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The Business of IT

The Business of IT. IT increasingly embedded in business model Advancing technologies drive new products, processes, & industries IT capability critical to business model execution Operational results affect business value creation Requires sound IT management We need to explore how:

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The Business of IT

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  1. The Business of IT • IT increasingly embedded in business model • Advancing technologies drive new products, processes, & industries • IT capability critical to business model execution • Operational results affect business value creation • Requires sound IT management • We need to explore how: • Changing infrastructure affects business • Management priorities must shift • To exploit opportunities and reduce operational risks

  2. Overview of Chapters • Chapter 5 • Introduces elements of modern IT infrastructure and core IT management issues • Chapter 6 • Addresses the robustness of IT capabilities; system availability and security • Chapter 7 • Explores contemporary IT service models and their management requirements • Chapter 8 • Examines IT project management

  3. CareGroup • Beth Israel Deaconess Medical Center • Widely known as leader in the use of IT • Three-day network outage • What can we learn from this case • IT is vital to modern organizations • Network redundancy important • Challenges arise from infrastructure complexity • IT leadership is important

  4. The iPremier Company • Luxury goods retailer • Under attack from an unknown hacker • Case covers events as they unfold • What can we learn from this case • IT infrastructure must be secured • Decisions involved, however technical, must be addressed by business and IT executives

  5. Ford Motor Company / The Power of Virtual Integration • Century-old U.S. manufacturer • Trying to determine whether to model operations on acclaimed young company (Dell) • Complex questions regarding how IT supports business operations • What can we learn from this case • How Dell leverages information technologies to advantage • Potential of an Industrial Economy firm to adopt Network Economy IT and business designs • How Ford’s legacies (systems, organizations, relationships) influence the opportunities the company can pursue

  6. Strategic Outsourcing at Bharti Airtel • Indian telecommunications firm • 100% annual growth in customer base • Limited purchasing power • Corresponding expansion necessary in network and IT capacity • Huge management effort • Unpredictable costs • Goal: a lean and predictable cost model • Proposal to outsource buildup and management of Bharti’s telecom and IT network to its vendors • What can we learn from this case? • Whether and how outsourcing an essential capability can provide a competitive advantage

  7. Cisco Systems, Inc.: Implementing ERP • Young, rapidly growing company • Urgent need to replace IT systems supporting core operations • Legacy too difficult to tackle on functional basis • Implementation of an ERP • Goal: one-shot, minimal customization • Budget of $15million and 9 months • Elements of implementation: • People and partners, roles and structures, processes and infrastructure • What can we learn from this case? • The importance of IT in building a operating platform for growth • An implementation approach to high-risk, high-reward IT initiatives

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