Caregroup Notes Ken Peffers Associate Professor of MIS

Management Problem As the business processes become more dependent on IT, how do you make sure that the risks associated with this dependency are acceptable? As the business processes become more dependent on IT, how do you make sure that the risks associated with this dependency are acceptable?

Material Facts Caregroup part of an industry increasingly under pressure to reduce prices and costs. Caregroup part of an industry increasingly under pressure to reduce prices and costs. It had seen integration using IT as a means to achieve cost savings. It had seen integration using IT as a means to achieve cost savings. Its own evaluation of its situation was that it had achieved the best integration in the industry. Its own evaluation of its situation was that it had achieved the best integration in the industry. Medical personnel dependent on systems to make decisions and implement them. Medical personnel dependent on systems to make decisions and implement them.

Cost and Budget Reductions Capital IT budget reduced by 90% in three years. Capital IT budget reduced by 90% in three years. Operating IT budget increased slightly. Operating IT budget increased slightly. Chief network guru left. Chief network guru left. No one in the organization competent network expert. No one in the organization competent network expert. Research environment. Experiments allowed involving network. Research environment. Experiments allowed involving network.

Inferences When the business is dependent upon systems, systems needed to manage risk When the business is dependent upon systems, systems needed to manage risk Separate development, experimental systems Separate development, experimental systems Thorough documentation and testing Thorough documentation and testing Clear organizational structure to insure responsibility for system. Clear organizational structure to insure responsibility for system. Management of staff resources, training, etc. Management of staff resources, training, etc. Backup data, architecture, systems, business processes Backup data, architecture, systems, business processes Limits to the use of resources. Limits to the use of resources. Life cycle for hardware and software Life cycle for hardware and software

The aha!? Consider Caregroup’s culture Consider Caregroup’s culture In a hospital, if you’re doctor, you’re special. Otherwise, you’re never quite as good. In a hospital, if you’re doctor, you’re special. Otherwise, you’re never quite as good. Halamka is a physician. Did this entice executives in the organization to overlook his weaknesses? Halamka is a physician. Did this entice executives in the organization to overlook his weaknesses? “…I know all the technologies…I’m a doctor so I understand the clinical domain and the technical requirements.” “…[I’ve] never built anything beyond a home network…” [p. 3]. “They call me the ‘Chief Information Officer,’…but I’m really the ‘Chief Integration Officer;’ I make everything talk to everything else.” [p. 12]. “…I know all the technologies…I’m a doctor so I understand the clinical domain and the technical requirements.” “…[I’ve] never built anything beyond a home network…” [p. 3]. “They call me the ‘Chief Information Officer,’…but I’m really the ‘Chief Integration Officer;’ I make everything talk to everything else.” [p. 12].