IT for Managers and

Organisations

Dr. Luminita Vasiu

Module expectation
At the end of the course you should be able to:

 Understand the importance of IT strategy in a

business context;
 Choose the right technology strategy in order to
optimise the Business ROI;
 Critically discuss the best solutions for
implementing and managing your IT strategy;
 Critically analyse the risks involved with the
adoption of a new innovative IT strategy;
Recommended Book

 IT Strategy in Action , James McKeen,

Heather Smith
International Edition ,ISBN13:
9780137145782
/ ISBN10: 0137145780

 Class format:
 interactive lecture,

 discussion based on case studies

 Technology Opportunity

Desired business
position

Current Business
position

Negative Business Positive Business

ROI ROI

Technology problems
IT definition
 Information Technology means the use of
hardware, software, services, and supporting
infrastructure to manage and deliver information
using voice, data, and video.
IT elements

 all computers with a human interface;

 all computer peripherals which will not operate

unless connected to a computer or network ;

 all voice, video and data networks and the

equipment, staff and purchased services
necessary to operate them
IT definition
 all salary and benefits for staff whose job
descriptions specifically includes technology
functions, i.e. network services, applications
development, systems administration ;
 all technology services provided by vendors or
contractors ;
 operating costs associated with providing
information technology ;
 all costs associated with developing, purchasing,
licensing or maintaining software ;
Key questions in the IT
management

Technical
• What are the important new developments in
IT?
• What technology is needed to facilitate BPR?
(Earl, 1994);
• How should legacy systems be maintained?
(Sinur, 1994);
• What are the phases of IS development?
(Friedman, 1999);
• Is the development of IT evolutionary or
revolutionary? (Forrester, 1980);
• Why do the IS/IT fail? (Sauer, 1993, Mitew,
1994, etc)
Key questions in the IT
management
Strategic
• Aligned IT strategy with the corporate
strategy? (Earl, 1989...);
• Are IT strategy formal-rational and
deliberate or ad hoc, emergent and
fluctuating over time?( Mintzberg, 1993);
• What is the most appropriate duration for
the IT strategies? (Currie, 1999);
• How can IT sustain and improve
competitive advantage? (McFaclan, 1984);
• Should IT be outsourced? (Lacity ,
Hirschheim, 1993);
Key questions in the IT
management
Structure
• How the organisation should be structured to
facilitate IT strategy? (Davenport&Short, 1990);
• Should organisations have a centralised or
decentralised IT department? (Kaestle, 1990);
• How does IT affect the structure of an organisation?
(Keen, 1981, etc);
• Should IT be a profit or a cost centre?
(Bryson&Currie, 1995);
• What is the relationship between structure and size
of organisation? (Woodward, 1958);
Key questions in the IT
management

Evaluation
• What are the best methods and techniques
to evaluate an IT strategy ?(Farbey
1993,etc);
• To what extend should managers consider
non-financial factors (qualitative) in the
evaluation of IT systems?
• Can IT enhance profitability? At what
extend? (Lincoln&Shorrock ,1990)
Key questions in the IT
management
Managerial
• Should an organisation appoint an IT director?
(Grindley 1991);
• Should technical or general manager in charge of IT?
(Earl 1999);
• How can organisations develop hybrid managers?
(Earl&Skyrme, 1992);
• Has the knowledge gap between the top
management and IT specialist created a crisis in
management control? (Currie&Bryson 1995);
Key questions in the IT
management
Cross-national comparisons of managing IT
• Is it possible to identify more effective methods
and techniques of managing IT from cross-
national comparisons? (Currie 1994);
• Are Japanese management process practices
effective for managing technical change and
innovation? (Fruin, 1993);
• Can Japanese practices can be transferred to the
West for performance improvement? (Jones&al,
1993);
• Are IT skills shortages, training strategies and HR
practices similar world-wide?
Key questions in the IT
management
Organisational learning, knowledge and skills
development
• What is a learning organisation? (Garret 1987);

• How you can develop an innovation environment?

• What skills are needed for today’s high tech

competitive environment?
• How managers can exploit organisational knowledge
to achieve competitive advantage?
 Strategy planning key issues
Business environment
Corporate goals/ IS/IT trends
objectives Current application
portfolio
Functional business
needs Available resources/
IS/IT capabilities
strategic
planning

Application plan
Functional IS/IT Monitoring/control
strategy plan
Competitive advantage

IS/IT hype

IS/IT capabilities
Useful IS/IT
Strategic
IS/IT

Source: Feeny (1989)

 The organisational use of IT
High
Professional/
Managerial Use of IT to enhance BPR, complex systems
functions performance: word, artificial intelligence, etc
excel, PowerPoint
Knowledge

Simple routine IS application for data gathering/

data Manipulations; bespoke systems,
Administrative
Entry; Expert systems, MIS,DSS
Clerical
standalone
functions
lo applications High
w Routine tasks Variable/complex
tasks
Technical complexity
 Strategy and technology
Technology and
Competitive situation
•Competitive forces
•Matching to markets

STRATEG
Y
Technology and
Strategic capabilities Organising technology
•Core competences •Location and funding
•Developing/acquiring •Global vs local
•technology •Organisational processes
Impact on the Business
• Can IS/IT be used to make a significant change in
the way it does the business and so gain
competitive advantage?

• Should we concentrate on using IT/IS to improve

its approach to the market place or should it
centre its efforts around internal improvements?
Question
• If you will start a business tomorrow , in any
field, what do you think will be the minimal
requirements you need to accommodate
immediately in term of IT system ?Explain
your choice.
 Case Study

Outsourcing in South Australia: a high risk strategy?

1. What does the SA Government hope to achieve

through large scale outsourcing?

2. Assess the opportunities and threats of the outsourcing

Contract.

3. What are the political and economic consequences if

The outsourcing contract fails?
Case Study- cont

4.What are the employee relations issues of

the outsourcing contract?

5. Do you think the SA Government was right

to opt for outsourcing IT?

6. What skills are needed to maximize the

outsourcing arrangement?