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Introduction Challenges of Managing in a Network Economy

Introduction Challenges of Managing in a Network Economy. Themes presented in this book. Market structure and industry dynamics Evolving business models IT impact Prioritizing IT investment Assimilation and organizational learning Buy versus make

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Introduction Challenges of Managing in a Network Economy

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  1. Introduction Challenges of Managing in a Network Economy

  2. Themes presented in this book • Market structure and industry dynamics • Evolving business models • IT impact • Prioritizing IT investment • Assimilation and organizational learning • Buy versus make • Partnership among key constituencies as IT evolves • Protecting IT assets and managing risks • Pervasive computing

  3. Theme 1: Market Structure and Industry Dynamics • New choices for designing and building industries, markets, and organizations. • IT expands processing capacity enabling convergence of voice, video, and data. • Real-time transactions, interactivity and connectivity.

  4. Theme 2: Evolving Business Models • The business models that dominated the Industrial Economy are evolving to take advantage of the capabilities of the new technologies and business practices of the Network economy, giving rise to new sources of power and differentiation.

  5. Theme 3: IT Impact • Important dimensions are: • The impact of IT on core operations and • The impact of IT on core strategy.

  6. Theme 4: Prioritizing IT Investments • Shift in IT investment priorities and decisions from a cost-avoidance, project centered approach to an asset-based, strategic option approach.

  7. The IT Business Value Scorecard Table 4-2: The IT Business Value Scorecard

  8. The IT Business Value Scorecard – Contd.

  9. The IT Business Value Scorecard – Contd.

  10. The IT Business Value Scorecard – Contd.

  11. Theme 5: Assimilation and Organizational Learning • The time required for successful organizational learning and assimilation of rapidly changing technologies limits the practical speed of change.

  12. Theme 6: Buy versus Make • External industry, internal organizational, and technological changes are increasing the pressure on organizations to “buy” rather than “make” IT applications and services.

  13. Theme 7: Partnerships among Key Constituencies as IT Evolves • High levels of engagement and cooperation among four key constituencies: • Business Executives • IT Executives • Users • Technology Providers / Partners

  14. Theme 8: Protecting IT Assets and Managing Risks • The ability to ensure high levels of security, privacy, reliability, and availability is a core capability that determines an organization’s ultimate success and survival.

  15. Theme 9: Pervasive Computing: Opportunities and Risks • Shift in IT that has dramatically changed the way people access and use technology, the way organizations exploit it, and the way it is developed and managed.

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