1. Introduction Challenges of Managing in a Network Economy

3. Themes presented in this book Market structure and industry dynamics Evolving business models IT impact Prioritizing IT investment Assimilation and organizational learning Buy versus make Partnership among key constituencies as IT evolves Protecting IT assets and managing risks Pervasive computing

4. Theme 1: Market Structure and Industry Dynamics New choices for designing and building industries, markets, and organizations. IT expands processing capacity enabling convergence of voice, video, and data. Real-time transactions, interactivity and connectivity.

6. Theme 2: Evolving Business Models The business models that dominated the Industrial Economy are evolving to take advantage of the capabilities of the new technologies and business practices of the Network economy, giving rise to new sources of power and differentiation.

8. Theme 3: IT Impact Important dimensions are: –The impact of IT on core operations and –The impact of IT on core strategy.

10. Theme 4: Prioritizing IT Investments Shift in IT investment priorities and decisions from a cost-avoidance, project centered approach to an asset-based, strategic option approach.

11. The IT Business Value Scorecard Table 4-2: The IT Business Value Scorecard Categories of Benefits Goals and Measures InternalExternal Type I: Benefits from Investments in a Networked IT Infrastructure Functionality and Flexibility Improve infrastructure performance; increase the functionality and range of strategic options that can be pursued Sample Measures: Decrease the cost and/or improve the performance of internal IT operations; enable new IT applications to be created at lower cost, in less time, and with less risk; expand the range of internal IT initiatives Create an efficient, flexible online/offline platform for doing business with customers, suppliers, and partners Sample Measures: Decrease the cost and/or improve the performance of doing business online; decrease the time, cost and risk of launching new online business initiatives; expand the reach of existing IT enabled businesses and the range of business opportunities that can be pursued.

12. The IT Business Value Scorecard – Contd. Categories of Benefits Goals and Measures InternalExternal Type II: Benefits from Doing Business on a Networked IT Infrastructure CommerceImprove internal operating efficiency and quality Sample Measures: Internal process performance and work flow improvements; cost savings or cost avoidance; increased quality; decreased cycle time Streamline and integrate channels to market, create new channels, and integrate multiple online/offline channels Sample Measures: Supply chain or distribution channel performance improvements; cost savings or cost avoidance for the organization and its customers, suppliers, or partners; decrease time to market or just-in-time order replenishment; enable new channels to market and/or extend the reach and range of existing channels

13. The IT Business Value Scorecard – Contd. Categories of Benefits Goals and Measures InternalExternal Type II: Benefits from Doing Business on a Networked IT Infrastructure Content / Knowledge Improve the performance of knowledge workers and enhance organizational learning Sample Measures: Enable individuals to achieve and exceed personal performance goals; increase the speed and effectiveness of decision making; increase the ability of the organization to respond quickly and effectively to threats and opportunities Improve the performance of knowledge workers in customer, supplier, and partner organizations; add “information value” to existing products and services; create new information- based products and services Sample Measures: Provide information to customers, suppliers, and partners that enables better decision-making; charge a price premium for products and services based on information value-added; launch new information-based products and services; increase revenue per users and add new revenue streams

14. The IT Business Value Scorecard – Contd. Categories of Benefits Goals and Measures InternalExternal Type II: Benefits from Doing Business on a Networked IT Infrastructure CommunityAttract and retain top talent; increase satisfaction, engagement, and loyalty; create a culture of involvement, motivation, trust, and shared purpose Sample Measures: Length of time to fill key positions; attrition rate, trends in hiring and retaining top talent (over time, by industry, by region) Attract and retain high quality customers, suppliers, partners, and investors; increase external stakeholders satisfaction, engagement, and loyalty Sample Measures: Customer, supplier, partner satisfaction and lifetime value; average revenues per customer and trend over time; level of personalization available and % that use it; churn rate

15. Theme 5: Assimilation and Organizational Learning The time required for successful organizational learning and assimilation of rapidly changing technologies limits the practical speed of change.

17. Theme 6: Buy versus Make External industry, internal organizational, and technological changes are increasing the pressure on organizations to “buy” rather than “make” IT applications and services.

18. Theme 7: Partnerships among Key Constituencies as IT Evolves High levels of engagement and cooperation among four key constituencies: –Business Executives –IT Executives –Users –Technology Providers / Partners

20. Theme 8: Protecting IT Assets and Managing Risks The ability to ensure high levels of security, privacy, reliability, and availability is a core capability that determines an organization’s ultimate success and survival.

21. Theme 9: Pervasive Computing: Opportunities and Risks Shift in IT that has dramatically changed the way people access and use technology, the way organizations exploit it, and the way it is developed and managed.