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Chapter 8 Strategic Management of IS/IT: Organization and Resources
Agenda <ul><li>Requirements of strategic management </li></ul><ul><li>Roles of the IT function </li></ul><ul><li>IS/IT org...
Requirements of Strategic Management <ul><li>IS/IT strategies, policies and plans reflects business objectives and strateg...
Roles of the IT Function – I by Zmud <ul><li>User services </li></ul><ul><ul><li>Delivery services </li></ul></ul><ul><ul>...
Roles of the IT Function – II by Zmud <ul><li>Technology development </li></ul><ul><ul><li>Research & development  </li></...
IS/IT Organization Approaches <ul><li>Total centralized (monopolistic) </li></ul><ul><li>Total decentralized to business f...
Choice of IS/IT Organization <ul><li>Stage of application portfolio maturity </li></ul><ul><li>Geography of the enterprise...
IS/IT organization strategies <ul><li>IT (centralized) or user departments (decentralized) </li></ul><ul><li>Mix </li></ul...
IT or User Departments – I by McFarlan and KcKenney <ul><li>IT department </li></ul><ul><ul><li>Integration </li></ul></ul...
IT or User Departments – II by McFarlan and KcKenney <ul><li>User department </li></ul><ul><ul><li>Short term problem solv...
Mix by La Belle and Nyce <ul><li>Business unit responsibility </li></ul><ul><ul><li>Application architecture, development,...
Chief Information Officer or Steering Committee - I <ul><li>Chief  information officer (CIO) </li></ul><ul><ul><li>Setting...
Chief Information Officer or Steering Committee - II <ul><li>Steering committee </li></ul><ul><ul><li>Executive steering g...
Executive Steering Group Functions <ul><li>Aligning business & IS/IT strategies </li></ul><ul><li>Establishing IS/IT prior...
IT Planning Group Functions <ul><li>Interpreting IT trends and development for organizational business </li></ul><ul><li>A...
Service Management Group Functions <ul><li>Meeting business needs with the optimum means </li></ul><ul><li>Monitoring perf...
Technology Management Group Functions <ul><li>Assessing technology against known and potential needs </li></ul><ul><li>Pla...
Business IS Planning Group Functions <ul><li>Identifying business needs </li></ul><ul><li>Interpreting CSFs </li></ul><ul>...
Application Management Group Functions  <ul><li>Identifying special needs, changes, benefits, resources, and costs of appl...
Points to Remember <ul><li>Requirements of strategic management </li></ul><ul><li>Roles of the IT function </li></ul><ul><...
Questions <ul><li>What is a good IT strategic management for an e-business of the banking industry in terms of the organiz...
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Chapter 8: Strategic Management of IS/IT

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Transcript of "Chapter 8: Strategic Management of IS/IT"

  1. 1. Chapter 8 Strategic Management of IS/IT: Organization and Resources
  2. 2. Agenda <ul><li>Requirements of strategic management </li></ul><ul><li>Roles of the IT function </li></ul><ul><li>IS/IT organization approaches </li></ul><ul><li>Choice of IS/IT organization </li></ul><ul><li>IS/IT organization strategies </li></ul>
  3. 3. Requirements of Strategic Management <ul><li>IS/IT strategies, policies and plans reflects business objectives and strategies </li></ul><ul><li>Identify and explore potential business advantages from IS/IT </li></ul><ul><li>Ensure IS/IT strategies are viable in terms of business risks </li></ul><ul><li>Establish resources and priorities </li></ul><ul><li>Match IS/IT management and corporate culture </li></ul><ul><li>Monitor business critical IS/IT activities </li></ul><ul><li>Balance between centralization and decentralization </li></ul>
  4. 4. Roles of the IT Function – I by Zmud <ul><li>User services </li></ul><ul><ul><li>Delivery services </li></ul></ul><ul><ul><li>Systems development </li></ul></ul><ul><ul><li>Support center </li></ul></ul><ul><ul><li>Information center </li></ul></ul><ul><li>Architecture management </li></ul><ul><ul><li>Planning </li></ul></ul><ul><ul><li>Technology diffusion </li></ul></ul><ul><ul><li>Data management </li></ul></ul>
  5. 5. Roles of the IT Function – II by Zmud <ul><li>Technology development </li></ul><ul><ul><li>Research & development </li></ul></ul><ul><li>General </li></ul><ul><ul><li>Administration </li></ul></ul><ul><ul><li>Quality assurance </li></ul></ul>
  6. 6. IS/IT Organization Approaches <ul><li>Total centralized (monopolistic) </li></ul><ul><li>Total decentralized to business functions </li></ul><ul><li>Geographically placed data centers and resources </li></ul><ul><li>Business unit control </li></ul><ul><li>Users </li></ul><ul><li>Activity </li></ul><ul><li>Type of resource – network, computers, software, data, etc. </li></ul>
  7. 7. Choice of IS/IT Organization <ul><li>Stage of application portfolio maturity </li></ul><ul><li>Geography of the enterprise </li></ul><ul><li>Synergy benefits of business services, products, & information </li></ul><ul><li>Business diversity & rate of change </li></ul><ul><li>Competitive pressures </li></ul><ul><li>Economics of resource, obtaining and deploying skills </li></ul><ul><li>Enterprise structure & management culture </li></ul>
  8. 8. IS/IT organization strategies <ul><li>IT (centralized) or user departments (decentralized) </li></ul><ul><li>Mix </li></ul><ul><li>Chief information officer or steering committee </li></ul>
  9. 9. IT or User Departments – I by McFarlan and KcKenney <ul><li>IT department </li></ul><ul><ul><li>Integration </li></ul></ul><ul><ul><li>Database </li></ul></ul><ul><ul><li>Feasibility and cost/benefit analysis </li></ul></ul><ul><ul><li>Litter innovation </li></ul></ul><ul><ul><li>IS organization based on technical specialist not user need </li></ul></ul><ul><ul><li>High maintenance (80%) </li></ul></ul><ul><ul><li>No senior management </li></ul></ul><ul><ul><li>Use frustration with secret growth of user computing </li></ul></ul>
  10. 10. IT or User Departments – II by McFarlan and KcKenney <ul><li>User department </li></ul><ul><ul><li>Short term problem solving </li></ul></ul><ul><ul><li>Incompatible databases & systems </li></ul></ul><ul><ul><li>Lack of quality control </li></ul></ul><ul><ul><li>Hidden maintenance overhead </li></ul></ul><ul><ul><li>Duplication problems </li></ul></ul><ul><ul><li>Little cost/benefit analysis </li></ul></ul><ul><ul><li>Lack of skill technical staff </li></ul></ul>
  11. 11. Mix by La Belle and Nyce <ul><li>Business unit responsibility </li></ul><ul><ul><li>Application architecture, development, and operation </li></ul></ul><ul><li>Central IT group </li></ul><ul><ul><li>Telecommunication </li></ul></ul><ul><ul><li>Hardware & software architecture </li></ul></ul><ul><ul><li>Information architecture </li></ul></ul><ul><ul><li>Risk management and security </li></ul></ul><ul><ul><li>Shared services and utilities </li></ul></ul><ul><ul><li>Human resources </li></ul></ul>
  12. 12. Chief Information Officer or Steering Committee - I <ul><li>Chief information officer (CIO) </li></ul><ul><ul><li>Setting IS/IT policy & strategy </li></ul></ul><ul><ul><li>Goal oriented with business, IS/IT, & communication competency </li></ul></ul>
  13. 13. Chief Information Officer or Steering Committee - II <ul><li>Steering committee </li></ul><ul><ul><li>Executive steering group </li></ul></ul><ul><ul><li>IT planning group </li></ul></ul><ul><ul><ul><li>Service management group </li></ul></ul></ul><ul><ul><ul><li>Technical management group </li></ul></ul></ul><ul><ul><li>Business IS planning group </li></ul></ul><ul><ul><ul><li>Application management group </li></ul></ul></ul>
  14. 14. Executive Steering Group Functions <ul><li>Aligning business & IS/IT strategies </li></ul><ul><li>Establishing IS/IT priority & IS/IT resources </li></ul><ul><li>Ensuring strategic applications achieve their objectives </li></ul><ul><li>Establishing organizational responsibilities and relationships </li></ul>
  15. 15. IT Planning Group Functions <ul><li>Interpreting IT trends and development for organizational business </li></ul><ul><li>Allocating resources according priority </li></ul><ul><li>Monitoring IS/IT performance </li></ul><ul><li>Managing IT, specialists, & technical risks </li></ul>
  16. 16. Service Management Group Functions <ul><li>Meeting business needs with the optimum means </li></ul><ul><li>Monitoring performance against budget/service level </li></ul><ul><li>Controlling quality </li></ul><ul><li>Satisfying evolving demand </li></ul>
  17. 17. Technology Management Group Functions <ul><li>Assessing technology against known and potential needs </li></ul><ul><li>Planning and managing infrastructure </li></ul><ul><li>Resolving technical issues/problems </li></ul><ul><li>Support service group </li></ul>
  18. 18. Business IS Planning Group Functions <ul><li>Identifying business needs </li></ul><ul><li>Interpreting CSFs </li></ul><ul><li>Assessing opportunities, threats, & IS implications </li></ul><ul><li>Prioritizing, planning, & coordinating IS and expenditure </li></ul><ul><li>Ensuring the delivery of benefits </li></ul>
  19. 19. Application Management Group Functions <ul><li>Identifying special needs, changes, benefits, resources, and costs of applications for investment & priority evaluation </li></ul><ul><li>Managing developments & usage of IS </li></ul>
  20. 20. Points to Remember <ul><li>Requirements of strategic management </li></ul><ul><li>Roles of the IT function </li></ul><ul><li>IS/IT organization approaches </li></ul><ul><li>Choice of IS/IT organization </li></ul><ul><li>IS/IT organization strategies </li></ul>
  21. 21. Questions <ul><li>What is a good IT strategic management for an e-business of the banking industry in terms of the organizational structure? </li></ul><ul><li>What is a good IT strategic management for an e-business of the California State University system in terms of the organizational structure? </li></ul>
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