1. The Ten Commandments of Information Technology 1.Remember, this is business. 2.Talk to the user 3.Understand your “customer’s” business. 4.Use the vendor’s knowledge. 5.Training is not a discretionary cost. 6.Develop an IT staff with a mix of business and technical skills. 7.Management issues are always more important than technology issues. 8.Make every contact with the user a public relations opportunity. 9.Spend time on strategy. 10.Have a good time.

2. IT Channels of Distribution Distribution FactorThe PastThe Future Development by central ITHeavySignificant but smaller percent of total Direct purchase of hardware / software by userLimitedMajor Service source for individual userLimited to service fromCan obtain powerful independent system large, shared system Service bureausSell timeSell products and time bundled together Use of external databases via time-sharingLimitedMajor Number of software and processing servicesA few; crudeMany Software development by usersLimitedMajor (affiliated by packages and user- friendly languages) Reliance on external contract analysts / Very significantMore significant; full outsourcing is a real programmers alternative

3. Changes in Consumer Costs Cost to the Consumer Cost FactorThe PastThe Future HardwareVery expensiveVery expensive Economies of scaleMajor in large systems; userLimited in large systems; user stand-alones stand-alones not feasible very attractive in most cases Software systems developmentExpensiveLess expensive in some cases Software acquisitionsLimited cost-effective outsideAttractive cost-effective opportunities opportunities Development and productionHard to estimateHard to estimate MaintenanceUnderestimatedSoaring

4. The IT Product Line Focus FactorThe PastThe Future Product obsolescenceDeveloping new productsHeavy maintenance of old products to meet challenges of obsolescence SourceMost products manufactured insideSignificant percent sourced from outside Dominant economic constraintCapital intensive (hardware; economyPersonnel intensive (economy of skill( of scale) Product mixMany large, few medium, manySome large, many medium, thousands of small products Profits / benefitsGood return on investmentMany projects have intangible benefits New-product technologiesNew technologiesNew technologies and regroupings of old ones ServicesStructured, such as automatedUnstructured, such as executive decision accounting and inventory support systems and query systems control

5. The IT Consumer Focus FactorOlderYounger Experience with establishedExperiencedInexperienced technologies Attitude toward newerLeeryEnthusiastic but unsophisticated (often they technologies do not recognize their lack of sophistication VisibilityIdentifiable as consumersOften unidentifiable as consumers; numerous at all levels in organizations Attitude toward IT unitWilling to accept IT staff as expertsMany are hostile because they want to develop their own solutions Self-confidenceLow confidence in their own abilitiesHigh confidence in their abilities and (often cautious because of cost) judgment (may be unwarranted) Turnover rateHighHigh

6. Factors Influencing the Evolving IT Environment Business Environment Technology The Evolving IT Environment Sociopolitical Environment People

7. Phases of IT Assimilation Phase 1 Decision to invest and project initiation Stagnation Block A Phase 2 Technology learning and adaptation Failure Success Stagnation Block B Narrowly focused and not marketed Success Phase 3 Rationalization and management control Stagnation Block C Phase 4 Widespread technology transfer Too efficiency dominated Success

8. Balancing Hardware / Data Distribution PressureToward Increasing the HubToward Increasing Distribution Management ControlMore professional operation.User control. Flexible backup.User responsiveness. Efficient use of personnel.Simpler control. Improvement in local reliability. TechnologyAccess to large-scale capacity.Efficiency of small scale. Efficient use of capacity.Reduction of telecommunications costs. DataMultiple access to common data.Easier access. Assurance of data standards.Fit with field needs. Security control.Data relevant to only one branch. Professional servicesAvailability of a specialized staff.Stability of work force. Reduced turnover disruption.User career paths. Organizational FitCorporate style: centralized.Corporate style: decentralized. Corporate style: functionalBusiness need: transnationals IT centralized from the beginning.

9. Architecture: A Plan For the Structure of IT Capabilities Why Do We Need an IT Architecture? Facilitate decision making on specific technology acquisitions Ensure compatibility of IT and business strategy Improve likelihood of IT integration and interconnectivity Define a framework for control Influence user decision making concerning IT

10. Levels of an IT Architecture PrinciplesBeliefs about the way IT will be managed (e.g., a multi-vendor environment) ModelsVerbal or graphic pictures of the IT structure (e.g., IT architecture) StandardsPreferences for particular vendors or industry protocols

11. Components of an IT Architecture OrganizationStructures and processes for the human support of computing and communications ApplicationsSpecific computer programs and how they are created and maintained ToolsSoftware packages that enable rapid development of applications InformationInformation assets of the firm TechnicalHardware, systems software, and communications Infrastructurelinks

12. Managing IT in the 1990s A partnership among three constituencies General Management IT Management User Management

13. Sample IT Architecture Applications Information Analysis (e.g. Lotus 123G) Information Packaging and Delivery (e.g. Commander EIS) Communications (e.g. E-Mail, Conferencing) Knowledge-Based Systems (e.g. Expert System) Application Development (e.g. CASE) Tools Found- ation Communications Wide area network Local area network Information Management Client Server architecture DB2 relational database Data feeds from internal and external sources Industry news/IRI Dow Jones Manufac- turing AccountingPurchasingLogisticsSales Executive Information System External SystemsInternal Business Operations and Transaction Systems