1. James Nowotarski 3 April 2008 IS 425 Enterprise Information Spring 2008

2. 2 Understand what the course is about (i.e., course objectives) Understand how the course will achieve its objectives Get acquainted Level set: What is enterprise information? How do enterprises use information? What is the role of the enterprise’s IT function in all of this? Today’s Objectives

3. 3 Topic Duration Questionnaire & Intros30 minutes Role of IT45 minutes *** Break15 minutes Course overview30 minutes Trends & IT implications30 minutes Value chain framework30 minutes Wrap-up Today’s Agenda

4. 1% 2% 3% 4% 5% 6% 7% 8% Total WW IT Spending In 2007 = $3.006 Trillion 5.4% 2007 v. 2006 2005 v. 2004 7.3% 2006 v. 2005 5.5% 4.8% 2008 v. 2007 4.5% 2009 v. 2008 3.6% 2010 v. 2009

5. 1% 2% 3% 4% 5% Worldwide Projected IT Budget Growth Projected 2007 Business Growth Projected 2007 IT Budget Growth Comparison of Business and IT Growth in Selected Industry Segments: 2007 vs. 2006 Financial Services Healthcare/ Pharma. High Technology Government Insurance Mfg. 5%10%0% 4.5% 3.1% 4.3% 0.7% 2.4% 2.9% Source: Global Insight January 2007 Source: Gartner EXP 2007 CIO Survey 4.0% 3.2% 5.7% 2.9% 2.5% 4.5% 2.7% 2.5% 1.6% 0.0% 2004 2003 2005 2006 3.0% 2007

6. 6 Role of IT “Is IT central to economic competition... or is it simply glorified plumbing” --- Diamond Management & Technology Consultants

7. 7 Does IT matter? As noted by Carr, IT is often viewed as a commodity and, thus, not “core” IT is like electric power -- a commodity that is required by all but provides distinction to none IT capability is broadly accessible and affordable New or proprietary technologies offer opportunity for companies to gain a step, but this advantage is short-lived Further evidence of IT commoditization: –overcapacity –price drops –vendors positioning selves as “utilities” Source: Carr, N. (2003, May). IT doesn’t matter. Harvard Business Review, 81(5), 41-49.

8. 8 Role of IT Enterprises expect IT to deliver _____________ (fill in the blank)

9. 9 Role of IT Hardware, Software, Communication Networks InformationDecisionsPerformance

10. 10 Role of IT

11. 11 Develop new products and services Generate demand Fulfill demand Serve customers Plan and manage the enterprise Role of IT

12. 12 Technology provider Role of the IT professional Solution partner OR

13. 13 Role of the IT professional “Being different is easy. Making a difference is a challenge.”

14. 14 Topic Duration Questionnaire & Intros30 minutes Role of IT45 minutes *** Break15 minutes Course overview30 minutes Trends & IT implications30 minutes Value chain framework30 minutes Wrap-up Today’s Agenda

15. 15 Course Objectives By the end of the course, the student will be able to: Analyze … business forces that influence IT usage Analyze … business processes and information flows Evaluate current IT conflicts Analyze IS professional competencies

16. 16 Course Prerequisites IT215 – Analysis and Design Techniques or SE325 – Software Engineering Practices and MSIS Prerequisite phase

17. 17 MSIS Program Phases PrerequisiteFoundationAdvancedCapstone IS425Enterprise Information CSC451Database Design ECT425Technical Fundamentals of Distributed Information Systems SE430Object Modeling

18. 18 CSC 212 Programming in Java II ECT 425 Technical Fundamentals Of Distributed Info Systems CSC 451 Database Design SE 430 Object-Oriented Modeling IS 425 Enterprise Information IT 215 Analysis & Design Techniques ECT 310 Internet Application Development CSC 211 Programming In Java I Application Development Database I E-Business Systems Data Mining & Analytics Network Design Capstone IS 577 Level I Level III Level II Foundation Phase Prerequisite Phase HCI Methods Internet Application Development Database II Information Assurance & Security Enterprise Systems Integration IT Project Management I Wireless & Mobile Applications Knowledge Management IT Planning & Strategies Global Systems & Strategies Competency Modules for MSIS Legal & Social Issues Advanced Internet Tech. IT Architecture Design Software Engineering IT Project Management II

19. 19 Your grade Homework Assignments45% Midterm & Final 45% (both take-home) Participation/Discussion10% -------- 100%

20. 20 Course Assignments Assignment 1 – IS Competency Analysis Assignment 2 – Case Study Assignment 3 – Current Event Report Assignment 4 – Issue/Trend Briefing Report

21. 21 Road map: http://facweb.cti.depaul.edu/jnowotarski/is425/ default.htm http://facweb.cti.depaul.edu/jnowotarski/is425/ default.htm All readings are web available Most readings at DePaul Online Library's 24x7 E-BooksDePaul Online Library's 24x7 E-Books COLWEB is course repository https://col.cti.depaul.edu Office hours: Thursdays, immediately before and after class Course logistics

22. 22 My role Facilitate learning Plan, prepare, and conduct lectures and learning activities Assess student progress and provide feedback Relate concepts to real-world problems Provide classroom environment conducive to learning Clearly state expectations Gather and implement suggestions for improving the class Keep it fun

23. 23 email: jnowotarski@cti.depaul.edu phone: 312-261-3838 office hours: Thursdays, immediately before and after class My coordinates

24. 24 Your role Be proactive Share your experience Come to class prepared Collaborate with other students as appropriate Ask if you don’t understand or if I’m not clear Provide constructive feedback (“This class would be better if...”)

25. 25 Class Participation Subjective evaluation of participation: AConsistently asks good questions, makes valuable observations, and answers questions effectively BFrequent participant, but not all questions, answers, and observations are effective, or not consistently active CParticipates infrequently, or questions/answers do not reflect adequate preparation, or late to class DVery rare participation, or questions/answers reflect little or no preparation, or very late to class FDisplays no sign of life, or absent for entire class

26. 26 Topic Duration Questionnaire & Intros30 minutes Role of IT45 minutes *** Break15 minutes Course overview30 minutes Trends & IT implications30 minutes Value chain framework30 minutes Wrap-up Today’s Agenda

27. 27 Holistic view Technology Process People

28. 28 Social and business trends Volatility in market environments Aging population Extreme meritocracy Regulation, security, liability Emerging nations, globalization “Chindia” Consumerization/Digital natives “guerilla IT”

29. 29 Implications for IT organizations & professionals Partner with the business Align efforts with the business strategy Possess business skills Possess people skills and Sustain and increase mastery of technology

30. 30 Social and business trends http://www.glumbert.com/media/shift

31. 31 Gartner 2008 CIO survey

32. 32 IT must adapt to shorter time spans to execute projects and to recover costs Implications: Shorter or incremental projects Rapid return IT spending/recover cost cycle is more like a business unit Focus on cross-project, enterprise-level value Source: Gartner Executive Programs 531531 1990 < 1.5 years 2000 2010 Date Time to ROI Source: Gartner Group

33. 33 Holistic view Technology Process People

34. 34 Topic Duration Questionnaire & Intros30 minutes Role of IT45 minutes *** Break15 minutes Course overview30 minutes Trends & IT implications30 minutes Value chain framework30 minutes Wrap-up Today’s Agenda

35. 35 Porter’s Value Chain Model Figure 3.6: Porter's value chain model for a manufacturing firm. (Source: Reprinted with permission of the Free Press, a Division of Simon & Schuster Inc. from Competitive Advantage: Creating and Sustaining Superior Performance. Copyright © 1985 by Michael Porter.)

36. Porter’s Value Chain Model Value chain model addresses the activities that create, deliver, and support a company’s product or service. Two broad categories: Primary activities – relate directly to the value created in a product or service. Support activities – make it possible for the primary activities to exist and remain coordinated.

37. 37 The Value Chain: Firm’s Perspective

38. 38 Basics Which Primary activities are categorized as Costs? As Sales? Input Logistics Operations Output Logistics Sales Service Which Secondary activities are categorized as Costs? As Sales? Firm Infrastructure Human Resource Management Technology Development Procurement

39. 39 The Value Chain for Firms Clarifies: key processes core competencies activities Strengths Weaknesses Value-adding potentials Cost-reduction potentials Develops: strategy strategic advantage

40. 40 Suppliers Manufacturers Distributors Customers OL IL OL IL OL The Value Chain: Industry Perspective Supplier Manufacturer Distributor

41. 41 Suppliers Manufacturers Distributors Customers The Market Roles Example: Auto Industry Create component products or provide services, raw materials or talent Design and build products, services, and solutions that meets a specific customer or market needs. Enable buyers and sellers to connect, communicate, and transact business. Consumers or business willing to pay for a product, service, or solutions.

42. 42 Suppliers Manufacturer Distributors Customers Customer Direct Disintermediation Channel Conflict

43. The Value Chain for Firms Targeted Activities that improve Value Chain Find Information Systems to fill need Use Value Chain to analyze each competitor’s Strengths Weaknesses Use Value Chain to determine usefulness of employing Inter-Organizational Information Systems (IOIS), e.g., Supply Chain Management (SCM)

44. 44 Porter’s Value Chain Model (with examples of IT apps)

45. The Information Value Chain highlights the difference between data and information

46. Application Silos Enterprise Data Warehouse Enterprise Search External Search Communities Web 2.0 "Power of Me" SaaS, DaaS* Storage as a Service *DaaS = database as a service Where and What Is My Information? Personal Professional Community Family Comms Services Content School Schedule Tax InfoNews Sports Standings E-Gov ShoppingSchool E-MailRSS Memories Music Hobbies Financial Info Banking Broadband Cell Wi-Fi TV Calendar Memories MedicalFinancial Home Security IME-Mail Personal Records Corp. Archives Training Production Data Meeting Records Work at Home Corp Apps Benefits Conferencing VOIP LAN Wi-Fi Cell Devices

47. 47 Gartner 2008 CIO survey

48. 48 Topic Duration Questionnaire & Intros30 minutes Role of IT45 minutes *** Break15 minutes Course overview30 minutes Trends & IT implications30 minutes Value chain framework30 minutes Wrap-up Today’s Agenda

49. 49 Read assigned readings for weeks 1-2 Complete Assignment #1 – IS Competency Analysis Sign up for a date to present Assignment #3 – Current Event Report Additional items for DL students: Submit survey in COL Participate in discussion topic in COL (initial and reaction postings) For April 10

50. 50 Extra slides

51. Course Scope = IT Function IT Function IS Planning Software Engineering Data Business Technology Administration Production Enterprise Arch Advanced Technologies Business analysts Program managers Developers Development tools Processes, standards Operations Network Help desk Application support Data admin Data warehouse IT HR IT Finance Procurement

52. 52 Value So, to determine our value chain, what must we have? Information? What is data? What is information? What is knowledge?

53. New Accounting Equation Old Equation Assets = Liability + Equity New Equation Data + Insight = Information The new accounting equation forces managers to use their analytical abilities and insights to assess value. Without insight, “untransformed” data is likely to be of significantly less use and of substantially less value in today’s market. Business professionals are therefore forced to reconsider the work they do and the value they create.

54. 54 IT Outsourcing Buy Build CommodityDifferential Critical Useful Strategic Importance Potential for Differentiation Buy vs. build