I would like to thank Professor Carlos De Backer (University of Antwerp) and Professor Eddy Van Dijck (University of Brussels) for their thorough editing, helpful suggestions and thoughtful comments.
I received many spontaneous reactions from my online readers and wish to thank them for that. All their remarks have been taken into account.
Acknowledgements iii
First Edition iii
Second Edition iii
Table of Contents v
List of Illustrations xiii
List of Tables xvi
Introduction 1
Information Technology 2
The changing role of IT 3
Evolution of the IT Industry 5
About this book 6
Online Resources 9
IT management magazines and newsletters 9
IT Business Analysts 9
IT News sites 9
Further Reading 10
Infrastructure 11
Introduction 13
Computing Hardware 15
Computers 15
Digital technology 19
The von Neumann Architecture 20
Central Processing Unit 21
Main Memory 23
Internal buses 23
Input/Output 24
31
Operating Systems 32
Purpose of an Operating System 32
Structure of an Operating System 32
Characteristics of Operating Systems 33
Autonomic Computing 34
Security 34
Local Services 36
Storing Data 36
File Systems 36
Relational Database Management Systems (RDBMSs) 37
Object-Oriented Database Management Systems (OODBMS) 42
Object-Relational Database Management Systems (ORDBMS) 43
Benchmarking of DBMSs 45
Networking Services 47
The OSI Reference Model 47
The Internet protocols 49
Physical Layer 50
Data link layer 51
Network layer 60
Transport layer 65
Application layer 66
Security 68
Middleware 73
Basic Middleware Services 73
Advanced Middleware Services 74
Middleware Technologies 77
Application Frameworks 78
Application Servers 79
Best Practices 81
Automate your asset management 81
Automate your systems management 81
Avoid Single Points of Failure 82
Centralise your client management 83
Consolidate and rationalize continuously 83
Keep control over your architecture 84
Keep your infrastructure scalable 84
Printing also deserves a strategy 86
Reconsider your storage strategy 87
Rely on open standards, but don’t be stubborn 88
Standardize as much as you can 89
Use the right tools 89
Online Resources 91
Further Reading 93
Information Systems 95
Information Systems 96
Operational and Informational Systems 98
Production 99
Word Processors 99
Spreadsheets 101
Drawing tools 101
Computer Aided Design and Manufacturing (CAD/CAM) 102
Viewers and Players 102
Characteristics of Production Information Systems 103
Potential benefits of Production Information Systems 103
Collaboration 104
Collocated – Asynchronous groupware systems 105
Non-collocated – Asynchronous groupware systems 106
Collocated – Synchronous groupware systems 121
Non-collocated – Synchronous Groupware systems 121
Characteristics of Groupware Systems 123
Benefits of Groupware Systems 124
Potential risks of Groupware Systems 124
Business Process Support 125
Enterprise Application Integration (EAI) 127
Exchanging information with other organizations 131
E-commerce 134
Characteristics of Business Process Support Systems 138
Benefits of Business Process Support Systems 138
Risks Business Process Support Systems 138
Tactics 139
Metrics 139
Benchmarking 140
Activity Based Costing 141
Data warehousing 141
Characteristics of Tactical Information Systems 146
Benefits of Tactical Information Systems 147
Risks of Tactical Information Systems 147
Strategy 148
Balanced Scorecards 148
Data mining 150
Web Farming 151
Characteristics of Strategic Information Systems 152
Benefits of Strategic Information Systems 152
Best Practices 153
Also read the small print 153
Apply a layered approach where possible 153
Beware of biased advice 153
Build loosely coupled systems 154
Build, buy or borrow? 154
Choose for standards 155
Do not reinvent the wheel 155
Educate the users 155
Integrate the Business Processes 156
Know the real needs of the users 156
Make agility a primary goal 157
Rationalize the application portfolio 157
Online Resources 158
Further Reading 160
Human Resources 163
Introduction 164
Getting the Best Employees 166
Specifying Jobs and Roles 166
Recruitment 167
The Selection Interview 169
Outsourcing 171
Getting the Best of Employees 176
Theories on Human Nature 176
Teleworking 190
A new way of working 190
Technological Considerations 191
Work Force Planning 193
Planning techniques 193
Human Resources Management Systems (HRMSs) 194
Best Practices 197
Apply an open privacy policy 197
Avoid Strategic Outsourcing 198
Be fair and treat everyone equally and on merit. 198
Behave as a leader, not as a boss 198
Build a "win-win" relationship when you outsource 199
Concentrate on the Core Employees 199
Get legal advice when you outsource 200
Hire for Attitude, Train for Skill 200
Know the real costs 201
Praise loudly, blame softly 201
Train your people 201
Use Job Enrichment 202
Online Resources 203
Further Reading 204
Financial Resources 205
Introduction 206
Costing 209
Cost elements 209
Total Cost of Ownership (TCO) 210
Activity Based Costing (ABC) 212
Charging 215
Responsibility Centre 216
Budgeting 218
Budgeting Processes 219
Budgeting Methods 222
The Operations Budget 224
The Capital Budget 224
Other value factors 231
Best Practices 236
Budget for hardware every year 236
Buy your systems “just in time” 237
Good enough can be best 238
Invest to reduce TCO 238
Link the project expenses to the objectives 239
Manage your software assets carefully 239
Only go for win-win situations 240
Push for equal treatment of the IT budget 240
Retire your old IT systems in time 240
Set up pre- and post-implementation metrics 241
Start from the benefits, not the costs 241
Online Resources 242
Further Reading 243
Processes 245
Introduction 246
Business Processes 248
Typology 248
Quality and Quality Management 253
Business Process Reengineering 257
How to succeed a change project 259
The relationship between Business Change and IT 259
IT Processes 260
IT Service Management (ITSM) 260
Best Practices 268
Apply the self-service concept where possible 268
Build generic solutions 268
Create a unified view of the business objects 269
Make lightweight Information Systems 269
Online Resources 271
Further Reading 272
Projects 273
Introduction 274
Software Life Cycle 277
Life Cycle Modelling 278
Code and Fix 278
Waterfall Model 278
The Incremental Model 280
The Spiral Model 281
Time boxing 281
Agile Software Development 283
Other models 285
Concept Exploration 286
Requirements 287
Project Initiation 289
Project Estimation 289
Design 298
Process oriented modelling 298
Data oriented modelling 299
Object Oriented Modelling 302
Implementation 306
Programming languages 306
Software reuse 313
Computer Aided Software Engineering (CASE) tools 314
Integrated Development Environments (IDEs) 315
Project Monitoring and Control 317
Gantt Charts 317
Project Evaluation and Review Technique/Critical Path Method (PERT/CPM) 318
Critical Chain Scheduling and Buffer management 320
Verification and Validation 323
White Box testing 323
Unit Testing 325
Black Box testing 325
Integration Testing 326
System Testing 326
Regression testing 326
Alpha and Beta Testing 327
Automated testing 327
Test Plan 327
Test Results 328
Software Quality Management 329
Capability Maturity Model (CMM) 329
ISO-9001 330
TickIT 331
Software Process Improvement and Capability dEtermination (SPICE) 331
Software Configuration Management 333
Documentation Development 335
Training 336
Installation 337
Maintenance 339
Typology 339
Problems associated with maintenance 339
Metrics 341
Application Mining 342
Retirement 343
Legal considerations 344
Intellectual Property 344
Best Practices 349
Aim for Conceptual Integrity 349
Design Twice, Code Once 350
Do not be afraid of risks 350
Do not re-invent the wheel 350
Expect the unexpected 351
Fit the methodology to the project, not the other way around 351
Have an Open Source strategy 352
Involve the users 352
Limit the size of the project teams 353
Manage the requirements 354
Not all developers are created equal 354
Organize the refactoring process 355
Rank project elements up front 355
Remember Brook’s Law 355
Separate concerns 356
Separate stable and unstable elements 356
Separate Transaction Processing and Analytical Processing 357
Take care of the installation process 357
Think Big, develop small 357
Use the right tool for the job 358
Online Resources 359
Further Reading 360
Organization 367
Introduction 368
Organization 368
Objects in the organizational model 369
Management 373
Mapping Managers to Organizational Units 373
Managerial activities and roles 373
Organizational Forms 376
Organizational subunits 376
Coordination mechanisms 377
Organizational Culture 381
Work Teams 382
Organizational Structures 384
Mechanistic and Organic Structures 384
Functional organization 384
Process-oriented organization 385
Product-oriented organization 385
Geographical organization 386
Mixed structures 387
Organization of projects 388
Organization of IT 392
Types of activities of an IT organization 392
Structure of the IT department 392
Centralization and decentralization of IT 393
IT Staffing 395
The CIO/IT manager 397
Links between IT and the rest of the organization 398
Best Practices 400
Act normal 400
Create high-performance teams 400
Eliminate redundant administration 400
Every department its own responsibility 401
Flat or tall? 401
Harmonize, don’t centralize 402
Integrate in the Organizational Culture 404
Know and use the informal organization 404
Participate in networks 404
Separate development and maintenance 405
Online Resources 406
Further Reading 407
Strategy and Business Alignment 411
Introduction 412
Business Strategy 413
Integration of business and IT 416
The Strategic Alignment Model 418
Functional Integration 419
Strategic Fit 421
Zachman's Framework 426
Business Continuity and Disaster Recovery 428
Contingency Planning Policy Statement 429
Business Impact Analysis (BIA) 430
Identify Preventive Controls 431
Develop Recovery Strategy 433
Develop an IT Contingency Plan 434
Plan testing, training, and exercises 435
Plan maintenance. 435
Best Practices 436
Apply the right procurement process 436
Build a balanced portfolio of IT projects 437
Create an “IT-friendly” environment 437
Concentrate on the core business 438
Do not confuse hypes with trends 438
Have a written policy concerning the use of IT in your organization 440
Know your Business 441
Protect Your Customers’ Privacy. 442
Reduce complexity 442
Select your suppliers carefully 443
Set up a knowledge management strategy 445
State the alignment with strategies and objectives 446
Support the internal communication processes 446
Online Resources 448
Further Reading 449
Beyond the Hype 451
The future and IT 452
Online Resources 455
Further Reading 456
Glossary 457
Online Glossaries 491
Index 493