ISM 158 Final Lecture

2 Announcements Group Projects Today Exam Wednesday 8am –Closed book –No paper needed

3 Global Landscape 2004 Increasing Moved from manufacturing to IT and services Morgan Chase quote “don’t underestimate the complexity”, “don’t build expectations too high”… but wishes he’d done it sooner! “Every $1 spent saves 58 cents” Examples given in ‘background’ section

4 Key questions What processes are companies outsourcing? Who is outsourcing? How much IT is outsourced? –Wall St Journal ‘Jobs that can be reduced to series of rules are likely to go’

5 Leading vendors EDS IBM HP CSC

6 India Educated, english speaking Good network infrastructure Moving beyond.. –Philippines –China

7 Challenges McKinsey questions –Can outsourcing drive costs lower? –Capture benefits earlier –Increase QoS? –Leverage existing IT platform to reduce new investments? –Contractually commit to benefits? –Regularly bring most relevant innovations to bear? Pay attention to –Training new workers –Privacy laws –Data quality is critical –Scope creep –Soft issues – regional job loss, customer reaction, culture gaps Offshoring –Some companies have pulled back –Less cost but less productive? –Fast change difficult to keep up with –More complex problems, difficult to migrate knowledge –Familiarity with customer needs –Currency fluctuations

8 Overview/Summary of Class topics

9 ISM 158: Overview This class considers the role of information in business strategy. In particular, we focus on decisions regarding information technology and information systems to give a business competitive advantage over other companies. We will focus on case studies to see why some businesses are more successful than others in building information systems that lead to organizational and individual efficiencies. We look at how information impacts industries, markets and countries, and leads to technology development. We develop an understanding of design and maintenance of networked organizations, including issues of leadership and management.

10 Schedule DateTopic (Reading = corresponding chapter from text) Case (Reading = correspondi ng case from text) PresentationAssessmen t 1Tue, April 3Introduction Thu, April 5No class – Instructor Away 2Tue, April 10 IT Strategy 3Thu, April 12 Charles Schwab 4Tue, April 17 IT and OrganizationLeapfrog 5Thu, April 19 Extending the Enterprise 6Fri, April 20(makeup class – time and venue TBA) WyndhamProject Team and Topic Due

11 Schedule DateTopic (Reading = corresponding chapter from text) Case (Reading = correspondin g case from text) Presentatio n Assessment 7Tue, April 24 Making the case for IT 8Thu, April 26 IT Doesn’t matter 9Tue, May 1Internetworking Infrastructure 10Thu, May 3iPremierProject Proposal Due 11Tue, May 8Reliability and Security 12Thu, May 10 Ford 13Tue, May 15 Managing Diverse IT Infrastructure

12 Schedule DateTopic (Reading = corresponding chapter from text) Case (Reading = corresponding case from text) Presentatio n Assessmen t 1414 Thu, May 17Postgirot 1515 Tue, May 22Organizing and Leading IT 1616 Thu, May 24Cathay PacificBusiness Proposal Due 1717 Tue, May 29Managing IT Outsourcing 1818 Thu, May 31Royal Caribbean Cruises 1919 Tue, June 5IT Portfolio Management 2020 Thu, June 7ConclusionGlobal Landscape Project Due Wed, June 13, 8am Final Exam

13 Prediction Is Hard Who could have predicted? –Before 1940: That there would be hundreds of millions of computers worldwide –Before 1992: the Web –Before 1995: Amazon The pace of evolution and change in IT is blistering –No sign that it is slowing down

14 Framework for Decisions This class and text book has not been about predicting the future Instead, it is about giving you the frameworks to: –Identify opportunities –Design and deploy technology-based businesses –Create business value Frameworks based on concepts and theory that have stood the test of time –Fundamental management principles still apply, even as we embrace the new

15 Key Themes 1.Continuous pace of technology evolution requires that we confront new choices for designing and building industries, markets, organizations 2.Business models that dominated the Industrial Economy are evolving 3.Types of opportunities pursued and technology employed strongly influence approach to developing, operating, managing IT 4.As IT infrastructure becomes more standardized, modular, scaleable, there is a shift in IT investment priorities and decisions

16 Key Themes (cont.) 5.The time required for successful organization learning and assimilation of rapidly changing technologies limits practical speed of change 6.External industry, internal organizational, and technological changes are increasing pressure on organizations to buy rather than to make IT applications and services 7.Ability to exploit technology requires high levels of engagement and cooperation among four key constituencies: business executives, IT executives, users, technology providers/partners

17 Key Themes (cont.) 8.Ability to ensure high levels of security, privacy, reliability, and availability is a core capability that determines organization’s ultimate success and survival 9.Over the last decade, there has been a fundamental shift in IT that has dramatically impacted the way: People access and use technology Organizations exploit technology Technology is developed and managed

18 Bottom Line There is a critical role for people (like yourselves!) with understanding of both business strategy and information technology

19 Graduating students

20 Assessment Value News Presentation5% Quizzes10% Discussion Participation10% Business Proposal10% Project40% Final Exam25%

21 Presentation Grades

22 Quiz Grades

23 Participation Grades

24 Total so far (possible 35%)

25 Final Exam Case Case is ‘CareGroup’ from the text Case 2-1, pages 353 – 368