Slide 1 of 24 Week 1: Lecture Structure Title: Managing IT –Business importance of IT –Role of CIO –Review the IS Pyramid –Top Business IT Issues –Discuss the IT Infrastructure –Case Study –Recommended Readings

Slide 2 of 24 Traditional View of IS

Slide 3 of 24 Importance of IT IT important and necessary component of a successful organisation Successful management of the IT resource is a prerequisite for the success of IT as a source of competitive advantage(CA) for an organisation It can provide and sustain CA when used as integral part of the business strategy

Slide 4 of 24 Recap - Porter’s CA Strategies Cost Leadership –Competing with lower costs Product differentiation –Competing with value Product focus –Competing by restricting one’s market

Slide 5 of 24 The Role of IT IT as an enabler of eBusiness –Serve as a link among functions, customers, suppliers, other businesses –Successes and failures more visible IT as a change agent –Use of IT to respond quickly to change without altering business processes IT as an enabler of Globalisation –Expanding presence outside country boundaries

Slide 6 of 24 Information Architecture & IT Infrastructure

Slide 7 of 24 A CIO Performance Plan Participate in development of corporate strategies Foster business – IT relationship and confidence Demonstrate business value of IT Maintaining technology competency Attract, retain and develop talented people Meet project commitments Practice sound financial principles Faciliate change Build a governance framework Continuous improvement of IT processes Manage external contractors, vendors and partners * CIO – Chief Information Officer

Slide 8 of 24 CIO Attributes Analyst background and orientation Promotes IT as agent of business transformation Contributes beyond IT function Accurate perception of CEO views on business and IT Integrates IT with business planning Profile stresses consultative leadership and creativity

Slide 9 of 24 Role of the CIO Management of IT Processes –Strategic (long term) –Tactical (short term) –Operational (day to day)

Slide 10 of 24 Information Systems Pyramid STRATEGIC LEVEL EIS System SENIOR MANAGERS TACTICAL LEVEL MIS, DSS System MIDDLE MANAGERS OPERATIONAL OPERATIONAL LEVEL MANAGERS TPS System KNOWLEDGE LEVEL KWS System KNOWLEDGE & WORKERS SALES & MANUFACTURING FINANCE ACCOUNTING HUMAN RESOURCESMARKETING

Slide 11 of 24 Examples of IS

Slide 12 of 24 Business Activities

Slide 13 of 24 INTERRELATIONSHIPS AMONG SYSTEMS

Slide 14 of 24 Strategic Processes Create competitive advantage Deliver cost efficiencies Improve business processes Examples –Business Strategy Planning –Architecture planning –IT Strategic planning and control

Slide 15 of 24 Tactical Processes Immediate or short term impact May respond to a competitor threat Intermediate improvements to existing operations Majority of staff involved in these IT processes Tends to receive largest budget Examples: –Application, data, network, systems, project, security, capacity, skills and budget planning

Slide 16 of 24 Operational Processes Cover many day-to-day functions –E.g. production, scheduling, maintenance, resource control and admin services Sometimes the most critical as failure visible to external clients/customers, partners and end users

Slide 17 of 24 Which Processes are Most Important All IT processes are important. Each process will contribute to the effective management and performance of IT. Examples –Application development is most visible to developing competitive and strategic advantage. –Security and recovery planning have gained greater stature because of the new threats to the stability of the systems –Vendor management has also increased in importance, as many firms are outsourcing more of their activities

Slide 18 of 24 Top Business IT Issues (CSC, 2001) (1)Optimizing enterprise-wide IS services (2)Aligning IS and Corporate goals (joint) (3)Protecting and securing information systems (joint) (4)Organising & utilising data (5)Optimizing organisational effectiveness (6)Connecting to Customers, suppliers and/or partners electronically (7)Instituting cross-functional IS (8)Implementing business transformation initiatives (9)Updating obsolete systems (10)Integrating systems with the internet

Slide 19 of 24 Top Business IT Issues (CSC, 2001) contin… (11) Improving the system development process (12) Educating management in IT (13) Developing an eBusiness Strategy (14) Capitalizing on advances in IT (15) Cutting IS costs (16) Using IT for competitive breakthroughs (17) Managing knowledge assets (18) Creating an Information Architecture (19) Restructuring the IS function (20) Improving the IS human resource (21) Managing complex organisational change (22) Designing the Mobile workplace

Slide 20 of 24 Issue 1 - OPTIMIZING ENTERPRISE-WIDE IS SERVICES Enterprise Systems (ERP)

Slide 21 of 24 Issue 6 – Connecting to customers, suppliers and/or partners electronically Customer Relationship Management (CRM) Irish Case Studies Banks Hotels

Slide 22 of 24 The Order Fulfillment Process Issue 7 - Instituting cross-function IS Integrating Functions and Business Processes

Slide 23 of 24 Managing IS The process of managing IT in organisations is becoming increasingly complex as it becomes more important. Three major trends that impact IT management: –Governance of IT, that is, deciding who makes which IT decisions, is shifting from being handled exclusively by IS executives to being a collaborative effort between IS and the business –The role of IS is shifting from application delivery to system integration and infrastructure development –Outsourcing is becoming a way of life for many IS organisations, to the extent that a major responsibility of IS is developing and managing relationships with external service providers (ESPs).

Slide 24 of 24 The Organisational Environment How IT is used depends on the environment surrounding the organisation that uses it. Two aspects of the organisational environment include: –The external forces that are causing executives to re-examine how their firms compete –Internal structural forces that affect how organisation’s operate or are managed