THE TOUGH DILLEMAS: WHY THE OBIVOUS IS SO DIFFICULT

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THE TOUGH DILLEMAS WHY THE OBIVOUS IS SO
DIFFICULT
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COMPANY AUTOMATION CHANGES

• Manufacturing Automation (Process without human
  intervention)
• White-Collar automation / Second Industrial
  Revolution
• Focus Facilitating decision making,
  innovation service
• Goals Decrease Human Intervention, Faster
  Response
• Time, Reducing Internal
  Inconsistencies.
• Reorganization ?Reengineering (New Workflow
  Systems)
• Objectives Smooth, uninterrupted flows to
  assure
• efficiency, service and
  quality

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OPERATING CAPABILITY AND PROCESSES

• (Order fulfillment, New product development
  Integrated supply chains)
• Data Processing and Information Flow
• (The work of computers)
• Core competencies on critical processes,
• not functional specialization.

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OUTSOURCERS TO THE RESCUE

• PROBLEM
• - Technology costs soar exponentially
• - Complexity and rapid changes characteristic of
  information technology (increase of new h/w
  s/w, rapid obsolescence, incompatible of new
  systems)
• ? Outside specialized IT service providers offer
  the convenience of one stop purchasing
  predictable costs.

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OUTSOURCERS TO THE RESCUE

• Outsourcing means for corporations to cut
  personnel, but still get the job done. (Show
  lower head counts and smaller asset base
  denominator for profitability calculation).
• Outsourcing avoid political decision on merger
  company to retain or to terminate groups of IT
  groups.

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OUTSOURCERS TO THE RESCUE

• Most senior management today, outsourcing inf.
  tech. seems a no brainer an easy decision
• Information is the lifeblood of every
  organization
• Who gets what data, when and in what form has
  impact on executive decision making
• Whoever controls communications linkages, data
  and transaction processing, as well as decision
  and service support functions directly, affects
  the core operations of any business
• Management cant delegate its responsibilities

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MANY NEW INFORMATION SYSTEMS PROJECT FAIL

• Estimated 1/3 of computer application projects
  canceled before completion.
• gt 50 of those cost more than 2x original
  estimates
• lt 10 completed on time and within budget
• lt 50 meet original proposed features
  functions.
• 3/4 of all large systems are operating failures
  
• (do not function / not used at all)
• ASSIGNMENT p. 20 p. 21 Greyhound, Andersen
  Consulting, Denvers New Airport, The London
  Stock Exchange, US Government.

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I.T. THE MOST CHALLENGING CHANGES MANAGEMENT
FACES

• RACE between Rapidly evolving computer
  communication technologies AND The growing
  changing corporate demands for inf. systems
• IMPACT Outsourced operation new systems
  development
• ? Major systems integration projects need 5 to 10
  years to develop fully implement ? Major
  parameters or systems may have change.

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UNREALISTIC MANAGEMENT EXPECTATIONS THE MYTHS
AND DILEMMAS OF OUTSOURCING

• The Technology Myth / Legend
• Develop new technology is easy
• The Prescient / Vision Client Myth
• Client aware of the performance requirements
• The Project Management Myth
• Translate requirements into software code.
• The Contract as Complete Guarantee Myth
• The Prestigious Contractor / Outsourcers Myth

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UNREALISTIC MANAGEMENT EXPECTATIONS THE MYTHS
AND DILEMMAS OF OUTSOURCING

• The Easy Teamwork Myth
• The Myth of Choosing Centralization /
  Decentralization
• The Myth that Partnering is Partnering
• Users need will change in any dynamic
  business environment and as they experience a new
  system capabilities and learn of still newer
  technological resources. And its by no means
  easy to change partners.