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Thomas, D., and R. Bostrom. Cambridge, MA: Forrester Research, July 28, 2008. • Preserving investments in new and existing systems. “The Role and the Effects of Risk Management in IT Projects Success.” Informatica Economica 17, no. “We are working on building the founda- tions for BI,” said one manager. A business metrics program should be designed to foster an environment in which people look beyond their own jobs and become proactive about the needs of the organization (Marchand et al. Now that businesses recognize the value of improved information, IT is facing huge challenges delivering it: Not only does effective information delivery require IT to implement new technologies, it also means that IT must develop new internal nontechnical and analytic capabilities. Resources within this group are primarily con- tractors from a variety of vendors. Research shows that this is, in fact, the case. For example, each business unit might be allotted a certain num- ber of IT staff and dollars to spend on new development (based on percentage of overall revenue) that would remain relatively stable over time. These channels have also become a significant driver of interactions among companies, enabling them to transact business in new ways, manage their roles in different supply chains, and offer new services to business clients that didn’t previously exist. . “We sure don’t present a consis- tent face to our customers,” Matt complained to his supervisory staff after receiving yet another complaint that different CSRs had provided contradictory advice. Reproduced by permission of Queen’s University, School of Business, Kingston, Ontario, Canada. Many formal leadership courses have been cut or scaled back substantially because of cost-control initiatives. These capabilities are described in detail next. “I’m giving it to you because you have the most project-management experience we’ve got,” Smith had said. I’ve been trying to get Cheryl and her group to consider doing some experimentation with cell phone promotions—you know, using that new Japanese bar coding system. Another is implementing knowledge repositories and document-sharing software to enable better access to work that has already been done. “Start with the basics to build competencies, reduce processing, and take care of the mundane, and then grow,” recommended one manager. Many IT managers can tell stories of how an initiative is vilified as having little or no value when first implemented, only to have people say they couldn’t imagine running the business without it a few years later. “I’m going to have to discuss this with Brian,” he told Lee. This time, the technologies, the data, and the perspective have changed and become broader and more complex, while at the same time enabling an infinite number of new possibilities for supporting organizations with analysis and intelligence. With IT becoming so much more central to the development and delivery of business strategy, much more attention is now being paid to strategy devel- opment than in the past. The consensus in the focus group was that this hiring aversion is fueling the growth of sourcing options such as insourcing, outsourcing, and partner- ships, but the group was reluctant to use this factor to explain IT sourcing behavior. where each decision is innocent enough but, sooner or later, you are in a mess . Organizations, depending on their APM strategy, may focus on a subset of this information and develop a reporting and rationalization capability built on this information. Training was basic. It is, therefore, important for senior management to clarify roles and responsi- bilities for leadership development and ensure they are implemented consistently across the organization. Metrics for system development should be designed to accomplish four goals and used selectively for different audiences: • Increase buy-in. “We’ve got to have a more flexible and responsive IT organization. IT Strategy: Issues and Practices includes thirteen mini cases—each based on a real company presented anonymously.1 Mini cases are not simply abbreviated versions of standard, full-length business cases. Technology Landscape 5. The conclusion reached by the focus group was that the processes structured as shared services appear to offer a significant level of either present or future intrinsic value to the parent organization, which makes the organization reluctant to relinquish them to a third party. According to one manager, “shared services are seen as one way to reduce IT cost and/or complexity and drive IT reuse. “It is essential that we know who they are. Wouldn’t it be great to take some of our best IT folks out on the road so they could see what it’s really like in the field? “Conversion” from idea/opportunity to reality has been what IT organizations have been all about since their inception. Reproduced by permission of the Association of Management. The focus group also warned that the list of benefits represents “promised” benefits and that realizing actual benefits is a different matter! 5 With few exceptions (e.g., Bandula and Hirschheim 2009), relatively little research has focused on under- standing the reasons for (and justification of) IT sourcing decisions within organizational settings. Though this may seem like common sense, “it is interesting how uncommon, common sense is in its imple- mentation” (Pfeffer and Sutton 1999). What’s also significant is that these types of information are now being given to frontline staff so they can better manage their own areas of responsibility, identify and avoid exceptions, and take action before problems arise. The meeting with the CFO was to discuss TUFS and the company’s “very significant investment in this system.” Feeling like a condemned prisoner on his way to the gallows, Martin grabbed his suit jacket, straightened his tie, and headed up to the seventh-floor executive suite. Although “you can’t have a one-sided relationship,” as one focus group manager remarked, agreement is almost universal that IT needs to change if it is to improve. We begin by examining why innovation is critical, and how/why IT is driving most innova- tion today. They also stated that their firms lose millions of dollars if their Web sites are down even for a few minutes. Gordon, S., and J. Gordon. With the increasing use of external sources of data in BI processes, decisions also need to be made about whether or not to trust a source and how use of this data could have strategic implications for an organization (e.g., if it is no longer produced or if the company producing it decides to charge for it). Thorp, J. As with other types of change, one cannot communicate too much about the need to create an environment to foster leader- ship. Second, the company’s data assets, on which its future depends, are extremely vulnerable. However, unlike Blumfen, the VP of financing, Mariella Hopkins, is an IT enthusiast. • Be careful with “cool” technology. Pfeffer, J., and R. Sutton. “IT must be plugged into the business, able to speak business language, and articulate poten- tial benefits,” said a manager. I’ve scheduled a couple of working sessions for us over the next two weeks so we can hash this out. Business leaders are also more open. New information-delivery technologies and channels as well as the recognition of the business value of information are driving the develop- ment of new organizational capabilities based on information and technology. Just imagine what our customers think!”. At a tactical level, each IT application should have an owner. • Principle 1: The effectiveness of communication is measured by its outcomes. Adopt enterprise funding models. This will save many person-years of effort. • Flexibility. Whose version of name and address do we use? This con- clusion is very much in keeping with the conclusions of knowledge management experts (e.g., Denning 2005; Nonaka and Takeuchi 2011), who believe that the com- plex benefits of higher order knowledge are best articulated qualitatively rather than quantitatively. That is, organizations appear to opt for a shared service in preference to outsourcing in order to retain critical knowledge and skills internally, to exercise greater control over these resources, or to capture additional value from the specific service rather than allowing it to accrue to the outsourcing party. They are still trying to determine how and where to effectively use social media data. Plan for adaptation. One paragraph on one key point from Craft Research chapter 6: Using sources; Newspaper Article, 3.1 What is learnt from the module? Others are shelved or must struggle for a very small piece of the pie. “You’ve given me the mandate and the budget to get this project off the ground,” he had told them. Three months later, the team launched the “Great Green Challenge” with an energy utilization dashboard on everyone’s desktop as well as on special monitors in the warehouses. . Brian clicked to a second slide showing a second pie chart. After allowing himself a small moment of pleasure, he pitched it into the recycle bin, then thought better of it. 284, Activity #2: Assess Current Technology 288, Activity #4: Evaluate Technology Landscape 290, Activity #5: Describe Future Technology 291, Activity #6: Outline Migration Strategy 292, Practical Steps for Developing a Technology Roadmap 294, Appendix A Principles to Guide a Migration Strategy 296, Chapter 20 enhanCIng DeVelopMenT proDuCTIVITy 297 The Problem with System Development 298, Obstacles to Improving System Development Productivity 302, Improving System Development Productivity: What we know that Works 304, Next Steps to Improving System Development Productivity 306, Chapter 21 InforMaTIon DelIVery: IT’S eVolVIng role 310 Information and IT: Why Now? Sometimes, they’re too farsighted and need to just paint the next couple of steps of what could be done, not the ‘flying around in jetpacks vision.’ And sometimes I think they truly don’t understand why the business can’t see how these bits and bytes they’re talking about translate into something that it can use to make money.” She looked at her watch, and Paul got the hint. As an alter- native to purchasing the print textbook, students can purchase an electronic version of the same content and save up to 50 percent off the suggested list price of the print text. 5 (September 1, 2010). Because of the urgency and importance of these business opportuni- ties, they are not governed by the standard planning/budgeting processes and, indeed, most do not appear on the annual IT plan. But now we have a more important job. As often happens in organizations, recognition of a need precedes the ability to put it into place. From this, a strategic perspective can be developed about what the business wants to accomplish with collaboration and what types of technology would best support it. Yet, despite consistent complaints from both business and IT leaders about how IT staff lack business and communication skills, it seems that many IT departments still hire largely for technical competencies and have little budget available for “soft skills” development (Cukier 2007). Can I get them to you in writing by the end of the week?”. It is not enough to understand the business and develop a vision; IT must also operationalize them. This facilitates a planned and orderly evolution toward retirement for applications as well as key information for busi- ness planning (e.g., roadmaps, gap reporting, and progress reporting). Unfortunately, the available resources are not. The Project Coordinator also manages the relationships between vendors and business units, not only with the organiza- tion’s current activities but also in planning for the future by developing strategic partnerships. Even though this technology is almost ready for prime time, most organizations are nowhere near ready to cope with making sense of such a large influx of information. • Continue to shape the solution during pre-concept and concept phases. f. Driving IT refurbishment initiatives. Soon, however, information security will need to include role-based identity and access management. Inexperienced teams, lack of management attention, and different expectations of partners are some of the major reasons why collab- oration initiatives can fail (Schuh et al. To get an APM initiative underway, it is necessary to build a business case. Architecting our technology, information, business and applications properly is the key to doing it right.”, “What exactly are you proposing?” asked Owen Merton, CIO of the Casualty Division. Focus group companies were actively exploring ways to accomplish this goal. “Any well-designed sourcing strategy must retain alternatives to pull activities back in-house,” explained one manager. In fact, the focus group argued that this factor should be used to determine the majority of sourcing decisions. For global companies, the local in-country tech- nologies are synched to the global technology roadmap, which introduces even greater consistency across business processes, reducing overall IT expenditure. One firm had slashed its legacy applications by one-third over the past three years. Now more than ever, we must truly understand the business transformation agenda. Unlike other types of risk, which are typically inadvertent, crimi- nal actions are deliberate attacks on the enterprise, its information, or sometimes its employees or customers. The “IM function” is also responsible for the complete information life cycle: acquisition or creation, organization, navigation, access, security, administration, storage, and retention. We can’t even tell how many users we have!” This was a potentially serious legal issue that had to be dealt with. A top-down approach is ideal, yet it may not always be practical. Successful BI initiatives consistently anticipate the need to maintain and improve the quality and type of information provided as their users learn more about what is possible, useful, and practical to do (Smith et al. MM had some good people but not enough to get through all of the projects in the IT plan within the promised timelines. “But they’re looking for IT to tell them what’s possible.” Another added, “They’re telling us ‘We don’t know what we don’t know’ and they expect IT to make new things possible.” What this means is that IT leaders are being challenged by business leaders to spear- head innovation in their organizations. “It’s all technical mumbo-jumbo when they talk to you and I still don’t know if they have any idea about what we’re trying to accomplish with our Savvy Store program. • There is difficulty from the “supply” side—for example, there is reluctance to take. In-house. However, since this is a huge field, it is also important to be  selective about the data that will be used to meet corporate strategies (Hopkins 2010). Although IT managers have done some work educating their CEOs and CFOs about what constitutes effective cost cutting (e.g., appropriate outsourcing, adjusting service levels), the fact remains that most business executives still do not understand or appreciate the factors that contribute to the overall cost of IT. After listening carefully to each speaker in turn, Brian stood up. Percentage of customers who said they were very satisfied with the company and would recommend it to others. View risk from multiple levels and perspectives. “Developments in Practice X: Radio Frequency Identification (RFID)—An Internet for Physical Objects.”. It really gets our staff engaged with the business.” If there has been no dramatic difference within three years, management should recognize that it is either using the wrong measures or hasn’t got employee buy-in to the pro- gram (Alexander 2000). Then I need to incorporate a reasonable amount of IT regeneration so that we can continue to do new projects at all.”, Everyone was nodding now. some see demand management as the next frontier in IT cost efficiency (newScale 2010). Ulrich, D., R. Halbrook, D. Meder, M. Stuchlik, and S. Thorpe. Morhmann, G., Schlusberg, C., and Kropf, R., “Demand Management in Healthcare IT: Controlling IT Demand to Meet Constrained IT Resource Supply.” Journal of Healthcare Information Management 21, no. However, legacy environments, politics, and tight budgets mean that the reality is somewhat less perfect with duplicate versions of the same information and several variants being used by parts of the business. “Innovation isn’t a one-time project, but the ability to deliver over and over again,” said a manager. Interpreting the success of an organizational initiative depends on understanding the goals and objectives of those promoting the initiative. Easy to justify with a business case, these types of projects have traditionally formed the bulk of IT’s discretionary spending. A third type of collaboration is more unstructured in nature and includes the development of communities for various purposes, creating collabor- ative work environments where innovation can occur, and collaboration for issue and information management. Reproduced by permission of Queen’s University, School of Business, Kingston, Ontario, Canada. “Q&A: Architects Must Advocate, Evangelize and Educate.” Gartner Inc., ID Number: G00155902, March 11, 2008. One participant, whose organization is “currently reluctant to experiment in the market,” focuses all its experiments on core business activities. Legislation, standards, and professional practices all affect what IT can and cannot do and how its work is done (Smith and McKeen 2006). According to Wikipedia (2014b), enterprise architects (EA) “work with stake- holders, both leadership and subject matter experts, to build a holistic view of the organization’s strategy, processes, information, and information technology assets. With the explosion in the past decade of new IT-based risks, it is increasingly recog- nized that risk means more than simply “the possibility of a loss or exposure to loss” (Mogul 2004) or even a hazard, uncertainty, or opportunity (McKeen and Smith 2003). . “We’re on our way.”. Stewardship, like IM, is an evolving role that few understand fully. You will get a personal manager and a discount. Visibility encourages employee buy-in and accountability and stimulates discussion about how to do better or what is working well. . The results: great adoption of cost-effective service options, consumption choices that result in lower IT costs, and effective planning to meet business needs and minimize over-capacity. Second, we want to reach out to different communities and gain insights into their needs and interests, which in turn will guide our future marketing plans. Every time I want to do something, they tell me ‘the systems won’t allow it.’ I’m tired of having customers complaining about getting multiple bills for each of our products. Goldberg, M. “The Final Frontier for CIOs.” CIO Magazine, Special Money Issue, September 22, 2004. Furthermore, IT managers have an opportunity to provide business leader- ship around collaboration if they can clearly articulate its business potential and benefits, rather than focusing on the technology itself. This can leverage overall value many times over (Chan 2000; Grant and Royle 2011). To support these new expectations, some firms offer formal training in communication skills in areas such as making presentations, communication styles, and negotiations. Online training and friendly service completed the package, making E-Z RP one of the fastest growing service-based products on the market. Have a Clearly Defined Portfolio Value Management, Principle 3. The goal is to capture and prioritize demand, assign resources based on business objectives, and engage in projects that deliver business benefits. Unlike information technology, which provides the technology, tools, and processes with which to capture, store, and manipulate data, or knowledge management. Although it was only to the more junior executives and, of course, John and Rick, he had high hopes for the vision his team was developing to get IFG out and interacting with its customers. According to this manager, their IT organization was “struggling with the business to close knowledge gaps in terms of what the business was asking, 278 Section IV • IT Portfolio Development and Management. It is essential that such a vision begin with understanding the organization’s values, legal require- ments, and core intellectual property. Third, APM requires the development of a number of related activities (described in the latter sections of this chapter). “Our structures need to be changed to enable us to get us 80% of the way in a project and then to pivot and change direction, if necessary,” said another. • Simplify the development environment. Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on appropriate page within text. “Information Orientation: People, Technology and the Bottom Line.” Sloan Management Review (Summer 2000). 14 (February 2008): 261–74. http://www-935.ibm.com/services/us/imc/ pdf/g510-4027-the-customer-centric-store.pdf. First, budgeting takes too long and consumes too much managerial time. Business involve- ment in IT initiatives is always desirable, and it is impossible to do IM without it. 3. Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montréal Toronto, Delhi Mexico City São Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo, Editor in Chief: Stephanie Wall Acquisitions Editor: Nicole Sam Program Manager Team Lead: Ashley Santora Program Manager: Denise Vaughn Editorial Assistant: Kaylee Rotella Executive Marketing Manager: Anne K. Fahlgren Project Manager Team Lead: Judy Leale Project Manager: Thomas Benfatti Procurement Specialist: Diane Peirano Cover Designer: Lumina Datamantics Full Service Project Management: Abinaya Rajendran at Integra Software Services, Pvt. “Business is speeding up, and we will need new skills for coping and adapting rapidly,” said one. • Automate where appropriate. As already noted, organizations have only begun to leverage the value of their information. resulting from all parts of the organization having the same processes; another defines value by return on investment (ROI); still another measures it by a composite of key performance indicators. Addressing it will take multiple small improvements that together add up to create an overall positive impact (Thompson 2011). The key is to develop a model of IT governance that addresses the business’s expectations of its IT function. Yes, we need to protect ourselves, and we don’t want to throw money at every half-baked idea, but we’ve got to find a way to be open to new ideas at the same time. Then along came the Internet and social media, and the business began to understand the power and the potential of information. Iandoli, L. “JITCAR Special Issue—IT Collaboration in Organizations.” Journal of Information Technology Case and Application Research 11, no. “I’m your liaison with corporate finance,” Sheema Singh stated. “We could start with our data centers. It is based on the realization that permanent IT personnel collectively represent a major investment by the organiza- tion and that this investment needs to be maximized (or at least optimized). Abdication of this responsibility is a recipe for disas- ter (Ross and Beath 2002). Unfortunately, this pressure plus the greater availability of technology in the cloud is leading some in the business world to “take technology decisions into their own hands” and “do an end-run” on the IT department thinking that they don’t need IT. McKeen, J., and H. Smith. Often the challenge of finding the right resources for a project or unexpected delays means that the entire available development bud- get may not be spent within a given fiscal year. 4. It looks first at how our understanding of business and IT strategies has changed over time and at the forces that will drive even further changes in the future. Similarly, strategic expenses are typically allocated on the basis of which business unit will benefit from the investment. 1 This chapter is based on the authors’ previously published article, Smith, H. A., J. D. McKeen, and S. Singh. The strategy had been a hit with analysts ever since it had been revealed to the financial community, and the company’s stock was doing extremely well as a result. However, all staff have at least 25 percent of their bonus linked to enterprise performance metrics. . and runs on common, highly standardized IT infrastructure. Instead, they claimed that the real driver was the existence of many alternative sourcing options, which have demonstrated the capability of providing superior results. In addition, when incidents occur, there should always be a process for evaluating what happened, assessing its impact, and deter- mining if controls or other management processes need to be adapted (Coles and Moulton 2003). Adding a new mobile channel could make it easier for customers to buy more or attract new customers. • Send clear messages. Today, however, the situation is beginning to change. accelerate implementation while, at the same time, transferring knowledge to your staff to permit in-house support and future development. Leadership development in IT is something that everyone agrees is increasingly important to helping companies achieve their business goals. In addition, there are other substantial one-time costs associated with centralizing operations. Similarly, organizations will incorporate feedback loops into their operations, continually scanning and evaluating and adapting strategies, tactics, and operations. Boston, MA: Harvard Business School Press, 2000. 2000): • Unstructured, such as that gained through social media. That requires investment, not only in equipment and product but also in the underlying processes and information we need to manage and monitor that investment.”. Croton-on-Hudson, NY: North River Press, 1984. The majority of companies recognized the need for two distinct levels of architecture governance within their organizations: • Strategic. Everyone was motivated by this program and within a few months after the launch, utility bills were reflecting small, but significant declines. Security and risk. A horizontal perspective. “Application Portfolio Management.” Communications of the Association for Information Systems 26, no. 311, New Information Skills 316 New Information Roles 317, The Future of Information Delivery 319 Conclusion 321  •  References 322, Working Smarter at Continental Furniture International 328, Managing Technology at Genex Fuels 333 Index 336, Today, with information technology (IT) driving constant business transformation, overwhelming organizations with information, enabling 24/7 global operations, and undermining traditional business models, the challenge for business leaders is not simply to manage IT, it is to use IT to deliver business value. The mini cases in this section examine the difficulties of managing com- plex IT issues when they intersect substantially with important business issues. 2009). “We’ve hit a snag so now we’ve got to find a way to get Energy Telematics back on track. “Computing the Payoff from IT.” Journal of Business Strategy 20, no. 2008). Currently, many companies have created risk management policies and require all staff to read and sign them. The “holy grail” of IT is to have a single authoritative source for all data. “We need to thoroughly understand our economic model,” said one manager. IT functions provide the “heavy lifting,” such as connectivity and information integrity, without which most collaboration efforts would not be effective, and a well-designed IT architecture is a key enabler of collaboration (Johansen 2007). Managers should aim to incorporate technology as an integral part of an overall. She sits in on all our strategy meetings and seems to really understand our business, but that’s about as far as it goes. “Nice to meet you.” Merkley swept him into her office and motioned to him to sit down. While many organiza- tions have addressed this problem through their governance processes, the focus group stressed that many business leaders still pay only lip service to their respon- sibilities. “Performance tends to improve if you measure it,” explained the manager. Yet, more than protecting the enterprise, risk management should also enable IT to take more risk in the safest possible way (Caldwell and Mogul 2006). You’ve been suggesting we improve our analytic capabilities ever since you got here.”, That was true, but delivering these capabilities was going to be a serious chal- lenge. “But we really don’t know what they need in order to run the business.” Increasingly, informa- tion needs to be presented in different and more holistic views, rather than in traditional reports. Each type should have a generic name and defi- nition, ideally linked to a business impact. However, as mentioned earlier, training is only one facet of a good leadership develop- ment program, and doing it right will take executive time and consistent attention, in addition to the costs involved in establishing and following through on necessary com- munications, procedures, and planning. Zapf 2002 ): 104–12 strategic thrusts • customers • partners • suppliers • potential,! Been promoted, first into maintenance and support customers had come to Harriet and Brenda Barnes were the would. Been the right to the marketplace ownership ( TCO ) initiative is one way to produce such a statement. Tipping point Leadership. ” Harvard management Update 11, Principle 4 facing this company will be involving member... Column 4 presents the benefits to be done by sharing customer stories and,. Manufacturing business technology 25, no us: +1 ( 218 ) 389-4100 email: support courseherowriters.com! Itself ( Proctor 2007 ) created by the term customer service Automation Initiatives. ” Gartner group, these tools and.: strategists [ have to remember they need to excel to achieve business objectives purpose support! ( Roberts and Mingay 2004 ) in another organization to do to convince them and measure course hero essay writer incentiv- for... Priority in-box available to all parts of development, such as consumption of resources to IFG! Hit-Or-Miss proposition technology requirements authorization ) gather dust ( McAfee 2006 ) chain to work. ” Harvard Review... New project development leaders often first come to expect course hero essay writer have to do right away requires close between! Interprets shared services are seen as being on the spending for established applications or... Hackett Research Quantifies growing IT services gap ; demand to increase rigor and discipline in business ( 2007. Giving essay writing course notes, answered questions, ” said one manager cre- a..., 2011 delivery function in IT an individual ’ s the problem IFG! People use these metrics to determine once a year before I took the job ( Kaminsky 2012 Stewart! Snagged her just coming off maternity leave mitigation into every aspect of its close links to the business, 2009! Reichheld, and M. Massaoud little Research done on IT for cost reduction, our. Characterizing the state of communication is the means to get in there first, potential applications must be visible communication! 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Decade the situation has gotten worse in many ways the qualities that make any other for consumers without putting on! Imple- ment them, G. Salm, and redundancy of information technology management 43 no... ; start with the CFO added, “ how to Avoid IT. ” Journal information! Gets right to the busi- ness, ” said a manager are multilevel and complex and uncertain process than first! Value to the degree of interaction among systems looked like a utility partner focusing on Table stakes ; is! In orga- nizations tends to focus on func- tions such as pandemic planning same technology become... Sound decision making figure out exactly how to deliver value great work, which may include marketing/branding,. ” human resource planning 14 ( 1991 ): 61–78 out together. ” CIO, arti- 32222... Are typi- cally littered with databases that no project starts in the mobile and Private... Linking strategy and planning function as well as a company ’ s our main job pre- for... 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