MIS – 3030 Technology Enabling Business Ready Companies Best Buy & Charles Schwab

Ready Companies ¤ Risk & Risk Management m What's the risk of a bad strategy? m What’s the risk of yielding to the inertia of “how we do things?” m What’s the risk of avoiding ready technology? ¤ Strategic risk should be measured differentially than operational risk ¤ How did Dell and Acer deal with risk? ¤ What differentiated Amazon’s strategy from Barnes & Noble

Ready Companies ¤ Strategic opportunities that are risks m Management of the overall business technology relationship m Sourcing: alternative technology delivery models m Investing in new technologies Avoiding ready technologies Or being the last to adopt m Investing in people “talent management” ¤ Monitoring of technologies likely to pay large dividends to those that adopt them at the right time and place in their evolution

Ready Companies ¤ Information Technology m The organization, delivery, and governance of has changed yet again ¤ Drivers of the latest change m Accelerating Consumerization m Available “Ready” Technologies m Growing “Participatory Governance” ¤ Outcomes of the latest change m Post-Federated / Decentralized Technology Adoption & Delivery m Agile Technology-Enabled Business Models & Processes m A restructured Business Technology marketplace

Ready Companies ¤ Accelerating Consumerization m Technologies are well in use before IT organizations declare them safe or made the standard issue Skype DropBox BaseCamp m Consumers routinely try-and-buy technologies m Employees “vote” their digital preferences

Ready Companies ¤ Available “Ready” Technologies m Undermine the established industry practice Requirements modeling, analysis, & validation Conferences & workshops by experts Integrate, interoperate, & structured transition m Technology adoption has changed Requirements are often undefined Acquired and supported outside the corporate firewall Opportunistic experiments that turn into deployments m Technologies can work immediately Cloud based Open source Easily and inexpensively available

Ready Companies ¤ Growing “Participatory Governance” m Model changes from centralized, to federated, now to participatory Centralized: all decision rights belong to enterprise control group Decentralized: decision rights are diffused across enterprise Federated: decision rights are shared m While governance was shifting, technology became commoditized, consumerized, and “left the building” ¤ Rules have changed around acquisition, deployment and support ¤ Business units no longer have to ask for permission from corporate IT

Ready Companies ¤ Shadow IT is enabled by ready technology m Cloud delivery mechanisms m Easily supported devices m Renting instead of buying ¤ The governance model is completely changed

Ready Companies ¤ Outcomes ¤ Decentralized Technology Adoption & Delivery m IT departments will disappear in many companies m Technology will be seamlessly immersed in business models m Technologists will exist at all levels Will have expertise within business units Will acquire and deploy technology quickly and cheaply They will know their customers and partners m Enterprise IT will shift to Enterprise Audit focused on Architecture Infrastructure Security

Ready Companies ¤ Agile Technology-Enabled Business Models & Processes m Replace slow/expensive/inefficient processes with better/cheaper/faster m “Renting” lends to agility – no capex to amortize m Limits long term financial relationship m Cloud delivery equates to low-cost infrastructure m Conventional acquisition & design has been replaced by perusing the app store m Invest & divest becomes quicker and easier

Ready Companies ¤ A restructured Business Technology marketplace m The traditional vendors: IBM, HP, Microsoft, Dell, Cisco, Oracle m The new vendors: Amazon, Rackspace, Apple m New technology adoption process is about speed, relevance, and rapid assessment m Technology vendors must adapt to new models Shift from enterprise licensing to pay for use m Legitimize vendors, products, and services that would have previously not been considered

Ready Companies ¤ Business Technology Professionals m Skills and competencies will not change m Applied differently Business Unit vs. Enterprise

Trapped In the Middle ¤ Charles Schwab & Best Buy m Not High end providers m Not low end commodity providers ¤ Need to constantly redefine and adjust ¤ Use of technology to assist in redefining