1. PPTTEST 10/24/2015 14:07 1 IT Ron Williams Business Innovation Through Information Technology IS Organization

2. PPTTEST 10/24/2015 14:07 2 IT Ron Williams What Should You Expect from IS Technology Leadership –Anticipating new technologies and business needs –Understanding and communicating strategic impact on the business Business partnership –Delivering what the business needs (Integrating people, processes, & technology) –Ability to partner with the business to deliver results Building and managing an IT platform –Based on architectures an standards –That is reliable, scalable, & flexible –Cuts across a wide range of technologies (Servers, desktops, networks, software, applications, information, security) Software development and sourcing ( On-time, On-budget) IT supplier management IT human resource management Managing the trade-off between business needs and cost & capital control

3. PPTTEST 10/24/2015 14:07 3 IT Ron Williams Chief Information Officer (CIO) Responsibilities: Championing the IT organization Architecture management – A blueprint that describes how technology is put together to support the business strategy Business strategy consultant – How can technology help the business? Business technology planning - Where is technology going Technology transfer agent Applications development IT infrastructure management Staffing Sourcing Partnership developer Customer satisfaction management Training

4. PPTTEST 10/24/2015 14:07 4 IT Ron Williams 9 essential CIO skills: Strong business orientation Ability to realize benefits & manage costs and risks associated with IT Ability to bridge gaps between available technologies and business needs Familiarity with client’s needs Strong organizational skills Ability to conceive and build multiple IT projects Ability to articulate and advocate for an IT vision Ability to mesh with existing mgmt structure Strategic enterprise vision extending beyond IT

5. PPTTEST 10/24/2015 14:07 5 IT Ron Williams Sample IS Organizational Chart CIO CKO CTO CNO Operations IS Managers System Devs. Bus. Analysts DB Admins. Support Personnel Architects Network Architect Support Admin

6. PPTTEST 10/24/2015 14:07 6 IT Ron Williams Key IT Roles CIO: Chief Information Officer CKO: Chief Knowledge Officer CTO: Chief Technology Officer CTO: Chief Telecommunications Officer CNO: Chief Network Officer CRO: Chief Resource Officer Divisional CIOs/Corporate CIO

7. PPTTEST 10/24/2015 14:07 7 IT Ron Williams Other Information Systems Organizational Roles IS/ Systems Managers Systems Developers/Programmers Business Analysts Database Administrators Operations Personnel Support Personnel Developers/ Programmers Webmaster, Web Designer, Web Developer, etc.

8. PPTTEST 10/24/2015 14:07 8 IT Ron Williams IS Organization Processes Systems Development Systems Maintenance Data Center Operations Internet and Networking Services New Technology Introduction Special Projects Resource Management General Support ……

9. PPTTEST 10/24/2015 14:07 9 IT Ron Williams Six IT Decisions IT People Should not Make How much we spend on IT? What business processes should receive the dollars? What capabilities need to be company-wide? How good our IT services really need to be? What security and privacy risks will we accept? Whom do we blame if an IT project fails? Source: Jeanne W. Ross and Peter Weill (HBR 11/02)

10. PPTTEST 10/24/2015 14:07 10 IT Ron Williams IT Outsourcing Contracting with an outside vendor to take over part of all of the an information systems activities for the purpose of saving money, refocusing the organization on its core business, or obtaining better systems Source: Radding

11. PPTTEST 10/24/2015 14:07 11 IT Ron Williams Outsourcing Evolution Initially & still most common - Means of cost control: e.g., maintenance Classic model: only outsource functions that don’t give a competitive advantage Now, “selective process outsourcing”: choose which IT capabilities to retain in-house and which to outsource. Developing idea – Computing on-demand

12. PPTTEST 10/24/2015 14:07 12 IT Ron Williams Factors driving outsourcing Cost savings Highly qualified IT staff are difficult to find and retain Reduction in things that require management focus Outsourcers skills Outsourcers may have larger IS resources that provide greater capacity on demand.

13. PPTTEST 10/24/2015 14:07 13 IT Ron Williams Disadvantages of outsourcing Abdication of control High switching costs Lack of technological innovation Loss of ownership Fixed contractual relationships that are hard to redefine

14. PPTTEST 10/24/2015 14:07 14 IT Ron Williams Be Careful Don’t just look at the price the outsourcer is charging Don’t just look at the cost savings Make sure the contracts don’t inhibit necessary flexibility Understand your strengths and weaknesses Understand the vendors strengths and weaknesses Develop the relationship management skills Understand the benefits and tradeoffs

15. PPTTEST 10/24/2015 14:07 15 IT Ron Williams Centralized vs. Decentralized IT Centralized: resources under one control and, often, in one location. Decentralized: resources not in the same location or control –Physical –Organizational “Federalism” combines centralization with decentralization – common model –Centralize major infrastructures that need to be shared across the organization –Decentralize application development and systems that are organizationally unique What makes the most sense today?