1. Strategic Management of IS/IT: Organization and Resources
Chapter 8
Strategic Management of IS/IT: Organization and Resources

2. Agenda Requirements of strategic management Roles of the IT function
IS/IT organization approaches
Choice of IS/IT organization
IS/IT organization strategies

3. Requirements of Strategic Management
IS/IT strategies, policies and plans reflects business objectives and strategies
Identify and explore potential business advantages from IS/IT
Ensure IS/IT strategies are viable in terms of business risks
Establish resources and priorities
Match IS/IT management and corporate culture
Monitor business critical IS/IT activities
Balance between centralization and decentralization

4. Roles of the IT Function – I by Zmud
User services
Delivery services
Systems development
Support center
Information center
Architecture management
Planning
Technology diffusion
Data management

5. Roles of the IT Function – II by Zmud
Technology development
Research & development
General
Administration
Quality assurance

6. IS/IT Organization Approaches
Total centralized (monopolistic)
Total decentralized to business functions
Geographically placed data centers and resources
Business unit control
Users
Activity
Type of resource – network, computers, software, data, etc.

7. Choice of IS/IT Organization
Stage of application portfolio maturity
Geography of the enterprise
Synergy benefits of business services, products, & information
Business diversity & rate of change
Competitive pressures
Economics of resource, obtaining and deploying skills
Enterprise structure & management culture

8. IS/IT organization strategies
IT (centralized) or user departments (decentralized)
Mix
Chief information officer or steering committee

9. IT or User Departments – I by McFarlan and KcKenney
IT department
Integration
Database
Feasibility and cost/benefit analysis
Litter innovation
IS organization based on technical specialist not user need
High maintenance (80%)
No senior management
Use frustration with secret growth of user computing

10. IT or User Departments – II by McFarlan and KcKenney
Short term problem solving
Incompatible databases & systems
Lack of quality control
Hidden maintenance overhead
Duplication problems
Little cost/benefit analysis
Lack of skill technical staff

11. Mix by La Belle and Nyce Business unit responsibility Central IT group
Application architecture, development, and operation
Central IT group
Telecommunication
Hardware & software architecture
Information architecture
Risk management and security
Shared services and utilities
Human resources

12. Chief Information Officer or Steering Committee - I
Chief information officer (CIO)
Setting IS/IT policy & strategy
Goal oriented with business, IS/IT, & communication competency

13. Chief Information Officer or Steering Committee - II
Executive steering group
IT planning group
Service management group
Technical management group
Business IS planning group
Application management group

14. Executive Steering Group Functions
Aligning business & IS/IT strategies
Establishing IS/IT priority & IS/IT resources
Ensuring strategic applications achieve their objectives
Establishing organizational responsibilities and relationships

15. IT Planning Group Functions
Interpreting IT trends and development for organizational business
Allocating resources according priority
Monitoring IS/IT performance
Managing IT, specialists, & technical risks

16. Service Management Group Functions
Meeting business needs with the optimum means
Monitoring performance against budget/service level
Controlling quality
Satisfying evolving demand

17. Technology Management Group Functions
Assessing technology against known and potential needs
Planning and managing infrastructure
Resolving technical issues/problems
Support service group

18. Business IS Planning Group Functions
Identifying business needs
Interpreting CSFs
Assessing opportunities, threats, & IS implications
Prioritizing, planning, & coordinating IS and expenditure
Ensuring the delivery of benefits

19. Application Management Group Functions
Identifying special needs, changes, benefits, resources, and costs of applications for investment & priority evaluation
Managing developments & usage of IS

20. Points to Remember Requirements of strategic management
Roles of the IT function
IS/IT organization approaches
Choice of IS/IT organization
IS/IT organization strategies

21. Questions
What is a good IT strategic management for an e-business of the banking industry in terms of the organizational structure?
What is a good IT strategic management for an e-business of the California State University system in terms of the organizational structure?