The Opportunities and Challenges Ahead (McNurlin 15)

© 2009 Pearson Education, Inc. Publishing as Prentice Hall

The Opportunities and Challenges Ahead

Chapter 15Information Systems

Management in Practice

8th Edition

© 2009 Pearson Education, Inc. Publishing as Prentice Hall 15-2

Chapter 15

Introduction Hot Issues - Challenges or Opportunities?

Navigating Information Overload Green Computing Virtualization and Parallelization IT Talents and Globalization


Chapter 15

Organizing Principles The Learning Organization Processes Rather Than Functions Communities Rather Than Groups Virtual Rather Than Physical Self-Organizing Rather Than Designed Adaptable Rather Than Stable Distributed Rather Than Centralized


Chapter 15

Capturing the World of Connections The Internet Mindset Where’s the Value in a Network The Rules of Networks

Moving Forward Understanding Users Increasing Executives’ Understanding of IT Educating IS About the Business

Conclusion


A Framework for IS Management


Introduction

E-world here to stay! Yes, even after dot com bubble burst

Internet-based economy Its continuing impact on business strategies, work

environments and skills What are the issues? How can enterprises leverage the power of

Internet?


Hot Issues - Challenges or Opportunities


Navigating Information Overload

Risk and costs of cognitive overload due to information abundance 988 billion gigabytes of data by 2010!

Strategies enterprises can use to filter data and content SEARCH paradigm Data mining and analysis for business intelligence


Green Computing

We need energy to sustain computing Data centers

Google’s massive “cloud computing” energy requirements Better technology to reduce computing energy

consumption

E-waste: Dark side of digital age Government regulations

Electronic Product Environmental Assessment Tool (U.S.) Restriction of Hazardous Substances (European Union) China and other third-world countries?


Virtualization and Parallelization

Virtualization Techniques that simulate multiple self-contained

application environments on a single physical server Benefits include

Scalable resources (partitioning) Simple encapsulation (single virtual environment) Increased security (isolated from physical host machine) Reduced energy consumption

Parallelization Parallel processing on multiple core

Think Intel 64-bit Core 2 Duo processor architecture


IT Talents and Globalization

Severe global IT talent shortage in next ten years predicted! Technological obsolescence

The training and learning never stops! Age discrimination What are the jobs for MIS majors today?

Organizations need to develop HR strategies to address issue


Organizing PrinciplesHow to Succeed in the Internet Economy


The Learning Organization

Five basic learning principles Personal mastery

Lifelong learning (continual clarification) Mental models (schemas)

Looking inward (challenging assumptions) Shared Vision

Organizations view of its purpose Team Learning

Dialog (even dialectic) Systems Thinking

The whole is not the sum of its parts


Processes Rather Than Functions

A process is a combination of tasks Focus on group rather than an individual

Reengineering for a process-centered structure Self-organizing, teamwork

organizational processes spans departments

Ramifications of process orientation Process ownership Measures of a process (can be difficult) Professionals vs. workers

Possess greater knowledge and a customer-orientation


Communities Rather Than Groups

Communities vs. groups Communities arise out of spontaneity and volition

e.g. communities of practice Groups are formed purposely by design

E.g. task force Communities are building blocks of an

organization (a social environment) People Learning Participation


National Semiconductor

Case Example: Communities of Practice (CoP) CEO: Build core competence in mixed signal

technology and phase lock loops CoPs to mobilize engineers from numerous product

lines Swapped ideas, insights and solutions Team-based efforts Library of knowledge

Chip design reviews, best practices, know-how Funding provided for Web-based CoPs


Virtual Rather Than Physical

Virtual Organization Exists wherever (space) and whenever (time) the

participants happen to be Might this perspective be too sanguine?

Global integration and coordination but local adaptability How does this arrangement work in a virtual context?


Sun Microsystems

Case Example: Virtual Organizations Organizational culture and structure based on

electronic network characteristics Email flow (how much you have)

Determines existence and identity in organization Mailing list (which one you are on)

Determines status and power in organization

Director manages organization by monitoring the electronic network activities e.g. new project, major event


Self-Organizing Rather Than Designed

Self-organizing (or emergent) systems create their own structure, patterns of behavior and process to accomplish the work E.g.,

Semco S.A., workers set their own production quotas, take initiative to redesign product, define new marketing strategies

the Open Source movement

Based on self-governance, self-replication, partial learning and some self-repair

Contingent on freedom and trust


Semco, S. A.

Case Example: Self-organizing principle Brazilian manufacturing firm is touted “world’s most

unusual workplace” Break all rules to cut costs and up productivity

Employees set own standards and are empowered Production quotas, choose own boss, influence product designs

and marketing plans Unlimited access to company information, training (e.g. read

accounting statements) Voluntary attendance at meeting, profit-sharing voting rights

Radical “democratic workplace” evolved over stages 600 percent company growth


Adaptable Rather Than Stable

Organizations must be built to change in today’s e-economy IT increases connectivity, which heightens

volatility Organizational change is difficult and costly

Paradigm: organizations structured for stability and minimal change

Achieve adaptability through distributed intelligence and action Focus on individuals as agents of change


Capital One What’s in your wallet?

Case Example: Organizational adaptability Information-based strategy to develop consumer

financing products Developed core competence in IT-based test design

(statistical analysis) Constantly “testing” the market (first-mover advantage)

“balance transfer” a winning offer Some control: Management use veto power to determine

funding for on-the-fly new product development based on test results

Fourth largest U.S. firm in diversified financials


Distributed Rather Than Centralized

Distributed Capitalism Developing a relationship with customers by tapping into

their needs Need for sanctuary (control over time and activities) Need for voice (freedom of speech) Need for connection (trust)

Market-based organizations Decreasing cost of communication enables organizations

to structure themselves to become democracies Empowering people is key to the new kingdom

Needs lots of communication, new skills, and new attitudes toward risk and control

Shift from command and control to coordinate and cultivate


Capturing the World of Connections


The Internet Mindset

What should the organization mindset be of the global online world? Communication is personal, not mass market

Starts with the customer and needs Customer contact is interactive, not broadcast

Two-way communication Customer service time frame is theirs, not yours

Fast response to requests and concerns The culture is bottom-up, not top-down

Value proposition begins with soliciting customer input


Where’s the Value in a Network?

How to leverage the Internet to gain value? Back-end intelligence (value core)

IT architecture and infrastructure should focus on centralization (shared resources), stability, scalability and standardization Facilitates Web services (data storage and processing)

Front-end intelligence (value periphery) Web interface is customer touchpoint Should be decentralized (specialized devices),

flexible, personalized and sensitive to context


Where’s the Value in a Network? cont’d

Intelligence engenders value, but front-end and back-end components must be decoupled Different capabilities and strategies needed at core and

periphery to optimize value creation Core: value in orchestration (business ecosystem) Periphery: value in modularity (“plug and play”)

New kinds of business can be created by understanding these value dynamics e.g. “reassembly”

Organizing disparate pieces of intelligence to create personalized offerings (one-stop Web site)


The Rules of Networks A connected world has three distinguishing features

It is global Biased toward ‘software’ (Information, ideas, relationships) Intensely linked

Accordingly, rules of networks include Aim for relationship tech.

Increasing quantity and quality of economic relationships Follow the free

Scale economies and near-zero marginal cost But Porter (2001) argues that indirect profitability is wrong?

Web 2.0 firms (e.g., YouTube, FaceBook) not making money

Feed the Web first Analogy: Save our planet so we continue to live on it


Moving Forward


Understanding Users

Understanding people’s comfort levels for new technology is as important as the technology itself

A “Diffusion of Innovation” framework 500,000 innovators (constantly sniffing out latest

tech) 5 million early adopters 30-35 million early majority adopters 40-50 million late majority adopters 10-15 million technically adverse


Diffusion of Technology Innovation


Increasing Executives’ Understanding of IT

Many business executives view IT only as a means to achieve operational effectiveness

How can CIOs and IS professionals influence their view of IT to one of gaining competitive advantage? IS leadership and governance

Strategic IT vision, measurement of IT value, cost-benefits, change management, control

Learning (see next slide)


Educating IS About the Business

Learning by doing Giving responsibility for IT project(s)

Learning by governing Being part of governance team that sponsors IT

projects Learning via educational programs

Executive IT workshops e.g. Shidler College executive education programs?


Conclusion

Network world requires different way of thinking People-to-people relationships Natural phenomena not human-designed

structures Technology is simply the underpinning

IT becomes about business Focus on human aspects of IT


All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic,

mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

Copyright © 2009 Pearson Education, Inc. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice HallPublishing as Prentice Hall