How The Business World Operates

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How The Business World Operates

How The Business World Operates

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Organizational effectiveness


Organization Control


Performance measurement

and evaluation

Incentives and rewards


Formal reporting

relationships Planning

Business processes

Decision rights


Informal networks

People, Information, and



FIGURE 1.5 Managerial Levers model. Source: J. Cash, R. G. Eccles, N. Nohria, and R. L. Nolan, Building the Information Age Organization (Homewood, IL: Richard D. Irwin, 1994).

17 Hogue et al., Winning the 3‐Legged Race, 111.

c01.indd 26 11/26/2015 6:19:40 PM
27Brief Overview of Information Systems Strategy

determine the company ’ s capabilities. An entire chapter is devoted to understanding key issues facing general man- agers concerning IT architecture, but for now a more basic framework is used to understand the decisions related to IS that an organization must make.

The purpose of the matrix in Figure  1.6 is to give the manager a high‐level view of the relation between the four IS infrastructure components and the other resource considerations that are keys to IS strategy. Infrastructure

FIGURE 1.6 IS strategy matrix.

What Who Where

Hardware The physical devices of the system System users and managers Physical location of devices (cloud, data center, etc.)

Software The programs, applications, and utilities

System users and managers The hardware it resides on and physical location of that hardware

Networking The way hardware is connected to other hardware, to the Internet, and to other outside networks

System users and managers; company that provides the service

Where the nodes, the wires, and other transport media are located

Data Bits of information stored in the system

Owners of data; data administrators

Where the information resides

Social Business Lens: Building a Social Business Strategy Some companies use social IT as point solutions for business opportunities, but others build a social business strategy that considers the application of social IT tools and capabilities to solve business opportunities holisti- cally. A social business strategy is a plan of how the fi rm will use social IT that is aligned with its organizational strat- egy and IS strategy. Social business strategy includes a vision of how the business would operate if it seamlessly and thoroughly incorporated social and collaborative capabilities throughout the business model. It answers the same type of questions of what, how, and who, as do many other business strategies.


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