Dynamics Of IT

Three Era Model

Era Characteristics When?

Data Processing (DP)

Operational control systems Transaction processing

1960s
1970s

Management Information Control & planning systems Systems (MIS) Problem solving and decision support Strategic Information Systems (SIS) Possible Fourth Era?: Organizational IS Capability
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Systems critical to business operations & competitive advantage IT/IS permeates organization Inseparable from enterprise Delivers sustainable competitive advantage

1980s

Now?

Adapted from Ward & Peppard, Strategig Planning for Information Systems, John Wiley & Sons 2002

Another Three Era Model

Era Mainframe Microcomputer Administrativ e Framework Regulated monopoly Free market Target for IT Use Back office automation Individual decision making and productivity Electronic integration and learning Justification/ Benefits Organizational productivity Individual effectiveness

Internetworking

Shared partnership

Business advantage

Adapted from Applegate et al, Corporate Information Strategy and Management, McGraw-Hill/Irwin 2003

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IT Impact on Strategy & Operations

HIGH
IT Impact on Core Operations

Factory
Improve

Strategic
Transform

performance of core processes Led by business unit executives Process reengineering

organization or

industry Led by senior executives & board Change management

Support
Improve local performance Local level oversight Grassroots experimentation

Turnaround
Identify

& launch new

LOW

ventures Led by venture incubation unit New venture development

HIGH

IT Impact on Core Strategy

Adapted from Applegate et al, Corporate Information Strategy and Management, McGraw-Hill/Irwin 2003

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Business Today
in

most sectors has become inextricably reliant on information technology Consequently, management of information technology is now a critical line-of-business function Informed IT management with a grasp of both business and technical issues is a key to business success
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Integration of IT in Strategy
In

earlier eras, lack of IT integration in enterprise strategy was not a show stopper
Integration typically could improve efficiency & effectiveness

In

todays wired world, lack of integration of information technology in enterprise strategy can kill a business
6

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No Strategic Integration of IT
can

result in IT projects with

insufficient focus a lack of adequate managerial oversight a failure to recognize the impact of change on the organization and the workforce a lack of user participation & poor communication an inability to answer key project questions
How can resources be allocated? How can priorities be set? How can large systems be integrated?

failure to perform the required functions or tasks for which they were designed
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Keys to IT Management Success:

Always remember: Information Technology is expensive
Businesses cannot dump money into the IT hole without a tangible return
Information

Technology in business must contribute to the bottom line:

Profits!

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