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IT: Manager perspective

How is IT relevant to a Manager ? How do manager contribute to IT success ? What role do managers play in course of an IT effort?

IT: Manager perspective •Selection •Build •Outsource •Adoption •Exploitation .

IT: Manager perspective Buy Selection Build IT System Adoption Live system Exploitation .

an ERP system.Selection Are all IT systems (e.g. and computer-aided design (CAD) software) essentially the same from a managerial perspective? Is each unique? . E-mail.

Selection •“Outside-in” approach •“Inside-out” approach .

IT Categories •Function IT (FIT) IT that assists execution of a discrete task •Enterprise IT (EIT) IT used to impose work structures •Network IT (NIT) IT that facilitates interactions without specifying their parameters .

Instant messaging .IT Categories IT Categories Example FIT Simulators .CRM . Prediction markets EIT NIT . SCM . CAD/CAM . Statistical software ERP.Wikis . Spreadsheets .Sourcing/procurement Software E-mail .

IT Categories IT Categories Capabilities FIT EIT •Experimentation •Precision •Design •Standardization •Monitoring •Self-organization •Collaboration •Judgment NIT .

Computer-based simulation can cover large portions of the “solution space” of a given situation Precision: The generation of almost arbitrarily accurate information about aspects of a system of interest .Function IT : Capabilities Experimentation: The rapid and inexpensive execution of many trials using a digital model of a real-world system.

activities. establishing decision points and possible outcomes. events. quantities. assigning them to process participants. Design can entail defining tasks. Standardization: The deployment of consistent data and/or business processes across some portion of one or more organizations Monitoring: The ability to observe. and handling exceptions. uses. trends. etc . typically from a remote location. and/or transforms information.Enterprise IT : Capabilities Design: The configuration of a multistep business process that generates. setting them into sequences.

they may or may not be based on rigorous analyses.Network IT : Capabilities Self-organization: The appearance over time of patterns and structure within a system as the result of many low-level interactions. pre-defined business processes Judgment: The expression of beliefs or opinions. . and without any centralized planning or direction Collaboration: Interactions among people outside of formal. Judgments are the results of people’s cognitive processes.

Selection IT selection objective is Capability acquisition “Do we need a customer relationship management system” is rephrased as “Do we need to impose standardized data collection across our sales force so that we can better monitor and analyze their activities?” .

IT & Competitive advantage “What makes a resource truly strategic is not ubiquity but scarcity. Affordable and accessible to everyone. it no longer offers strategic value to anyone. IT has become a commodity.” .

IT & Competitive advantage Technology is getting cheaper all the time. Does this mean that IT capabilities are also getting easier to acquire? Is it a good idea or a bad idea to pursue competitive advantage and differentiation via IT? .

Organizational complements IT as a general purpose technology. •New workflows •Reallocated decision rights . the value of which is maximized by the presence of Organizational complements Managerial IT skills are the only element of IT that can provide sustainable competitive advantage Organizational Complements •Greater interdependence among people and groups.

IT Categories •Function IT (FIT) IT that assists execution of a discrete task •Enterprise IT (EIT) IT used to impose work structures •Network IT (NIT) IT that facilitates interactions without specifying their parameters .

Organizational complements IT Categories Characteristics FIT •Can be adopted without complements •Impact increases when complements are in place EIT NIT • Imposes complements throughout the organization •Defines tasks or sequences •Mandates data formats •Use is mandatory •Doesn’t impose complements but lets them emerge over time •Doesn’t specify tasks or sequences •Accepts data in many formats •Use is optional .