Lecture 11 MGMT 6180 - © 2012 Houman Younessi IS Leadership and the User Side of IS

Lecture 11

MGMT 6180 - © 2012 Houman Younessi

IS Leadership and the User Side of IS

Lecture 11


IS LeadershipIn order to understand the type of leadership appropriate for the IS function, we must first understand the possible roles IS may assume in a firm. There are four distinct role types recognizable:

IS as business support function

IS as a production “factory” function

IS as a change enabler, “turn-around function”

IS as a strategic component

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IS LeadershipIS as Support Function

This is the traditional, “old-school” view of IS. Most organizations start here. In such a role, IS is deemed as a tool to support and sustain current business operations and is a subservient function to not only the enterprise strategy but also its operation direction.

In such enterprises, despite the widespread use of IS/IT, the firm may not be inherently dependent on the advantages it provides.

Many professional offices, small to medium commercial organizations and the like still fall into this category.

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In this view, IS is deemed as an integral and critical but still operational aspect of the enterprise. IS and particularly IT becomes the central hub and the backbone of the operation, its “production facility” so to speak.

Examples might be stock exchanges, airlines, order and shipment management firms.

IS LeadershipIS as an Production, “Factory”, Function

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In this view, IS is a vehicle for business transformation. Emerging IS technologies would be implemented to reposition a firm and transform how they do business fundamentally.

Examples include Geico, IBM Domino’s Pizza

IS LeadershipIS as a Change Enabler (Turn-around Catalyst)

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IS LeadershipIS as a Strategic Component

In this view, IS is a vehicle for strategic positioning and gaining of strategic advantage .

Information systems may or may not be the core business of the enterprise

Examples include TD Ameritrade, Google, eBay, Amazon, Walmart

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IS LeadershipTransition and Maturity

Enterprises do not stay within one framework forever. Organizations change and it seems that they mature towards a strategic view and integration of IS.

We must examine:1) The level of centrality and criticality of the IS function to the operation and as such need for availability and responsiveness of the IS-based technology, and,

2) The level of criticality of the IS to the future, growth and positioning of the enterprise, and as such need for IT innovation.

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IS LeadershipTransition and Maturity

Innovation

Factory

Support

Strategic

Turnaround

Dental clinic

GeicoIBM

Nasdaq

Domino’s

Walmart

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The burning platform state -- in which demand for IS support exceeds supply and where IS is engaged in reacting to crises, repairs, and competing critical demands. IS is a quandary and at times is perceived as a threat and a sink hole for cash.

IS LeadershipStates of IS Strategy Formulation

Organizations and their IS function may formulate their IS strategy in a progression of stages/states:

The support role state -- in which demands for IS services have been controlled, captured, categorized, and prioritized. IS becomes a dependable support function

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The alignment state -- where IS recognizes and utilizes the organization's business strategy as the basis for opportunity prioritization and the design of its organizational structure, processes, and infrastructures.


The linked business/IS strategy state -- in which IS and business strategies are aligned through co-development and the IT strategy is embedded in the business strategy.

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The IT-enabled business transformation state -- where industry-altering technological concepts are pursued and become strategic for IS and the business.


The IS-led business/IS strategy state -- where all or major components of business strategy are identified and contributed by IS.

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IS LeadershipLeadership of the Support State

Business focus tends to be on the core business with some incremental process improvement. The major business objectives are to deliver the requisite at minimum cost. Performance measure are on cost and traditional budget and service quality control. Corporate involvement is limited and is of supervisory nature.

The IS leadership is viewed as functionaries

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IS LeadershipLeadership of the Factory State

In this state, IS’s vision is longer-term and is aimed to support and extend core business while staying with or ahead of competition. The mantra is increased productivity and profit contribution. As such, revenue and profit target as opposed to cost targets are pursued through operating efficiencies. Infrastructure and system complexity becomes a major technical issue. Performance measures are in terms of not only cost but profits, asset leverage and system and service quality, productivity and efficiency.

The IS leadership is viewed as business-informed technocrats

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IS LeadershipLeadership of the Turnaround State

Vision remains medium term with short-term targets aligned with the turnaround horizon of the enterprise. IS’s focus is on identifying those technology trends that can provide significant business process change in line with the turnaround objectives. Speed of deployment and effectiveness of the opportunities identified are the major business challenges. In addition to the traditional performance measures of cost, revenue and profit; speed of deployment, and ability to add IS-based momentum to the turn-around effort are at play.

The IS leadership is viewed as entrepreneur

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IS LeadershipLeadership of the Strategic State

Vision is long-term, targets range from long to immediate-term. Business focus is to build new business opportunities based on new IS technologies as they emerge, use IS to scale the business and increase market share, or use IS to drastically improve the way objectives are met vis a vis the rest of the industry. Key business challenge is to manage growth and stay in lockstep with corporate strategy particularly when new and attractive technology becomes available. Performance measures are profitable growth, asset leverage, market-share gain, net present value.

The IS leadership is viewed as a business visionary.

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The User Side of IS

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Lecture 11 MGMT 6180 - © 2012 Houman Younessi IS Leadership and the User Side of IS