The Ten Commandments of Information Technology

1. The Ten Commandmentsof Information Technology 1. Remember, this is business. 2. Talk to the user 3. Understand your “customer’s” business. 4. Use the vendor’s knowledge. 5. Training is not a discretionary cost. 6. Develop an IT staff with a mix of business and technical skills. 7. Management issues are always more important than technology issues. 8. Make every contact with the user a public relations opportunity. 9. Spend time on strategy. 10. Have a good time.

2. IT Channels of Distribution Distribution Factor The Past The Future Development by central IT Heavy Significant but smaller percent of total Direct purchase of hardware / software by user Limited Major Service source for individual user Limited to service from Can obtain powerful independent system large, shared system Service bureaus Sell time Sell products and time bundled together Use of external databases via time-sharing Limited Major Number of software and processing services A few; crude Many Software development by users Limited Major (affiliated by packages and user- friendly languages) Reliance on external contract analysts / Very significant More significant; full outsourcing is a real programmers alternative

3. Changes in Consumer Costs Cost to the Consumer Cost Factor The Past The Future Hardware Very expensive Very expensive Economies of scale Major in large systems; user Limited in large systems; user stand-alones stand-alones not feasible very attractive in most cases Software systems development Expensive Less expensive in some cases Software acquisitions Limited cost-effective outside Attractive cost-effective opportunities opportunities Development and production Hard to estimate Hard to estimate Maintenance Underestimated Soaring

4. The IT Product Line Focus Factor The Past The Future Product obsolescence Developing new products Heavy maintenance of old products to meet challenges of obsolescence Source Most products manufactured inside Significant percent sourced from outside Dominant economic constraint Capital intensive (hardware; economy Personnel intensive (economy of skill( of scale) Product mix Many large, few medium, many Some large, many medium, thousands of small products small products Profits / benefits Good return on investment Many projects have intangible benefits New-product technologies New technologies New technologies and regroupings of old ones Services Structured, such as automated Unstructured, such as executive decision accounting and inventory support systems and query systems control

5. The IT Consumer Focus Factor Older Younger Experience with established Experienced Inexperienced technologies Attitude toward newer Leery Enthusiastic but unsophisticated (often they technologies do not recognize their lack of sophistication Visibility Identifiable as consumers Often unidentifiable as consumers; numerous at all levels in organizations Attitude toward IT unit Willing to accept IT staff as experts Many are hostile because they want to develop their own solutions Self-confidence Low confidence in their own abilities High confidence in their abilities and (often cautious because of cost) judgment (may be unwarranted) Turnover rate High High

6. Factors Influencing the Evolving IT Environment Business Environment The Evolving IT Environment Technology People Sociopolitical Environment

7. Phases of IT Assimilation Phase 1 Decision to invest and project initiation Failure Success Stagnation Block A Phase 2 Technology learning and adaptation Narrowly focused and not marketed Success Stagnation Block B Phase 3 Rationalization and management control Too efficiency dominated Success Stagnation Block C Phase 4 Widespread technology transfer

8. Balancing Hardware / Data Distribution Pressure Toward Increasing the Hub Toward Increasing Distribution Management Control More professional operation. User control. Flexible backup. User responsiveness. Efficient use of personnel. Simpler control. Improvement in local reliability. Technology Access to large-scale capacity. Efficiency of small scale. Efficient use of capacity. Reduction of telecommunications costs. Data Multiple access to common data. Easier access. Assurance of data standards. Fit with field needs. Security control. Data relevant to only one branch. Professional services Availability of a specialized staff. Stability of work force. Reduced turnover disruption. User career paths. Organizational Fit Corporate style: centralized. Corporate style: decentralized. Corporate style: functional Business need: transnationals IT centralized from the beginning.

9. Architecture:A Plan For the Structure of IT Capabilities Why Do We Need an IT Architecture? • Facilitate decision making on specific technology acquisitions • Ensure compatibility of IT and business strategy • Improve likelihood of IT integration and interconnectivity • Define a framework for control • Influence user decision making concerning IT

10. Levels of an IT Architecture Principles Beliefs about the way IT will be managed (e.g., a multi-vendor environment) Models Verbal or graphic pictures of the IT structure (e.g., IT architecture) Standards Preferences for particular vendors or industry protocols

11. Components of an IT Architecture Organization Structures and processes for the human support of computing and communications Applications Specific computer programs and how they are created and maintained Tools Software packages that enable rapid development of applications Information Information assets of the firm Technical Hardware, systems software, and communications Infrastructure links

12. Managing IT in the 1990sA partnership among three constituencies General Management IT Management User Management

13. Sample IT Architecture Executive Information System Applications Information Packaging and Delivery (e.g. Commander EIS) Communications (e.g. E-Mail, Conferencing) Application Development (e.g. CASE) Information Analysis (e.g. Lotus 123G) Knowledge-Based Systems (e.g. Expert System) Tools Communications Wide area network Local area network Found-ation Information Management Client Server architecture DB2 relational database Data feeds from internal and external sources Industry news/IRI Sales Manufac- turing Accounting Purchasing Logistics Dow Jones External Systems Internal Business Operations and Transaction Systems