1. CMIS 520 Managing Technology Jo Ellen Moore, Ph.D.

2. What is Strategic Planning? n Create vision of where org needs to go (I.e., mission statements) n Convert mission statements to operational objectives n Develop tactics to accomplish objectives n Evaluate progress and adjust to grasp new opportunities

3. Role of IT in Porter’s Framework n Low-Cost Provider u Use IT to:

4. Role of IT in Porter’s Framework n Differentiation (unique product or service) u Use IT to:

5. Role of IT in Porter’s Framework n Focus (on particular buyer group or product line) u Use IT to:

6. IS Planning Methods n Standalone n Reactive n Linked n Integrated

7. IS Planning Methods n STANDALONE u No attempt to coordinate business plan and IS plan u IS dept has to operate in reactive mode u Orgs usually in Support category of Strategic Grid

8. IS Planning Methods n REACTIVE u Business plan is passed to IS dept u IS dept responsible for generating IS plan u IS dept in passive mode (not contributing to business plan) u What most orgs do

9. IS Planning n LINKED u Business and IS plans overlap u Orgs in Turnaround and Strategic categories (I.e., developing strategic applications) u IEMgr (TP) and IEMgr (tP) likely to initiate ideas for strategic applications of IT

10. IS Planning Methods n INTEGRATED u Business and IS planning occur simultaneously u IEMgrs participate in the planning

11. Integrated Approach to Strategic IT Planning n IS dept plays 2 roles: u Proactive -- F in strategy formation at corporate level F in identification of potential applications at dept level u Reactive -- F in implementation of applications and supporting technology

12. Integrated Approach to Strategic IT Planning n Step 1 -- Environmental Analysis u Identify internal factors affecting org’s use of IT u Identify external factors affecting org’s use of IT

13. Integrated Approach to Strategic IT Planning n Step 1 -- Environmental Analysis… u Primarily driven by IEMgr (TP) and IEMgr (Tp) u Continual process producing steady stream of specific info and issues u Responsibility of IS manager to see that info gets to right people u IS dept proactive in this step

14. Integrated Approach to Strategic IT Planning n Step 2 -- Business Planning u Using info from Step 1, determine if org can use IT to make significant changes in way it interacts with its environment (e.g., suppliers, customers) u Look for new opportunities, from org-level perspective u Output is new or revised corporate strategy

15. Integrated Approach to Strategic IT Planning n Step 3 -- Dept (Business Unit) Planning u Develop departmental plan to meet objectives in org-level business plan u Also look for IT applications to improve internal processes u IEMgrs (TP) play key role

16. Integrated Approach to Strategic IT Planning n Step 4 -- Develop Strategic IS Plan u Develop strategic IS plan that will facilitate corporate business plan and dept plans u IS dept acts reactively here

17. Integrated Approach to Strategic IT Planning n Step 5 -- Data Planning u Define information architecture needs u Define the portfolio of application development projects

18. Integrated Approach to Strategic IT Planning n “This all sounds peachy but…” what elements of this planning model are probably difficult to operationalize?

19. Creative Thinking n Especially in Steps 2 and 3 n Left Brain vs. Right Brain u Different parts of the brain control different mental functions F Left Brain Procedural, logical, detail thinking F Right Brain Spacial, conceptual, ambiguous thinking

20. Creative Thinking n Right Brain thinking is very important in designing creative solutions to problems n Left Brain thinking is very important in implementing the solutions

21. Creative Thinking n People with IT roots tend to rely heavily on logic, structure, and procedures

22. Creative Thinking n “Making Reengineering Happen” by Dave Ehlen (The Canadian Manager, Dec 1994) u Encourages organizations to: F Be aware of innovative styles of workers F Assign right types of people to right types of projects u General questions to determine one’s innovative style

23. Creative Thinking n Innovative styles u Visioning F First search for insights that lead to decisions about long-term goals F Find innovations to fulfill those goals F Stimulated by insights of future possibilities F Provide direction and momentum

24. Creative Thinking n Innovative styles (cont.) u Modifying F First look for facts F Find things to build on F Build and improve on what has been done in the past F Build one step at a time F Apply methods that have worked in the past F Provide stability and thoroughness

25. Creative Thinking n Innovative styles (cont.) u Experimenting F First look for facts F Determine what info still needs to be gathered F Find innovations that can be tested, learned from F Use trial & error process F Put together new combinations of what already exists F Combine input from everyone

26. Creative Thinking n Innovative styles (cont.) u Exploring F First search for insights that challenge existing assumptions F Find innovations based on new assumptions and perceptions F Stimulated by ideas of what could be F Develop ideas by questioning and making connections

27. Creative Thinking n Reengineering project u Visioning u Exploring n Implementation project u Modifying u Experimenting

28. Role of Technology in Creative Problem-Solving n Getting from “Data” to “Wisdom” (Tabott, 1995) u Data organized into information u Information made meaningful to provide knowledge u Knowledge linked to other knowledge to provide intelligence u Intelligence combined with experience to become wisdom

29. Role of Technology in Creative Problem-Solving n IT can help: u Collect data u Make data accessible u Transform data into information n But the rest of the process must be driven by people.

30. IS/IT in Organizational Structure n Historical Evolution n Trends u Centralized IS u Decentralized IS u Hybrid IS u Outsourcing of IS functions

31. IS/IT in Org. Structure n Historical Evolution u Stage 1 -- Initiation F “DP” often reported to Accounting dept head u Stage 2 -- Contagion F Separate DP dept created on same org level as user groups

32. IS/IT in Org. Structure n Historical Evolution (cont.) u Stage 3 -- Control F “MIS” took on service role u Stages 4 & 5 -- Integration & DA F “IS” managers partnering with functional managers F But at same time, applications springing up in user depts with no IS involvement

33. IS/IT in Org. Structure n Historical Evolution (cont.) u Stage 6 -- Maturity F IT applications not limited to “within organization”; now involve suppliers, customers, etc.

34. IS/IT in Org. Structure -- Trends n Centralized IS u One manager ultimately responsible for all IS issues (e.g., standards, policies, procedures, security, communications, etc.) u Defined corporate-wide procedures and controls for system A&D and programming practices u Data administration under control of one office

35. IS/IT in Org. Structure -- Trends n Advantages to Centralized IS u Generally related to Efficiency u Minimizes problems of incompatible hardware, software, file formats u Provides staffing flexibilities u More productive use of resources

36. IS/IT in Org. Structure -- Trends n Disadvantages to Centralized IS??

37. IS/IT in Org. Structure -- Trends n Decentralized IS u Information processing occurs at several sites that are managed independently u Each unit may have own A&D procedures and controls, own standards and operating procedures u Special purpose databases and applications in place at units u User area includes IS people

38. IS/IT in Org. Structure -- Trends n Advantages of Decentralized IS u Generally related to Effectiveness u By having IS development staff close to users: F Users have greater access to technical expertise F IS development staff tends to be more responsive to and knowledgeable of user needs F More productive use and allocation of IS resources (costs and benefits weighed more accurately)

39. IS/IT in Org. Structure -- Trends n Disadvantages of Decentralized IS??

40. IS/IT in Org. Structure -- Trends n Hybrid IS u Centralized IS to provide enterprise database and technology infrastructure (e.g., system SW, HW, network and communications technology, standards) u Decentralized IS in user areas to develop and maintain applications u User area controls own data resource, providing data elements to the enterprise database for use across organization

41. IS/IT in Org. Structure -- Trends n Advantages of Hybrid IS?? n Disadvantages of Hybrid IS??

42. IS/IT in Org. Structure -- Trends n ‘Process’ version of Hybrid IS u “Form Follows Function” so IS form should follow move toward ‘process’ in orgs… u Decentralization of IS application development and maintenance applies to ‘process’ groups (not simply functional units)

43. IS/IT in Org. Structure -- Trends n ‘Process’ version of Hybrid IS (cont.) u Adds complexity: F ‘T’ people need to understand a process that contains multiple business functions F Controls, priority setting, resource allocation done at process level (rather than single business function) F Responsibility for data integrity, application maintenance and support shared across business units

44. IS/IT in Org. Structure -- Trends n In general, organizations tend to: u Centralize operations u Decentralize development activities

45. IS/IT and Outsourcing n “Either support a customer or support someone who supports a customer” n To do otherwise is to be a candidate for outsourcing u e.g., payroll, food service, grounds maintenance, security

46. IS/IT and Outsourcing n Is IS a candidate for outsourcing? u What parts of the company’s IS function are strategic and which aren’t? F Those that are NOT might be candidates for outsourcing F Don’t want to lose ability to quickly respond to strategic opportunities when they arise

47. IS/IT and Outsourcing n Probably NOT candidate for outsourcing: u Application Development F Want to retain control of what applications are developed, how, and when F Although might outsource parts of development of a particular application

48. IS/IT and Outsourcing n Possible candidates: u Operations, Network Management F e.g., preparing new PC’s, maintaining networks u Maintenance of legacy systems u Help Desk (aka Hotline) F e.g., fielding questions on end user tools

49. IS/IT and Outsourcing n Experiences with outsourcing of IS functions??? u What IS functions have you seen outsourced? Positive, negative effects you observed?