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Lecture 2

The Top IS Job

Learning Objectives




Introduction
Where is the IS organization headed?
The CIO’s responsibilities
The Office of the CIO
CIO’s roles in 3 eras

Module Code and Module Title

Title of Slides

Module Code and Module Title Title of Slides .S. – Basic functioning  cost reduction  decision support  inter-organizational supply-chain and “business eco-system” • Onus on top executives to provide IT vision and leadership. • Management of IT in past 50 years has drastically changed. and worldwide.Introduction • Growing demand for IT managers in the U.

Where is the IS organization headed? Module Code and Module Title Title of Slides .

The goal was to achieve clerical and administrative savings by automating manual processes – Wave 2: Leveraging investments (continuous improvement) • Concentrate on making more cost effective us of corporate assets to increase profitability – Wave 3: Enhancing products and services • Using IT to produce revenue by gaining strategic advantage or by creating entire new business. distribution and customer service Module Code and Module Title Title of Slides . • “Waves of Innovation”: – Wave 1: Reducing costs • When use of IT focused on increasing the productivity of individuals and business areas.Escalating Benefits of IT • Changing technology and evolving IS role since 1950s. IT was used to improve marketing.

and service strategies – Wave 6 (new): leveraging partnerships through supply chain management or other forms of collaboration • Interoperability ability of IT to allow firms to share information and business process Module Code and Module Title Title of Slides . distribution.Escalating Benefits of IT • Changing technology and evolving IS role since 1950s. (a parallel process) • “Waves of Innovation”: – Wave 4: Enhancing executive decision-making • Focused on changing the fundamental structure of the organization as well as creating real-time business management systems – Wave 5: Reaching the consumer • IT is used to communicate directly with consumers. leading to new marketing.

Escalating Benefits of IT (cont’d) • Waves of Innovation Module Code and Module Title Title of Slides .

Traditional Functions are Being Nibbled Away • Traditional set of responsibilities for IS – Managing operations of data centers. local and remote systems and networks – Managing corporate data and legacy systems – Performing system analysis and design and constructing new systems – Planning and integration of systems – Identifying opportunities for new systems Module Code and Module Title Title of Slides .

Traditional Functions are Being Nibbled Away cont’d • Trends that are moving traditional roles out of IS: – Distributed Systems • Migration of software applications to user areas – Ever more knowledgable users – Better application packages • Systems development to integration – Outsourcing • Based on fiscal and managerial considerations Module Code and Module Title Title of Slides .

providing framework or standard for systems operations – Identify business requirements • Helping articulate what the business needs from IT – Help uncover innovative business strategies • Through enabling technologies Module Code and Module Title Title of Slides . designing new systems. and updating existing ones – Develop architecture • Setting as strategy and maintaining an architecture for both IT and information.New Roles are Emerging • IS involves a cluster of functions: – Run operations • Running computers and networks – Develop systems • Developing and maintaining systems.

New Roles are Emerging cont’d • Different set of skills and management strategy needed for each function: – Maximize efficiencies of it operations – Better allocation of it personnel time – Prioritize resources to demonstrate usefulness of new software projects – It-enabled business innovations Module Code and Module Title Title of Slides .

New Roles are Emerging cont’d • Four Major IS Activities Module Code and Module Title Title of Slides .

The CIO’s Responsibilities • Top IS Jobs – 80s: Chief architect (strategic use of IT) – 90s: addressing business issues – Late 90s to early 2000s (forefront role) – Mid 2000s onwards: more responsibilities and lots of justification Module Code and Module Title Title of Slides .

CIO Roles in Three Eras • Major IT Eras Module Code and Module Title Title of Slides .

CIO Roles in Three Eras • The Mainframe Era – Predominated 1960s – early ’80s – Role of DP / IS manager = operational manager of a specialist function • Distributed Era – In the ’80s as PCs become commonplace – LANs and WANs linking computers – Took on 4 more roles: • • • • Module Code and Module Title Organizational designer Technology advisor Technology architect External resources Title of Slides .

CIO Roles in Three Eras • The Web Era – Started in the mid-1990s for some – Arose from the emergence of the Internet (especially WWW) as a business tool – Era is still in “infancy” but add to the CIOs job. the role of business visionary • Relationship between CEO and CIO Module Code and Module Title Title of Slides .

CIO Roles Today • Leading – Creating vision by understanding the business • Governing – Establishing an IS governance structure • Investing – Shaping the IT portfolio • Managing – Establishing credibility. and fostering change Module Code and Module Title Title of Slides . managing IT functions.

Leading: Creating vision by understanding the business • Understanding the business – Encourage project teams to study the marketplace – Concentrate on lines of business – Sponsor weekly briefings – Attend industry meetings with line executives – Read industry publications – Hold informal listening sessions – Partner with a line executive Module Code and Module Title Title of Slides .

2002) • Governance versus management – Governance is about deciding who makes decisions. Module Code and Module Title Title of Slides . – Management is about making decisions once decision rights have been assigned.” (Weill & Woodham.Governing: Establishing an IS governance structure • Definition: IS Governance – “The assignment of decision rights and the accountability framework to encourage behavior in the use of IT.

Module Code and Module Title Title of Slides .Governing: Establishing an IS governance structure • Importance of corporate IT governance – Large and diverse IT assets – Striking a balance between global and local needs – IT portfolio (in sync with business needs) • Assigning decision rights – Governance style • Definition: who has a decision right and input right.

Governing: Establishing an IS governance structure Six governance styles A business monarchy is where C-level executives An IT monarchy is where IT executives hold the right Feudal is where business unit leaders (or their delegates) have the decision or input rights • Federal means that the rights are shared by C-level executives and one other tier of the business hierarchy. such as business unit presidents • Duopoly is where one IT group and one business group share a right • Anarchy is where individual process owners or end users hold a right. The anarchy governance style is rare in the five main IT decision areas because it is not effective in guiding IT in a large enterprise • • • • Module Code and Module Title Title of Slides .

Managing: Establishing Credibility and Fostering Change • CIOs must first establish credibility in IS before change can come about. quality services – First impression matters Module Code and Module Title Title of Slides . • Establishing Credibility – Deliver value-added.

Managing: Establishing Credibility and Fostering Change • Fostering Change – Technical aspects – Emphasis on change management • Changing the way people work. bringing it to the next level Module Code and Module Title Title of Slides .

data center. network management and other functions – More joint planning and joint working Module Code and Module Title Title of Slides . CIOs to work more closely with suppliers’ executives to whom they outsource their help desk.Managing: Establishing Credibility and Fostering Change • Working across organizational lines – CIOs now find that systems they implement affect people outside their firm boundaries • Arms-length to more cordial relationship with partners (suppliers and customers) – For example.

architecture.The Office of the CIO • Chief Information Officer (CIO) – Heads IS and works with op management. new technologies • Chief Operations Officer (COO) – Daily IS operations • Chief Project Officer (CPO) – Projects management Module Code and Module Title Title of Slides . customers. suppliers • Chief Technology Officer (CTO) – IT planning.

Q&A .