Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8 th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009 Instructor’s Manual Module 2 The Business of IT  IT increasingly embedded in business model  Advancing technologies drive new products, processes, & industries  IT capability critical to business model execution  Operational results affect business value creation  Requires sound IT management  We need to explore how:  Changing infrastructure affects business  Management priorities must shift  To exploit opportunities and reduce operational risks

Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8 th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009 Module 2: The Business of IT Overview of Chapters Chapter 5 Introduces elements of modern IT infrastructure and core IT management issues Chapter 6 Addresses the robustness of IT capabilities; system availability and security Chapter 7 Explores contemporary IT service models and their management requirements Chapter 8 Examines IT project management

Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8 th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009 Module 2: The Business of IT CareGroup Beth Israel Deaconess Medical Center Widely known as leader in the use of IT Three-day network outage What can we learn from this case IT is vital to modern organizations Network redundancy important Challenges arise from infrastructure complexity IT leadership is important

Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8 th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009 Module 2: The Business of IT The iPremier Company Luxury goods retailer Under attack from an unknown hacker Case covers events as they unfold What can we learn from this case IT infrastructure must be secured Decisions involved, however technical, must be addressed by business and IT executives

Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8 th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009 Module 2: The Business of IT Ford Motor Company / The Power of Virtual Integration Century-old U.S. manufacturer Trying to determine whether to model operations on acclaimed young company (Dell) Complex questions regarding how IT supports business operations What can we learn from this case How Dell leverages information technologies to advantage Potential of an Industrial Economy firm to adopt Network Economy IT and business designs How Ford’s legacies (systems, organizations, relationships) influence the opportunities the company can pursue

Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8 th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009 Module 2: The Business of IT Strategic Outsourcing at Bharti Airtel Indian telecommunications firm 100% annual growth in customer base Limited purchasing power Corresponding expansion necessary in network and IT capacity Huge management effort Unpredictable costs Goal: a lean and predictable cost model Proposal to outsource buildup and management of Bharti’s telecom and IT network to its vendors What can we learn from this case? Whether and how outsourcing an essential capability can provide a competitive advantage

Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8 th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009 Module 2: The Business of IT Cisco Systems, Inc.: Implementing ERP Young, rapidly growing company Urgent need to replace IT systems supporting core operations Legacy too difficult to tackle on functional basis Implementation of an ERP Goal: one-shot, minimal customization Budget of $15million and 9 months Elements of implementation: People and partners, roles and structures, processes and infrastructure What can we learn from this case? The importance of IT in building a operating platform for growth An implementation approach to high-risk, high-reward IT initiatives