8/14/2019 Lecture1,2 MBA ITStrategy[1]

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IT for Managers andOrganisations

Dr. Luminita Vasiu

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Module expectation

 At the end of the course you should be able to:

Understand the importance of IT strategy in a

business context; Choose the right technology strategy in order to

optimise the Business ROI;

Critically discuss the best solutions forimplementing and managing your IT strategy;

Critically analyse the risks involved with theadoption of a new innovative IT strategy;

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Recommended Book 

IT Strategy in Action , James McKeen,Heather Smith

  International Edition ,ISBN13:

9780137145782/ ISBN10: 0137145780

Class format: 

interactive lecture,discussion based on case studies

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Negative Business

ROI 

Positive Business

ROI 

Technology Opportunity

Technology problems

Desired business

position

Current Business

 position

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IT definition

Information Technology means the use of hardware, software, services, and supportinginfrastructure to manage and deliver informationusing voice, data, and video.

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IT elements

all computers with a human interface;  all computer peripherals which will not operate

unless connected to a computer or network ;

all voice, video and data networks and theequipment, staff and purchased servicesnecessary to operate them

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IT definition

all salary and benefits for staff whose jobdescriptions specifically includes technologyfunctions, i.e. network services, applicationsdevelopment, systems administration ;

all technology services provided by vendors orcontractors ;

operating costs associated with providinginformation technology ;

all costs associated with developing, purchasing,

licensing or maintaining software ;

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Key questions in the ITmanagement

Technical • What are the important new developments in

IT?• What technology is needed to facilitate BPR?

(Earl, 1994);• How should legacy systems be maintained?

(Sinur, 1994);• What are the phases of IS development?

(Friedman, 1999);

• Is the development of IT evolutionary orrevolutionary? (Forrester, 1980);

• Why do the IS/IT fail? (Sauer, 1993, Mitew,1994, etc)

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Key questions in the ITmanagement

Strategic• Aligned IT strategy with the corporate

strategy? (Earl, 1989...);• Are IT strategy formal-rational and 

deliberate or ad hoc, emergent and fluctuating over time?( Mintzberg, 1993);

• What is the most appropriate duration forthe IT strategies? (Currie, 1999);

• How can IT sustain and improvecompetitive advantage? (McFaclan, 1984);

• Should IT be outsourced? (Lacity ,Hirschheim, 1993);

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Key questions in the ITmanagement

Structure

• How the organisation should be structured tofacilitate IT strategy? (Davenport&Short, 1990);

• Should organisations have a centralised or

decentralised IT department? (Kaestle, 1990);• How does IT affect the structure of an organisation?

(Keen, 1981, etc);

• Should IT be a profit or a cost centre?(Bryson&Currie, 1995);

• What is the relationship between structure and sizeof organisation? (Woodward, 1958);

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Key questions in the ITmanagement

Evaluation

• What are the best methods and techniquesto evaluate an IT strategy ?(Farbey

1993,etc);•  To what extend should managers consider

non-financial factors (qualitative) in theevaluation of IT systems?

• Can IT enhance profitability? At whatextend? (Lincoln&Shorrock ,1990)

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Key questions in the ITmanagement

Managerial 

• Should an organisation appoint an IT director?(Grindley 1991);

• Should technical or general manager in charge of IT?(Earl 1999);

• How can organisations develop hybrid managers?(Earl&Skyrme, 1992);

• Has the knowledge gap between the top

management and IT specialist created a crisis inmanagement control? (Currie&Bryson 1995);

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Key questions in the ITmanagement

Cross-national comparisons of managing IT • Is it possible to identify more effective methods

and techniques of managing IT from cross-national comparisons? (Currie 1994);

• Are Japanese management process practiceseffective for managing technical change andinnovation? (Fruin, 1993);

• Can Japanese practices can be transferred to theWest for performance improvement? (Jones&al,1993);

• Are IT skills shortages, training strategies and HRpractices similar world-wide?

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Key questions in the ITmanagement

Organisational learning, knowledge and skillsdevelopment 

• What is a learning organisation? (Garret 1987);

• How you can develop an innovation environment?

• What skills are needed for today’s high techcompetitive environment?

• How managers can exploit organisational knowledgeto achieve competitive advantage?

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Strategy planning key issues

IS/IT strategicplanning

Business environment

IS/IT trendsCorporate goals/objectives

Functional business

needs Available resources/capabilities

Application planFunctional IS/ITstrategy

Current applicationportfolio

Monitoring/controlplan

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Competitive advantage

StrategicIS/IT

Useful IS/IT

IS/IT capabilities

IS/IT hype

Source: Feeny (1989)

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The organisational use of IT

Technical complexity

low

High

High

Knowledge

Variable/complextasks

Routine tasks

Professional/Managerialfunctions

dministrativelericalfunctions

Simple routinedata

Entry;standaloneapplications

Use of IT to enhanceperformance: word,excel, PowerPoint

IS application for data gathering/Manipulations; bespoke systems,

Expert systems, MIS,DSS

BPR, complex systemsartificial intelligence, etc

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Strategy and technology

Technology andCompetitive situation•Competitive forces•Matching to markets

Technology andStrategic capabilities•Core competences•Developing/acquiring•technology

Organising technology•Location and funding•Global vs local•Organisational processes

STRATEG Y 

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Impact on the Business

• Can IS/IT be used to make a significant change inthe way it does the business and so gaincompetitive advantage?

• Should we concentrate on using IT/IS to improveits approach to the market place or should itcentre its efforts around internal improvements?

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Question

• If you will start a business tomorrow , in anyfield, what do you think will be the minimalrequirements you need to accommodate

immediately in term of IT system ?Explainyour choice.

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Case Study

Outsourcing in South Australia: a high risk strategy?

. What does the SA Government hope to achieve

hrough large scale outsourcing?

. Assess the opportunities and threats of the outsourcingontract.

. What are the political and economic consequences if he outsourcing contract fails?

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Case Study- cont

4.What are the employee relations issues of the outsourcing contract?

5. Do you think the SA Government was rightto opt for outsourcing IT?

6. What skills are needed to maximize theoutsourcing arrangement?