1. Chapter 2 Manageable Trends

2. Six Trends  IT influences different industries, and the firms within them, in different ways  Telecommunications, computing, and software technologies are evolving rapidly and will continue to evolve  The time required for successful organizational learning about It limits the practical speed of change  External industry, internal organizational, and technological changes are pressuring firms to “buy” rather than “make” IT software and services  While all elements of the IT system life cycle remain, new technologies both enable and require dramatically different approaches to execution  Managing the long-term evolution of the partnership between general management, IT management, and User management is crucial for capturing the value of new IT-enabled business opportunities

3. Challenges in Managing IT  Young Technology  Technological Growth  Leaps in Cost Performance  Quick transition from market leader to obsolescence  End-User Coordination  Interdisciplinary focus of MIS vs CS  Specialized vocabulary  Specialization  Outsourcing  Shift in Application Focus

4. Theme 1: Strategic Impact  IT affects different industries at different rates  IT changes the roles of players in the “value chain”  Can also eliminate roles of players  Changes products and product mix  Cars contain huge computing power  Changes customer perceptions of goods/services  Affects the basis of competition

5.  Airlines gain or lose competitive advantage  Defense industries CAD/CAM, robots, etc.  Not much marketing  Retailing  Point of sale, bar coding,  Customer clubs, just in time ordering, internet catalogs  Pressure travels throughout the supply chain  Can serve as a weeding process  People’s Express, Frontier Airlines, Encyclopedia Britanica Theme 1: Strategic Impact

6.  Categories of Relevance and Impact  Strategic - IT crucial for future competitive success  Banks, insurance companies, retail chains  Turnaround - firm not totally dependant on IT for survival  Manufacturing - factories, marketing and accounting  Factory - IT enables critical, time-dependant operations  Short interruptions in service can be disastrous  Often outsource  Support - IT helps, but not critical Theme 1: Strategic Impact

7.  IT applications which were non-existent in 1992 were sate of the art in 1995, routine by 1997, and are now obsolete  Life of a machine is now expected to be 3 years  Era I - 1950s to 1970s  Era II 1970s to 1980s  Era III 1990s Theme 2: Integrating Changing Technology Platforms

8.  Requires user involvement  May result is user replacement  Requires new methods  Must overcome old patterns of performance  Four phases of innovation and diffusion Theme 3: Assimilating Emerging Technologies

9.  Phase 1: Technology Identification and Investment  Find or fund new technology  Gain top level management support  Phase 2: Technology Learning and Adaptation  Encourage user-oriented experimentation  May provide new perspectives Theme 3: Assimilating Emerging Technologies

10.  Rationalization/Management Control  Using mature technology  Setting up control procedures  Maturity/Widespread Technology Transfer  Must maintaining user enthusiasm  Must maintain legacy systems

11.  Push towards outsourcing  Limited staff  Rising Development costs  Availability of off-the-shelf solutions  Experience with standardized packages  Buy vs. Make decision  Difficult to maintain culture and loyalty  Vendor durability  Churn Theme 4: Sourcing Policies for the IT Value Chain

12.  Traditional method was the Systems Development Life Cycle:  Design, Construct, Implement, Operate, Maintain  Used for Large-scale projects  Small Team projects  Database  Case  Object Oriented Theme 5:Applications Development Process

13.  Three different stakeholders  IT management  User Management  General Management  IT Management  IT department formed and continues through internal and external pressure  User Management  Have business and technology concerns  General Management Theme 6:Partnership of Three Constituencies

14. The IT Environment Era I Era II Era III Primary target Justification/ Purpose Organizational Individual Enterprise & Industry Integration Productivity/Efficiency Individual / Group Effectiveness Value Creation