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Chapter 8

Chapter 8. Strategic Management of IS/IT: Organization and Resources. Agenda. Requirements of strategic management Roles of the IT function IS/IT organization approaches Choice of IS/IT organization IS/IT organization strategies. Requirements of Strategic Management.

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Chapter 8

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  1. Chapter 8 Strategic Management of IS/IT: Organization and Resources

  2. Agenda • Requirements of strategic management • Roles of the IT function • IS/IT organization approaches • Choice of IS/IT organization • IS/IT organization strategies

  3. Requirements of Strategic Management • IS/IT strategies, policies and plans reflects business objectives and strategies • Identify and explore potential business advantages from IS/IT • Ensure IS/IT strategies are viable in terms of business risks • Establish resources and priorities • Match IS/IT management and corporate culture • Monitor business critical IS/IT activities • Balance between centralization and decentralization

  4. Roles of the IT Function – Iby Zmud • User services • Delivery services • Systems development • Support center • Information center • Architecture management • Planning • Technology diffusion • Data management

  5. Roles of the IT Function – IIby Zmud • Technology development • Research & development • General • Administration • Quality assurance

  6. IS/IT Organization Approaches • Total centralized (monopolistic) • Total decentralized to business functions • Geographically placed data centers and resources • Business unit control • Users • Activity • Type of resource – network, computers, software, data, etc.

  7. Choice of IS/IT Organization • Stage of application portfolio maturity • Geography of the enterprise • Synergy benefits of business services, products, & information • Business diversity & rate of change • Competitive pressures • Economics of resource, obtaining and deploying skills • Enterprise structure & management culture

  8. IS/IT organization strategies • IT (centralized) or user departments (decentralized) • Mix • Chief information officer or steering committee

  9. IT or User Departments – Iby McFarlan and KcKenney • IT department • Integration • Database • Feasibility and cost/benefit analysis • Litter innovation • IS organization based on technical specialist not user need • High maintenance (80%) • No senior management • Use frustration with secret growth of user computing

  10. IT or User Departments – IIby McFarlan and KcKenney • User department • Short term problem solving • Incompatible databases & systems • Lack of quality control • Hidden maintenance overhead • Duplication problems • Little cost/benefit analysis • Lack of skill technical staff

  11. Mix by La Belle and Nyce • Business unit responsibility • Application architecture, development, and operation • Central IT group • Telecommunication • Hardware & software architecture • Information architecture • Risk management and security • Shared services and utilities • Human resources

  12. Chief Information Officer or Steering Committee - I • Chief information officer (CIO) • Setting IS/IT policy & strategy • Goal oriented with business, IS/IT, & communication competency

  13. Chief Information Officer or Steering Committee - II • Steering committee • Executive steering group • IT planning group • Service management group • Technical management group • Business IS planning group • Application management group

  14. Executive Steering Group Functions • Aligning business & IS/IT strategies • Establishing IS/IT priority & IS/IT resources • Ensuring strategic applications achieve their objectives • Establishing organizational responsibilities and relationships

  15. IT Planning Group Functions • Interpreting IT trends and development for organizational business • Allocating resources according priority • Monitoring IS/IT performance • Managing IT, specialists, & technical risks

  16. Service Management Group Functions • Meeting business needs with the optimum means • Monitoring performance against budget/service level • Controlling quality • Satisfying evolving demand

  17. Technology Management Group Functions • Assessing technology against known and potential needs • Planning and managing infrastructure • Resolving technical issues/problems • Support service group

  18. Business IS Planning Group Functions • Identifying business needs • Interpreting CSFs • Assessing opportunities, threats, & IS implications • Prioritizing, planning, & coordinating IS and expenditure • Ensuring the delivery of benefits

  19. Application Management Group Functions • Identifying special needs, changes, benefits, resources, and costs of applications for investment & priority evaluation • Managing developments & usage of IS

  20. Points to Remember • Requirements of strategic management • Roles of the IT function • IS/IT organization approaches • Choice of IS/IT organization • IS/IT organization strategies

  21. Questions • What is a good IT strategic management for an e-business of the banking industry in terms of the organizational structure? • What is a good IT strategic management for an e-business of the California State University system in terms of the organizational structure?

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