‫‪Introduction‬‬

‫‪Mohammed Majeed Alasad‬‬

‫‪» Chapter 1‬‬ ‫‪Wish you all the best‬‬

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 Individual
IT users: Departmental
Enterprise
External
1. Use of IT by an Individual:
• use it primarily as a tool in support of specific job requirements.
Like:
1. Telecommuters: Individuals who use mobile technology and/or
network connections to work remotely from the office.
2. Free Agents: Individuals who choose to contract out their
services and are not tied to an organization.
3. Virtual Teams: Geographically separated work teams whose
members communicate through the use of IT.

2. Departmental or business unit view of computing :

• Focuses more on the processes that occur within an organization.
• works with information systems that support specific business
functions do so to address the unique characteristics of that
function (e.g. HRMS for Admin dept, CRM for customers)
• designed to provide a narrower view of the information used and
generated by a workgroup. This can result in information silos
(storage tower).

3. Enterprise role of IT :
• Its support of relationships between the various parts of an
organization and the ability to integrate the information that exists
throughout the organization

4. Relationship with External Entities : Dealing with external

partners may require
• The expansion of the role of IT into the external adhering to standards
that are enforced by
interactions between a business and its vendors, customers, industry organizations,
and/or government.
and suppliers has added another set of complexities.
• Electronic Data Interchange (EDI): is a standard format whereby data
and information are shared electronically among external entities.
 tal
Individual epartmen Enterprise External
D
•Process- •Intra- •Inter-
Task-Based
Scope based Relationship relationship
concerns
concerns concerns concerns

• Inter-relationship
• Potential Loss of
•Collaboration • Standardization concerns
Control over data
• Information • Difficult to meet • Security concerns
ns

• Potential Loss of
Silos individual needs • Rapidly changing
er

Standards needs
nc

• Process • Adherence to
Co

Segmentation international standards

• Intra-relationship: focusing on full company (enterprise) and the communication

with the company and what happened internally and how it's used on unified
system so the departments being integrated and works together.

• Inter-relationship: about the external when enterprise work with vendors,

suppliers, or customers. Also it can concerns with the rabidly changing needs Lille
needing new sorters or change the system its self.

# Information Systems (IS) Department: The organizational

department that has the primary responsibility for managing IT.
#Chief Information Officer (CIO): A firm’s high-level general IT
manager with both technology and business leadership experience.
• The CIO should have a lot of skills like:
1. Financial 5. Governance • To ensure the
2. Human resource 6. Marketing alignment of IT
3. Relationship management 7. Negotiating resources and

4. Legal 8. Leadership business goals.

CIO assets:
1. Technology assets: computer and communication infrastructure
that enable information sharing over standard IT platform.
2. Relationship assets: establish partnering relationships to joint
IT-business decision-making.
3. Human assets: pool of IT People talent for needed mix of
technology and business skills. Mohammed Majeed Alasad
Wish you all the best
 Technology assets
• the design of organizational structure and governance of
Technology assets have three types:
1. Centralized Governance Design: managing and controlling an
organization's technology-related resources, infrastructure,
and decisions in same place.
» Common for computer operations
» Can create cost efficiencies
» May provide greater integration of applications

2. decentralized Governance Design: where decision-making

authority and control over technology-related resources and assets
are distributed across various departments, business units, or teams
within an organization. 🤍
» Commonly found in organizations with highly autonomous business units.
» Each business unit has control over their own applications and IT
operations.

3. Hybrid Governance Design: combines elements of both centralized and

decentralized governance models. It aims to strike a balance between
the advantages of centralization and decentralization to effectively
manage technology resources and assets within an organization.
» be federal. (Computers and networks centralized —> application decentralized)
Two types:
» customized. (Mixed design where some business units may have centralized
operations and some may have decentralized)

# Shared services: it's a centralized IT operations delivers services to

operate as an autonomous business within the internal customers
company to provide IT services.Another definition by consolidating,
standardizing and
Multidivisional
Business
automating
processes in low-
Shared Service
IT Operations & cost locations.
Applications
Mohammed Majeed Alasad
Wish you all the best
 Chargeback system Sample charges
• Charsback system: Places control of IS spending like:
• computer usage
with business managers, and is used to better • disk file space
understand true costs. • number of transaction
processed.
• number of users of
Service level agreements (SLAs) application
• SLAs: Defines the client expectations for a
specific type of IT service as well as procedures
for when these expectations are not met. Like Like the Time-Out in some web pages.

• Service Level Agreements (SLAs) document should

SLAs examples: contain:
– A simple definition: of the service to be provided
(e.g., helpdesk support).
– The name(s) and contact information: IS personnel
to contact for this service.
– A table listing the services to be provided and
their costs.
– Escalation procedures who to contact if the agreed
upon service response is not being provided.
–A sign-off page for the appropriate business client
and the IS liaison preparing the SLA document

IT management categories (types).

1. Strategic process 2. Tactical 3. Operational

and plans
Strategic process & plan
are tightly related to the
long-term attainment of
goals and visions of the
IT function and the
business as a whole.
activities
» Those activities that' are
needed to achieve the
strategic plans and goals.
» The actions and
management functions that
produce the changes
needed for success.
activities
» Those processes and
actions that must be
performed to maintain an
organization's level of
performance on a day-
to-day basis.

Mohammed Majeed Alasad

Wish you all the best
 Michael Porter 3 primary strategies to achieve
competitive advantage:
1. Cost leadership: competing with lower costs.
2. Product differentiation: compete by offering products or
services customers prefer due to superiority with innovativeness,
image, quality, or customer service (competing with value).
3. Product focus: competing by restricting one's market.

Porter's types of competitive advantage quadrants

Cost 1 Differentiation
Broad

leadership 2
Scope

Cost Differentiation
Narrow

3a
focus focus 3b

Cost Differentiation
Source of competitive advantage
• Bugatti: Bugatti brand is synonymous with exclusivity in the luxury
car industry. → 3b ( differentiation focus )

• Netflix: Netflix is the dominant entertainment streaming

service with content catered to all ages, languages, and
genres. → 2 ( differentiation )
• Xerox: Xerox for decades sells heavy-duty printing machines
primarily for businesses only. → 1 ( cost leadership )

• Mercedes-Benz: Mercedes-Benz brand name is affiliated with

luxury for all who seek it. → 2 ( differentiation )

• Logitech: Logitech is one of the biggest Chinese manufacturers

of computer peripherals with the products region from mics,
speakers and phone charger → 1 ( cost leadership )
 Dependency on IT modes
1. Support mode
• Low Need for New Information Technology.
• Low Need for Reliable Information Technology.
• IT primarily for back-office functions.

2. Factory mode
• Low Need for New Information Technology.
• high Need for Reliable Information Technology.
• Dependent on IT for business operations, but do not invest in new IT to
compete in new ways. - Like mass production

3. Strategic mode
• high Need for New Information Technology.
• high Need for Reliable Information Technology.
• Dependent on IT for operations and on new IT investments to implement
new business strategies. Like web services and cloud computing

4. Turnaround mode
• high Need for New Information Technology.
• low Need for Reliable Information Technology.
• Companies in the Turnaround quadrant may enter this mode to focus on
strategically competitive advantage. - Like Google self-driving cars, Games Streaming

Mohammed Majeed Alasad

Wish you all the best
 • Dis-intermediation
• Re-intermediation
IT mediation role • Hyper- mediation
• info-mediation

# There one four prime ways that IT became a mediator

in business world:
Like:
1. Dis-intemediation • electronic stock
trading.
• describe the change in a business model where the
"middleman" is essentially eliminated.
• In IT, this often refers to the direct interaction between end-users
and service providers, bypassing traditional intermediaries.

2. Re-intemediation
• Using the Internet to reassemble buyers, sellers, and
other partners in a traditional supply chain in new ways.
• Dropshipping: Profiting by procuring products online from third parties
and shipping them directly to customers.

• The biggest problem is complex return

and refund process. Meditating steps:
• In IT, this might involve re-establishing 1. Find out about logistics.
intermediaries to improve efficiency or 2. Identify market niche.
3. Figure right supplier.
add value to a system.
4. Build and maintain
webstore.
3. Hyper-intemediation # Like Amazon 5. Optimize your supply
• interactions that can be found in many of the chain.
online transactions that occur via the Internet.
• In hyper-mediation, organizations provide a complete, seamless,
invisible supply chain to their customers, while leveraging many
external partners.
• This is in some ways the opposite of dis-intermediation.
• This can enhance connectivity but may also introduce challenges
related to coordination and management.
Mohammed Majeed Alasad
Wish you all the best
 4. Info-intemediation &
• The role that IT plays in providing a means for technology users to
manage the overwhelming amount of information that exists.
9151
• like search engines or portals.
• Information overload: The rapid and accelerating accumulation of
information collected, stored, and available for use
# Dynamic stability: the ability to provide
flexible products via fixed business processes.
• This can involve managing, processing, and facilitating the
exchange of information between various components or
entities within an IT ecosystem.

IT enabler of globalization
• Globalization: the impact of organizations expanding their presence
beyond the borders of their "home" country.

Alinement IT and business goals

• Alignment: the application of IT in an appropriate and timely
manner, in harmony with business goals, strategies, and needs.

• Enablers and inhibitors are those characteristics of an organization

that serve to either enhance (enable) the alignment of IT and the
business goals, or reduce (inhibit) this alignment.

Mohammed Majeed Alasad

Wish you all the best