The Evolution of I.T.

1
The Evolution of I.T. Finance

• First Mover on Bits Bites
• Accounting Systems
• General Numerical Systems
• Marketing Bells Whistles
• CIOs Explode
• CIOs Implode
• Transition

2
I.T.s Level of Importance

• Non-Critical
• Critical
• New Industry

3
Management Information Systems - Business
Performance

• ? Revenue Share of Market
• ? Customer Service
• ? Admin. Cost / Delivery Cost

4
Management Information Systems - Business Process

• ? Productivity
• ? Cost of Doing Business
• Improve Business Decisions
• ? Analysis of Data

5
Technology Infrastructure- I.T. Objectives

• Eliminate Obsolete Redundant Technology
• Reduce the Cost of Computing
• Develop a Functionally Complete,
• Technically Effective and Flexible
  Infrastructure to Support Business Growth
• Plug Play

6
Critical Questions of I.T. / Systems

• Can we present a Consistent and Personalized Face
  to our Customers?
• vs.
• Incoherent, Inconsistent I.T. Infrastructure
• - Killing Customer Service the Business.

7
Critical Qs

• Are We Connected to Our Marketplace?
• Extensively Networked
• with Customers, Suppliers, Distributors,
• Financial Institutions,
• Industry and Business Partners

8
Critical Qs

• Do we have Basic Systems?
• Accounting
• Inventory
• Etc
• Must have Basic Systems.
• Cant Afford to have people analyzing
• the s just to convert them.

9
Critical Qs

• What Impact is I.T. having on our Customers and
  Competitors?
• Current Waves of Technological Change are Moving
  so Fast that the First Mover Advantage is
  Dramatically Intensified.

10
Critical Qs

• How much do we Really Know About our Customers
  and Non-Customers?
• Information or New Knowledge.
• Divisiveness, Information Overload, and Chaos
• or
• An Opportunity for Competitive Advantage.
• (Sort it Better/Faster)

11
Critical Qs

• Do we Account for I.T. in Major Structural and
  Growth Moves?
• How Integral and Important are the I.T.
  Capabilities of the Business Unit or Project in
  Question?

12
Critical Qs

• Are our Major I.T. Initiatives on Track to
  Succeed?
• Too Often Projects Bog Down or Spin Out of
  Control for the Lack of Ongoing Attention by
  Executive Management.
• Senior Management must Drive the Change and Make
  it Work.

13
Critical Qs

• How Fast can we Capitalize on Technological
  Change?
• - As Fast as Training Development of the I.T.
  Staff.
• Companies must Make Organizational Investments
  alongside Technological ones.
• If you build it, they will come.
• Doesnt Work with Information Systems

14
Critical Qs

• How Strong are Our I.T. Capabilities?
• Leadership
• Leveraging Economies
• Adequate Safeguards
• - Proprietary Information
• - Hackers / Attacks / Viruses
• Working with Best in Class Technology
  Partners

15
Critical Qs

• Are we Investing in Infrastructure or Spending on
  Systems?
• Twin Sins Fragmentation Incompatibility
• Every Project Must be Part of an Ongoing
• Initiative to Build the Information Structure
  that the Corporation Needs.

16
Technology Training Development Objectives

• Reduce Expense Dependency on Outside Resources
• Speed Ability to Adapt
• Create Environment to Attract and Retain Key Staff

17
Technology Training Development Objectives

• Create Internal Experts
• Facilitate Cross-Training
• Standardize Systems

18
Design Development of I.T./Systems

• Critical to Provide Consistent Approach
• To Improve Productivity
• Allow Developer Mobility
• Ease of Testing Audit Processes

19
I.T. / Systems Organization

• Enterprise Systems
• Operations Systems
• Data Centers Networks
• Email Internet
• Technology
• Services (Telcoms, PCs)
• Development

20
I.T. Development Curve
Tech. Evolution
I Initiation
II Growth
III Control
IV Integration
Stages
21
Organizations Must Pass Through Specific Stages
In the I.T. Development Cycle
Applications Portfolio Rudimentary Applications Proliferation of Applications Consolidation of Applications Integrated Business Processes Applications
Business User Preparation I.T. Responsibilities Superficial Enthusiasm Pockets of Understanding Business Trade-Offs
Technology Speaker Net Bridges Among Infrastructure Integrated Infrastructure Information Utility
H.R. Programs Separation of Duties Specialization of Skills Blending of Business I.T. Skills
MGT. Controls Lax More Lax Formalize Internal Control External Planning Mgt. Control
I II III IV
Initiation Growth Control Integration
22
I.T. Investments
Supply I.T. Perspective
Management Controls

Investment
Application Technology
H.R. Technology
Business User Preparedness
Demand Business Perspective
Growth Must be Driven by Balancing Supply Demand
23
Project Process
Ideal Planning
High
Analysis Paralysis

Project Process
Strategy Planning Required
Just Do It
Low
Few
Many
of Projects
24
Most Systems are Built to Process Data, Not
Provide Information.
High
Assess Build On
Keep in Tune
Functional Technical Quality
Replace --- Discard
Renovate Reengineer
Low
Low
High
Strategic Value Technological Evolution
25
I.T. Positioning
High Cost Risk / Value
Competitive Value
Cost / Risk
Low Cost Risk / Value
Straggler
Follower
Leader
Visionary
26
I.T. Leadership Requires

• Business Acumen
• Functional Knowledge
• Planning Skills
• Customer Relations
• Awareness of Business Processes
• People Skills