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Strategic Information Systems. Some Major Themes. Information technology is arguably the most disruptive force in organizations since the Industrial Revolution. Week #1 pt. B. Theme #1. Information as A Strategic Asset Information Technology as a Strategic Asset. - PowerPoint PPT Presentation
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Strategic Information Systems
Some Major Themes
Week #1 pt. B
Information technology is arguably the most disruptive force in organizations since the Industrial Revolution.
Information as A Strategic Asset
Information Technology as a Strategic Asset
Theme #1
Expectations of IT have changed…4 WAYS OF USING IT
1) AUTOMATING2) INFORMATING3) STRATEGIZING4) BUSINESS INTELLIGENCE
(integration)
IT for Automating: The First Step
• Operations emphasis
• View technology as a way to continue doing the same things
• Use technology to automate existing tasks
• Easily measurable value
IT for Automating: The First Step
• Time: 1960’s to mid-1970’s
• Objective: Labor reduction; faster, cheaper, more accurate
• Value Added: Relatively low
• Risk: Moderate
• Technology: Mainframes; centralized
IT for Informating: The Second Step
• Emphasis on information for decision making
• Use technology to provide information about operations
• Use technology to help detect problems with processes
• Use of technology without informating can make a bad process worse
IT for Informating: The Second Step
• Time: 1980’s to early 1990’s
• Objective: Process improvement
• Value Added: Moderate
• Risk: Low
• Technology: Distributed computing; networks
IT for Strategizing:The Third Step
• IT as enabler of better, faster, cheaper
• View technology as an enabler of organizational strategy
• IT impacts all functions of the organization’s value chain
IT for Strategizing: The Third Step
• Time: early-1990’s to current
• Objective: Better, faster, cheaper, competitive advantage, process re-engineering
• Value Added: High
• Risk: High
• Technology: Ubiquitous computing
IT for Business Intelligence:The Next Step???
• Gathering information from sources inside and out of the organization
• Ubiquitous/real time information
• Information integration
Information Technology as the chief enabler of …
Theme #2
BETTER, FASTER, CHEAPER!
Organizations in the Information Age
• New products• New ways to
market/sell/deliver products
• New processes/ways to operate (BPR)
• New organizational forms• New ways to work
E-business exploits IT to bring
“better, faster, cheaper”
to all processes in the Value Chain.
PurchasedSuppliesInboundLogistics
Operations
Product R&D, Technology, and Systems Development
Human Resources Management
General Administration
OutboundLogistics
Sales andMarketing Service
BETTER FASTER CHEAPER
What has enabled IT to become a Strategic Enabler?
(1) Moore’s Law (Gordon Moore)
Every eighteen months
processing power doubles
while costs hold constant.
What has enabled IT to become a Strategic Enabler?
(2) Metcalfe’s Law (Robert Metcalfe)
The usefulness of a network equals the square of the number of users.
(i.e., the usefulness of a network increases exponentially with each
additional user)
Metcalfe’s Law:
“The more people use your software, your network, your standard, your game, your book, the more valuable it becomes. The more new users it will attract, increasing the utility and the speed of its adoption by still more users”.
*Adapted from Unleashing The Killer App, by Larry Downs
The challenge of rapidly changing IT
The Law of Disruption
Social, political, and economic systems change incrementally,
technology changes exponentially.
From Islands of Technology…
Accounting systems
Sales/ Marketing
systems
Order/ Inventory systems
Interfaces
interfaces
Theme #3 Integration
To Enterprise Information Architechture (EIA)
Integration
E-business Application Architecture
BACK OFFICE: accounting, order processing
FRONT OFFICE: sales/customer service
CRM ERP
Enterprise Resource Planning Customer Relationship Management Selling Chain Management Supply Chain Management E-procurement
SCM
SCM
Trading partners
EP
Non-production goods/services
Enterprise Application Integration (EAI)
Information Technology is changing how organizations form themselves.
Theme #4
• Creating and controlling information is more powerful than moving and
manufacturing physical products.
• Virtual organizations.
• Alliances/partnering
• Businesses must build “e-business community” models to serve the customer.
• Management must align business strategies, processes, and applications fast, right, and all at once. Strong leadership is imperative.
Organizational Change for E-Business
Ubiquitous Computing
• anywhere/any time
• globalization
• networking; Internet
• information-infused products
• wireless telecommunications
Theme #5
Information Technology is changing the way people work
• Knowledge worker -- information and knowledge are the raw materials of his/her work
• Teamwork -- a new emphasis on collaborative work
• Anytime, anywhere work
Theme #6
The Role of the CIOYesterday’s Role
• 80% Technical• Hardware Orientation• Efficiency measures
Today’s Role
• 20% Technical• People Orientation• Competitive measures
Working in the Information Age
Working in the Information Age
Knowledge management
Organizational learning
Theme #7
Information Technology presents newEthical challenges.
• Privacy
• Accuracy
• Access equality
• Political governance
Is technology changing in response
to external forces,
or is technology driving change?
END