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The Ten Commandmentsof Information Technology
1. Remember, this is business.
2. Talk to the user
3. Understand your “customer’s” business.
4. Use the vendor’s knowledge.
5. Training is not a discretionary cost.
6. Develop an IT staff with a mix of business and technical skills.
7. Management issues are always more important than technology issues.
8. Make every contact with the user a public relations opportunity.
9. Spend time on strategy.
10. Have a good time.
IT Channels of DistributionDistribution Factor The Past The Future
Development by central IT Heavy Significant but smaller percent of total
Direct purchase of hardware / software by user Limited Major
Service source for individual user Limited to service from Can obtain powerful independent system
large, shared system
Service bureaus Sell time Sell products and time bundled together
Use of external databases via time-sharing Limited Major
Number of software and processing services A few; crude Many
Software development by users Limited Major (affiliated by packages and user-
friendly languages)
Reliance on external contract analysts / Very significant More significant; full outsourcing is a real
programmers alternative
Changes in Consumer Costs
Cost to the Consumer
Cost Factor The Past The Future
Hardware Very expensive Very expensive
Economies of scale Major in large systems; user Limited in large systems; user stand-alones
stand-alones not feasible very attractive
in most cases
Software systems development Expensive Less expensive in some cases
Software acquisitions Limited cost-effective outside Attractive cost-effective opportunities opportunities
Development and production Hard to estimate Hard to estimate
Maintenance Underestimated Soaring
The IT Product Line Focus
Factor The Past The Future
Product obsolescence Developing new products Heavy maintenance of old products to meet
challenges of obsolescence
Source Most products manufactured inside Significant percent sourced from outside
Dominant economic constraint Capital intensive (hardware; economy Personnel intensive (economy of skill(
of scale)
Product mix Many large, few medium, many Some large, many medium, thousands of small products small products
Profits / benefits Good return on investment Many projects have intangible benefits
New-product technologies New technologies New technologies and regroupings of old ones
Services Structured, such as automated Unstructured, such as executive decision accounting and inventory support systems and query systems control
The IT Consumer Focus
Factor Older Younger
Experience with established Experienced Inexperienced technologies
Attitude toward newer Leery Enthusiastic but unsophisticated (often they technologies do not recognize their lack of
sophistication
Visibility Identifiable as consumers Often unidentifiable as consumers; numerous
at all levels in organizations
Attitude toward IT unit Willing to accept IT staff as experts Many are hostile because they want to
develop their own solutions
Self-confidence Low confidence in their own abilities High confidence in their abilities and
(often cautious because of cost) judgment (may be unwarranted)
Turnover rate High High
Factors Influencing the Evolving IT Environment
Business Environment
Technology The Evolving IT Environment
Sociopolitical Environment
People
Phases of IT AssimilationPhase 1
Decision to invest and
project initiation
Stagnation
Block APhase 2
Technology learning
and adaptation
Failu
re Success
Stagnation
Block B
Narrowly focused and
not marketed
SuccessPhase 3
Rationalization and
management control
Stagnation
Block CPhase 4
Widespread technology
transfer
Too efficiency
dominated
Success
Balancing Hardware / Data DistributionPressure Toward Increasing the Hub Toward Increasing Distribution
Management Control More professional operation. User control.
Flexible backup. User responsiveness.
Efficient use of personnel. Simpler control.
Improvement in local reliability.
Technology Access to large-scale capacity. Efficiency of small scale.
Efficient use of capacity. Reduction of telecommunications costs.
Data Multiple access to common data. Easier access.
Assurance of data standards. Fit with field needs.
Security control. Data relevant to only one branch.
Professional services Availability of a specialized staff. Stability of work force.
Reduced turnover disruption. User career paths.
Organizational Fit Corporate style: centralized. Corporate style: decentralized.
Corporate style: functional Business need: transnationals
IT centralized from the beginning.
Architecture:A Plan For the Structure of IT Capabilities
Why Do We Need an IT Architecture?
• Facilitate decision making on specific technology acquisitions
• Ensure compatibility of IT and business strategy
• Improve likelihood of IT integration and interconnectivity
• Define a framework for control
• Influence user decision making concerning IT
Levels of an IT Architecture
Principles Beliefs about the way IT will be managed (e.g., a multi-vendor environment)
Models Verbal or graphic pictures of the IT structure (e.g., ITarchitecture)
Standards Preferences for particular vendors or industryprotocols
Components of an IT Architecture
Organization Structures and processes for the human supportof computing and communications
Applications Specific computer programs and how they arecreated and maintained
Tools Software packages that enable rapid developmentof applications
Information Information assets of the firm
Technical Hardware, systems software, and communicationsInfrastructure links
Managing IT in the 1990sA partnership among three constituencies
General
Management
IT
Management
User
Management
Sample IT Architecture
Applications
Information Analysis
(e.g. Lotus 123G)
Information Packaging and Delivery
(e.g. Commander EIS)
Communications
(e.g. E-Mail, Conferencing)
Knowledge-BasedSystems
(e.g. Expert System)
Application Development
(e.g. CASE)
Tools
Found-ation
Communications
Wide area networkLocal area network
Information ManagementClient Server architectureDB2 relational database
Data feeds from internal and external sources
Industrynews/IRI Dow Jones
Manufac-turing
Accounting Purchasing LogisticsSales
Executive Information
System
External Systems Internal Business Operations and Transaction Systems
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