R. Ching, Ph.D. MIS Area California State University, Sacramento 1 Week 12 Monday, April 17 Managing Infrastructure and OperationsManaging Infrastructure and Operations Leadership IssuesLeadership Issues

R. Ching, Ph.D. MIS Area California State University, Sacramento 2 Presentation Schedule April 24: Adam Hayashi, Paul Ward, Robin Lemoine May 1: Julien Moua, Kewei Zhang, Shashi Ganjam May 8: Daniel Linsley,Yan Huang, Daniel Alden Discussants will be named on the day of the presentation. Rank function Random number function

R. Ching, Ph.D. MIS Area California State University, Sacramento 3 Strategic Grid High Low HighLow Factory Operational IT Support Basic elements Turnaround Gradual adoption Strategic Strategic IT plan, initiatives IT Impact on Business Operations IT Impact on Strategy Specifies the context in which we must perform

R. Ching, Ph.D. MIS Area California State University, Sacramento 4 GovernanceLeadership Rights and responsibilities shared between the various corporate participants, especially the management and the shareholders Governance and Leadership Leaders have followersLeaders have followers Appeal to followers, showing how following them will lead to their (followers’) hearts' desireAppeal to followers, showing how following them will lead to their (followers’) hearts' desire Always good with people, and have quiet styles that give credit to others (and takes blame on themselves)Always good with people, and have quiet styles that give credit to others (and takes blame on themselves) Are very effective at creating the loyalty that great leaders engenderAre very effective at creating the loyalty that great leaders engender Appeared as risk-seeking, although they are not blind thrill-seekersAppeared as risk-seeking, although they are not blind thrill-seekers

R. Ching, Ph.D. MIS Area California State University, Sacramento 5 SubjectLeaderManager EssenceChangeStability FocusLeading peopleManaging work HaveFollowersSubordinates SeeksVisionObjectives DetailSets directionPlans detail PowerPersonal charismaFormal authority Appeal toHeartHead EnergyPassionControl DynamicProactiveReactive PersuasionSellTell StyleTransformationalTransactional ExchangeExcitement for workMoney for work RiskTakes risksMinimizes risks RulesBreaks rulesMakes rules ConflictUses conflictAvoids conflict DirectionNew roadsExisting roads BlameTakes blameBlames others

R. Ching, Ph.D. MIS Area California State University, Sacramento 6 Three Rules of Leadership Rule 1: You must have or develop the skill, and take the time to find out what is in the follower's mind concerning his situation and how he perceives youRule 1: You must have or develop the skill, and take the time to find out what is in the follower's mind concerning his situation and how he perceives you –Know what is perceives as negative –Create and manage a system of feedback loops that keep people in permanent touch with follower mindset Rule 2: To be a powerful leader, you must present your "leaderself" to others, rather than your natural selfRule 2: To be a powerful leader, you must present your "leaderself" to others, rather than your natural self –Do exactly the leadership behavior called for by the situation Rule 3: To create an effective leaderself, you must operate from self-awareness rather than from an automatic mindRule 3: To create an effective leaderself, you must operate from self-awareness rather than from an automatic mind –Focus on the “good of the whole”

R. Ching, Ph.D. MIS Area California State University, Sacramento 7 Four Competencies of Leadership Know ourselves very, very wellKnow ourselves very, very well –Recognizing that all of us are actually three people in one: what we are, what we think we are, and what others think we are Know our people—thoroughlyKnow our people—thoroughly –Be able to motivate people with the right ideas, the right work, and the right methods or techniques Highly competent on the technical and people sides of our job if we intend to be successfulHighly competent on the technical and people sides of our job if we intend to be successful Know the laws and principles of leadership and management as they relate to leading ourselves and peopleKnow the laws and principles of leadership and management as they relate to leading ourselves and people –If you want to play the game, you've got to know the rules

R. Ching, Ph.D. MIS Area California State University, Sacramento 8 IT Governance: Definitions A generic term which describes the ways in which rights and responsibilities are shared between the various corporate participants, especially the management and the shareholders.A generic term which describes the ways in which rights and responsibilities are shared between the various corporate participants, especially the management and the shareholders.

R. Ching, Ph.D. MIS Area California State University, Sacramento 9 IT Governance Involves…Involves… –Policies and procedures that specify and guide decision making and the actions of people –Specifying the responsibilities of management, employees and shareholders (stakeholders), and decision rights –Administering the policies and procedures in daily operations –Adhering to the policies and procedure in short- and long-term planning

R. Ching, Ph.D. MIS Area California State University, Sacramento 10 Coordination IT Domain Manage- ment User Domain Sharing Responsibilities Delegating authority

R. Ching, Ph.D. MIS Area California State University, Sacramento 11 IT Leadership Managing the infrastructureManaging the infrastructure Managing the IT functionManaging the IT function Strategic outsourcingStrategic outsourcing Portfolio management of IT projectsPortfolio management of IT projects

R. Ching, Ph.D. MIS Area California State University, Sacramento 12 InitiativesInitiatives Business model IT Leadership Generally speaking… Strategic Plan ObjectivesObjectives GoalsGoals MissionMission VisionVision Prioritizes projects Long-term aspirations Long to medium-term purpose (can be changed) Challenges consistent with the mission Objectives specify what must be done to fulfill the goals Specifies how the goals and objectives will be met Reflects the mission, goals and objectives Plan of operation

R. Ching, Ph.D. MIS Area California State University, Sacramento 13 Strategic Positioning Choices Market/Channel – determines the choice of customers to serve, the needs and expectations that will be met, and the channels to reach those customersMarket/Channel – determines the choice of customers to serve, the needs and expectations that will be met, and the channels to reach those customers Product Positioning – determines the choice of products and service to offer, the features of those offerings, and the price that will be chargedProduct Positioning – determines the choice of products and service to offer, the features of those offerings, and the price that will be charged Value chain/value networking – determines the role an organization plays and the activities it performs within an extended network of suppliers, producers and distributors and partnersValue chain/value networking – determines the role an organization plays and the activities it performs within an extended network of suppliers, producers and distributors and partners Boundary positioning – determines markets, products, business NOT to be pursuedBoundary positioning – determines markets, products, business NOT to be pursued

R. Ching, Ph.D. MIS Area California State University, Sacramento 14 Strategic Alignment Alignment between the business and IT strategiesAlignment between the business and IT strategies Alignment between strategy and capabilitiesAlignment between strategy and capabilities BusinessIT StrategyStrategy Capabilities Capabilities Value Including infrastructure IT infrastructure Technology IT infrastructureTechnology IT infrastructure Human IT infrastructureHuman IT infrastructure

R. Ching, Ph.D. MIS Area California State University, Sacramento 15 Top-Down Planning Dilemma Organization Strategic Plan Information Technology Strategic Plan Should the strategic plan specify the technologies to adopt? Should an IT strategic plan precede an organizational strategy? ? Direction Enabling technologies Should change come from the strategic plan or the IT strategic plan?

R. Ching, Ph.D. MIS Area California State University, Sacramento 16 StrategyStrategyManagementProcessesManagementProcesses StructureStructure Individuals and Roles Individuals TechnologyTechnology Introducing Change: MIT90 Framework Five Inter-Related Components Dynamic Equilibrium: Any change to a component requires an adjustment to the others Organization and coordination Information Technology Vision and direction Human resources Planning and control

R. Ching, Ph.D. MIS Area California State University, Sacramento 17 Porter’s Five Forces Model Forces that Shape Strategy Industry Competitors Rivalry among existing firms SuppliersSuppliers Customers and Buyers Potential Entrants SubstitutesSubstitutes Bargaining power of buyers Threat of substitute products or services Bargaining power of suppliers Threat of new entrants      How will the business react to threats (and opportunities)? Opportunities grow out of crises

R. Ching, Ph.D. MIS Area California State University, Sacramento 18 Strategy and Threats ThreatsThreatsOpportunitiesOpportunitiesStrategyStrategy How does the business capitalize on its threats?

R. Ching, Ph.D. MIS Area California State University, Sacramento 19 IT Resources

R. Ching, Ph.D. MIS Area California State University, Sacramento 20 Emerging IT Strategic Role IT offers the capability to redefine the boundaries of markets and structural characteristics, alter the fundamental rules and basis of competition, define business scope, and provide a new set of competitive weapons. N. Venkatraman, 1991 (from Corporations of the 1990s)

R. Ching, Ph.D. MIS Area California State University, Sacramento 21 New technologies open new opportunities How does a business benefit from new technologies?

R. Ching, Ph.D. MIS Area California State University, Sacramento 22 Value-enabling infrastructure Value-creating IT applications Value-sustaining IT applications IT Value Framework Lower costs, improve asset efficiency, and create strategic options for future growth Profitable growth through further cost reductions and revenue generation Strategic differentiation and proprietary advantage that can be measured in terms of increased market share, improved brand value, increased market capitalization Initiatives How will the business achieve this?

R. Ching, Ph.D. MIS Area California State University, Sacramento 23 IT to differentiate the organization from others IT Infrastructure Reengineering Business Processes Strategic Application of IT Basic IT to remain competitive in industry Basic IT to do business IT Application Framework

R. Ching, Ph.D. MIS Area California State University, Sacramento 24 Architecture vs. Infrastructure Architecture – a blueprint that shows interrelationships of the components of a systemArchitecture – a blueprint that shows interrelationships of the components of a system –Emphasis on the whats –Based on the business model IT Infrastructure – implementation of the architecture Purpose: To deliver the right information to the right people at the right timeIT Infrastructure – implementation of the architecture Purpose: To deliver the right information to the right people at the right time

R. Ching, Ph.D. MIS Area California State University, Sacramento 25 Architecture Defines guidelines and standardsDefines guidelines and standards Service Oriented Architecture (SOA)Service Oriented Architecture (SOA) –Emphases on accessibility of others systems to data and functions, and reusability of programming code –Supports the organization's agility Four attributes: Distributed vs. CentralizedFour attributes: Distributed vs. Centralized –Location of processing –Connectivity among processors –Location of data repository (data storage) –Systemwide rules (information security, accessibility, etc.)

R. Ching, Ph.D. MIS Area California State University, Sacramento 26 IT Architecture Another View “…defines the technical computing, information management, and communications platform. …provides an overall picture of the range of technical options available to a firm, and as such, it also implies the range of business options.”“…defines the technical computing, information management, and communications platform. …provides an overall picture of the range of technical options available to a firm, and as such, it also implies the range of business options.” EnablesOpportunities Control Vision Coordination (information flow and linkages) What design gives the organization the best use of its information? What technology configurations will best support the business?

R. Ching, Ph.D. MIS Area California State University, Sacramento 27 Infrastructure Delivering the right information to the right people at the right time Delivering IT resources to support users throughout the organizationDelivering IT resources to support users throughout the organization Four layer infrastructure (Weill and Broadbent)Four layer infrastructure (Weill and Broadbent) –IT components –Human IT infrastructure –Shared IT services – services that users can draw upon and share to conduct business –Shared and standard IT applications – stable applications that change less frequently

R. Ching, Ph.D. MIS Area California State University, Sacramento 28 IT Infrastructure Three categories:Three categories: –Network – technologies that permit exchange of information between processing units and organizations –Processing systems – encompass hardware and software that provide an organization’s ability to handle business transactions –Facilities – physical systems that house and protecting computing and network devices

R. Ching, Ph.D. MIS Area California State University, Sacramento 29 Leveraging the IT Infrastructure Two key infrastructure components:Two key infrastructure components: –IT operations (data center, network, call centers, etc.) –Supporting enterprise processes (procurement, enterprise resource planning, finance, human resources) Flexibility and efficiency in the IT infrastructure to drive down costs, and increase IT asset productivity and future options valuesFlexibility and efficiency in the IT infrastructure to drive down costs, and increase IT asset productivity and future options values IT Business process