Business Informatics

Kecheng Liu is a fellow of the British Computer Society and a senior fellow of the Higher Education Academy. With an academic background in computer science (BSc) and information management (PhD), he was appointed to his first professorship in computer science over two decades ago. He is currently a full professor and holds the Chair in Applied Informatics at Henley Business School, University of Reading.Hua Claria Guo is a lecturer in the School of Electronic Engineering and Computer Science at Queen Mary University of London. She holds a PhD in business informatics from the Informatics Research Centre of the University of Reading and an MBA from the Hong Kong University of Science and Technology.Qi Lecky Li is a lecturer in the Department of Digitalisation, Marketing and Entrepreneurship, and faculty member in the Digital Talent Academy at Henley Business School. He earned his PhD in Business Informatics from the Informatics Research Centre at the University of Reading.

• CONTENTSPreface xi1 Data, Information, and Informatics 11.1 Data and Information 11.1.1 Data as a Foundation for Information 21.1.2 Transforming Data into Meaningful Information 21.1.3 The Importance of Distinguishing Data from Information 21.2 The Essence of Information 31.2.1 Can Information be Seen as an Artefact? 31.2.2 Can Information be a Process? 31.2.3 Information as a Synthesis of Artefact and Process 31.2.4 The Characteristics of Information 31.2.5 The Value of Information 51.3 The Notion of a Sign 61.4 Sense-Making Using a Sign 71.5 Sign Categories and Functions 91.6 Functions of Signs in Semiosis 101.7 Summary 10Exercise 12Bibliography 142 Virtual and Physical Resources in the Twin Worlds 152.1 Physical and Virtual Resources in Business 152.2 Types of Economies 162.3 Common Features in Digital Business Models 172.4 The Interplay between the Two Worlds 172.5 Business Informatics in Understanding the Twin Worlds 18Exercise 20Bibliography 213 Organisations as Information Systems 223.1 A Semiotic View of Organisations 223.2 Anatomy of the Organisational Onion 233.2.1 The Informal Layer 233.2.2 The Formal Layer 243.2.3 The Technical Layer 243.3 Relationships between the Layers 253.3.1 Interdependence between Layers 263.3.2 Conflicts between Layers 263.3.3 Alignment for Organisational Effectiveness 26Misalignment Between Organisational Culture and Information System 28Exercise 28Bibliography 294 Information Systems in Business 304.1 Organisational Structure and Information Systems 304.1.1 Vertical Structure: Management Hierarchy 304.1.2 Horizontal Structure: Functional Units 314.1.3 Information Systems at Different Levels 324.1.4 Integration of Information Systems 324.2 Types of Information Systems 334.2.1 Transaction Processing Systems (TPS) 334.2.2 Management Information Systems (MIS) 344.2.3 Knowledge Work Systems (KWS) 344.2.4 Decision Support Systems (DSS) 354.2.5 Executive Information Systems (EIS) 354.3 Information Systems Integration 364.4 Business Informatics in Organisations 38Exercise 42Bibliography 445 Information Systems Planning 455.1 Understanding the Scope of ISP 455.2 Key Drivers for ISP 475.3 The Scope and Purposes of Information Systems Planning (ISP) 475.4 Roadmap to ISP for Organisations 485.4.1 Strategic Planning 485.4.2 Organisational Information Requirements Analysis 495.4.3 Resource Allocation 495.4.4 Project Planning 505.5 Methods for ISP 505.5.1 PESTLE Analysis 515.5.2 Balanced Scorecard 535.5.3 Strategic Competitive Model 565.5.4 Strategic Alignment Model (SAM) 585.5.5 Critical Success Factors (CSF) Analysis in ISP 615.5.6 Project Planning 64Exercise 65Bibliography 676 Requirements Engineering for Information Systems Development 686.1 The Process of Requirements Engineering 686.2 Requirements Engineering Stages and Activities 716.3 Types of Requirements in Information Systems 736.4 Functional Requirements 746.5 Non-Functional Requirements 786.6 Other Requirements 80Exercise 81Bibliography 827 Information Systems Methodology 837.1 Principles of Information Systems Development (ISD) Methodology 837.2 ISD Lifecycle 847.3 The Value and Limitation of ISDL 867.4 Methods and Techniques for ISD 887.4.1 Methods Applicable for Preliminary Investigation 887.4.2 Methods Applicable for Requirements Gathering and Analysis 897.5 Additional Methods Applicable to ISD 907.5.1 Use Case Diagram 917.5.2 Class Diagram 947.5.3 Business Process Diagram 97Exercise 100Bibliography 1018 Language Acts and Information Effects 1038.1 Sign, Complex Sign, and Sign System in Human Communication 1038.2 Language Acts and Their Effects 1048.3 Doing Business with Information 106Exercise 107Bibliography 1089 Organisational Analysis and Systems Co-design 1099.1 Semiotics of Organisations 1099.2 Semiotic Processes and Activities in Business Organisations 1109.3 Morphological Analysis of Organisations 1149.4 Co-design of Organisational and Technical Systems 1169.5 Infrastructure Analysis 1199.5.1 Stakeholder Analysis 1219.5.2 Collateral Analysis 1239.6 Change Impact Analysis 125Exercise 128Bibliography 12810 Knowledge Management in Intelligent Organisations 13010.1 Characteristics of an Intelligent Business Organisation 13010.2 Norms as Knowledge 13210.3 Taxonomy of Norms 13410.4 Norms Governing Organisations 13610.4.1 Legal Conceptions Underpinning Business Norms 13710.4.2 Governing Organisations through Standing Orders andStatus Norms 13810.5 Specification of Norms for System Design 140Exercise 143Bibliography 14311 Enterprise Architecture and Value Network 14511.1 Key Elements in Enterprise Architecture 14511.2 EA: A Strategic Framework for Organisational Excellence 15111.3 EA Frameworks 15311.3.1 Zachman Framework 15311.3.2 The Open Group Architecture Framework (TOGAF) 15711.3.3 ArchiMate 16111.3.4 Comparison and Use of the Three Frameworks 164Exercise: Exploring the Role of EA in Value Networks 16611.4 Enterprise Value Network 16711.4.1 The Value Chain Model 16711.4.2 Supply Chain Management 172Exercises 17611.4.3 Customer Relationship Management 17711.4.4 Revised Value Chain Management 18011.4.5 IS in Enterprise 182Exercise 184Bibliography 18512 Digitalisation and Transformation in Organisations 18612.1 Digital Innovation 18612.2 Digitalisation 18912.3 Servitisation with Digital Capabilities 19212.4 Digital Servitisation: Blending Digitalisation with Servitisation 19312.5 Digital Transformation: A Strategic Imperative for ModernOrganisations 19612.6 Semiotic Analysis of Digital Transformation 19912.7 Conclusion 202Exercise 203Bibliography 20313 Digital Business Ecosystems 20413.1 Unleashing the Power of Information: The Fourth IndustrialRevolution 20413.2 Modern Business Types 20613.3 Digital Business Ecosystems 20713.3.1 DBE as a Paradigm 20813.3.2 Essential Premises for DBE 20913.3.3 Advantages of DBE 21013.3.4 Challenges in Building and Maintaining DBE 21113.4 Value Network in Business Ecosystems 21313.4.1 Value Structuring and Network 21513.4.2 Insight into Customer Relationships 21613.5 Conclusion 218Exercise: Collaborative Competition (“Co-petition”) in Value Networks 218Bibliography 21914 Ethical and Moral Considerations of Responsible Organisations 22014.1 Legal, Ethical, and Moral Issues in Business Informatics 22014.2 Informatics in Practice with Due Considerations 22214.2.1 Key Pieces of Legislation 22214.2.2 Ethical Issues Related to Informatics 22414.2.3 Moral Issues in Informatics 22514.3 Core Values of a Responsible Organisation 228Exercise 230Bibliography 23115 Digital Leadership for Transformation 23215.1 Digital Leadership Competencies 23215.1.1 Digital Competence Framework 23315.1.2 Digital Leadership Competence Framework 23515.2 Digital Leadership in the Transformation Journey 23715.2.1 Five Steps for Digital Leadership in the TransformationJourney 23815.2.2 Guiding the Transformation Journey with OrganisationalMorphology 23915.3 Effective Implementation of Transformation 24015.3.1 Modern Leadership Through Interdisciplinary Collaboration 24115.3.2 Change Management 242Exercise 245Bibliography 246Index 247