Week 12 Monday, April 17

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Week 12Monday, April 17

• Managing Infrastructure and Operations
• Leadership Issues

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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.
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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
High
Low
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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
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Subject Leader Manager
Essence Change Stability
Focus Leading people Managing work
Have Followers Subordinates
Seeks Vision Objectives
Detail Sets direction Plans detail
Power Personal charisma Formal authority
Appeal to Heart Head
Energy Passion Control
Dynamic Proactive Reactive
Persuasion Sell Tell
Style Transformational Transactional
Exchange Excitement for work Money for work
Risk Takes risks Minimizes risks
Rules Breaks rules Makes rules
Conflict Uses conflict Avoids conflict
Direction New roads Existing roads
Blame Takes blame Blames others
 
http//changingminds.org/disciplines/leadership/ar
ticles/manager_leader.htm
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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.ht
ml
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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 peoplethoroughly
• 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?sho
w4
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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.

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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

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Coordination
Delegating authority
SharingResponsibilities
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IT Leadership

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

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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
Initiatives
Strategic Plan
Specifies how the goals and objectives will be
met Reflects the mission, goals and objectives
Prioritizes projects
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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

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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
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Top-Down Planning Dilemma
Should change come from the strategic plan or the
IT strategic plan?
Should an IT strategic plan precede an
organizational strategy?
Enabling technologies
?
Information Technology Strategic Plan
Organization Strategic Plan
Should the strategic plan specify the
technologies to adopt?
Direction
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Introducing Change MIT90 FrameworkFive
Inter-Related Components
Organization and coordination
Structure
Information Technology
Vision and direction
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
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Porters 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 buyers
Bargaining power of suppliers
Customers and Buyers
Suppliers
?
?
?
Rivalry among existing firms
Threat of substitute products or services
?
Substitutes
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Strategy and Threats
Threats
Opportunities
Strategy
How does the business capitalize on its threats?
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IT Resources
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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)

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

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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.)

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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?
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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

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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 organizations ability
  to handle business transactions
• Facilities physical systems that house and
  protecting computing and network devices

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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