Lecture 15Leadership: Next Three WeeksOrganizing and Leading ITOrganizational IssuesFour examples in textDrivers toward user DominanceDrivers toward centralized IT structureCoordination and Location of IT policy: IT ResponsibilitiesSlide 9Coordination and Location of IT Policy: User ResponsibilitiesCoordination and Location of IT Policy: Management/Policy ResponsibilitiesIT Leadership and Management of BudgetsStages Theory of IT Adoption and Organizational LearningFour stages of organizational learningMultiple growth processesThree eras in Organizational LearningDifferent key players and leaders in each eraDiscontinuous technology advancesFour areas of impactLecture 15Chapter 8Organizing and Leading the IT Function2Leadership: Next Three Weeks•Organizing and Leading the IT function (today)•Managing IT outsourcing•IT portfolio management3Organizing and Leading IT•Introducing new technologies•Maintaining old technologies•Balancing maintenance with innovation•Defining roles4Organizational Issues•Tension between innovation and control–Depends on firm willingness to take risks•Is IT supposed to create or reduce risks?•Tension between IT staff and business users–Users want short term fulfillment–IT want standardization, mastery of technology•Balance is easy to get wrong•See table 8.15Four examples in text•From centralized, IT-driven innovation to decentralized, user-driven innovation•User-driven innovation over IT department protests•From decentralized, user-driven innovation to centralized It management•From decentralized, user-driven Innovation to unexpected centralized innovation6Drivers toward user Dominance•Pent-up user demand•Need for staff flexibility•Growth in IT services industry•Users’ desire to control own destiny•Fit with organization7Drivers toward centralized IT structure•Staff professionalism•Standard setting and ensuring system maintainability•Envisioning possibilities and determining feasibility•Corporate Data Management•Cost estimation and analysis8Coordination and Location of IT policy: IT Responsibilities1. Develop and manage long-term architectural plan2. Develop process to establish, maintain and evolve company standards in–Telecommunication protocols and platforms–Client devices and client software configurations–Server devices, middleware and database management systems–Programming and configuration languages–Documentation procedures and formats–Data definitions, especially for widely used data elements–Storage redundancy, backup and disaster recovery procedures–Information security policy and incident response procedures3. Establish procedures that consider outsourcing options when new IT projects are proposed–Ensure outsourced projects meet company standards9Coordination and Location of IT policy: IT Responsibilities4. Maintain inventory of installed and planned systems and services–Evaluate value of these ongoing5. Identify career paths for IT staff–Horizontal/vertical6. Establish internal marketing efforts–Users understand challenges and costs, updates7. Incorporate RFP process for new hardware/software8. Identify and maintain relationships with preferred vendors9. Establish education programs for business users10. Set up process for ongoing review of legacy systems to determine upgrades, redesigns10Coordination and Location of IT Policy:User Responsibilities1. Seek to understand scope of all “IT activities supporting business users•Charge-back system, IT pressures, activity based overhead allocation2. Develop realisti estimates of the amount of user personnel investment required for new projects both during development/deployment and in ongoing operation and use3. Ensure comprehensive user input for all IT projects that support vital aspects of the unit’s operations.4. Ensure nature of staffing interfaces is consistent with a new technology’s strategic relevance to a business unit.•How strategic project is should correspond to staffing5. Periodically audit system reliability standards, communications services performance and security procedures6. Participate in developing and maintaining IT plans that set new technology priorities, schedule the transfer of IT among groups, and evaluate projects in light of overall company strategy11Coordination and Location of IT Policy:Management/Policy Responsibilities1. Ensure an appropriate balance between It and business users2. Maintain comprehensive corporate IT strategy3. Manage inventory of hardware and software systems and services•Corporate relationships with vendors4. Establish standards for acquisition, development and IT systems operation.5. Facilitate transfer of technology from one unit to another•Look for synergies and overlaps6. Actively encourage technical experimentation.7. Develop appropriate planning and control system to link IT to company goals•Monitor planning, system appraisal, charge-back, project management12IT Leadership and Management of Budgets•Budgets are extremely important control mechanism!•Budget to IT team directly or through business units?•Often a mix of both•Example: phase-out of technology13Stages Theory of IT Adoption and Organizational Learning•Framework for understanding IT assimilation in business organizations•Proposed in 1973 by Richard Nolan, professor at Harvard•Modified over time•Based on idea of an S-shaped learning curve14Four stages of organizational learning•Initiation•Contagion•Control•Integration15Multiple growth processes•Applications Portfolio•Resources•Management•User Awareness16Three eras in Organizational Learning•New technologies have led to different eras in technology adoption•Data processing era•Micro era (from late 1970s)•Network era (from early 1990s)17Different key players and leaders in each era•IBM leader in DP era•Stayed leader into micro era by introducing IBM personal computer•Apple Macintosh computer had more sophisticated operating system, making user interface easier•Competition drove innovation18Discontinuous technology advances•Other industries–Turbojet in airplanes–Radial tires adopted by Michelin•Technology–Shift from mainframe to microcomputers–Shift to networked infrastructure19Four areas of impact•Automating Transaction Processing•Informating Middle of Organization•Imbedding IT in products and services•Internal and external
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