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Information Systems
Building Successful
Information Systems
Five Best Practices to Ensure
Organizational Effectiveness
andProfitability
Second Edition
Michael J. Savoie, PhD
Abstract
Information systems are a critical component of business success today.
Unfortunately, many companies do not truly understand what an information system is; where, when, and how it should be implemented; or
the effects of integrating it into the organization. As such, we continue
to see implementation horror stories of projects run amuckgoing over
time and over budgetor information systems that never get fully implemented, requiring work-arounds by employees in order to get things
done.
Why is this the case? Are information systems so poorly developed,
or is it more a case of companies not understanding what information
systems are and how to integrate them into their business processes?
The premise of this book is that it is the latter. If decision makers better
understood what information systems are, how they worked, and, most
importantly, what constitutes a successful information system; then implementations would be smoother, and benefits from information systems
would be greater and last longer.
The intent of this book is to help organizations better utilize their
information systems by understanding the fundamental purpose of these
systems within the business organization. This book will help readers a nalyze
business processes with an eye toward how data is created, transferred,
analyzed, and used within the organization. From this u
nderstanding,
the user can then design, build, and implement information systems that
accurately reflect the flow of the business processes, adjust quickly to
support critical functions, and provide efficient and effective value-added
services to employees to maximize the profitability of the company.
Keywords
agility, BYOD, business, business processes, cyber security, data, effectiveness, efficiency, information, information systems, information strategy,
information technology, innovation, integration, Internet of Things
(IoT), mobility, networks, security, strategy, technology, timeliness
Contents
Prefaceix
Acknowledgmentsxi
Chapter 1
Introduction1
Chapter 2
Where Do We Start?5
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Chapter 8
Chapter 9
Security61
Preface
In December of 2012, when the first edition of this book was published,
the Internet of Things (IoT) was still in the concept phase. Over the last
three years, IoT has become the issue for companies wishing to compete
in the global market. Much has been written about ways to address and
implement IoT into an organizations information strategy. More than
ever, the principles laid out in this book form the foundation for successful information systems.
The second edition continues to follow the format of the first edition
in that short, direct chapters address a key issue for creating successful
information systems. Each chapter ends with specific steps the C-Suite
can take to ensure information systems are aligned with, and contribute
to, the strategic direction and success of the organization.
The second edition takes part of the Preface and creates a new
Chapter1 Introduction. It updates key chapters to reflect changes in the
organization landscape. Most notably in Chapter 9 Security. The book
also adds a new chapter addressing the Internet of Things and its growing
impact on strategic decision making throughout the organization.
I want to thank the many readers who have provided input on how
the first edition has helped their individual, organizational, and C-Suite
decision making. Your feedback is invaluable and can be seen in the
updates to this new edition.
Michael
Acknowledgments
This book would not have been possible without the help and support of
a number of people. In particular, I wish to thank my assistants, Foram
Vyas and J. Michelle Abuda, without whose constant encouragement this
book would still be in my mind and not on paper. Special thanks to
Robert Jorgensen for his help in updating Chapter 9 Security.
I would also like to thank the editors and staff at Business Expert
Press. Special thanks to Scott and the Production Team at Exeter Premedia
Services for their diligence throughout the process.
Finally, I would like to thank my family for their love and support
without which none of this would be worthwhile.
CHAPTER 1
Introduction
When Im hired by a company as a consultant, the first question I generally ask is What do you do? What percentage of companies do you
think can answer that question accurately?
The reality is that only about 50 percent of the companies I ask can
accurately describe what they do. Notice I dont ask them What do
you make? Most companies when I say What do you do? will answer
with We make this. However, that is not the question I am asking.
Consequently, a conversation with a typical employee (entry level to
CEO) might go like this.
Me:
Employee:
Me:
Employee:
Me:
Employee:
Me:
Employee:
Me:
Employee:
Me:
Employee:
Me:
Employee:
Introduction 3
As you read this book, youll gain the knowledge and insight necessary
to build and use information systems in such a way as to maximize their
value to your organization. And by doing so, youll better your companys
ability to compete in the rapidly changing markets of today and in the
future.
Index
Amazon Web Services, 79
Analysis paralysis, 23
Assumptions, bad, 67
Availability, defined, 63
Big data, defined, 23, 2528
Bring your own device (BYOD), 67,
70, 72, 84, 91, 97
Internet of Things (IoT) and, 6869
Business
assumptions, 67
cloud platforms and, 80
Internet of Things (IoT) and,
7677
Business process management, 5
BYOD. See Bring your own device
Career building, with company data,
64
CEO
fault, 4951
and system, 85
CIO, 45, 85, 91
Cloud computing, 33
Combined matrix, 47, 48
Computer domain
data, 21
information, 21
Computer, usage, 7
Confidentiality, defined, 63
Corporate information systems, 30,
68, 84, 91
Corporate strategy, 30, 8586, 89,
90, 94
Cost-benefit analysis, 89
Crystal reports, 55
C-suite
CIA triad, 6263
availability, 62, 63
confidentiality, 62, 63
integrity, 62, 63
Cisco, 65
106 Index
malicious insiders, 64
preventing, 6972
response plan, 70
targeted attacks, 64
well-meaning insiders, 64
Data dumps, 58
Dell, sales person, 3738
Decision making, 13
Defense-in-depth, 6566
Device-driven reporting, 5859
Digital universe, 2
EDI. See Electronic Data Interchange
Electronic Data Interchange (EDI)
system, 10
Enterprise resource planning (ERP)
system, 11, 96
ERP. See Enterprise resource planning
Facts, data, 15
FedEx, 37, 40
FIN4, 62
Five rights, information system, 8, 16,
30, 42, 56, 80
CIA triad and, 6263
importance of, 88
improvement of system, 9091, 97
presentation by CIO, 91, 97
protecting, 73
using, 73
Flowchart, 5
Fortune 500, 37, 53
Free service plans, internet, 7879
Gartner, Inc., 68
Geolocation, 52, 72, 73
Geotracking, 72, 91, 97
Google AppEngine, 79
Hacking, 34, 39, 6162
Human domain
Knowledge, 21
wisdom, 21
IBMs Blue Cloud, 79
IDC Digital Universe Study, 25
Index 107
terminated employees, 64
white collar crime, 64
MAPSCO, 76
Matrix, 4748. See also Specific matrix
Microsoft, 65
NC. See Numerical control
Network
perimeter, 67
vulnerability of, 6869
Nortel, sales person, 3738
Nuclear powered data, 5657
Numerical control (NC), 40
OEM. See Original equipment
manufacturer
Open Web Application Security
Project (OWASP), 65
Web Application Security Flaws
20042013, 66
Operating system, 28, 73, 88
Original equipment manufacturer
(OEM), 28
Organization, information flow
current process, 86
model of, 87
information maps, 28, 87
response plan, 70
revised process, 86
upgrade versus new system, 89
OWASP. See Open Web Application
Security Project
Personal experiences Red velvet
carpet, 913
Personal health information (PHI), 61
Personally identifiable information
(PII), 61
Personnel matrix, 47
PHI. See Personal health information
Phishing, 69
PII. See Personally identifiable
information
Point of sale (POS) system, 18, 67,
68
POS. See Point of sale
Position matrix, 47
108 Index