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Strategic Information Systems

Strategic Information Systems. Some Major Themes. Information technology is arguably the most disruptive force in organizations since the Industrial Revolution. Week #1 pt. B. Theme #1. Information as A Strategic Asset Information Technology as a Strategic Asset.

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Strategic Information Systems

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  1. Strategic Information Systems Some Major Themes Information technology is arguably the most disruptive force in organizations since the Industrial Revolution. Week #1 pt. B

  2. Theme #1 Information as A Strategic Asset Information Technology as a Strategic Asset

  3. Expectations of IT have changed…4 WAYS OF USING IT1) AUTOMATING2) INFORMATING3) STRATEGIZING4) BUSINESS INTELLIGENCE (integration)

  4. IT for Automating: The First Step • Operations emphasis • View technology as a way to continue doing the same things • Use technology to automate existing tasks • Easily measurable value

  5. IT for Automating: The First Step • Time: 1960’s to mid-1970’s • Objective: Labor reduction; faster, cheaper, more accurate • Value Added: Relatively low • Risk: Moderate • Technology: Mainframes; centralized

  6. IT for Informating: The Second Step • Emphasis on information for decision making • Use technology to provide information about operations • Use technology to help detect problems with processes • Use of technology without informating can make a bad process worse

  7. IT for Informating: The Second Step • Time: 1980’s to early 1990’s • Objective: Process improvement • Value Added: Moderate • Risk: Low • Technology: Distributed computing; networks

  8. IT for Strategizing:The Third Step • IT as enabler of better, faster, cheaper • View technology as an enabler of organizational strategy • IT impacts all functions of the organization’s value chain

  9. IT for Strategizing: The Third Step • Time: early-1990’s to current • Objective: Better, faster, cheaper, competitive advantage, process re-engineering • Value Added: High • Risk: High • Technology: Ubiquitous computing

  10. IT for Business Intelligence:The Next Step??? • Gathering information from sources inside and out of the organization • Ubiquitous/real time information • Information integration

  11. Theme #2 Information Technology as the chiefenabler of … BETTER, FASTER, CHEAPER!

  12. Organizations in the Information Age • New products • New ways to market/sell/deliver products • New processes/ways to operate (BPR) • New organizational forms • New ways to work

  13. E-business exploits IT to bring “better, faster, cheaper” to all processes in the Value Chain. BETTER FASTER CHEAPER

  14. What has enabled IT to become a Strategic Enabler? (1) Moore’s Law (Gordon Moore) Every eighteen months processing power doubles while costs hold constant.

  15. What has enabled IT to become a Strategic Enabler? (2) Metcalfe’s Law (Robert Metcalfe) The usefulness of a network equals the square of the number of users. (i.e., the usefulness of a network increases exponentially with each additional user)

  16. Metcalfe’s Law: “The more people use your software, your network, your standard, your game, your book, the more valuable it becomes. The more new users it will attract, increasing the utility and the speed of its adoption by still more users”. *Adapted from Unleashing The Killer App, by Larry Downs

  17. The challenge of rapidly changing IT The Law of Disruption Social, political, and economic systems change incrementally, technology changes exponentially.

  18. Theme #3 Integration Order/ Inventory systems From Islands of Technology… Interfaces interfaces Sales/ Marketing systems Accounting systems

  19. Integration To Enterprise Information Architechture (EIA)

  20. Enterprise Application Integration (EAI) E-business Application Architecture Enterprise Resource Planning Customer Relationship Management Selling Chain Management Supply Chain Management E-procurement Trading partners SCM SCM ERP CRM EP FRONT OFFICE: sales/customer service Non-production goods/services BACK OFFICE: accounting, order processing

  21. Theme #4 Information Technology is changing how organizations form themselves. • Creating and controlling information is more powerful than moving and manufacturing physical products. • Virtual organizations. • Alliances/partnering

  22. Organizational Change for E-Business • Businesses must build “e-business community” models to serve the customer. • Management must align business strategies, processes, and applications fast, right, and all at once. Strong leadership is imperative.

  23. Theme #5 Ubiquitous Computing • anywhere/any time • globalization • networking; Internet • information-infused products • wireless telecommunications

  24. Theme #6 Information Technology is changing the way people work • Knowledge worker -- information and knowledge are the raw materials of his/her work • Teamwork -- a new emphasis on collaborative work • Anytime, anywhere work

  25. Yesterday’s Role 80% Technical Hardware Orientation Efficiency measures Today’s Role 20% Technical People Orientation Competitive measures Working in the Information Age The Role of the CIO

  26. Working in the Information Age Knowledge management Organizational learning

  27. Theme #7 Information Technology presents new Ethical challenges. • Privacy • Accuracy • Access equality • Political governance

  28. Is technology changing in response to external forces, or is technology driving change? END

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