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Managing the Information Technology Resource Course Introduction.

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Presentation on theme: "Managing the Information Technology Resource Course Introduction."— Presentation transcript:

1 Managing the Information Technology Resource Course Introduction

2 Key Course Concepts IT is important and necessary for a successful organization Successful management of IT is necessary for competitive advantage

3 IT Management Categories Strategic –Pertinent to long-term attainment of goals and business as a whole Tactical –Needed to achieve strategic plans and goals to produce changes for success Operational –Process and actions that must be performed on a day-to-day basis to maintain performance level

4 Types of Information Systems TPS MIS DSS GDSS EIS SIS

5 Additional Skills of IT Managers Financial Human Resource Relationship Management Legal Governance Marketing Negotiating Leadership

6 Historical View of IT Initially for government/military use Businesses used for financial automation Data Processing was key function Computers were costly and large in size Not widely used

7 Role of IT No longer just serves a business Integral in business strategy Impacts every area of business Complexity increases How does IT function vs. the entire organization Responsible for the integration of information

8 Change Agent Dynamic Stability –IT supports business in dynamic changes with no change to business processes Can enable/inhibit incremental and radical changes Innovation may depend on IT

9 Enabler of Globalization Expands business presence beyond borders IT maintenance of Infrastructure and Technologies

10 IT/Business Gap IT/Business alignment critical Alignment –Application of IT in an appropriate and timely manner, in harmony with business goals, strategies, and needs Enabler Inhibitor


12 CSC Survey Top Rankings Information Systems alignment with Corporate Goals ranked 1 st or 2 nd 9 of 11 years! Organizing & utilizing data Connecting to customers, suppliers, and/or partners electronically Optimizing organizational effectiveness

13 IT vs. Other Functions Encompasses entire enterprise Affects all business functions Extends beyond business boundaries Affects every level of management Impact affects entire value chain, including suppliers and customers Creates synergy between departments

14 IT as Architects of Alignment Knowledgeable about new technologies Privy to tactical and strategical plans Be present in corporate strategy discussions Understand technology strengths and weaknesses

15 Six Key Enablers to Alignment Senior executive support for IT IT involved in strategy development IT understands the business Business-IT partnership Well-prioritized IT projects IT demonstrated leadership

16 Six Inhibitors to Alignment IT/business lack close relationships IT does not prioritize well IT fails to meet commitments IT does not understand business Senior executives do not support IT IT management lacks leadership

17 Today’s Business Environment Increased globalization Increased competitive pressure Frequent mergers Rapidly changing technology Evolving patterns of consumer demand

18 Competitive Advantage Today Unsurpassed relationships with one’s customers and suppliers Unique and adaptable business processes Ability to harness information and knowledge of employees Must become “Change Leaders”

19 Business Strategy Choices Selection of business goals Choice of products and services to offer Design and configuration of policies Appropriate level of scope and diversity Design and organization structure and administrative systems

20 IT Strategy Set of decisions made by IT and senior management Deployment of technology infrastructures Relationship of technology choices to business choices

21 Aligned IT Strategy Intimate understanding of customers and evolving needs Managing knowledge- and information- based asset management Continuously innovate strategically relevant new processes Coordination of activities involving people, procedures, and technology

22 IT Roles in Strategy Transformation driver –Create and exploit new markets –Link customers to firm –Define new standards of excellence Enabler of transformation –Interconnect people and processes –Span organization boundaries –Bridge geographical distances

23 IT as Inhibitor IT strategy not aligned with business strategy Over-emphasis on technology Failure to recognize effective use of IT requires business process change

24 Strategic Environment

25 Internal Business Domain Administrative Structure –Functional, matrix, decentralized, process- based, geographic, or hybrid Critical Business Processes –Identification of salient processes Human Resource Skills –Acquisition and development of people skills

26 Strategic Fit Scope of Firm’s Business –Customers, products, markets, and competitors Distinctive Competencies –Core competencies –Critical success factors that provide competitive advantage Governance of the Firm –Impact of regulatory agencies

27 Strategic Alignment Model Scope of Firm’s Technology –Impact and support business strategy decisions and initiatives Systemic Competencies –Technology capabilities IT Governance –Pursue relationships and alliances to obtain IT competencies

28 Internal IT Strategy Domain IT Architecture –Selection of technology and infrastructure –Models used to define data, information, networks, applications, and systems IT Organizational Processes –Critical to operation of IT organization –Systems development, IT operations IT Skills –Acquisition and development of people

29 Strategic Alignment Model Business Strategy –Business Scope –Distinctive Competencies –Business Governance Organization Infrastructure and Processes –Administrative Structure –Processes –Skills Strategy –Technology Scope –Systemic Competencies –IT Governance IT Infrastructure and Processes –Architecture –Processes –Skills

30 Functional Integration Linkage between the IT strategy domain and business strategy domain Support requirements and expectations of business’ organizational structure and processes

31 Planning IT Strategy Sequence of activities that transforms current alignment state to future alignment state Actively involve IT staff in development of vision and strategies Strengthen degree of strategic alignment


33 IT Strategy Implementation Execute the strategy Commitment and engagement of senior business management –Must occur prior to implementation planning Strategic Alignment Maturity –Ability to adapt in harmonious fashion Adoption of Measurement Criteria –Measure effects in several different dimensions

34 Periodic Review Ensure initial assumptions are correct Ensure implementation of plans are on schedule Measurements are captured and reported

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