The Management FrameworkThe Management Framework

CompanySenior

Management

Environment

CIOMIS DirectorD.P. Manager

Users(Managersand Staff)

ITStaff

CHALLENGE OF INFO SYSTEMSCHALLENGE OF INFO SYSTEMS

STRATEGIC:STRATEGIC: COMPETITIVE & EFFECTIVE COMPETITIVE & EFFECTIVE GLOBALIZATION:GLOBALIZATION: MULTINATIONAL INFO MULTINATIONAL INFO INFO ARCHITECTURE:INFO ARCHITECTURE: SUPPORT GOALS SUPPORT GOALS INVESTMENT:INVESTMENT: VALUE OF INFORMATION VALUE OF INFORMATION RESPONSIBILITY & CONTROL:RESPONSIBILITY & CONTROL: ETHICS ETHICS

**

1.281.28

Five Forces To Determine Industry Five Forces To Determine Industry ProfitabilityProfitability

New Entrants

Industry Competitors

Rivalry AmongExisting Firms

Threat ofNew Entrants

Buyers

Bargaining Powerof Buyers

Suppliers

Bargaining Powerof Suppliers

Threat of SubstituteProducts or Services

Source: Porter, M., Competitive Advantage, NY: The Free Press, 1985

Substitutes

The Value ChainThe Value ChainFirm Infrastructure

Human Resources Management

Technology Development

Procurement

M A R G I N

N I G R A M

InboundLogistics

Operations OutboundLogistics

Marketing& Sales

Service

Source: Porter, M., Competitive Advantage, NY: The Free Press, 1985

STRATEGIC QUESTIONSSTRATEGIC QUESTIONS Can IT build Can IT build barriers to entry?barriers to entry?

Can IT build inCan IT build in switching costs? switching costs?

Can IT strengthen Can IT strengthen customer relationships?customer relationships?

Can IT change the Can IT change the balance of power in supplier balance of power in supplier relationships?relationships?

Can IT change Can IT change intra-industry competitive balance?intra-industry competitive balance?

Can IT change the Can IT change the basis of competition?basis of competition?

Can IT generate Can IT generate new products?new products?

Source: Cash, J. I., McFarlan, F. W., McKenney, J. L., and Applegate, L. M., Corporate Information Systems Management: Text and Cases, Homewood, IL, 1992.

BUSINESS-LEVEL STRATEGYBUSINESS-LEVEL STRATEGY

PRODUCT DIFFERENTIATIONPRODUCT DIFFERENTIATION FOCUSED DIFFERENTIATIONFOCUSED DIFFERENTIATION DATAMININGDATAMINING SUPPLY CHAIN MANAGEMENTSUPPLY CHAIN MANAGEMENT EFFICIENT CUSTOMER RESPONSEEFFICIENT CUSTOMER RESPONSE ENHANCING CORE COMPETENCIESENHANCING CORE COMPETENCIES

**

2.24

A Framework for Analyzing IT Impact on A Framework for Analyzing IT Impact on OrganizationsOrganizations

CONTEXTExternal

Environment• Industry Structure• Rate of Change• Competitive Intensity

Organization• History• Current State• Industry Position• Competitive Benchmarks

Resources• People/ Leadership• Technology• Capital• Culture

Stimulus forChange• Type• Urgency• Clarity• Shared Understanding

Strategy

EXECUTION

Organization

Structure

People

CultureManagement

Control

Processes

ORGANIZATION EFFECTIVENESS MEASURES

Competitive Benchmarks

Source: Applegate, L.M., IT-Enabled Business Transformation, Boston: HBS Publishing, 1992

Work Technology

Process

• Time

• Quality

• Cost

• Innovation

Stakeholder

• Customer/ Supplier

• Employee Satisfaction

• Shareholder Satisfaction

Results

• Market Share

• Financial ROE P/E

FUNCTIONS OF AN INFORMATION SYSTEMFUNCTIONS OF AN INFORMATION SYSTEM

INPUT OUTPUTPROCESS

FEEDBACK

INFORMATION SYSTEMINFORMATION SYSTEM

ENVIRONMENTENVIRONMENT

Customers Suppliers Customers Suppliers

Regulatory Regulatory Stockholders CompetitorsStockholders CompetitorsAgenciesAgencies

ORGANIZATIONORGANIZATION

1.121.12

THE INFORMATION THE INFORMATION RESOURCERESOURCE

INTERNAL &

EXTERNAL DATA

COLLECTION

& STORAGE

DATA

TRANSFORMATION

PROCESS

INFORMATION

• Plan

• Control

• Operate

COMMUNICATION

LINKS

MAJOR TYPES OF SYSTEMSMAJOR TYPES OF SYSTEMS

EXECUTIVE SUPPORT SYSTEMS EXECUTIVE SUPPORT SYSTEMS (ESS)(ESS) MANAGEMENT INFORMATION SYSTEMS MANAGEMENT INFORMATION SYSTEMS (MIS)(MIS) DECISION SUPPORT SYSTEMS DECISION SUPPORT SYSTEMS (DSS)(DSS) KNOWLEDGE WORK SYSTEMS KNOWLEDGE WORK SYSTEMS (KWS)(KWS) OFFICE AUTOMATION SYSTEMS OFFICE AUTOMATION SYSTEMS (OAS)(OAS) TRANSACTION PROCESSING SYSTEMS TRANSACTION PROCESSING SYSTEMS (TPS)(TPS)

**

2.6

INTERRELATIONSHIPS AMONG SYSTEMSINTERRELATIONSHIPS AMONG SYSTEMS

2.22

ESS

DSS

TPS

SCADA

MIS

KWSOAS

TYPES OF INFORMATION SYSTEMSTYPES OF INFORMATION SYSTEMS

DATA WORKERSDATA WORKERS

KIND OF SYSTEM GROUPS SERVEDKIND OF SYSTEM GROUPS SERVED

STRATEGIC LEVEL SENIOR STRATEGIC LEVEL SENIOR MANAGERSMANAGERS

MANAGEMENT LEVEL MIDDLE MANAGEMENT LEVEL MIDDLE MANAGERSMANAGERS

OPERATIONAL OPERATIONAL

OPERATIONAL LEVEL OPERATIONAL LEVEL MANAGERS MANAGERS

KNOWLEDGE LEVEL KNOWLEDGE & KNOWLEDGE LEVEL KNOWLEDGE &

SALES & MANUFACTURING FINANCE ACCOUNTING HUMANSALES & MANUFACTURING FINANCE ACCOUNTING HUMAN RESOURCESRESOURCESMARKETINGMARKETING2.5

MISMIS

MIS FILESMIS FILES

SALES DATA

UNIT PRODUCT COST

PRODUCT CHANGE DATA

EXPENSE DATA

MISREPORTS

MANAGERSMANAGERS

TPS

Order Processing

System

Materials Resource

Planning System

General Ledger

System

ORDER FILE

PRODUCTION MASTER FILE

ACCOUNTING FILES

2.17

TPS DATA FOR MIS APPLICATIONSTPS DATA FOR MIS APPLICATIONS

Phases of IT AssimilationPhases of IT Assimilation

PHASE 1Decision to invest

andproject initiation

PHASE 2Technology learning andadaptation

PHASE 3Rationalization

and management control

PHASE 4Widespreadtechnology

transfer

StagnationBlock A

Failure

Success

StagnationBlock B

Narrowlyfocused andnot marketed

Success

StagnationBlock C

Too efficiencydominated

Success

Source: Cash, J. I., McFarlan, F. W., McKenney, J. L., and Applegate, L. M., Corporate Information Systems Management: Text and Cases, Homewood, IL, 1992.

Sample IT ArchitectureSample IT Architecture

InformationAnalysis

(e.g., Lotus 123G)

InformationPackaging and

Delivery

(e.g., Commander EIS)

Communications

(e.g., E-Mail, Conferencing)

Knowledge-BasedSystems

(e.g., Expert System)

ApplicationDevelopment

(e.g., CASE)

Communications

Wide area networkLocal area network

Information Management

Client server architectureDB2 relational database

Data feeds from internal and external sources

TOOLS

FOUNDATION

Applications

IndustryNews/IRI

Dow Jones

SalesManu-

facturingAccounting Purchasing Logistics

External Systems Internal Business Operations and Transaction Systems

Source: Applegate, L., Frito-Lay, Inc.: A Strategic Transition (C), Harvard Business School Case #9-190-071, 1990

LEARNING OBJECTIVESLEARNING OBJECTIVES

DESCRIBE CHARACTERISTICS OF DESCRIBE CHARACTERISTICS OF ORGANIZATIONSORGANIZATIONS

RELATE INFO SYSTEMS TO ORGANIZATIONSRELATE INFO SYSTEMS TO ORGANIZATIONS COMPARE MODELS DESCRIBING SYSTEM COMPARE MODELS DESCRIBING SYSTEM

ORIGINSORIGINS

**

3.2

LEARNING OBJECTIVESLEARNING OBJECTIVES

COMPARE THEORIES OF ORGANIZATIONSCOMPARE THEORIES OF ORGANIZATIONS ANALYZE IMPACT OF INFO SYSTEM ON ANALYZE IMPACT OF INFO SYSTEM ON

ORGANIZATIONORGANIZATION DESCRIBE IMPLICATIONS OF SYSTEM DESIGN DESCRIBE IMPLICATIONS OF SYSTEM DESIGN

& IMPLEMENTATION& IMPLEMENTATION

**

3.3

MANAGEMENT CHALLENGESMANAGEMENT CHALLENGES

DIFFICULTIES OF MANAGING CHANGEDIFFICULTIES OF MANAGING CHANGE ADJUSTING TECHNOLOGY AND ORGANIZATION ADJUSTING TECHNOLOGY AND ORGANIZATION

FOR OPTIMAL FITFOR OPTIMAL FIT

**

3.4

TRANSFORMATIONTRANSFORMATION KNOWLEDGE-BASED ECONOMIESKNOWLEDGE-BASED ECONOMIES PRODUCTIVITYPRODUCTIVITY NEW PRODUCTS & SERVICESNEW PRODUCTS & SERVICES KNOWLEDGE AS AN ASSETKNOWLEDGE AS AN ASSET TIME-BASED COMPETITIONTIME-BASED COMPETITION SHORTER PRODUCT LIFESHORTER PRODUCT LIFE TURBULENT ENVIRONMENTURBULENT ENVIRONMENTT LIMITED EMPLOYEE KNOWLEDGE BASELIMITED EMPLOYEE KNOWLEDGE BASE

**

1.71.7

TRANSFORMATION OF TRANSFORMATION OF ENTERPRISEENTERPRISE

FLATTENINGFLATTENING DECENTRALIZATIONDECENTRALIZATION FLEXIBILITYFLEXIBILITY LOCATION INDEPENDENCELOCATION INDEPENDENCE LOW TRANSACTION COSTSLOW TRANSACTION COSTS EMPOWERMENTEMPOWERMENT COLLABORATIVE WORKCOLLABORATIVE WORK

**

1.81.8

MEDIATING FACTORS:MEDIATING FACTORS: Environment Environment CultureCultureStructure Structure Standard Procedures Standard Procedures Politics Politics Management Decisions Management Decisions ChanceChance

ORGANIZATIONS & INFORMATION ORGANIZATIONS & INFORMATION TECHNOLOGYTECHNOLOGY

ORGANIZATIONSORGANIZATIONS INFORMATION INFORMATION TECHNOLOGYTECHNOLOGY

3.5

IMPLEMENTING CHANGEIMPLEMENTING CHANGE

Source: Leavitt, Handbook of Organization (1965)

TASKTASK

PEOPLEPEOPLETECHNOLOGYTECHNOLOGY

STRUCTURESTRUCTURE

RESISTANCERESISTANCE

MUTUALMUTUALADJUSTMENTADJUSTMENT

3.25

LEARNING OBJECTIVESLEARNING OBJECTIVES

EVALUATE SCHOOLS OF MANAGEMENT EVALUATE SCHOOLS OF MANAGEMENT THINKINGTHINKING

DESCRIBE LEVELS, TYPES, STAGES OF DESCRIBE LEVELS, TYPES, STAGES OF DECISION MAKINGDECISION MAKING

COMPARE INDIVIDUAL & ORGANIZATIONAL COMPARE INDIVIDUAL & ORGANIZATIONAL DECISION MAKINGDECISION MAKING

**

4.24.2

LEARNING OBJECTIVESLEARNING OBJECTIVES

ASSESS CHANGING MANAGEMENT PROCESSASSESS CHANGING MANAGEMENT PROCESS EXPLAIN HOW INFO SYSTEMS AID MANAGERS EXPLAIN HOW INFO SYSTEMS AID MANAGERS

& DECISION MAKING& DECISION MAKING

**

4.34.3

MANAGEMENT CHALLENGESMANAGEMENT CHALLENGES

WHAT MANAGERS DOWHAT MANAGERS DO INTRODUCTION TO DECISION MAKINGINTRODUCTION TO DECISION MAKING INDIVIDUAL MODELS OF DECISION MAKINGINDIVIDUAL MODELS OF DECISION MAKING HOW INFORMATION TECHNOLOGY HAS HOW INFORMATION TECHNOLOGY HAS

CHANGED MANAGEMENT PROCESSCHANGED MANAGEMENT PROCESS

**

4.44.4

ROLE OF MANAGERSROLE OF MANAGERS

INTERPERSONAL:INTERPERSONAL: Figureheads, leaders, liaison Figureheads, leaders, liaison INFORMATIONAL:INFORMATIONAL: Receive & disseminate Receive & disseminate

critical informationcritical information DECISIONAL:DECISIONAL: Initiate activities, handle Initiate activities, handle

disturbances, allocate resources, negotiate disturbances, allocate resources, negotiate conflictsconflicts

**

3.28

LEVELS OF DECISION MAKINGLEVELS OF DECISION MAKING

STRATEGIC:STRATEGIC: Long-term objectives; resources; Long-term objectives; resources; policiespolicies

MANAGEMENT CONTROL:MANAGEMENT CONTROL: Monitor use of Monitor use of resources; performanceresources; performance

KNOWLEDGE-LEVEL:KNOWLEDGE-LEVEL: Evaluate potential Evaluate potential innovations; knowledgeinnovations; knowledge

OPERATIONAL:OPERATIONAL: How to carry out specific day-How to carry out specific day-to-day tasksto-day tasks

**

4.194.19

TYPES OF DECISIONSTYPES OF DECISIONS

STRUCTURED:STRUCTURED: Repetitive; Repetitive; routine; definite routine; definite procedure;procedure; certainty certainty

SEMISTRUCTURED:SEMISTRUCTURED: One or more factors not One or more factors not structured; riskstructured; risk

UNSTRUCTURED:UNSTRUCTURED: Unique; non-routine; Unique; non-routine; uncertainty; requires judgmentuncertainty; requires judgment

**

4.204.20

INFO SYSTEMS, LEVELS, DECISIONSINFO SYSTEMS, LEVELS, DECISIONS

TPS

OAS MIS

KWS

DSS

ESS

ORGANIZATIONAL LEVELTYPE OFDECISION OPERATIONAL KNOWLEDGE MANAGEMENT STRATEGIC

STRUCTURED ACCOUNTS RECEIVABLE

ELECTRONIC PRODUCTIONSCHEDULING COST OVERRUNS

SEMI- BUDGETSTRUCTURED PREPARATION

PROJECTSCHEDULING

FACILITYLOCATION

UNSTRUCTURED PRODUCT DESIGN NEW PRODUCTSNEW MARKETS

4.214.21

DECISION SUPPORT DECISION SUPPORT SYSTEMS (DSS)SYSTEMS (DSS)

MANAGEMENT LEVEL COMPUTER SYSTEM MANAGEMENT LEVEL COMPUTER SYSTEM COMBINES DATA, MODELS, USER - FRIENDLY COMBINES DATA, MODELS, USER - FRIENDLY

SOFTWARE FOR SEMISTRUCTURED & SOFTWARE FOR SEMISTRUCTURED & UNSTRUCTURED DECISION MAKINGUNSTRUCTURED DECISION MAKING

**

DECISION SUPPORT SYSTEMDECISION SUPPORT SYSTEM

TPSEXTERNAL

DATADSS DATA

BASE

DSS SOFTWARE SYSTEMMODELS

OLAP TOOLS

DATAMINING TOOLS

USERINTERFACE

USER

GROUP DECISION-SUPPORT SYSTEM GROUP DECISION-SUPPORT SYSTEM (GDSS(GDSS))

INTERACTIVE COMPUTER-BASED SYSTEM INTERACTIVE COMPUTER-BASED SYSTEM FACILITATES SOLUTION OF UNSTRUCTURED FACILITATES SOLUTION OF UNSTRUCTURED

PROBLEMS BY DECISION MAKERS WORKING AS PROBLEMS BY DECISION MAKERS WORKING AS GROUPGROUP

**

LEARNING OBJECTIVESLEARNING OBJECTIVES

EXPLAIN ORGANIZATIONAL KNOWLEDGE MANAGEMENTEXPLAIN ORGANIZATIONAL KNOWLEDGE MANAGEMENT DESCRIBE USEFUL APPLICATIONS FOR DISTRIBUTING, DESCRIBE USEFUL APPLICATIONS FOR DISTRIBUTING,

CREATING, SHARING KNOWLEDGECREATING, SHARING KNOWLEDGE EVALUATE ROLE OF ARTIFICIAL INTELLIGENCE IN EVALUATE ROLE OF ARTIFICIAL INTELLIGENCE IN

KNOWLEDGE MANAGEMENTKNOWLEDGE MANAGEMENT

**

LEARNING OBJECTIVESLEARNING OBJECTIVES

DEMONSTRATE HOW ORGANIZATIONS USE EXPERT DEMONSTRATE HOW ORGANIZATIONS USE EXPERT SYSTEMS, CASE-BASED REASONING TO CAPTURE SYSTEMS, CASE-BASED REASONING TO CAPTURE KNOWLEDGEKNOWLEDGE

DEMONSTRATE HOW NEURAL NETWORKS & OTHER DEMONSTRATE HOW NEURAL NETWORKS & OTHER TECHNIQUES IMPROVE KNOWLEDGE BASETECHNIQUES IMPROVE KNOWLEDGE BASE

**

KNOWLEDGE MANAGEMENT IN THE KNOWLEDGE MANAGEMENT IN THE ORGANIZATIONORGANIZATION

KNOWLEDGE MANAGEMENT: KNOWLEDGE MANAGEMENT:

SYSTEMATICALLY & ACTIVELY SYSTEMATICALLY & ACTIVELY

MANAGING AND LEVERAGINGMANAGING AND LEVERAGING

STORES OF KNOWLEDGE STORES OF KNOWLEDGE

IN AN ORGANIZATIONIN AN ORGANIZATION

**

KNOWLEDGE MANAGEMENT IN THE KNOWLEDGE MANAGEMENT IN THE ORGANIZATIONORGANIZATION

KNOWLEDGE MANAGEMENT: KNOWLEDGE MANAGEMENT: Office Automation Systems Office Automation Systems (OAS)(OAS) Knowledge Work Systems Knowledge Work Systems (KWS)(KWS)

Group Collaboration Systems Group Collaboration Systems (GCS)(GCS) Artificial Intelligence Applications Artificial Intelligence Applications (AI)(AI)

**

CREATE KNOWLEDGECREATE KNOWLEDGEKNOWLEDGE WORK SYSTEMS:KNOWLEDGE WORK SYSTEMS:

INFORMATION SYSTEMS THAT AID INFORMATION SYSTEMS THAT AID KNOWLEDGE WORKERS TO CREATE, KNOWLEDGE WORKERS TO CREATE, INTEGRATE NEW KNOWLEDGE IN INTEGRATE NEW KNOWLEDGE IN ORGANIZATIONORGANIZATION

* *

CAPTURE & CODIFY CAPTURE & CODIFY KNOWLEDGEKNOWLEDGEARTIFICIAL INTELLIGENCE (AI)ARTIFICIAL INTELLIGENCE (AI)SYSTEMS:SYSTEMS:

AI:AI: COMPUTER-BASED SYSTEMS WITH ABILITIES COMPUTER-BASED SYSTEMS WITH ABILITIES TO LEARN LANGUAGE, ACCOMPLISH TASKS, TO LEARN LANGUAGE, ACCOMPLISH TASKS, USE PERCEPTUAL APPARATUS, EMULATE USE PERCEPTUAL APPARATUS, EMULATE HUMAN EXPERTISE & DECISION MAKINGHUMAN EXPERTISE & DECISION MAKING

**

AI

CAPTURE & CODIFY CAPTURE & CODIFY KNOWLEDGEKNOWLEDGEARTIFICIAL INTELLIGENCE (AI)ARTIFICIAL INTELLIGENCE (AI)SYSTEMS:SYSTEMS:

EXPERT SYSTEMSEXPERT SYSTEMS

NEURAL NETSNEURAL NETS

FUZZY LOGICFUZZY LOGIC

GENETIC ALGORITHMSGENETIC ALGORITHMS

INTELLIGENT AGENTSINTELLIGENT AGENTS

**

AI

AI FAMILYAI FAMILY

NATURALNATURALLANGUAGELANGUAGE

ROBOTICSROBOTICS PERCEPTIVEPERCEPTIVESYSTEMSSYSTEMS

EXPERTEXPERTSYSTEMSSYSTEMS

INTELLIGENTINTELLIGENTMACHINESMACHINES

ARTIFICIALARTIFICIALINTELLIGENCEINTELLIGENCE

AI

AI BUSINESS BUSINESS INTERESTS IN AIINTERESTS IN AI

PRESERVE EXPERTISEPRESERVE EXPERTISE CREATE KNOWLEDGE BASECREATE KNOWLEDGE BASE MECHANISM NOT SUBJECT TO FEELINGS, FATIGUE, MECHANISM NOT SUBJECT TO FEELINGS, FATIGUE,

WORRY, CRISISWORRY, CRISIS ELIMINATE ROUTINE / UNSATISFYING JOBSELIMINATE ROUTINE / UNSATISFYING JOBS ENHANCE KNOWLEDGE BASEENHANCE KNOWLEDGE BASE

**

THE CHANGING THE CHANGING MANAGEMENT PROCESSMANAGEMENT PROCESS

ENTERPRISE RESOURCE PLANNING (ERP)ENTERPRISE RESOURCE PLANNING (ERP) ELECTRONIC COMMERCEELECTRONIC COMMERCE ELECTRONIC BUSINESSELECTRONIC BUSINESS ELECTRONIC MARKETELECTRONIC MARKET

**

1.231.23

LEARNING OBJECTIVESLEARNING OBJECTIVES

DEMONSTRATE HOW INTERNET TECHNOLOGY DEMONSTRATE HOW INTERNET TECHNOLOGY USED FOR INTRA- AND INTERORGANIZATIONAL USED FOR INTRA- AND INTERORGANIZATIONAL ELECTRONIC BUSINESSELECTRONIC BUSINESS

EXAMINE CHALLENGES OF INTERNET TO EXAMINE CHALLENGES OF INTERNET TO BUSINESSBUSINESS & SOCIETY & SOCIETY

**

10.3

SALES & MARKETING

COMPANY

FINANCE COMPANY

LOGISTICS

COMPANY

DESIGN

COMPANY

MANUFACTURING

COMPANY

VIRTUAL ORGANIZATIONVIRTUAL ORGANIZATION

CORECORECOMPANYCOMPANY

1.271.27

CHALLENGES & OPPORTUNITIESCHALLENGES & OPPORTUNITIES

UNPROVEN BUSINESS MODELSUNPROVEN BUSINESS MODELS BUSINESS PROCESS CHANGE REQUIREMENTSBUSINESS PROCESS CHANGE REQUIREMENTS CHANNEL CONFLICTSCHANNEL CONFLICTS TECHNOLOGY HURDLESTECHNOLOGY HURDLES LEGAL ISSUESLEGAL ISSUES SECURITY & PRIVACYSECURITY & PRIVACY

**

10.33

GLOBALIZATIONGLOBALIZATION

MANAGEMENT & CONTROLMANAGEMENT & CONTROL COMPETITION IN WORLD MARKETSCOMPETITION IN WORLD MARKETS GLOBAL WORK GROUPSGLOBAL WORK GROUPS GLOBAL DELIVERY SYSTEMSGLOBAL DELIVERY SYSTEMS

**

1.61.6

LEARNING OBJECTIVESLEARNING OBJECTIVES

IDENTIFY FACTORS BEHIND BUSINESS IDENTIFY FACTORS BEHIND BUSINESS INTERNATIONALIZATIONINTERNATIONALIZATION

COMPARE GLOBAL STRATEGIES FOR COMPARE GLOBAL STRATEGIES FOR DEVELOPING BUSINESSDEVELOPING BUSINESS

DEMONSTRATE HOW INFO SYSTEMS SUPPORT DEMONSTRATE HOW INFO SYSTEMS SUPPORT GLOBAL STRATEGIESGLOBAL STRATEGIES

**

GLOBAL ENVIRONMENT: BUSINESS DRIVERS & CHALLENGESGLOBAL ENVIRONMENT: BUSINESS DRIVERS & CHALLENGES

CORPORATE GLOBAL STRATEGIESCORPORATE GLOBAL STRATEGIES

ORGANIZATIONAL STRUCTUREORGANIZATIONAL STRUCTURE

MANAGEMENT & BUSINESS PROCEDURESMANAGEMENT & BUSINESS PROCEDURES

TECHNOLOGICAL PLATFORMTECHNOLOGICAL PLATFORM

INTERNATIONAL INFORMATION SYSTEMS INFRASTRUCTUREINTERNATIONAL INFORMATION SYSTEMS INFRASTRUCTURE

INTERNATIONAL INFORMATION SYSTEMS INTERNATIONAL INFORMATION SYSTEMS INFRASTRUCTUREINFRASTRUCTURE

IT-Enabled BusinessIT-Enabled BusinessTransformation ModuleTransformation Module

Scope of ChangeScope of Change

AnticipatoryAnticipatory

CrisisCrisis

StimulusStimulus

for for

ChangeChange

Source: Applegate, L.M., IT-Enabled Business Transformation, Boston: HBS Publishing, 1992

FunctionFunction OrganizationOrganizationInter-Inter-OrganizationOrganization

“The modern age has a false sense of superiority because of the great mass of data at its disposal. The valid criterion of distinction is (not the quantity of data available but) rather the extent to which man knows how to form and master the materials at his command.”