The Evolution of I.T. & Finance First Mover on Bits & Bites Accounting Systems General Numerical Systems Marketing Bells & Whistles CIO’s Explode CIO’s Implode Transition
I.T.’s Level of Importance Non-Critical Critical New Industry
Management Information Systems - Business Performance Revenue & Share of Market Customer Service Admin. Cost / Delivery Cost
Management Information Systems - Business Process Productivity Cost of Doing Business Improve Business Decisions Analysis of Data
Technology Infrastructure - I.T. Objectives Eliminate Obsolete & Redundant Technology Reduce the Cost of Computing Develop a Functionally Complete, Technically Effective and Flexible Infrastructure to Support Business Growth [ Plug & Play ]
Critical Questions of I.T. / Systems 1.Can we present a Consistent and Personalized Face to our Customers? vs. Incoherent, Inconsistent I.T. Infrastructure - Killing Customer Service & the Business.
Critical Q’s 2.Are We Connected to Our Marketplace? Extensively Networked with Customers, Suppliers, Distributors, Financial Institutions, Industry and Business Partners
Critical Q’s 3.Do we have Basic Systems? –Accounting –Inventory –Etc… Must have Basic Systems. Can’t Afford to have people analyzing the #’s just to convert them.
Critical Q’s 4.What Impact is I.T. having on our Customers and Competitors? Current Waves of Technological Change are Moving so Fast that the First Mover Advantage is Dramatically Intensified.
Critical Q’s 5.How much do we Really Know About our Customers and Non-Customers? Information or New Knowledge. Divisiveness, Information Overload, and Chaos or An Opportunity for Competitive Advantage. (Sort it Better/Faster)
Critical Q’s 6.Do we Account for I.T. in Major Structural and Growth Moves? How Integral and Important are the I.T. Capabilities of the Business Unit or Project in Question?
Critical Q’s 7.Are our Major I.T. Initiatives on Track to Succeed? Too Often Projects Bog Down or Spin Out of Control for the Lack of Ongoing Attention by Executive Management. Senior Management must Drive the Change and Make it Work.
Critical Q’s 8.How Fast can we Capitalize on Technological Change? - As Fast as Training & Development of the I.T. Staff. Companies must Make Organizational Investments alongside Technological ones. “If you build it, they will come.” – Doesn’t Work with Information Systems
Critical Q’s 9.How Strong are Our I.T. Capabilities? Leadership Leveraging Economies Adequate Safeguards - Proprietary Information - Hackers / Attacks / Viruses Working with Best in Class Technology Partners
Critical Q’s 10.Are we Investing in Infrastructure or Spending on Systems? * Twin Sins: Fragmentation & Incompatibility Every Project Must be Part of an Ongoing Initiative to Build the Information Structure that the Corporation Needs.
Technology Training & Development Objectives: Reduce Expense & Dependency on Outside Resources Speed Ability to Adapt Create Environment to Attract and Retain Key Staff
Technology Training & Development Objectives: Create Internal Experts Facilitate Cross-Training Standardize Systems
Design & Development of I.T./Systems Critical to Provide Consistent Approach –To Improve Productivity –Allow Developer Mobility –Ease of Testing & Audit Processes
I.T. / Systems Organization Enterprise Systems Operations Systems Data Centers & Networks & Internet Technology Services (Telcom’s, PC’s) Development
I.T. Development Curve Tech. Evolution I Initiation II Growth III Control IV Integration Stages
Organizations Must Pass Through Specific Stages In the I.T. Development Cycle Applications Portfolio Rudimentary Applications Proliferation of Applications Consolidation of Applications Integrated Business Processes & Applications Business User Preparation I.T. Responsibilities Superficial Enthusiasm Pockets of Understanding Business Trade- Offs TechnologySpeaker Net Bridges Among Infrastructure Integrated Infrastructure Information Utility H.R.ProgramsSeparation of Duties Specialization of Skills Blending of Business & I.T. Skills MGT. Controls LaxMore LaxFormalize Internal Control External Planning & Mgt. Control IIIIIIIV InitiationGrowthControlIntegration
I.T. Investments Investment Management Controls Business User Preparedness Application Technology H.R. & Technology Supply I.T. Perspective Demand Business Perspective Growth Must be Driven by Balancing Supply & Demand
Project Process # of Projects FewMany Low High Strategy & Planning Required Analysis Paralysis Just Do It Ideal Planning & Project Process
Most Systems are Built to Process Data, Not Provide Information. High Low Functional & Technical Quality LowHigh Strategic Value & Technological Evolution Keep in Tune Replace --- Discard Assess & Build On Renovate Reengineer
I.T. Positioning Straggler FollowerLeaderVisionary Low Cost Risk / Value High Cost Risk / Value Competitive Value Cost / Risk
I.T. Leadership Requires Business Acumen Functional Knowledge Planning Skills Customer Relations Awareness of Business Processes People Skills