ISM 158

Final Lecture

2

Announcements

• Group Projects Today

• Exam Wednesday 8am– Closed book– No paper needed

3

Global Landscape 2004

• Increasing

• Moved from manufacturing to IT and services

• Morgan Chase quote “don’t underestimate the complexity”, “don’t build expectations too high”… but wishes he’d done it sooner!

• “Every $1 spent saves 58 cents”

• Examples given in ‘background’ section

4

Key questions

• What processes are companies outsourcing?

• Who is outsourcing?

• How much IT is outsourced?– Wall St Journal ‘Jobs that can be reduced to series

of rules are likely to go’

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Leading vendors

• EDS

• IBM

• HP

• CSC

6

India

• Educated, english speaking

• Good network infrastructure

• Moving beyond..– Philippines– China

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Challenges• McKinsey questions

– Can outsourcing drive costs lower?– Capture benefits earlier– Increase QoS?– Leverage existing IT platform to reduce new investments?– Contractually commit to benefits?– Regularly bring most relevant innovations to bear?

• Pay attention to– Training new workers– Privacy laws– Data quality is critical– Scope creep– Soft issues – regional job loss, customer reaction, culture gaps

• Offshoring– Some companies have pulled back– Less cost but less productive?– Fast change difficult to keep up with– More complex problems, difficult to migrate knowledge– Familiarity with customer needs– Currency fluctuations

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Overview/Summary of Class topics

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ISM 158: Overview

This class considers the role of information in business strategy. In particular, we focus on decisions regarding information technology and information systems to give a business competitive advantage over other companies. We will focus on case studies to see why some businesses are more successful than others in building information systems that lead to organizational and individual efficiencies.

We look at how information impacts industries, markets and countries, and leads to technology development. We develop an understanding of design and maintenance of networked organizations, including issues of leadership and management.

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Schedule

Date Topic (Reading = corresponding chapter from text)

Case(Reading = corresponding case from text)

Presentation Assessment

1 Tue, April 3 Introduction

Thu, April 5 No class – Instructor Away

2 Tue, April 10

IT Strategy

3 Thu, April 12

Charles Schwab

4 Tue, April 17

IT and Organization Leapfrog

5 Thu, April 19

Extending the Enterprise

6 Fri, April 20 (makeup class – time and venue TBA)

Wyndham Project Team and Topic Due

11

Schedule

Date Topic (Reading = corresponding chapter from text)

Case(Reading = corresponding case from text)

Presentation

Assessment

7 Tue, April 24

Making the case for IT

8 Thu, April 26

IT Doesn’t matter

9 Tue, May 1 Internetworking Infrastructure

10 Thu, May 3 iPremier Project Proposal Due

11 Tue, May 8 Reliability and Security

12 Thu, May 10

Ford

13 Tue, May 15

Managing Diverse IT Infrastructure

12

Schedule

Date Topic (Reading = corresponding chapter from text)

Case(Reading = corresponding case from text)

Presentation

Assessment

14

Thu, May 17 Postgirot

15

Tue, May 22 Organizing and Leading IT

16

Thu, May 24 Cathay Pacific Business Proposal Due

17

Tue, May 29 Managing IT Outsourcing

18

Thu, May 31 Royal Caribbean Cruises

19

Tue, June 5 IT Portfolio Management

20

Thu, June 7 Conclusion Global Landscape

Project Due

Wed, June 13, 8am

Final Exam Final Exam

13

Prediction Is Hard

• Who could have predicted? – Before 1940: That there would be hundreds of

millions of computers worldwide– Before 1992: the Web– Before 1995: Amazon

• The pace of evolution and change in IT is blistering– No sign that it is slowing down

14

Framework for Decisions

• This class and text book has not been about predicting the future

• Instead, it is about giving you the frameworks to:– Identify opportunities– Design and deploy technology-based businesses– Create business value

• Frameworks based on concepts and theory that have stood the test of time– Fundamental management principles still apply, even as we

embrace the new

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Key Themes

1. Continuous pace of technology evolution requires that we confront new choices for designing and building industries, markets, organizations

2. Business models that dominated the Industrial Economy are evolving

3. Types of opportunities pursued and technology employed strongly influence approach to developing, operating, managing IT

4. As IT infrastructure becomes more standardized, modular, scaleable, there is a shift in IT investment priorities and decisions

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Key Themes (cont.)

5. The time required for successful organization learning and assimilation of rapidly changing technologies limits practical speed of change

6. External industry, internal organizational, and technological changes are increasing pressure on organizations to buy rather than to make IT applications and services

7. Ability to exploit technology requires high levels of engagement and cooperation among four key constituencies: business executives, IT executives, users, technology providers/partners

17

Key Themes (cont.)

8. Ability to ensure high levels of security, privacy, reliability, and availability is a core capability that determines organization’s ultimate success and survival

9. Over the last decade, there has been a fundamental shift in IT that has dramatically impacted the way: • People access and use technology• Organizations exploit technology• Technology is developed and managed

18

Bottom Line

• There is a critical role for people (like yourselves!) with understanding of both business strategy and information technology

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Graduating students

20

Assessment

Value

News Presentation 5%

Quizzes 10%

Discussion Participation 10%

Business Proposal 10%

Project 40%

Final Exam 25%

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Final Exam Case

• Case is ‘CareGroup’ from the text

• Case 2-1, pages 353 – 368