CMIS 520Managing Technology

Jo Ellen Moore, Ph.D.

Models of Information Management IS/IT Responsibilities

Strategy CIO working with top mgmt team

Infrastructure IS Dept

Application of Technology to Business Processes User Areas

Models of Information Management The Models

Nolan’s 6 Stages of IS Development McFarlan & McKinney’s Strategic

Grid Gibson & Hammer’s Benefit /

Beneficiary Matrix Karten’s 2 Stages of EUC

Nolan’s 6 Stage Model

Stage 1 - Initiation Application development usually

initiated by IS folks Applications developed to reduce

costs Little to no user involvement Lax IS planning and control

Nolan’s 6 Stage Model

Stage 2 - Contagion Period of “unbridled growth” IS Dept requests nearly always

approved

Nolan’s 6 Stage Model

Stage 3 - Control Missed deadlines, cost overruns,

unmet expectations… IS managers asked to relate IS

expenditures to business objectives

Formalized planning and control

Nolan’s 6 Stage Model

Stage 4 - Integration New technologies -- databases, user

languages, microcomputers, spreadsheet package

Begin move toward integrating applications and data files

Users have tools to circumvent backlog of IS Dept

IS Dept takes on more of a service role in organization

Nolan’s 6 Stage Model

Stage 5 - Data Administration Toward “shared data” Few organizations today have

moved past this stage

Nolan’s 6 Stage Model

Stage 6 - Maturity Integrated applications mirror the

“information flows” in the organization

Information resources are woven into the overall strategy of the organization

The Strategic Grid

Classify organizations by: Strategic impact of existing

applications Strategic impact of applications

under development

The Strategic Grid

TURN-

AROUNDSTRATEGIC

SUPPORT FACTORY

L o w H i

L

o

w

H

i

Strategic Impact of Existing Applications

Strategic Impact of Applications Under Development

The Strategic Grid

SUPPORT Category Primarily transaction-based rather

than strategic applications Applications developed to reduce

costs

The Strategic Grid TURNAROUND Category

Have begun to develop strategic systems

Move from Support because of: new technology industry dynamics pressure from user areas

The Strategic Grid

FACTORY Category Have implemented applications

with definite strategic impact But no new systems in the

development portfolio are strategic

The Strategic Grid

STRATEGIC Category IS partners with senior, process,

and functional managers in formulating strategy

IS reps on top mgmt team are expected to identify, recommend, implement technology to enhance strategic direction of company

Benefit/Beneficiary Matrix

Sort of integrates Nolan’s stages and the Strategic Grid…

Matrix to categorize an org’s use or need for information technology

Dimensions of matrix: Who are the beneficiaries? What are the benefits?

Benefit/Beneficiary Matrix

DOMAIN 1 Beneficiary: Functional Units Benefits: Efficiency, Effectiveness Example: Automated accounting

functions

Benefit/Beneficiary Matrix

DOMAIN 2 Beneficiary: Individuals Benefit: Efficiency, Effectiveness Examples: End-user tools,

spreadsheets, word processing

Benefit/Beneficiary Matrix DOMAIN 3

Beneficiary: Enterprise Benefits: Efficiency, Effectiveness,

and Transformation Example: Making customer’s order

status available to him/her electronically

Business processes change/improve in utilization of new technology

Karten’s Model of EUC

End User Computing (EUC) Development of computer

applications by people who have direct need for them

EUC tools include: spreadsheets database developers 4th generation languages

Karten’s Model of EUC

STAGE 1 Promote EUC Product and tools orientation

STAGE 2 Promote responsible EUC Business orientation

Karten’s Model of EUC

The Transition from Stage 1 to Stage 2: Put the anxiety back in to EUC --

educate user on risks and responsibilities, and how to deal with them

EUC support personnel and users work together to apply technology to business needs

Karten’s Model of EUC

Transition requires these “shifts in emphasis”: From reactive services to

proactive services From quick-and-dirty individual

support to in-depth functional and process support

From product orientation to business orientation

Karten’s Model of EUC

(continued) From supporting all needs to

supporting high-payoff needs From promoting computer literacy

to promoting information literacy From one-way relationship (users

make requests of EUC support) to alliance of EUC support and user personnel

Karten’s Model of EUC

Transition will require that EUC technical support personnel: Allocate time to locating problems

and opportunities amenable to EUC solutions

Look closely at business functions, processes, information flows

Serve as matchmaker between technological capabilities and business needs

Karten’s Model of EUC

Transition will require that Users (“process” folks): Learn to address risks and

responsibilities of EUC Progress from knowing how to use

EUC tools to knowing how to put them to good use

Develop good working relationship with EUC technology experts

A Common Theme...

All 4 models emphasize a need for integration of IT and business knowledge.