Strategic Information Systems

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Strategic Information Systems

• Some Major Themes

Information technology is arguably the most
disruptive force in organizations since the
Industrial Revolution.
Week 1 pt. B
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Theme 1
Information as A Strategic Asset Information
Technology as a Strategic Asset
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Expectations of IT have changed4 WAYS OF USING
IT1) AUTOMATING2) INFORMATING3)
STRATEGIZING4) BUSINESS INTELLIGENCE
(integration)
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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

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IT for Automating The First Step

• Time 1960s to mid-1970s
• Objective Labor reduction faster,
  cheaper, more accurate
• Value Added Relatively low
• Risk Moderate
• Technology Mainframes centralized

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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

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IT for Informating The Second Step

• Time 1980s to early 1990s
• Objective Process improvement
• Value Added Moderate
• Risk Low
• Technology Distributed computing networks

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IT for StrategizingThe Third Step

• IT as enabler of better, faster, cheaper
• View technology as an enabler of organizational
  strategy
• IT impacts all functions of the organizations
  value chain

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IT for Strategizing The Third Step

• Time early-1990s to current
• Objective Better, faster, cheaper, competitive
  advantage, process re-engineering
• Value Added High
• Risk High
• Technology Ubiquitous computing

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IT for Business IntelligenceThe Next Step???

• Gathering information from sources inside and out
  of the organization
• Ubiquitous/real time information
• Information integration

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Theme 2
Information Technology as the chief enabler of
BETTER, FASTER, CHEAPER!
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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

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E-business exploits IT to bring better, faster,
cheaper to all processes in the Value Chain.
BETTER FASTER CHEAPER
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What has enabled IT to become a Strategic Enabler?

• (1) Moores Law (Gordon Moore)
• Every eighteen months
• processing power doubles
• while costs hold constant.

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What has enabled IT to become a Strategic Enabler?

• (2) Metcalfes 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)

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Metcalfes 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
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The challenge of rapidly changing IT

• The Law of Disruption
• Social, political, and economic systems change
  incrementally,
• technology changes exponentially.

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Theme 3
Integration
Order/ Inventory systems
From Islands of Technology
Interfaces
interfaces
Sales/ Marketing systems
Accounting systems
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Integration
To Enterprise Information Architechture (EIA)
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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
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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

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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.

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Ubiquitous Computing
Theme 5

• anywhere/any time
• globalization
• networking Internet
• information-infused products
• wireless telecommunications

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Information Technology is changing the way people
work
Theme 6

• Knowledge worker -- information and knowledge are
  the raw materials of his/her work
• Teamwork -- a new emphasis on collaborative work
• Anytime, anywhere work

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The Role of the CIO
Working in the Information Age

• Yesterdays Role
• 80 Technical
• Hardware Orientation
• Efficiency measures

• Todays Role
• 20 Technical
• People Orientation
• Competitive measures

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Working in the Information Age
Knowledge management Organizational learning
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Theme 7
Information Technology presents new Ethical
challenges.

• Privacy
• Accuracy
• Access equality
• Political governance

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