Week 12 Monday, April 17

1. Week 12Monday, April 17 Managing Infrastructure and Operations Leadership Issues

2. Random number function Rank function Presentation Schedule April 24: Adam Hayashi, Paul Ward, Robin Lemoine May 1: Julien Moua, Kewei Zhang, Shashi Ganjam May 8: Daniel Linsley,Yan Huang, Daniel Alden Discussants will be named on the day of the presentation.

3. Strategic Grid Specifies the context in which we must perform High Strategic Strategic IT plan, initiatives Factory Operational IT IT Impact on Business Operations Support Basic elements Turnaround Gradual adoption Low IT Impact on Strategy Low High

4. Governance and Leadership Governance Leadership • Leaders have followers • Appeal to followers, showing how following them will lead to their (followers’) hearts' desire • Always good with people, and have quiet styles that give credit to others (and takes blame on themselves) • Are very effective at creating the loyalty that great leaders engender • Appeared as risk-seeking, although they are not blind thrill-seekers Rights and responsibilities shared between the various corporate participants, especially the management and the shareholders

5. http://changingminds.org/disciplines/leadership/articles/manager_leader.htmhttp://changingminds.org/disciplines/leadership/articles/manager_leader.htm

6. Three Rules of Leadership • Rule 1: You must have or develop the skill, and take the time to find out what is in the follower's mind concerning his situation and how he perceives you • Know what is perceives as negative • Create and manage a system of feedback loops that keep people in permanent touch with follower mindset • Rule 2: To be a powerful leader, you must present your "leaderself" to others, rather than your natural self • Do exactly the leadership behavior called for by the situation • Rule 3: To create an effective leaderself, you must operate from self-awareness rather than from an automatic mind • Focus on the “good of the whole” http://www.businessleader.com/bl/sep97/leadrshp.html

7. Four Competencies of Leadership • Know ourselves very, very well • Recognizing that all of us are actually three people in one: what we are, what we think we are, and what others think we are • Know our people—thoroughly • Be able to motivate people with the right ideas, the right work, and the right methods or techniques • Highly competent on the technical and people sides of our job if we intend to be successful • Know the laws and principles of leadership and management as they relate to leading ourselves and people • If you want to play the game, you've got to know the rules http://www.leadershiphelp.com/introduction.cfm?show=4

8. IT Governance: Definitions • A generic term which describes the ways in which rights and responsibilities are shared between the various corporate participants, especially the management and the shareholders.

9. IT Governance • Involves… • Policies and procedures that specify and guide decision making and the actions of people • Specifying the responsibilities of management, employees and shareholders (stakeholders), and decision rights • Administering the policies and procedures in daily operations • Adhering to the policies and procedure in short- and long-term planning

10. Manage-ment IT Domain User Domain Coordination Delegating authority SharingResponsibilities

11. IT Leadership • Managing the infrastructure • Managing the IT function • Strategic outsourcing • Portfolio management of IT projects

12. IT LeadershipGenerally speaking… Vision Long-term aspirations Long to medium-term purpose (can be changed) Mission Challenges consistent with the mission Goals Objectives specify what must be done to fulfill the goals Business model Objectives Plan of operation Strategic Plan Initiatives Specifies how the goals and objectives will be met Reflects the mission, goals and objectives Prioritizes projects

13. Strategic Positioning Choices • Market/Channel – determines the choice of customers to serve, the needs and expectations that will be met, and the channels to reach those customers • Product Positioning – determines the choice of products and service to offer, the features of those offerings, and the price that will be charged • Value chain/value networking – determines the role an organization plays and the activities it performs within an extended network of suppliers, producers and distributors and partners • Boundary positioning – determines markets, products, business NOT to be pursued

14. Strategic Alignment • Alignment between the business and IT strategies • Alignment between strategy and capabilities Business IT Strategy Strategy Value • IT infrastructure • Technology IT infrastructure • Human IT infrastructure Capabilities Capabilities Including infrastructure Including infrastructure

15. Top-Down Planning Dilemma Should change come from the strategic plan or the IT strategic plan? Enabling technologies Should an IT strategic plan precede an organizational strategy? ? Information Technology Strategic Plan Organization Strategic Plan Should the strategic plan specify the technologies to adopt? Direction

16. Introducing Change: MIT90 FrameworkFive Inter-Related Components Organization and coordination Structure Vision and direction Information Technology Planning and control Strategy Management Processes Technology Individuals and Roles Human resources Dynamic Equilibrium: Any change to a component requires an adjustment to the others

17. Porter’s Five Forces ModelForces that Shape Strategy Opportunities grow out of crises  How will the business react to threats (and opportunities)? Potential Entrants Threat of new entrants Industry Competitors Bargaining power of suppliers Bargaining power of buyers Customers and Buyers Suppliers    Rivalry among existing firms Threat of substitute products or services  Substitutes

18. Strategy and Threats Opportunities Threats Strategy How does the business capitalize on its threats?

19. IT Resources

20. Emerging IT Strategic Role IT offers the capability to redefine the boundaries of markets and structural characteristics, alter the fundamental rules and basis of competition, define business scope, and provide a new set of competitive weapons. N. Venkatraman, 1991 (from Corporations of the 1990s)

21. New technologies open new opportunities How does a business benefit from new technologies?

22. IT Value Framework Strategic differentiation and proprietary advantage that can be measured in terms of increased market share, improved brand value, increased market capitalization Value-sustaining IT applications Value-creating IT applications Profitable growth through further cost reductions and revenue generation Lower costs, improve asset efficiency, and create strategic options for future growth Value-enabling infrastructure Initiatives How will the business achieve this?

23. IT Application Framework Strategic Application of IT IT to differentiate the organization from others Reengineering Business Processes Basic IT to remain competitive in industry IT Infrastructure Basic IT to do business

24. Architecture vs. Infrastructure • Architecture – a blueprint that shows interrelationships of the components of a system • Emphasis on the whats • Based on the business model • IT Infrastructure – implementation of the architecturePurpose: To deliver the right information to the right people at the right time

25. Architecture • Defines guidelines and standards • Service Oriented Architecture (SOA) • Emphases on accessibility of others systems to data and functions, and reusability of programming code • Supports the organization's agility • Four attributes: Distributed vs. Centralized • Location of processing • Connectivity among processors • Location of data repository (data storage) • Systemwide rules (information security, accessibility, etc.)

26. IT ArchitectureAnother View • “…defines the technical computing, information management, and communications platform. …provides an overall picture of the range of technical options available to a firm, and as such, it also implies the range of business options.” Enables Opportunities Coordination (information flow and linkages) Vision Control What design gives the organization the best use of its information? What technology configurations will best support the business?

27. InfrastructureDelivering the right information to the right people at the right time • Delivering IT resources to support users throughout the organization • Four layer infrastructure (Weill and Broadbent) • IT components • Human IT infrastructure • Shared IT services – services that users can draw upon and share to conduct business • Shared and standard IT applications – stable applications that change less frequently

28. IT Infrastructure • Three categories: • Network – technologies that permit exchange of information between processing units and organizations • Processing systems – encompass hardware and software that provide an organization’s ability to handle business transactions • Facilities – physical systems that house and protecting computing and network devices

29. Leveraging the IT Infrastructure • Two key infrastructure components: • IT operations (data center, network, call centers, etc.) • Supporting enterprise processes (procurement, enterprise resource planning, finance, human resources) • Flexibility and efficiency in the IT infrastructure to drive down costs, and increase IT asset productivity and future options values Business process IT