? 81
■ RESEARCH INSIGHT 2.1 Single-vendor or best-of-breed? 81
■ CASE STUDY 2.1 Electricity, water, phone, IT.., can IT become a utility? 82
Open-source software 83
■ MINI CASE STUDY 2.2 Munich makes the move to Linux 84
■ DEBATE 2.1 85
■ ACTIVITY 2.4 Selecting open-source software 86
■ CASE STUDY 2.2 Is open-source software a realistic choice? 87
E-business applications 88
■ RESEARCH INSIGHT 2.2 Online transaction costs 89
■ MINI CASE STUDY 2.3 Dabs.com profit from e-business 92
E-business defined 92
E-business benefits and management issues 95
From the Internet to intranets and extranets 97
Intranet applications 97
■ MINI CASE STUDY 2.4 A modern intranet for Ceva Santé Animale 98
Intranet benefits and management issues 99
Extranet applications 100
■ MINI CASE STUDY 2.5 Herman Miller puts the extranet first 102
Extranet benefits and management issues 102
Web logs 103
Customer relationship management applications 104
■ MINI CASE STUDY 2.6 Standard Life Bank justifies new data warehouse 106
Supply chain management applications 107
■ MINI CASE STUDY 2.7 Iceland brings its suppliers in from the cold 109
Summary 110
Exercises 111
Self-assessment questions 111

Essay and discussion questions 111
References 112
Further reading 112
Weblinks 113
03 Technology for information management
Chapter at a glance • Objective • Learning outcomes • Management issues
Links to other chapters 115
Introduction 116
■ RESEARCH INSIGHT 3.1 ‘From techno-speak to common speak’ 116
Technology infrastructure components 117
The client/server model 118
Types of client computer 120