Mis 012


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  • 05/19/11
  • 05/19/11
  • 05/19/11
  • 05/19/11
  • 05/19/11
  • 05/19/11
  • 05/19/11
  • 05/19/11
  • 05/19/11
  • 05/19/11
  • Mis 012

    1. 1. Strategic IT Management
    2. 2. The Computing Eras --- Strategic Inter-organizational Period of transformed enterprise 1995-2010 Network Era 3. Effectiveness Individual Period of creative destruction 1975-1995 Micro Era 2. Efficiency Organizational Industrial economy 1960-1980 DP Era 1. Justification IT Set Up IT Focus Period Era S.No.
    4. 4. Strategic MIS Grid <ul><li>Level of Dependence on Existing Applications </li></ul><ul><li>Level of Dependence on Planned Applications </li></ul>Planned Applications Existing Applications Low High High Low Turnaround Strategic Support Factory
    5. 5. Level of Dependence on Existing Applications <ul><li>How critical is it that existing systems run in a reliable, cost efficient fashion 24 hors a day, 7 days a week, 52 weeks a year? </li></ul><ul><ul><li>High Dependence: </li></ul></ul><ul><ul><li>Reliable functioning of the systems is at the absolute core what the company must do right if it is going to be successful. </li></ul></ul><ul><ul><li>Low Dependence: </li></ul></ul><ul><ul><li>If there is unevenness is computer services, it is irritating but not fatal. </li></ul></ul>
    6. 6. Strategic Impact of the Planned Applications <ul><li>How crucial are the new systems that are going to be developed over the next few years? </li></ul><ul><ul><li>High Impact: </li></ul></ul><ul><ul><li>IT development is on the short list of three or four things the firm must do right to be successful and profitable. </li></ul></ul><ul><ul><li>Low Impact: </li></ul></ul><ul><ul><li>IT developments will be useful but not on the short list of three or four things that have to be done right. </li></ul></ul>
    7. 7. IT Management Environments-- <ul><li>A. Strategic </li></ul><ul><ul><li>What is under development is absolutely critical to the firm’s long-term success and the firm is highly dependent on IT on a daily basis. </li></ul></ul><ul><ul><li>IT’s position in the organization is right at the TOP. </li></ul></ul><ul><li>B. Turnaround </li></ul><ul><ul><li>What is under development is very important, but there is more tolerance for uneven support by existing systems. </li></ul></ul><ul><ul><li>Oil Industry </li></ul></ul>
    8. 8. IT Management Environments-- <ul><li>C. Factory </li></ul><ul><ul><li>Smooth operation of existing technology is crucial for survival, but future IT developments are not a major element of differentiation. </li></ul></ul><ul><li>Credit Card Processing Operation. </li></ul><ul><li>D. Support </li></ul><ul><ul><li>What is under development is not on the shortlist of things that must be done right and problems with existing IT systems are irritating but not fatal. </li></ul></ul><ul><li>Consulting Firms, Grocery Stores. </li></ul>
    9. 9. Strategic MIS Grid Planned Applications Existing Applications Low High High Low Turnaround Strategic Support Factory
    10. 10. Generic IS Strategies <ul><li>Centrally Planned </li></ul><ul><ul><li>Totally integrated with business strategy </li></ul></ul><ul><ul><li>Very demanding in terms of top management time </li></ul></ul><ul><ul><li>Could be very difficult to be made effective </li></ul></ul><ul><ul><li>Desires complete understanding of the business situation </li></ul></ul><ul><li>Leading Edge </li></ul><ul><ul><li>Acceptance of the fact that IT will create competitive advantage </li></ul></ul><ul><ul><li>Results in many wasted investments </li></ul></ul><ul><ul><li>Requires senior management commitment </li></ul></ul><ul><ul><li>Could be expensive </li></ul></ul>
    11. 11. Generic IS Strategies <ul><li>Free Market </li></ul><ul><ul><li>Internal services must compete with outside vendors </li></ul></ul><ul><ul><li>Requires little attention from the top management </li></ul></ul><ul><ul><li>Could lead to duplication of efforts/investments </li></ul></ul><ul><li>Monopoly </li></ul><ul><ul><li>The department is a sole source of service within organization </li></ul></ul><ul><ul><li>User satisfaction is the main measure of effectiveness </li></ul></ul><ul><ul><li>Innovation could be slow due to lack of competition </li></ul></ul><ul><ul><li>Users usually do not perceive their role in IT activity </li></ul></ul>
    12. 12. Generic IS Strategies <ul><li>Scarce Resources </li></ul><ul><ul><li>Careful management of IT resources using financial controls </li></ul></ul><ul><ul><li>Investments analyzed in hard financial terms </li></ul></ul><ul><ul><li>IT treated as a cost centre </li></ul></ul><ul><ul><li>IT not considered as a business weapon </li></ul></ul><ul><ul><li>Most popular strategy to be found in organizations </li></ul></ul><ul><li>Necessary Evil </li></ul><ul><ul><li>IT deployed basically to fulfill legal requirements </li></ul></ul><ul><ul><li>Investments made only for very high return projects </li></ul></ul>
    13. 13. Strategic MIS Grid <ul><li>Suitability of IT Environments </li></ul>Planned Applications Existing Applications Low High High Low <ul><li>Factory </li></ul><ul><li>Monopoly </li></ul><ul><li>Scarce Resources </li></ul><ul><li>Strategic </li></ul><ul><li>Centrally Planned </li></ul><ul><li>Leading Edge </li></ul><ul><li>Support </li></ul><ul><li>Scare Resources </li></ul><ul><li>Free Market </li></ul><ul><li>Turnaround </li></ul><ul><li>Leading Edge </li></ul><ul><li>Free Market </li></ul><ul><li>Centrally Planned </li></ul>
    14. 14. Failures of Conceptualization <ul><li>Project fails to meet a real customer need </li></ul><ul><li>Use of product does no become ingrained in user behaviour </li></ul><ul><li>Project is too easy to replicate </li></ul><ul><li>Project wakes up a sleeping giant </li></ul><ul><li>Project triggers a monopoly litigation </li></ul><ul><li>Technology lowers entry barriers </li></ul><ul><li>Project is rejected by the customer culture </li></ul>
    15. 15. Failures of Execution <ul><li>Dimensions of Implementation Risk: </li></ul><ul><li>Structuredness: </li></ul><ul><ul><li>Greater the Structuredness, lower the risk </li></ul></ul><ul><ul><li>Lesser the Structuredness, higher the risk </li></ul></ul><ul><li>Company-relative technology: </li></ul><ul><ul><li>More familiar the technology, lower the risk </li></ul></ul><ul><ul><li>Less familiar the technology, higher the risk </li></ul></ul><ul><li>Size: </li></ul><ul><ul><li>Larger the project, higher the risk </li></ul></ul><ul><ul><li>Smaller the project, lower the risk </li></ul></ul>
    16. 16. Implementation Risk Matrix Low Low Low Technology Medium High High Technology High Structure Low structure
    17. 17. Twelve Principles of Killer App Design <ul><li>Reshaping the Landscape </li></ul><ul><ul><li>Outsource to the Customer </li></ul></ul><ul><ul><li>Cannibalize your markets - develop new ones </li></ul></ul><ul><ul><li>Treat each customer as a market segment of one </li></ul></ul><ul><ul><li>Create communities of value </li></ul></ul>
    18. 18. Twelve Principles of Killer App Design(contd) <ul><li>Building New Connections </li></ul><ul><ul><li>Replace rude interfaces with learning interfaces </li></ul></ul><ul><ul><li>Ensure continuity for the customer, not yourself </li></ul></ul><ul><ul><li>Give away as much information as you can </li></ul></ul><ul><ul><li>Structure every transaction as a joint venture - between you and the customer </li></ul></ul>
    19. 19. Twelve Principles of Killer App Design <ul><li>Redefining the Interior </li></ul><ul><ul><li>Treat your assets as liabilities - and digitize ASAP </li></ul></ul><ul><ul><li>Destroy your value chain - or someone else will </li></ul></ul><ul><ul><li>Manage innovation as a portfolio of options </li></ul></ul><ul><ul><li>Hire the children - they’re tech savvy </li></ul></ul>
    20. 20. Long Term Competitiveness thru IT Assets <ul><li>The three IT Assets </li></ul><ul><ul><li>build a strong IT Staff </li></ul></ul><ul><ul><li>procure a reusable technology </li></ul></ul><ul><ul><li>develop a partnership between IT and business management </li></ul></ul>
    21. 21. Challenges for IT Exploitation <ul><li>Business and IT Vision </li></ul><ul><li>Design an IT Architecture </li></ul><ul><li>Delivery of IS Systems </li></ul>
    22. 22. IT Role Profiling <ul><li>We deploy IT to overcome weaknesses in our current operations </li></ul><ul><li>We see IT as an expense to be managed </li></ul><ul><li>We view IT outsourcing as a threat to our operations </li></ul><ul><li>We use one rigid criterion for assessing value from IT </li></ul><ul><li>Our IT operations reflect a captive, internal monopoly </li></ul><ul><li>We view IT as a fundamental driver of future business </li></ul><ul><li>We see IT as a resource to be leveraged </li></ul><ul><li>Our sourcing strategy balances insourcing with outsourcing </li></ul><ul><li>We adopt multiple criteria for measuring IT value </li></ul><ul><li>Our IT operations act as a solutions integrator to business requirements </li></ul>
    23. 23. Developing an IT Architecture Business Organization Business Vision Business Strategy Shared IT Vision IT Strategy IT Architecture
    24. 24. Interpreting Technology Hype – Gartner Research VISIBILITY MATURITY Technology Trigger Peak of Inflated Expectations Trough of Disillusionment Slope of Enlightenment Plateau of Productivity
    25. 25. Magic Quadrants – Vendor Positioning Gartner Research Completeness of Vision Ability to Execute <ul><li>Visionaries </li></ul><ul><li>Have the vision to become leaders if they can muster the execution skills required for long-term staying power </li></ul><ul><li>Niche Players </li></ul><ul><li>Are executing well to plan </li></ul><ul><li>Fail to keep pace with the realities of market demand </li></ul><ul><li>Leaders </li></ul><ul><li>Are doing well today </li></ul><ul><li>Have great prospects for Future </li></ul><ul><li>Have the talent, capability and resources to drive and shape the future </li></ul><ul><li>Challengers </li></ul><ul><li>Are doing well today </li></ul><ul><li>Future market movement is not clear </li></ul>
    26. 26. The Competitive Advantage Three Generic Strategies related to Competitive Advantage Focus Cost Leadership Product Differentiation
    27. 27. Porter’s Five Force Model Threat of New Entrants The Industry : Existing Rivals Threat of Substitute Products Bargaining Power of Suppliers Bargaining Power of Customers
    28. 28. Opportunity Framework New Entrants Erect/Demolish Entry Barriers Suppliers Erode/Share the Bargaining Customers Switching Costs/Customer Information Substitute Products/Services Innovate New Products/More Value Existing Rivalry Change the Basis of Competition
    29. 29. Six Key Questions <ul><li>Can IT be used to create defensible entry barriers </li></ul><ul><li>Can IT help us induce switching costs </li></ul><ul><li>Can IT help us change the ground rules of competition </li></ul><ul><li>Can IT help us change the competition from cost-based competition to sustainable product differentiation </li></ul><ul><li>Can we use IT to build links to our suppliers </li></ul><ul><li>Can IT be used as a part of the product </li></ul>No : We are more closer to Support-Factory side of the grid Yes - We are more close to the Strategic-Turnaround side of the grid
    30. 30. Porter’s Five Force Model Threat of New Entrants The Industry : Existing Rivals Threat of Substitute Products Bargaining Power of Suppliers Bargaining Power of Customers <ul><li>The New Forces : </li></ul><ul><li>Globalization </li></ul><ul><li>Digitization </li></ul><ul><li>Deregulation </li></ul>
    32. 32. Leavitt’s Balancing Act
    33. 33. Mapping of Organizational Culture on Nolan’s Stage Growth Model
    34. 34. Mapping of Contemporary IT on Nolan’s Stage Growth Model
    35. 35. The Four C’s of Digital Transformation <ul><li>Commerce - the way we transact </li></ul><ul><li>Content - the information we use </li></ul><ul><li>Community - the people we interact with </li></ul><ul><li>Collaboration - the ways we interact with them </li></ul>
    36. 36. First Mover Advantages -- <ul><li>Today, first movers walk away with all the marbles </li></ul><ul><li>Internet Life Cycle - the adoption curve rises quickly and falls quickly against PLC </li></ul><ul><li>You’ve got to think differently </li></ul><ul><li>Can you deliver function without form : </li></ul><ul><ul><li>CRM </li></ul></ul><ul><ul><li>Diagnostic </li></ul></ul><ul><ul><li>Software applications </li></ul></ul><ul><li>Can you set up a mega-exchange - Planet-M </li></ul><ul><li>Bottomline - Web is not kind to followers </li></ul>
    37. 37. B-2-B Challenges --- <ul><li>Like CISCO, Intel has used digital transformation to : </li></ul><ul><li>Cut costs </li></ul><ul><li>Increase customer satisfaction </li></ul><ul><li>Maintain growth </li></ul><ul><li>Empower employees </li></ul>
    38. 38. B-2-B e-Business Results --- <ul><li>CISCO, FedEx and Intel experience suggests that this leads to : </li></ul><ul><ul><li>Lowering latencies </li></ul></ul><ul><ul><li>Lowering operational costs </li></ul></ul><ul><ul><li>Creating seamless partnerships </li></ul></ul><ul><ul><li>Virtual manufacturing </li></ul></ul>
    39. 39. B-2-C E-Commerce -- <ul><li>Advertise - “We are here” - Can you sustain interest </li></ul><ul><li>Who’s out there - </li></ul><ul><ul><li>Internet population has grown multifold </li></ul></ul><ul><ul><li>Online shopping is increasing </li></ul></ul><ul><ul><li>More people, more frequently access the Net </li></ul></ul>
    40. 40. B-2-C E-Commerce --Popular Myths <ul><li>Hits is a good measuring stick </li></ul><ul><li>Great content leads to repeat visits </li></ul><ul><li>To get traffic to site, depend on search engines </li></ul><ul><li>Web is just like TV </li></ul><ul><li>You need to be cutting edge to succeed </li></ul>
    41. 41. To succeed in B-2-C E-Commerce -- <ul><li>Your entire supply chain must be optimized </li></ul><ul><li>Forget the level playing field - indulge in one-to-one marketing </li></ul><ul><li>Greater operational efficiencies </li></ul><ul><li>Expanded customer base </li></ul><ul><li>Bottomline - Can your systems evolve? </li></ul>
    42. 42. E-Business Mantra --- <ul><li>The winning strategy is fast and flexible </li></ul><ul><li>The winning system is versatile and scalable </li></ul><ul><li>The winning team is totally committed </li></ul><ul><li>Settle for nothing less. </li></ul>
    43. 43. Concluding Remarks <ul><li>Emerging technologies are providing level playing field </li></ul><ul><li>Process innovation is a must </li></ul><ul><li>Proprietary architectures are indispensable for CA </li></ul><ul><li>Just good products are not enough </li></ul><ul><li>Architectures should be able to evolve </li></ul><ul><li>Cannibalization of old ideas is essential </li></ul><ul><li>IT Leadership has no substitute </li></ul>
    44. 44. YOU & I <ul><li>A man is flying around in a hot air balloon, and realizes that he is lost. </li></ul><ul><li>He reduces altitude and spots a man down below. </li></ul><ul><li>He lowers the balloon near the man and shouts: “Excuse me, but can you tell me where I am?” The man down below says: “Yes! You’re in a hot air balloon, hovering 30 feet above this field.” </li></ul><ul><li>“ You must work in Information Technology” says the balloonist. </li></ul><ul><li>“ As a matter of fact, I do!” replies the man, “how did you know?” </li></ul><ul><li>“ Well,” says the balloonist, “everything you’ve told me is technically correct, but it’s of no use whatsoever.” </li></ul><ul><li>The man below says: “Well then! You must be in upper management!” </li></ul><ul><li>“ I am,” replies the balloonist, “but how did you know that?” </li></ul><ul><li>“ Because you don’t know where you are of where you’re going, and you expect me to be able to help! Plus, you’re just as lost as you were before we met, but now you think it’s all my fault!” </li></ul>