Managing the Information Technology Resource Course Introduction

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Managing the Information Technology
ResourceCourse Introduction
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Key Course Concepts

• IT is important and necessary for a successful
  organization
• Successful management of IT is necessary for
  competitive advantage

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IT Management Categories

• Strategic
• Pertinent to long-term attainment of goals and
  business as a whole
• Tactical
• Needed to achieve strategic plans and goals to
  produce changes for success
• Operational
• Process and actions that must be performed on a
  day-to-day basis to maintain performance level

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Types of Information Systems

• TPS
• MIS
• DSS
• GDSS
• EIS
• SIS

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Additional Skills of IT Managers

• Financial
• Human Resource
• Relationship Management
• Legal

• Governance
• Marketing
• Negotiating
• Leadership

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Historical View of IT

• Initially for government/military use
• Businesses used for financial automation
• Data Processing was key function
• Computers were costly and large in size
• Not widely used

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Role of IT

• No longer just serves a business
• Integral in business strategy
• Impacts every area of business
• Complexity increases
• How does IT function vs. the entire organization
• Responsible for the integration of information

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Change Agent

• Dynamic Stability
• IT supports business in dynamic changes with no
  change to business processes
• Can enable/inhibit incremental and radical
  changes
• Innovation may depend on IT

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Enabler of Globalization

• Expands business presence beyond borders
• IT maintenance of Infrastructure and Technologies

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IT/Business Gap

• IT/Business alignment critical
• Alignment
• Application of IT in an appropriate and timely
  manner, in harmony with business goals,
  strategies, and needs
• Enabler
• Inhibitor

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CSC Survey Top Rankings

• Information Systems alignment with Corporate
  Goals ranked 1st or 2nd 9 of 11 years!
• Organizing utilizing data
• Connecting to customers, suppliers, and/or
  partners electronically
• Optimizing organizational effectiveness

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IT vs. Other Functions

• Encompasses entire enterprise
• Affects all business functions
• Extends beyond business boundaries
• Affects every level of management
• Impact affects entire value chain, including
  suppliers and customers
• Creates synergy between departments

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IT as Architects of Alignment

• Knowledgeable about new technologies
• Privy to tactical and strategical plans
• Be present in corporate strategy discussions
• Understand technology strengths and weaknesses

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Six Key Enablers to Alignment

• Senior executive support for IT
• IT involved in strategy development
• IT understands the business
• Business-IT partnership
• Well-prioritized IT projects
• IT demonstrated leadership

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Six Inhibitors to Alignment

• IT/business lack close relationships
• IT does not prioritize well
• IT fails to meet commitments
• IT does not understand business
• Senior executives do not support IT
• IT management lacks leadership

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Todays Business Environment

• Increased globalization
• Increased competitive pressure
• Frequent mergers
• Rapidly changing technology
• Evolving patterns of consumer demand

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Competitive Advantage Today

• Unsurpassed relationships with ones customers
  and suppliers
• Unique and adaptable business processes
• Ability to harness information and knowledge of
  employees
• Must become Change Leaders

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Business Strategy Choices

• Selection of business goals
• Choice of products and services to offer
• Design and configuration of policies
• Appropriate level of scope and diversity
• Design and organization structure and
  administrative systems

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IT Strategy

• Set of decisions made by IT and senior management
• Deployment of technology infrastructures
• Relationship of technology choices to business
  choices

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Aligned IT Strategy

• Intimate understanding of customers and evolving
  needs
• Managing knowledge- and information-based asset
  management
• Continuously innovate strategically relevant new
  processes
• Coordination of activities involving people,
  procedures, and technology

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IT Roles in Strategy

• Transformation driver
• Create and exploit new markets
• Link customers to firm
• Define new standards of excellence
• Enabler of transformation
• Interconnect people and processes
• Span organization boundaries
• Bridge geographical distances

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IT as Inhibitor

• IT strategy not aligned with business strategy
• Over-emphasis on technology
• Failure to recognize effective use of IT requires
  business process change

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Strategic Environment
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Internal Business Domain

• Administrative Structure
• Functional, matrix, decentralized, process-based,
  geographic, or hybrid
• Critical Business Processes
• Identification of salient processes
• Human Resource Skills
• Acquisition and development of people skills

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Strategic Fit

• Scope of Firms Business
• Customers, products, markets, and competitors
• Distinctive Competencies
• Core competencies
• Critical success factors that provide competitive
  advantage
• Governance of the Firm
• Impact of regulatory agencies

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Strategic Alignment Model

• Scope of Firms Technology
• Impact and support business strategy decisions
  and initiatives
• Systemic Competencies
• Technology capabilities
• IT Governance
• Pursue relationships and alliances to obtain IT
  competencies

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Internal IT Strategy Domain

• IT Architecture
• Selection of technology and infrastructure
• Models used to define data, information,
  networks, applications, and systems
• IT Organizational Processes
• Critical to operation of IT organization
• Systems development, IT operations
• IT Skills
• Acquisition and development of people

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Strategic Alignment Model

• Business Strategy
• Business Scope
• Distinctive Competencies
• Business Governance
• Organization Infrastructure and Processes
• Administrative Structure
• Processes
• Skills

• Strategy
• Technology Scope
• Systemic Competencies
• IT Governance
• IT Infrastructure and Processes
• Architecture
• Processes
• Skills

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Functional Integration

• Linkage between the IT strategy domain and
  business strategy domain
• Support requirements and expectations of
  business organizational structure and processes

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Planning IT Strategy

• Sequence of activities that transforms current
  alignment state to future alignment state
• Actively involve IT staff in development of
  vision and strategies
• Strengthen degree of strategic alignment

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IT Strategy Implementation

• Execute the strategy
• Commitment and engagement of senior business
  management
• Must occur prior to implementation planning
• Strategic Alignment Maturity
• Ability to adapt in harmonious fashion
• Adoption of Measurement Criteria
• Measure effects in several different dimensions

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Periodic Review

• Ensure initial assumptions are correct
• Ensure implementation of plans are on schedule
• Measurements are captured and reported