Chapter 2 Information Systems Management in Practice 8th Edition The Top IS Job Chapter 2 Information Systems Management in Practice 8th Edition

Chapter 2–Outline & Objectives Introduction Escalating benefits of information technology The CIO’s responsibilities

Introduction Growing demand for IT managers in the U.S. and worldwide. Management of IT in past 50 years has drastically changed. Waves of Innovation Load on top executives to provide IT vision and leadership.

Escalating Benefits of IT Changing technology and evolving IS role since 1950s. (a parallel process) “Waves of Innovation”: Wave 1: Reducing costs Achieve clerical and administrative savings by automating manual processes Wave 2: Leveraging investments (continuous improvement) Use borrowed capital for an investment expecting the profits made to be greater than the interest payable Systems were justified on return on investment and increasing cash flow Wave 3: Enhancing products and services Using IT to produce revenue by gaining strategic advantage or by creating entirely new business

Escalating Benefits of IT “Waves of Innovation”: Wave 4: Enhancing executive decision-making Changing the fundamental structure of the organization as well as creating real-time business management systems Wave 5: Reaching the consumer direct communication Wave 6 (new): Leveraging partnerships through supply chain management or other forms of collaboration Firms share information and business processes

Escalating Benefits of IT (cont’d)

The SABRE System (American Airlines) Case example of “Waves of Innovation” Evolution: Handwritten reservation system (1950s) to Web-based system (2000s). Waves 1 and 2 (1960s) SABRE (CRS) built to reduce costs of making airline seat reservations. ROI on staff expenditure. Wave 3 (1970s) System enhanced to span organizational boundary for travel agents (provide direct access to CRS)

The SABRE System (American Airlines) cont’d Wave 4 (late 1980s) Revenue Management System (provide decision support to managers) under SABRE Airline Solutions (new division). Wave 5 (1990s) System extended to provide direct Web access to customers (CRS, flight information, movie etc.) Wave 6 (2000s) Sabre (small letters) spun off from AMR in 2000, leveraged partnerships and technology.

Chief Executive Manager (CIO) CIO is the most senior executive in an enterprise responsible for the Information Technology and computer systems that support enterprise goals

CIO Roles Today Leading Governing Investing Managing Creating vision by understanding the business Governing Establishing an IS governance structure Investing Shaping the IT portfolio Managing Establishing credibility, managing IT functions, and fostering change

Class Discussion Define the following top management positions: CEO COO CTO CFO