9.614 Information Age Organizations Instructor: Bob Travica Class 1 IT/IS and Organizational Effects (Chapters: 2; 4, pp ; 10, pp ) Asper School of Business Information Age Organizations Part-Time MBA, 2003 Instructor: Bob Travica

9.614 Information Age Organizations Instructor: Bob Travica IT-IS Effect Template for Study in Outline Benefits from Information Technology & Systems Operational & Strategic Effects of IT/IS Challenges in Estimating IT/IS Benefits Chief Information Officer

9.614 Information Age Organizations Instructor: Bob Travica Benefits from Information Technology/Systems Benefits from IT (Primozic et al., 1991; Fig. 2-1): Cost reduction Leveraging Investments Enhancing products & services Enhancing (executive) decision making Reaching out to customer

9.614 Information Age Organizations Instructor: Bob Travica Some methods for estimating benefitsmethods Another look at benefits/IS impacts useful for paper: Effects of IT/IS --Template for Study in 9.614Template for Study in Operational & Strategic Effects of IT/IS

9.614 Information Age Organizations Instructor: Bob Travica Strategic Analysis methods (Ch. 4): Value Chain Analysis (p. 125) Competitive Forces Model (p. 123) Critical Success Factors (p. 121) Core Competence – bundle of technology & skills (Honda’s compact hi performance engines, Microsoft’s operating systems product) Operational & Strategic Effects of IT/IS

9.614 Information Age Organizations Instructor: Bob Travica IT/IS Impacts that May Result in Benefits Business Process Reengineering - Process view of organizations with stress on IT: think in terms of procedures that cut across traditional organizational departments - Radical organizational changes (ERP) - Efficiency gains, perhaps others

9.614 Information Age Organizations Instructor: Bob Travica Organizational impacts of IT/IS associated with IT Structural changes * Cultural changes * Management changes (e.g., decision making;) * Teams * Networking and Virtualizing * IT/IS Impacts that May Result in Benefits ( * = topics later in 9.614)

9.614 Information Age Organizations Instructor: Bob Travica Challenges in Estimating IT/IS Benefits Measurement level matters (individual, organizational, industry...) IT/IS type matters (e.g., an accounting IS vs. corporate network) IT/IS associated with intangible benefits, which financial metrics may not be able to capture (e.g., contribution of to management) There may be unintended consequences of IT that reduce benefits and complicate calculations Effect of IT/IS mediated by many factors (user, management, work organization, time for learning...)

9.614 Information Age Organizations Instructor: Bob Travica Executive IT/IS Functions Chief Information Officer - head technologist; institutionalized Must understand IT and data/info; relationships with knowledge exec’s not clear Must understand business and how to generate benefits from IT/IS Change orientation: vision, sell, institutionalize “Hot seat”