IOM 538: IT Strategy

1. IOM 538: IT Strategy Syllabus & Course Design Summer 2000 – Term 002

2. INTRODUCTION Welcome to IOM 538… Summer 2000 Semester This syllabus is designed to provide you with a thorough overview of the course, its structure and content. Here, you will find information about the grading policies and requirements for the course as well as the general class format and structure. The syllabus also describes the overall objectives of the course and my performance expectations of you as MBA candidates. The syllabus is quite comprehensive, so take a few minutes to familiarize yourself with its content. In addition to the syllabus, the class folder “IOM 538, Mische” on First Class is indispensable… check it daily for updates, announcements, case questions, etc.

3. WELCOME TO IOM 538! I am pleased that you have selected this class. This is an exciting and valuable class, especially if you are considering a career in management consulting or IT. The class is updated each semester and adjusted based on the latest industry developments, feedback from former students who are now working in the field as well as input from my faculty colleagues and clients. The class makes an extensive use of cases and various readings… there is no “standard” text for this class… so buy the reader and use it. The objective of this class is to get you think as an IT strategist. IT strategy is an imperfect process, each client and case are different. If you are looking for a standard formula, canned approaches and easy solutions… you won’t find them in this class. This class is highly interactive… be prepared for discussion, debate, constructive confrontation and lots of challenges. If you are uncomfortable with those activities you might find this course to be more challenging than what you might like. During the course of the semester, you will be exposed to a variety of readings, materials and cases. Take advantage of these and use them to improve your understanding of the strategic implications of IT.

4. SUGGESTED PREREQUISITES & SKILLS… This is not a remedial or introductory course in IT. This is not a course in programming, software selection or systems implementation. It is a strategy class. Although not required, you may find this class difficult and rather frustrating if you lack the following: • Knowledge of business and general business strategy • Basic course in IT or MIS and an understanding how IT works • Basic understanding of IT/IS terms and definitions • The ability to think in abstract terms • The ability to identify and work with patterns • Analytical and case analysis skills • PowerPoint and public presentation skills • Discussion skills and the confidence to speak in class If you have problems come see me… but I cannot tutor you in the basics.

5. ABOUT YOUR PROFESSOR… My name is Professor Michael Mische. Please call me Mike or Michael and please feel free to get to know me. I am available, but I travel extensively and spend much time with clients, so please be patient and coordinate with my assistant. I have twenty-two years of consulting experience and have been a national partner and practice leader for two major consulting firms. I am an Adjunct Professor and teach only part-time. My other job is as a management consultant. I am the CEO of a firm, I write books and am also on the BOD of several Internet start-ups. My office is temporarily located at 401L Bridge Hall. My office hours are Mondays and Tuesdays from 5PM to 6PM. My email is mische@bus.usc.edu… use it to contact me. My home telephone number is 310.823.0715… feel free to call, but not after 10PM and not from jail. Do not call me at USC or leave me a voice mail at USC! Please do not leave the same voice message on multiple numbers or lines… help make my life less complicated… leave it only once. My personal interests are skiing, USC and Penn State football and tennis.

6. IOM 538 COURSE OBJECTIVES… IOM 538 is designed as an “advanced” strategy course for IT. It is taught from a pragmatic perspective with a heavy emphasis on CEO issues as related to IT. The course is not about the nuances of technology, database design, using your PC, programming or systems analysis or whether SAP is better than PeopleSoft. The objective of this course is to help you develop the skills to “think as a strategist.” At the conclusion of the course you will have a foundation for thinking about IT as a strategic asset, understanding the big CEO issues as related to IT, planning for the use of IT, assessing IT in a strategic context and developing the IT plan. The course is designed to satisfy a number of learning objectives by addressing significant IT issues and trends, including but not limited to:. • Understanding how IT can create strategic advantage for a company • Assessing IT issues and trends in a strategic context • Understanding the strategic implications of e.business on an organization and overall market dynamics • Strategic planning for IT and developing the IT plan • Assessing organizational IT performance • Understanding how data mining and systems integration support organizational effectiveness and process design • Understanding the role of outsourcing in IT strategy Other objectives include, but are not limited to: • Gaining exposure to major IT strategic concepts through various cases • Improving your IT knowledge and awareness through readings • Increasing your presentation and communication skills through classroom interactions

7. COURSE GRADING CRITERIA & COMPONENTS… Grades are based on a combination of four criteria: Grade Component:Weight:Date: • In-Class Midterm: 40% 6/27/00 • Multiple choice questions • Short answer: case questions • Quiz 1: MC Questions 20% 6/13/00 • Quiz 2: MC Questions 30% 8/1/00 • Class Participation 10% All Term • Lecture Attendance • Class Activity TOTAL CLASS:100%

8. GRADING: GUIDELINES…CLOSE-UP • Midterm Examination: • 30-40 multiple choice questions (60%): assigned readings lecture material • 2-4 short-answer questions (40% total): case – TBD • Quizzes (open book):assigned readings lecture material class case discussions

9. GRADING: GUIDELINES…CLOSE-UP • Course Participation • Attendance: 40% of participation grade • Class roll taken by 7pm each session • One (1) unexcused absence allowed per semester • Each additional absence will result in a 1/3 letter grade decrease for class attendance grade • Class Activity: 60% of participation grade • Graded each session on a scale of 4.0-0.0: • 4 = repeatedly induced discussion, raised challenging issues/question, challenged claims, demonstrated analytical/logical reasoning, provided new insight and perspective, contributed to class, demonstrated leadership • 3 = frequently engaged in class discussion, demonstrated knowledge of material and preparedness • 2 = occasionally participated in discussion, provided average insight • 1 = answer when called on, lacking initiative • 0 = failed to contribute and/or engage in discussion, answer and/or raise questions • Self-evaluation cards (signed index cards) collected after each class

10. COURSE ADMINISTRATION & RECORD KEEPING… • Grading and Grade Records • Cases, quizzes and exams are graded “blind” using only the last four digits of your social security number. On all homework, exams, quizzes, etc. use only the last four digits of your SSN. Place the SSN on each page of the exam or homework. This improves security and mitigates any personal bias in grading. • I do not maintain the grade records…my assistant does that. I do not maintain the file that maps your name to your SSN..my assistant does that. This improves security and mitigates any knowledge bias. • You participate in grading through active classroom participation and performance on exams, cases, etc. You earn your own grade, so act accordingly. • Assistant • The assistant for this class is Ms. Karolina Bakalarova. Karolina is a full-time consultant with Synergy Consulting Group and a graduate of USC. She has been a TA for this course for four semesters, so she rather familiar with the subject matter, content and design of the course. • Use FirstClass it to communicate with Karolina.

11. ASSIGNMENT & EXAMINATION POLICIES & RULES… • Assignments: • No email or fax submissions – HARD COPIES ONLY! • No late submissions – ALL ASSIGNMENTS DUE IN CLASS! • No second chances – NO RE-WRITES, MAKE-UPS, ETC.! • Midterm & Quizzes: • No make-up dates – ALL TESTS MUST BE TAKEN DURING THE SCHEDULED CLASS SESSIONS! • No second chances – NO RE-WRITES, MAKE-UPS, ETC.! • You may dispute your grade for up to 2 weeks after receiving your score. IF AN ERROR OR MISUNDERSTANDING OCCURS, COME FORWARD IMMEDIATELY! • Missing a test (a quiz or the exam) will result in a score of 0 pts for the test! • There will be one make-up quiz at the end of the semester for previously approved cases, if valid excuse. The quiz will be given on a Saturday (the exact date will be determined in class) and administered by an assigned staff member.

12. POLICIES & RULES… • Grades: • Do not email either Dana or me requesting your grades • Grades will only be given out in class, unless I post them in the course folder • Homework, exams, quizzes, assignments, etc., will only be distributed in class… do not ask me or Dana to fax, FedEx or use any other means to deliver them to you. • Class Etiquette • Respect your fellow classmates and exhort them to participate • Turn off your cell phones and pagers • Do not surf the net or email while I am lecturing • Feel free to ask questions, challenge points, raise an argument… at any time • If you are late… try to be quite when you enter the room • If you are eating… be mindful that others have not • If you are bored… you are invited to leave • Finally, leave your attitude on the 110 and come to class with a sense of humor

13. POLICIES & RULES… • Lecture Materials and Slides: • Generally, slides will be available for each lecture • Slides will be available in the class folder on First Class • Slides will be posted before class, sometimes days ahead, sometimes right before class… it depends on the content as I am constantly updating the subject matter • File sizes for slides are large, be considerate of the timing and effort that goes into making them and into downloading them • You are responsible for downloading and printing your own slides • Slides are available in PPT format under Office 2000… do not ask us to reformat them or convert them to something else • Important…enjoy this class, take risks and speak-up, experiment with your learning. In this class, you will never be downgraded for being wrong or for trying… this is the forum to make mistakes and learn… this is the forum to get better.

14. CLASS AGENDA: TYPICAL CLASS (subject to change) • 6:00 – 6:15 Course related Q&A Student concerns General discussions • 6:15 – 6:30 Review of previous lecture material Preview of current lecture material • 6:30 – 7:30 Lecture • 7:30 – 7:45 Break • 7:45 – 8:45 Lecture & material/topic discussion • 8:45 – 10:00 Case discussion & questions • 8:45 – 9:15 Break-out groups* • 9:15 – 10:00 Class discussion *groups will be assigned during the first session

15. FINALLY… ALL THINGS CHANGE I will try to make this course exciting and challenging. • Based on your collective performance and if, in my opinion, the course syllabus, assignments, grading criteria and weightings, course schedule and content, reading materials, etc. need to be changed, I will change them. • I will discuss all changes with you, as a class, and frequently ask for a vote… the majority rules in those instances. • I make changes that I believe are in your best interests as students and prospective users of the material.

16. COURSE ASSIGNMENTSANDREADINGS Summer 2000 – Term 002

17. Course Calendar and Schedule • Course Calendar Week of: • Semester Begins: 17 May 2000 • Memorial Day: 29 May, 2000 • Quiz No. 1: 13 June 2000 • Mid-term Exam: 27 June 2000 • Independence Day: 3-4 July 2000 • Quiz No. 2: 1 August 2000 • Semester Ends: 2 August 2000 • Grades Posted: Per USC Calendar

18. COURSE TOPICS AND CALENDAR… SessionDateTopic 1 5/23 Course Introduction and Overview 2 5/30 Overview of IT Strategy 3 6/6 Strategic Planning Methods and Analysis 4 6/13 Strategic Issues in IT Organizational Performance Quiz No. 1 5 6/20 Strategic Outsourcing of IT 6 6/27 Mid-term Examination (In-class, Proctored) - 7/4 University Holiday: Independence Day 7 7/11 Knowledge Management and KMP 8 7/18 Strategic Implications of ERP and Integration 9 7/25 Strategies for e.business Course Summary and Wrap-up 10 8/1 Quiz No. 2

19. READING ASSIGNMENTS… SessionDateReadings • 5/23 Drucker: “The Coming of the New Organization” • 5/30 Parsons: “Information Technology: A New Competitive Weapon” Cash, Knosynski: “IS Redraws Competitive Boundaries” Griffith: “Making Information Technology Strategic” Hitt, Brynjolfsson: “Productivity, Business Profitability, and Consumer Surplus” • 6/6 Mische: “Transnational IT Architecture” Venkatraman: “IT-Enabled Business Transformation” Markus, Benjamin: “The Magic Bullet Theory” Buss: “How to Rank Computer Projects” Mische: “Defining Systems Integration” Mische: “The Systems Integration Life Cycle” Mische: “IT Work Plan” McFarlan, McKenney, Pyburn: “The Information Archipelago – Plotting a Course” • 6/13 Mische: “The High-Performance IT Organization” Dvorak, Holen, Mark, Meehan: “Six Principles of High-Performance IT” Feeny, Willcocks: “Core IS Capabilities for Exploiting IT” Tan: “IT Management Plateaus” • 6/20 Lacity, Willcocks, Feeny: “IT Outsourcing: Maximize Flexibility and Control” Zellner: “The Promised Land for Outsourcing” Schwyn: “How to Approach IT Outsourcing” DiRomualdo, Gurbaxani: “Strategic Intent for IT Outsourcing” Antonucci, Lordi, Tucker: “The Pros and Cons of IT Outsourcing” Cross: “IT Outsourcing: BP’s Competitive Approach”

20. READING ASSIGNMENTS… SessionDateReadings • 6/27 Midterm & Independence Day – No Reading Assignments • 7/11 TBD • 7/18 Escalle, Cotteleer: “Enterprise Resource Planning (ERP)” Plotkin: “ERPs: How to Make Them Work” Winslow: “How New Technology Was Oxford’s Nemesis” WSJ, Hershey and Gore-Tex articles Prather: “Do’s and Don’ts of Software Selection” Mische: “Symptoms of the Terminally Ill Systems Integration Projects” Martin: “Smart Managing” Kirkpatrick: “The E-Ware War” Brown: “VF Corp. Changes Its Underware” • 7/25 Hof: “What Every CEO Needs to Know About Electronic Business” Bamford: “Internet-Based Electronic Commerce in 1997” Stauffer: “Sales Strategies for the Internet Age” Malone, Laubacher: “The Dawn of the E-Lance Economy” Hamel, Sampler: “The E-Corporation” Crockett: “A Web That Looks Like the World” Hamm, Stepanek: “From Reengineering to E-Engineering” The Economist, “The Future of Computing” 10. 8/1 No Reading Assignments

21. CASE ASSIGNMENTS… • SessionDateCase • 5/23 Course Intro & “CAM”: No Case • 5/30 Merv Griffin Resorts • 6/6 Mrs. Field’s Cookies • 6/13 The System That Couldn’t Deliver • 6/20 Union Bank of Switzerland • State Street Bank • 6/27 Midterm Exam • 7/11 KPMG Peat Marwick: The Shadow Partner • 7/18 Cisco Systems • Tektronix, Inc. • 7/25 www.springs.com • Charles Schwab Corporation • 8/1 No Case