© 2004 Managing the Information Technology Resource, Jerry N. LuftmanChapter 12 - Slide 1 Chapter 12 IT Business Communications Managing the Information Technology Resource Jerry N. Luftman

© 2004 Managing the Information Technology Resource, Jerry N. LuftmanChapter 12 - Slide 2 Chapter Outline Importance of communication in achieving alignment Importance of understanding of business by IT Why it is necessary for business partners to understand IT Importance of communication in developing partnership Methods used to improve communication

© 2004 Managing the Information Technology Resource, Jerry N. LuftmanChapter 12 - Slide 3 Importance of Communication “Effective communications is the central lifeline of any organization. It is the vehicle for driving change, shaping expectations, and rallying workers around core purposes.” -Charlene Marmer Solomon

© 2004 Managing the Information Technology Resource, Jerry N. LuftmanChapter 12 - Slide 4 Kotter’s Key Elements for Communicating Simplicity Metaphor, Analogy, and Example Multiple Forums Repetition Leadership by Example Explanation of Inconsistencies Give and Take

© 2004 Managing the Information Technology Resource, Jerry N. LuftmanChapter 12 - Slide 5 Financial Terms for IT Team Bearer Bonds –Bond owners clip out coupon and present to bond issuer Bond –Bond matures and issuer redeems face amount Treasuries –U.S. Treasury borrows money in form of bills, notes, bonds U.S. Savings Bonds –Non-negotiable and purchases are limited Zero Coupon Bond –No coupons and no interest paid

© 2004 Managing the Information Technology Resource, Jerry N. LuftmanChapter 12 - Slide 6 Web Services Terms for Business SOAP –Provides way for applications to communicate with each other UDDI –Web-based distributed directory that enables businesses to list themselves on Internet Web Services –Standardized way of integrating Web-based applications Web Services Description Language –XML-formatted language that describes Web services capabilities XML –Specification developed by World Wide Web Consortium to tag data

© 2004 Managing the Information Technology Resource, Jerry N. LuftmanChapter 12 - Slide 7 Henderson’s Two Styles of Relationships Transactional Style –Defined by rules, policies, and procedures Partnership Style –Implies risk sharing, longer time frame for exchanges, and need to establish range of mechanisms

© 2004 Managing the Information Technology Resource, Jerry N. LuftmanChapter 12 - Slide 8 Six Determinants of Partnership

© 2004 Managing the Information Technology Resource, Jerry N. LuftmanChapter 12 - Slide 9 The Road to Partnership Education Joint Planning Measurement and Control Effective Use of Teams Multilevel Human Resource Strategy Technology

© 2004 Managing the Information Technology Resource, Jerry N. LuftmanChapter 12 - Slide 10 Global Culture Hidden messages in communication Written communication may be viewed positively or negatively Written communication maintains supporting role Written communication –Addresses ambiguity –Prevents misunderstandings –Identifies ownership and accountability

© 2004 Managing the Information Technology Resource, Jerry N. LuftmanChapter 12 - Slide 11 Addressing Communication Effectiveness Direct Communication Liaison Roles Temporary Task Forces Permanent Teams/Committees Integrating Roles Managerial Linking Roles

© 2004 Managing the Information Technology Resource, Jerry N. LuftmanChapter 12 - Slide 12 Sample Approaches Direct Communications –Reflect differences in complexity, requirements, and importance –Determine best vehicle and audience –Consider how to provide right level of interaction

© 2004 Managing the Information Technology Resource, Jerry N. LuftmanChapter 12 - Slide 13 Sample Approaches Liaison Roles –Surrogate facilitator in assisting business and IT to join and work together –Get IT and business stakeholders together –Ensure each group participates for successful development and deployment of business systems

© 2004 Managing the Information Technology Resource, Jerry N. LuftmanChapter 12 - Slide 14 Sample Approaches Temporary Task Forces –Creates central focus for each participant –Helps to avoid daily distractions –Improves communication among task members –Share common goals and objectives

© 2004 Managing the Information Technology Resource, Jerry N. LuftmanChapter 12 - Slide 15 Sample Approaches Permanent Teams or Committees –Effective means of providing stability –Steering committees provide mechanism for making improved long-term decisions –Legitimate formal process exists –Decisions likely made in best interests of firm –Communication improved

© 2004 Managing the Information Technology Resource, Jerry N. LuftmanChapter 12 - Slide 16 Sample Approaches Integrating Roles –Similar to providing cross-training to IT and business personnel –Experience to know what other person needs to do –Rotate IT and business people between two areas to broaden perspective

© 2004 Managing the Information Technology Resource, Jerry N. LuftmanChapter 12 - Slide 17 Sample Approaches Managerial Linking Roles –Used to facilitate multiple/difference priorities and agendas –Use a matrix structure –Guidance provided by multiple supervisors –Means of communication improved –Used where IT and business are comfortable with each other on partnership level

© 2004 Managing the Information Technology Resource, Jerry N. LuftmanChapter 12 - Slide 18 Tips and Techniques Communication is important Learn from others’ trials and tribulations Shared domain knowledge is critical Training of administration managers in IT and their inclusion in IT projects Things do go wrong and need to get back on track Implement formal communication programs may be necessary

© 2004 Managing the Information Technology Resource, Jerry N. LuftmanChapter 12 - Slide 19 2 Types of Communication Push communication –Occurs when information is disseminated to the organization without being requested by receivers of information Pull communication –Occurs when information is requested and implies immediate availability of information

© 2004 Managing the Information Technology Resource, Jerry N. LuftmanChapter 12 - Slide 20 Personal Factors Maintain clear and honest communication Trust Reputation Integrity

© 2004 Managing the Information Technology Resource, Jerry N. LuftmanChapter 12 - Slide 21 Best Methods to Improve Communications Knowledge sharing Introduce classes for IT and business staff to attend jointly Group Decision Support System Jointly manage communication between business and IT Use of liaison agents, task forces, cross- functional project teams and direct communication Measurement and control

© 2004 Managing the Information Technology Resource, Jerry N. LuftmanChapter 12 - Slide 22

© 2004 Managing the Information Technology Resource, Jerry N. LuftmanChapter 12 - Slide 23 Priority in Improving IT Communication Focus on where improvements can be made Strategic Alignment Maturity Assessment Model Training Continually scan new technologies and products Build partnerships through mutual understanding