1. ISM 158 Business Information Strategy Instructor: Kevin Ross Teaching Assistant: Joey Rios

2. 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.

3. Schedule DateTopic (Reading = corresponding chapter from text) Case (Reading = corresponding case from text) PresentationAssessment 1Tue, April 3Introduction Thu, April 5No class – Instructor Away 2Tue, April 10IT Strategy 3Thu, April 12Charles Schwab 4Tue, April 17IT and OrganizationLeapfrog 5Thu, April 19Extending the Enterprise 6Fri, April 20(makeup class – time and venue TBA) WyndhamProject Team and Topic Due

4. Schedule DateTopic (Reading = corresponding chapter from text) Case (Reading = corresponding case from text) PresentationAssessment 7Tue, April 24Making the case for IT 8Thu, April 26IT Doesn’t matter 9Tue, May 1Internetworking Infrastructure 10Thu, May 3iPremierProject Proposal Due 11Tue, May 8Reliability and Security 12Thu, May 10Ford 13Tue, May 15Managing Diverse IT Infrastructure

5. Schedule DateTopic (Reading = corresponding chapter from text) Case (Reading = corresponding case from text) PresentationAssessment 14Thu, May 17Postgirot 15Tue, May 22Organizing and Leading IT 16Thu, May 24Cathay PacificBusiness Proposal Due 17Tue, May 29Managing IT Outsourcing 18Thu, May 31Royal Caribbean Cruises 19Tue, June 5IT Portfolio Management 20Thu, June 7ConclusionGlobal LandscapeProject Due Wed, June 13, 8am Final Exam

6. Instructor Kevin Ross kross@soe.ucsc.edu Office hours: Tuesday 3 – 5pm –(or by appointment) E2 room 559

7. Teaching Assistant Joseph Rios rios@soe.ucsc.edu

8. Assessment ValueDue date News Presentation5%Throughout Quizzes10%Throughout Discussion Participation10%Throughout Business Proposal10%Thu, May 25 Project40%Thu, Apr 27 and Thu, June 8 Final Exam25%Wed, June 14, 12:00 – 3:00 Policy Assignments are due at the start of class on the due date. Late assignments, missed presentations and quizzes will result in zero grade unless specific permission is given by instructor at least one week in advance.

9. News Presentation Each student will present one news story to the class during the quarter. –The story can be from any source, and describe an interesting recent development in the use of information for business strategy. The presentation should be professionally presented using powerpoint or similar technology. –5-8 minutes in length, –include both factual information (who is doing what and why?) and some commentary (your opinion – is this a good idea – why?!) on the story. –All news sources that have been used should be acknowledged with specific references on a final slide. The student is responsible for one of (a) bringing the slides on a laptop, (b) bringing slides on a USB drive that will work on instructor’s laptop, or (c) emailing slides to the instructor the night before the presentation. A schedule of presentations will be posted at the end of the first week, and changes can only be made with permission of the instructor. –Email instructor to volunteer for an early slot!

10. Quizzes There will be up to five surprise quizzes over the quarter. These will be fairly short and test knowledge of the text and cases. Students who are absent the day of a quiz will receive a zero grade for that quiz –unless they have informed the instructor at least a week in advance that they have to miss class (for some legitimate reason)

11. Discussion Participation We will discuss cases approximately once per week. Active participation in the discussions of the cases and the course material is expected and examined.

12. Business Proposal You will be provided with a scenario for a business information system problem, and be required to make a written proposal of a solution, as the chief information officer. Details will follow.

13. Project The major assignment in this class is a comprehensive project. You will analyze a major (at least 1000 employees) company, and study how they use information and information systems to achieve competitive advantage. The project can be completed in groups of two or three, as you select, and the company is chosen by the group. Details will follow, but start thinking about group and topic

14. Final Exam The final examination will cover the topics from the whole year. You will not be allowed to bring notes into the exam room.

15. Prerequisites This course is for juniors and seniors ISM 50 or permission of instructor required Interest in technology and business

16. Feedback Please! Instructor has substantially revised the course material The course is for you Don’t hesitate to ask questions, give suggestions As senior students, you know that you’ll get out what you put in

17. Textbook

18. The Challenges of Managing in a Network Economy  IT is a source of opportunity and advantage but also uncertainty & risk  Chasm between viewpoints Business executives: View IT with apprehension Technical executives: Business leaders lack vision  What is undeniable is the rapidity of change In system architecture and interfaces In business In work and the workforce

19. The Embedding of IT IT now embedded in: –Definition and execution of strategy –Organization and leadership of businesses –Definitions of unique value propositions Every business definition is morphing before our eyes –Markets –Industries –Strategies –Firm designs Information is now a major economic good

20. Riding the IT Rollercoaster Mid 1990s: –World Wide Web demonstrated IT potential –Structural and technical hurdles remained in using IT Late 1990s –Capital markets caught the fever –VCs eager to spend on IT, regardless of long-term path to profitability 21 st Century –Speculative bubble burst –Downward spiral until 2003

21. What Now? What we know –World is forever changed; IT will never return to the basement –Technology as core enabler, primary business channel –Global village is here to stay –Rigid organization boundaries have fallen What we need to do –Engage in sense-making of the transformation –Mine the last decade of business experimentation –Synthesize in order to choose a path forward

22. 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

23. 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

24. 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

25. Questions?

26. Guest Talk Adam Ryszka, ISM alumni 2006