Introduction Challenges of Managing in a Network Economy

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Introduction Challenges of Managing in a Network
Economy
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Themes presented in this book

• Market structure and industry dynamics
• Evolving business models
• IT impact
• Prioritizing IT investment
• Assimilation and organizational learning
• Buy versus make
• Partnership among key constituencies as IT
  evolves
• Protecting IT assets and managing risks
• Pervasive computing

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Theme 1 Market Structure and Industry Dynamics

• New choices for designing and building
  industries, markets, and organizations.
• IT expands processing capacity enabling
  convergence of voice, video, and data.
• Real-time transactions, interactivity and
  connectivity.

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Theme 2 Evolving Business Models

• The business models that dominated the Industrial
  Economy are evolving to take advantage of the
  capabilities of the new technologies and business
  practices of the Network economy, giving rise to
  new sources of power and differentiation.

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Theme 3 IT Impact

• Important dimensions are
• The impact of IT on core operations and
• The impact of IT on core strategy.

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Theme 4 Prioritizing IT Investments

• Shift in IT investment priorities and decisions
  from a cost-avoidance, project centered approach
  to an asset-based, strategic option approach.

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The IT Business Value Scorecard
Table 4-2 The IT Business Value Scorecard
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The IT Business Value Scorecard Contd.
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The IT Business Value Scorecard Contd.
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The IT Business Value Scorecard Contd.
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Theme 5 Assimilation and Organizational Learning

• The time required for successful organizational
  learning and assimilation of rapidly changing
  technologies limits the practical speed of change.

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Theme 6 Buy versus Make

• External industry, internal organizational, and
  technological changes are increasing the pressure
  on organizations to buy rather than make IT
  applications and services.

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Theme 7 Partnerships among Key Constituencies as
IT Evolves

• High levels of engagement and cooperation among
  four key constituencies
• Business Executives
• IT Executives
• Users
• Technology Providers / Partners

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Theme 8 Protecting IT Assets and Managing Risks

• The ability to ensure high levels of security,
  privacy, reliability, and availability is a core
  capability that determines an organizations
  ultimate success and survival.

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Theme 9 Pervasive Computing Opportunities and
Risks

• Shift in IT that has dramatically changed the way
  people access and use technology, the way
  organizations exploit it, and the way it is
  developed and managed.