ISM 158

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ISM 158

• Final Lecture

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Announcements

• Group Projects Today
• Exam Wednesday 8am
• Closed book
• No paper needed

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Global Landscape 2004

• Increasing
• Moved from manufacturing to IT and services
• Morgan Chase quote dont underestimate the
  complexity, dont build expectations too high
  but wishes hed done it sooner!
• Every 1 spent saves 58 cents
• Examples given in background section

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Key questions

• What processes are companies outsourcing?
• Who is outsourcing?
• How much IT is outsourced?
• Wall St Journal Jobs that can be reduced to
  series of rules are likely to go

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Leading vendors

• EDS
• IBM
• HP
• CSC

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India

• Educated, english speaking
• Good network infrastructure
• Moving beyond..
• Philippines
• China

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Challenges

• McKinsey questions
• Can outsourcing drive costs lower?
• Capture benefits earlier
• Increase QoS?
• Leverage existing IT platform to reduce new
  investments?
• Contractually commit to benefits?
• Regularly bring most relevant innovations to
  bear?
• Pay attention to
• Training new workers
• Privacy laws
• Data quality is critical
• Scope creep
• Soft issues regional job loss, customer
  reaction, culture gaps
• Offshoring
• Some companies have pulled back
• Less cost but less productive?
• Fast change difficult to keep up with
• More complex problems, difficult to migrate
  knowledge
• Familiarity with customer needs

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Overview/Summary of Class topics
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ISM 158 Overview

• This class considers the role of information in
  business strategy. In particular, we focus on
  decisions regarding information technology and
  information systems to give a business
  competitive advantage over other companies. We
  will focus on case studies to see why some
  businesses are more successful than others in
  building information systems that lead to
  organizational and individual efficiencies.
• We look at how information impacts industries,
  markets and countries, and leads to technology
  development. We develop an understanding of
  design and maintenance of networked
  organizations, including issues of leadership and
  management.

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Schedule
Date Topic (Reading corresponding chapter from text) Case (Reading corresponding case from text) Presentation Assessment
1 Tue, April 3 Introduction
Thu, April 5 No class Instructor Away
2 Tue, April 10 IT Strategy
3 Thu, April 12 Charles Schwab
4 Tue, April 17 IT and Organization Leapfrog
5 Thu, April 19 Extending the Enterprise
6 Fri, April 20 (makeup class time and venue TBA) Wyndham Project Team and Topic Due
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Schedule
Date Topic (Reading corresponding chapter from text) Case (Reading corresponding case from text) Presentation Assessment
7 Tue, April 24 Making the case for IT
8 Thu, April 26 IT Doesnt matter
9 Tue, May 1 Internetworking Infrastructure
10 Thu, May 3 iPremier Project Proposal Due
11 Tue, May 8 Reliability and Security
12 Thu, May 10 Ford
13 Tue, May 15 Managing Diverse IT Infrastructure
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Schedule
Date Topic (Reading corresponding chapter from text) Case (Reading corresponding case from text) Presentation Assessment
14 Thu, May 17 Postgirot
15 Tue, May 22 Organizing and Leading IT
16 Thu, May 24 Cathay Pacific Business Proposal Due
17 Tue, May 29 Managing IT Outsourcing
18 Thu, May 31 Royal Caribbean Cruises
19 Tue, June 5 IT Portfolio Management
20 Thu, June 7 Conclusion Global Landscape Project Due
Wed, June 13, 8am Final Exam Final Exam
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Prediction Is Hard

• Who could have predicted?
• Before 1940 That there would be hundreds of
  millions of computers worldwide
• Before 1992 the Web
• Before 1995 Amazon
• The pace of evolution and change in IT is
  blistering
• No sign that it is slowing down

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Framework for Decisions

• This class and text book has not been about
  predicting the future
• Instead, it is about giving you the frameworks
  to
• Identify opportunities
• Design and deploy technology-based businesses
• Create business value
• Frameworks based on concepts and theory that have
  stood the test of time
• Fundamental management principles still apply,
  even as we embrace the new

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Key Themes

1. Continuous pace of technology evolution requires
   that we confront new choices for designing and
   building industries, markets, organizations
2. Business models that dominated the Industrial
   Economy are evolving
3. Types of opportunities pursued and technology
   employed strongly influence approach to
   developing, operating, managing IT
4. As IT infrastructure becomes more standardized,
   modular, scaleable, there is a shift in IT
   investment priorities and decisions

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Key Themes (cont.)

1. The time required for successful organization
   learning and assimilation of rapidly changing
   technologies limits practical speed of change
2. External industry, internal organizational, and
   technological changes are increasing pressure on
   organizations to buy rather than to make IT
   applications and services
3. Ability to exploit technology requires high
   levels of engagement and cooperation among four
   key constituencies business executives, IT
   executives, users, technology providers/partners

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Key Themes (cont.)

• Ability to ensure high levels of security,
  privacy, reliability, and availability is a core
  capability that determines organizations
  ultimate success and survival
• Over the last decade, there has been a
  fundamental shift in IT that has dramatically
  impacted the way
• People access and use technology
• Organizations exploit technology
• Technology is developed and managed

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Bottom Line

• There is a critical role for people (like
  yourselves!) with understanding of both business
  strategy and information technology

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Graduating students
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Assessment
Value
News Presentation 5
Quizzes 10
Discussion Participation 10
Business Proposal 10
Project 40
Final Exam 25
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Presentation Grades
22
Quiz Grades
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Participation Grades
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Total so far (possible 35)
25
Final Exam Case

• Case is CareGroup from the text
• Case 2-1, pages 353 368