1 Final Exam Outline 12 – 3pm, Wednesday June 14 Half short and long answers on theory and principles from course Half case-study

2 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

3 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’

4 Leading vendors EDS IBM HP CSC

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

6 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

7 Overview/Summary of Class topics

8 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.

9 Schedule DateTopic (Reading = corresponding chapter from text) Case (Reading = corresponding case from text) Assessment 1Tue, April 4Introduction 2Thu, April 6IT StrategyCharles Schwab 3Tue, April 11IT and Organization 4Thu, April 13Leapfrog 5Tue, April 18Extending the Enterprise 6Thu, April 20WyndhamProject Team and Topic Due 7Tue, April 25Making the case for IT 8Thu, April 27IT Doesn’t matter

10 Schedule DateTopic (Reading = corresponding chapter from text) Case (Reading = corresponding case from text) Assessment Tue, May 2No class. Instructor away. 9Thu, May 4Internetworking Infrastructure Project Proposal Due 10Fri, May 5 (10am) iPremier 11Tue, May 9Reliability and Security 12Thu, May 11Ford 13Tue, May 16Managing Diverse IT Infrastructure 14Thu, May 18Postgirot 15Tue, May 23Organizing and Leading IT

11 Schedule DateTopic (Reading = corresponding chapter from text) Case (Reading = corresponding case from text) Assessment 16Thu, May 25Cathay PacificBusiness Proposal Due 17Tue, May 30Managing IT Outsourcing 18Thu, June 1Royal Caribbean Cruises 19Tue, June 6IT Portfolio Management Thu, June 8ConclusionGlobal LandscapeProject Due Wed, June 14, 12:00 – 3:00pm Final Exam

12 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

13 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

14 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

15 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

16 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