Chapter 10: Leadership of the IT Function (IT 的領導角色 )

1. Chapter 10: Leadership of the IT Function (IT的領導角色) Summarized from: Lynda Applegate, Robert D. Austin, and Deborah L. Soule, Corporate Information Strategy And Management: Text and Cases, McGraw Hill, 8th Edition, 2009. These slides have been modified to meet the teaching needs of the class --- Celeste Ng

2. Four broad roles for IT (IT的角色)

3. Support幫助角色 • The role of IT • Sustaining current business operations and in shaping future business operations or strategy is relatively limited. (保持當前的業務操作 and塑造未來的業務運營是有限的!) • May not be operationally dependent on IT.(公司運作基本上沒有很依賴) • Support • Typical role of IT in many professional services firms(e.g., law firms and consulting firms). (例如法律顧問專業服務公司)

4. Factory工廠正常運作的角色 • IT systems are absolutely critical to current business operations. (IT system對公司的運作有絕對的重要性) • Like the Nasdaq Stock Exchangeor PSA (PSA Peugeot Citroën, car manufacturer), where reliable,zero-defect operation of IT is essential for performing(比如: 納斯達克交易所 and標致汽車製造商 -- 需要零缺陷的IT運作) • Core activities核心業務: • within the organization and • Across the extended business network of customers, supplier, and partners.

5. Factory工廠正常運作的角色 - Nasdaq Source: https://www.nasdaqtrader.com/TraderB.aspx?id=WorkstationScreenShots

6. Turnaround轉機角色 View IT as a means for business transformation企業轉型的手段. While they are not currently operationally dependent on IT, their IT projects and innovations are intended to exploit emerging strategic opportunities or transform business capabilities. (現在的業務並沒有很依賴IT但是有意圖要利用IT為一個轉型工具,新的戰略機會)

7. Turnaround轉機角色 – legal profession (URL: https://www.forbes.com/sites/bernardmarr/2018/05/23/how-ai-and-machine-learning-are-transforming-law-firms-and-the-legal-sector/#307fb1a532c3 ) • Today, artificial intelligence (AI) is beginning to transform the legal profession in many ways, but in most cases it augments what humans do and frees them up to take on higher-level tasks such as advising to clients, negotiating deals and appearing in court. (人工智能（AI）開始以多種方式改變法律職業，但在大多數情況下，它增強了人類所做的事情並讓他們以放更多時間在更高級的任務….) • Artificial intelligence • Mimics certain operations of the human mind人工智能模仿人類思維的某些操作 • is the term used when machines are able to complete tasks that typically require human intelligence是一個術語用來描述一個機器如果它能夠完成通常需要人工智能的任務。 • Machine learning • is the term used when computers use rules (algorithms) to analyze data and learn patterns and glean insights from the data.是一個術語用來描一台電腦當它使用規則（算法）來分析數據和學習數據模式，並從數據中找到見解 Prepared by: Celeste Ng

8. Turnaround轉機角色 – legal profession (URL: https://www.forbes.com/sites/bernardmarr/2018/05/23/how-ai-and-machine-learning-are-transforming-law-firms-and-the-legal-sector/#307fb1a532c3 ) • AI-powered software • (1) Improves the efficiency of document analysis for legal use and machines can review documents and flag them as relevant to a particular case … (offered by ROSS Intelligence leverages natural language processing to help analyze documents) (提高法律上的文檔分析效率，機器可以審查文檔並將其標記為與特定案例相關) Prepared by: Celeste Ng

9. Turnaround轉機角色 – legal profession (URL: https://www.forbes.com/sites/bernardmarr/2018/05/23/how-ai-and-machine-learning-are-transforming-law-firms-and-the-legal-sector/#307fb1a532c3 ) • AI-powered software • (2) Help these legal support professionals to conduct their due diligence (uncover background information on behalf of their clients … confirming facts and figures and thoroughly evaluating the decisions … to effectively provide counsel to their clients) more efficiently (幫助法律專業助理人員進行盡職調查 …案件的背景資料......確認事實和數字) • (3) Can help analyze contracts … to identify risks and issues with how contracts are written ... [ can assist to] redline items, edit contracts and counsel clients if they should sign or not or help them negotiate better terms (幫助分析合約......以識別合約編寫方式的風險和問題) • (4) Analyze data to help it make predictions about the outcomes of legal proceedings better than humans (比人類更精準的預測法律訴訟的結果) Prepared by: Celeste Ng

10. Turnaround轉機角色 – legal profession (URL: https://www.forbes.com/sites/bernardmarr/2018/05/23/how-ai-and-machine-learning-are-transforming-law-firms-and-the-legal-sector/#307fb1a532c3 ) • AI-powered software • (5) Automate divorce (自動離婚) • (A typical divorce settlement can take a year or more and can cost $27,000 on average in the United States) … ,”Wevorce provides couples a self-guided online divorce solution for a fraction of the cost (為夫妻提供自我引導的在線離婚解決方案，只需花費一小部分費用) • AI walks couples through … all the critical decisions that need to be made for their particular circumstances. There are also legal experts available to step in to provide guidance when needed. • According to Deloitte, 100,000 legal roles will be automated by 2036.(到2036年，100,000個法律角色被自動化) Prepared by: Celeste Ng

11. Strategic策略上的工具角色 Strategic rely intensely on IT to sustain current business operations and enable their future transformation. (IT激烈的維持目前的業務運作與未來的改造.) IT and business strategy are not just aligned; they are intertwined(IT and企業策略是同步的交織在一起.)

12. Strategic策略上的工具角色 – HTC (Source: https://www.androidauthority.com/htc-investments-again-873338/) It’s no secret that HTC hasn’t been doing so well over the past few years. Seven years ago, the company was the fifth-largest smartphone manufacturer in the world, and now it doesn’t even crack the top ten. Prepared by: Celeste Ng

13. Strategic策略上的工具角色 – HTC (Source: https://www.androidauthority.com/htc-investments-again-873338/) • In 2012 – as the golden age of HTC was just starting to come to a close – • The company announced a strategic investment in Magnet Systems, an enterprise software developer. • [and another] investment … of a $40 million … in a gaming company called OnLive, … a poor investment • In 2017, HTC announced • Sell a factory it owned for about $91 million, to help offset its continued losses. • To put the money into its “expanding VR business.” Prepared by: Celeste Ng

14. HTC – 1 (Source: https://en.wikipedia.org/wiki/HTC) Founded in 1997, HTC began as an original design manufacturer and original equipment manufacturer, designing and manufacturing laptop computers.[3] [Then,] … making smartphones based mostly on Windows Mobile, … dedicated to the development of the Android mobile operating system.[4] Although initially successful as a smartphone vendor, competition from Apple Inc. and Samsung Electronics among others diluted its market share, reaching only 7.2% by April 2015, and the company has experienced consecutive net losses. Prepared by: Celeste Ng

15. HTC – 2 (Source: https://en.wikipedia.org/wiki/HTC) • In 2016, HTC began to diversify its business beyond smartphones, • Having partnered with Valve to produce a virtual reality platform known as HTC Vive. • After having collaborated with the company on its Pixel smartphone, HTC sold • roughly half of its design and research talent, as well as non-exclusive rights to smartphone-related IP, to Google in 2017 for US$1.1 billion (11億美元) Prepared by: Celeste Ng

16. Recognizing Transitions in the Role of IT • Most firms start out using IT in a support role … for a long time. • Yet internal and external factors, such as increasing organizational familiarity and expertisewith IT technologies, changing IT functionality, or competitive dynamics, (當組織對於IT技術,專業知識 越來越熟悉; 而且IT的重要性不斷變化會產生IT的角色也跟著變) • Encourage increasing integration of technology with core business processes.(促進提升了技術與核心業務流程連結與整合) • These changes trigger transitions in the role of IT from Support to Turnaround, to Factory, even to the Strategicquadrant for firms that continue to evolve their dependence on IT. (IT 扮演的角色開始有了轉換改進組織對IT的依賴.)

17. Turnaround Transitions • Consider the consulting firm described earlier that used IT solely in a support role. • The firm had begun to use IT to provide consulting advice顧問議建to its global customers全球的客戶. • Consulting reports were advertised and sold on Amazon.com. • Canyon Ranch(health spa resort)酒店和溫泉浴場, provides an example of a company in which the role of IT is transitioning from Support to Turnaround to Strategic. • Prior to 1996, Canyon Ranch’s only core IT system was its Computer Loading System, which was primarily used to automate routine back-office accounting, payroll, and reservation預約activities. • But within the context of increasing competition in the hospitality sector酒店業, senior executives began to explore ways to drive customer loyalty and sought to use real-time business information and analytics分析功能to improve the decision making it entailed. • Thus, began the transition in the role of IT from Support to Turnaround.

18. Factory Transitions • A small manufacturing firm highlights the shift in IT role from Support to Factory. • Until the 1990s, the role of IT in this small manufacturing company was strictly support—important for ensuring efficiency of back-office activities後台辦公活動like payroll and budgeting. • In the mid-1990s, the company began to expand its product line擴大其產品線and entered new markets, domestically and abroad. • Purchase an Enterprise Resource Planning(ERP) systemdesigned • To streamline, integrate, and coordinate all aspects of company operations, including how supplies were ordered, products were manufactured and sold, and orders were fulfilled. • To gain better control of the company’s operations as it launched new products and rapidly expanded into multiple international locations.

19. Strategic Transitions • A small manufacturing firm highlights the shift in IT role from Support to Factory to Strategic • Investment in a new IT application that would collect, and make available, real-time customer information that could then be integrated with information from over 60 plants工廠and two customer service call centers. • As the value of IT to strategic decision making increased, the role of the IT continued its transition from Factory to Strategic.

20. Leadership Approaches to the Role of IT (1) • Support: • Organizing for Low-Cost Stability and Incremental增量Improvement • When IT fulfills a support role, the IT assets of a company usually can be adequately managed by a technical professional and a team of technical staff. • Are unlikely to need interact directly with senior executives of the company. • IT-led innovation priorities tend to be targeted toward incremental, operational improvements, such as increased process automation流程自動化, but do relatively little to change its position or power地位或權力in its industry or business network.

21. Leadership Approaches to the Role of IT (2) • Factory: • Organizing for Factory-like Efficiency and Reliability • Firms in the Factory quadrant are critically dependent on their IT systems for business continuity(連續性), and thus, their leadership approach should focus on ensuring the utmost availability and reliability of these critical assets. • The IT function should be led by someone who can enforce a highly disciplined approach執行高度紀律的做法to operations and development. • IT department’s mission is ensuring the necessary degree of systems security, reliability, and availability and to coordinate imperative. • IT developments and projects should be designed, implemented, and managed by business unit executives in partnership with IT executives由業務部門的主管與 IT管理人員合作管理to ensure future business needs are met in conjunction with process continuity.

22. Leadership Approaches to the Role of IT(3) • Turnaround: • Organizing for Experimentation and Rapid Exploitation (試驗和快速開發) • Firms in the Turnaround quadrant look to their IT function as a catalyst to transform organizational capabilities改造組織能力and reveal new strategic avenues. • New IT initiatives新的IT計劃are often defined, implemented, and managed at the top levels of the corporation, and the leadership of IT should have direct relationships with the firm’s senior executive team高層管理團隊. • An IT leader with an entreprenurial (創業者的)approach to getting things done will be a good fit at this stage. • This person should have expertise in turning technology-centric ideas into business opportunitiesand be skilled at collaborating to leverage the cross functional expertise and resources of different parties.

23. Leadership Approaches to the Role of IT(4) • Strategic: • Organizing for operational discipline and business agility • The CIO is expected to drive business value by using ITto scale the business and increase market share, expand quickly into new market and products, and build emerging IT-based businesses. This person needs to possess both technical and general management expertise and have a strong focus on execution and growth . • IT executives tend to be members of the executive committee. In some of firms, the head of the IT function is a member of the board of directors. • IT investments focus in initiatives to accelerate and sustain the growth of the business, initiatives that are often defined, implemented, and managed at senior business levels. • An important part of the Strategic IT function’s mission is to scan leading-edge technologies, and initiate explorations of their use to solve business problems or address opportunities.