Module 3 Enabling Technologies

MBA Master of Business Administration

Crash Course Course “To reach our greatest potential, we must set our sights clearly and embrace the unknown confidently”

The National Organization of Certified Public Accountants Riyadh Chapter, Kingdom of Saudi Arabia

An association of institutional, professionals, and OFWs Riyadh, Kingdom of Saudi Arabia

MODULE 3 ENABLING TECHNOLOGIES

WORLD’S BIGGEST COMPANY?

World of Warcraft not only trumps all multiplayer games, it also dominates a number of countries Exceeds 10 Million Players Greater than population of Sweden and Haiti.

Determining what actually is the world's largest company is far from an exact science. Do you measure it by annual revenue, in which case it's ExxonMobil, which pulled in about $400 billion in 2007? Perhaps counting number of employees makes more sense, in which case it's WalMart, which has 1.7 million blue-vested souls on its books. Maybe market capitalization, a measure of the public opinion of the value of a company, is what matters most, in which case it's probably ExxonMobil again. No matter how you slice it, most of the same names come up time and again -- a cabal of the world's most powerful private economic entities. They include petroleum giants like BP, Shell and ExxonMobil and manufacturing powerhouses like Toyota and General Electric. Some, like HSBC and Citifinancial, are fiscal giants; others, like Warren Buffet's Berkshire Hathaway, have fingers in all kinds of pies.

Each day, about half a million items are sold on eBay...nearly 50 million people around the world [use eBay]." "EBay users exchanged some $9.3 billion worth of goods in 18,000 categories [in nearly 170 million transactions last year.

EBay got by with no stores, fewer than 3,000 employees and without taking legal or physical possession of [anything]...revenues from listing fees and advertising last year amounted to $749 million."

BASIC CONCEPTS

BASIC CONCEPTS INFORMATION TECHNOLOGY (IT) hardware, software, and communication technologies – essentially equipment INFORMATION SYSTEM (IS) a wider concept referring to information flow designs in an attempt to meet the information needs of the organization. INFORMATION MANAGEMENT (IM) process of managing the information needs of the organization.

INFORMATION TECHNOLOGY

HARDWARE CPU Arithmetic Logic Control Unit

INPUT DEVICES Keyboard Mouse Touch Screen

OUTPUT DEVICES Printer Display Plotter

Speakers

SEC. STORAGE Magnetic Disk Optical Disk Magnetic Tape

COMMUNICATION DEVICE

PRIMARY STORAGE

INFORMATION TECHNOLOGY EVOLUTION OF COMPUTER HARDWARE FIRST GENERATION : VACUUM TUBE TECHNOLOGY 1946-1956

INFORMATION TECHNOLOGY EVOLUTION OF COMPUTER HARDWARE SECOND GENERATION : TRANSISTORS 1957-1963

INFORMATION TECHNOLOGY EVOLUTION OF COMPUTER HARDWARE THIRD GENERATION : INTEGRATED CIRCUITS 1964 - 1979

INFORMATION TECHNOLOGY EVOLUTION OF COMPUTER HARDWARE FOURTH GENERATION : VERY LARGE SCALE INTEGRATED CIRCUITS 1980 - PRESENT

INFORMATION TECHNOLOGY MAINFRAMES

MINICOMPUTERS

PARALLEL COMPUTERS

SERVERS AND WORKSTATIONS

INFORMATION TECHNOLOGY MAINFRAMES

highly engineered, extremely powerful processors special design - increased power

INFORMATION TECHNOLOGY MINICOMPUTERS

Mid-range systems Smaller than mainframes Less configurations

INFORMATION TECHNOLOGY PARALLEL COMPUTERS

Multiple processors Accessing common memory

INFORMATION TECHNOLOGY SERVERS

INFORMATION TECHNOLOGY WORKSTATIONS

INFORMATION TECHNOLOGY STORAGE DEVICE MEMORY

MAGNETIC DISKS

OPTICAL DISKS

MAGNETIC TAPE

INFORMATION TECHNOLOGY STORAGE DEVICE MEMORY

INFORMATION TECHNOLOGY STORAGE DEVICE MAGNETIC DISKS

INFORMATION TECHNOLOGY STORAGE DEVICE OPTICAL DISKS

INFORMATION TECHNOLOGY STORAGE DEVICE MAGNETIC TAPE

INFORMATION TECHNOLOGY Programs for specific business application

APPLICATION SOFTWARE

O/S Windows Mcintosh Novell POSIX UNIX DBMS Comms Mgt Etc

SYSTEM SOFTWARE

Manage the resources of computer

Office CAD Payroll Accounting PeachTree Adobe Etc

INFORMATION TECHNOLOGY INPUT DEVICES

INFORMATION TECHNOLOGY OUTPUT DEVICES

INFORMATION SYSTEMS BUSINESS PERSPECTIVE

INFORMATION SYSTEM

MANAGEMENT

Organizational and Management Solution to Environmental Challenges

HOW ORGANIZATIONS AFFECT AFFECT INFORMATION SYSTEM?

HOW ORGANIZATIONS AFFECT INFORMATION SYSTEM? FUNCTION - Decisions about the role of information system. RESPONSIBILITY - Decisions who will deliver information technology services. GOALS - Decisions why information systems are built.

SYSTEMS DEVELOPMENT PROCESS Decisions why information systems are built. WHY ORGANIZATIONS ADOPT INFORMATION SYSTEM?

Institutional Factors Values Norms Interests

Environmental Factors Uncertainties Opportunities

System Development Adoption Utilization Management

INFORMATION ARCHITECTURE DEVT Decisions about the role of information system. 1950 Electronic Accounting Machines Senior Management

Few Critical Functions Treasury EAM

Production

Personnel

Marketing

1960s Data Processing Department Senior Management

Treasurer

Production

Large Centralized Machines

Marketing

Data Processing

INFORMATION ARCHITECTURE DEVT 1970s Data Processing Department Senior Management

Treasurer Mini

Production

Information System

Major on-line systems

Marketing Mini

Personnel

Communication Links to distribute information

INFORMATION ARCHITECTURE DEVT 1980s Information Systems and Services Telecommunication Link

Senior Management

Treasurer Mini

Information System

Marketing Mini

Microcomputers Information Center

Personnel Mini

Communication Links to distribute information

INFORMATION ARCHITECTURE DEVT 1990s Enterprise-wide Information Utility Senior Management

Acctg & Fin Mini

PC networks

Enterprise Information Utility

MFG Mini

SALES Mini

HR Mini

CAD/CAM

PC networks

PC networks

Information Center

Enterprise backbone network

COMPUTER PACKAGE-ORGANIZATION Decisions who will deliver information technology services. SENIOR MANAGEMENT MAJOR END USERS

INFORMATION SYSTEMS DEPARTMENT Information Systems Specialists Technology • Hardware • Software

• • • • • •

Managers Systems Analysts Systems programmers Maintenance programmers Database Administrators Encoders

COMPUTER PACKAGE-ORGANIZATION 1960’s TRADITIONAL APPROACH DP MANAGER

SYSTEMS DEVELOPMENT MANAGER

OPERATIONS MANAGER

Data Preparation Supervisor

Shift Supervisor

Operator

Control Clerk

Validator

Data Entry

Senior Programmer

Senior Analyst

Dev’t Maint Progrmr Progrmr

System Analysts

COMPUTER PACKAGE-ORGANIZATION 1980’s FUNCTI ONAL PROJECT GROUPS MIS DIRECTOR

Data Center Network

Reports to HQ but sited in user community

Corporate Systems

Marketing Systems

Financial

Sales

Management Support

Customer Service

Personnel

Market Research

Manufacturing Systems

Information Services

Stock Control

Data Admin

Production Planning

Systems Programng

Engineering

Information center Security

CHALLENGES OF INFORMATION SYSTEM KEY MANAGEMENT ISSUES

INFORMATION SYSTEM CHALLENGES Strategic Business Challenge: How can businesses use information technology to design organizations that are competitive and effective?

simplify communication and coordination eliminate unnecessary work eliminate inefficiencies

INFORMATION SYSTEM CHALLENGES Global Challenge How can firms understand the business and system requirements of a global economic environment?

develop global hardware, software, and communications standards create cross cultural accounting and reporting structures

INFORMATION SYSTEM CHALLENGES Information Architecture Challenge How can organizations develop an information architecture that supports their business goals?

Integrating these “islands of information” into coherent architecture

INFORMATION SYSTEM CHALLENGES Information System Investment Challenge: How can organization determine the business value of information systems?

Obtaining sizable payoff from information system investment. ROI

INFORMATION SYSTEM CHALLENGES Responsibility and Control Challenge: Design systems that people can control and understand Ensure information systems are used in ethically and socially responsible manner?

INFORMATION SYSTEM CHALLENGES It is a revolution in CONCEPTS. It is not happening in Information Technology (IT), or in Management Information Systems (MIS), and is not being led by Chief Information Officers (CIOs). It is led by people on whom the Information Industry tends to look down: accountants. But an Information Revolution has also been going on in information for the individual. Again it is not happening in IT or MIS, and is not led by CIOs.

PETER DRUCKER “Revered as father of Modern Day Management”

It is a print revolution. And what has triggered these information revolutions and is driving them is the failure of the "Information Industry"—the IT people, the MIS people, the CIOs—to provide INFORMATION. So far, for fifty years, Information Technology has centered on DATA—their collection, storage, transmission, presentation. It has focused on the "T" in "IT."

INFORMATION SYSTEM CHALLENGES

PETER DRUCKER “Revered as father of Modern Day Management”

Top executives have not used the new technology because it has not provided the information they need for their own tasks.

INFORMATION SYSTEM CHALLENGES According to a recent DTI International Benchmarking Study 77 % of UK businesses had a business plan, only 33% had an IT policy as part of their overall strategy. The majority of companies do not necessarily need to spend more on IT, just more efficiently.

ROLES OF COMPUTERS IN MANAGEMENT

CLASSICAL MODEL OF MGT FUNCTIONS Putting together resources to implement plans.

Deciding how to achieve the objectives

PLANNING

Supervising and measuring performance

ORGANIZING

COORDINATING

CONTROLLING

MOTIVATING

Ensuring alignment of resources to achieve organization’s objectives

Leadership & inspiring subordinates Creating good moral and spirit

MANAGERIAL ROLES & IS SUPPORT

Interpersonal Roles Figure Head - None Exist Leader - None Exist Liaison - Electronic Comm. Sys

Informational Roles Nerve Center -MIS Disseminator -Mail/ Ofc System Spokesman -Office Ssystems

Decisional Roles Entrepreneur Disturbance Handler Resource Allocator Negotiator

-None -None -DSS -None

KEY SYSTEMS APPLICATION IN THE ORGANIZATION INFORMATION SYSTEM AS STRATEGIC RESOURCE

CHANGING CONCEPTS OF IS TIME

CONCEPTION OF INFORMATION

INFORMATION SYSTEMS

PURPOSE

1950 -1960

A PAPER DRAGON BUREAUCRATIC

ELECTRONIC ACCOUNTING MACHINES (EAM)

Speed Accounting and paper processing

1960 -1970

GENERAL PURPOSE SUPPORT

MANAGEMENT INFORMATION SYSTEM (MIS)

Speed general reporting requirements

1970 -1980

CUSTOMIZED MANAGEMENT CONTROL

DECISION SUPPORT SYSTEM (DSS) EXEC SUPPORT SYSTEM (ESS)

Improve and customize decision making

1985 - 2000

Strategic Resource Competitive Advantage Strategic Weapon

STRATEGIC SYSTEMS

Promote survival and prosperity of organization

KEY SYSTEMS APPLICATION STRATEGIC LEVEL SYSTEMS

MANAGEMENT LEVEL SYSTEMS

KNOWLEDGE LEVEL SYSTEMS

System for long-range planning activities

SENIOR MANAGERS

MIDDLE MANAGERS

System that supports Monitoring, controlling, decision making

System that supports knowledge and data workers (Control of paperworks)

OPERATIONAL LEVEL SYSTEMS

KNOWLEDGE AND DATA WORKERS OPERATIONAL MANAGERS

System for elementary activities and transactions of the organization (Activities Tracking system) Sales & Mktg

Manufacturing

Finance

Acctg

HR

INFORMATION PROCESSING SYSTEM EXECUTIVE SUPPORT SYSTEM (ESS)

5 – YEAR BUSINESS PLANS FORECASTING OPERATIONAL PLANS STRATEGIC LEVEL SYSTEM

Sales Mgt • MGT. INFO SYSTEM Sales Analysis • DECISION Inventory Control SUPPORT SYSTEM Production Scheduling

Annual Budgeting Cost Analysis Capital Analysis Pricing Analysis

Manpower Analysis Contract Cost Analysis

MANAGEMENT LEVEL SYSTEM – MIDDLE MANAGERS • KNOWLEDGE WORK SYSTEM • SOFFICE AUTOMATION SYSTEM

TRANSACTION PROCESSING SYSTEM

Eng’g Station Word Processing

Graphics Station Image Storage

Managerial Stations Electronic calendars

KNOWLEDGE LEVEL SYSTEM – KNOWLEDGE DATA WORKERS Order Tracking Order Processing

Sales & Mktg

Machine Control Plnt Sched Material Mgt Mfg

Securities Trading Cash Mgt

Finance

Payroll Accts/Rcvl Accts Pybl Invoicing Accounting

Training Compensation Records HR

OPERATIONAL LEVEL SYSTEM – OPERATIONAL MANAGERS

ORGANIZATIONAL LEVEL IS SUPPORT ORGANIZATIONAL LEVEL

ACTIVITY

EXAMPLE SUPPORT SYSTEM

Individual

Job, Task

Microcomputer Application; personal client database; decision support system

Group

Project

Product scheduling; access to mainframe data, external data resources, dynamic information requirements; group DSS

Department

Major Function

Accounts payable, warehouse, payroll, HR, marketing, stable information requirements, MIS, major transaction systems

Division

Major Product or Service

Accounts payable, warehouse, payroll, HR, marketing, stable information requirements, MIS, major transaction systems

ORGANIZATIONAL LEVEL IS SUPPORT ORGANIZATIONAL LEVEL Organization

ACTIVITY Multiple products services

EXAMPLE SUPPORT SYSTEM Integrated financial and planning systems; MIS; on-line interactive systems; ESS

InterOrganization

Alliance Competition Exchange Contact

Communication systems; intelligence; observation, and monitoring system

Organizational Network

Sector of economy; related products, services; interdependences

Informal communication systems; industry and sector level formal reporting system

HOW INFORMATION SYSTEMS CAN BE CAN BE USED USED FOR STRATEGIC ADVANTAGE

PRODUCT DIFFERENTIATION Developing unique product differences with the intent to influence demand. Products and services that can easily be distinguished from those of competitors Products and services that existing competitors or potential new competitors can’t duplicate.

FOCUSED DIFFERENTIATION Create new market niche for specific product.

Provide specialized products and services serving narrow target market better than existing competitors.

CUSTOMER-SUPPLIER LINKAGE Lock customers to the company’s products and services

Tie suppliers to delivery timetables and price structure

Economies of Scale Advantage

LOW-COST PRODUCER Producing goods and services at lowest cost

Maintaining quality at right cost and price

Percentage of small- and medium-size businesses that report using the Internet for: Researching markets, competition Advertising, promoting products Long-distance collaboration Providing after-sales services to clients Communicating with government offices Selling directly to other companies Managing financial accounts Selling directly to consumers Managing orders and invoices

- 79% - 51% - 44% - 32% - 27% - 27% - 26% - 26% - 23%

CHANGING ROLES OF INFORMATION TECHNOLOGY INFORMATION TECHNOLOGY IN BUSINESS

CHANGING ROLES ECONOMIST INTELLIGENCE UNIT REPORT

Most technology managers (62%) believe that enabling revenue generation will come to be IT‘s primary mission within the next three years but CEOs and board members (83%) are almost wholly convinced of it. CEOs, hope the level of IT-business alignment will improve giving strong emphasis on joint project management responsibility between IT and business managers, as well as the use of cross-functional teams. CEOs and board members (41%) foresee the disappearance of a stand-alone IT department . More than a few companies appear ready to consider radical solutions to bring IT and the business closer together.

SYSTEMS DEVELOPMENT AND ORGANIZATIONAL CHANGE

SYSTEMS DEVT-ORG CHANGE STRUCTURAL ORGANIZATIONAL CHANGE ENABLED BY INFORMATION TECHNOLOGY

Automation Rationalization of Procedures Paradigm Shifts Business Re-engineering

AUTOMATION Use of computers to speed up process Increase volume of production Product Uniformity Quality

RATIONALIZATION OF PROCEDURES Streamlining Standard Procedures (SOP’s) Eliminating bottlenecks Setting operating platforms.

WITHOUT CERTAIN RATIONALIZATION COMPUTER TECHNOLOGY WOULD BE USELESS

PARADIGM SHIFT Re-thinking the nature of business. Re-thinking the nature of operation.

USE OF INFORMATION TECHNOLOGY AND SYSTEM TO SHIFT BUSINESS TO COMPLEMENTARY OPERATION, E.G. ON-LINE BANKING SYSTEM

BUSINESS RE-ENGINEERING Radical design of business process Analyze relationship among business units. Streamline processes. Make business more efficient and effective

BUSINESS RE-ENGINEERING FIVE (5) MAJOR STEPS TO BUSINESS PROCESS RE-ENGINEERING (BPR) DEVELOP BUSINESS VISION AND PROCESS OBJECTIVES

IDENTIFY OPPORTUNITIES FOR INFORMATION TECHNOLOGY APPLICATION

IDENTIFY THE PROCESSES TO BE REDESIGNED BUILD A PROTOTYPE OF THE NEW PROCESS UNDERSTAND AND MEASURE EXISTING PROCESSES IDENTIFY GAPS

BUSINESS RE-ENGINEERING CLASSIC CASE OF BPR – FORD TARGET : ACCOUNTS PAYABLE SECTION

VISION AND PROCESS OBJECTIVES :

COST SAVINGS AND OPERATIONAL EFFICIENCY

PROCESS FOR RE-DESIGN

:

ACCOUNTS PAYABLE

PROBLEM AREAS

:

PURCHASE ORDER RECEIPT DOCUMENTATION INVOICE MISMATCHES

BUSINESS RE-ENGINEERING CLASSIC CASE OF BPR – FORD TARGET : ACCOUNTS PAYABLE SECTION BEFORE

AFTER STORE ORDERS ON ON-LINE DATABASE, NO COPIES GOING TO ANYONE

TRADITIONAL INITIATING AND PREPARATION OF ORDERS

GOODS COME IN : REFERS TO PRUCHASE ORDER FORMS

GOODS COME IN: CHECKS DATABASE

MATCHES 14 ITEMS AND MANUALLY

MATCHES 3 ITEMS : PART NUMBERS, UNIT OF MEASURE, SUPPLIER CODE ALL MATCHING BY COMPUTER

MANUAL CHEQUE PREPARATION

CHEQUE AUTOMATICALLY PREPARED BY COMPUTER

BUSINESS RE-ENGINEERING CLASSIC CASE OF BPR – FORD TARGET : ACCOUNTS PAYABLE SECTION BEFORE

AFTER

PAPERLESS OFFICE

PURELY PAPERWORKS

HEADCOUNT OF 500 EMPLOYEES

HEADCOUNT REDUCED BY 75%

LONG PROCESS OF CHECKING/ VALIDATIONG FINANCIAL REPORTS

SHORT TIME AND ACCURATE FINANCIAL REPORTS

BUSINESS RE-ENGINEERING CHALLENGES TO BUSINESS PROCESS RE-ENGINEERING (BPR) Project Charter too narrow

14% 18%

IS Staff involved too late 25% Inadequate team skills 27%

Lack of cross functional project team

29%

Unrealistic expectations

Lack of Sr Executive Champion

37%

Lack of Executive Consensus

39%

Limitation of Existing System

42%

Resistance to change 0

10

20

60% 30

40

50

60

APPROACHES TO IS/IT IS/IT STRATEGY DEVELOPMENT

WHAT IS STRATEGY?

STRATEGY Broad collection of decision rules and guidelines that define a business scope and business dimension - Ansoff (1965) Corporate Strategy

Broad based formula how business is going to compete, what goals should be, and what policy will be needed to carry out this goals - Porter (1980) Competitive Strategy

STRATEGY Strategy is the pattern of resource allocation decisions made throughout an organization encapsulating desired goals, and beliefs about what is acceptable and, most critically, unacceptable means for achieving them.

WHY IS/IT STRATEGIC PLANNING NEEDED?

STRATEGY Identify current and future information needs of the organization. Determine and identify policies for management, creation, maintenance, control and accessibility to corporate information resource. Reposition IS/IT function – Matching IS/IT to business needs. Management and operational support. Resource forecasting.

STRATEGY Business Planning. Communication. Understanding of business/organization Long term confidence in the direction of development. Support for long term business goals and targets. Cost effectiveness.

WHAT IS IT/IS/IM STRATEGY?

STRATEGY IT STRATEGY – concerned with technology policies : architecture, risk attitudes, vendor policies and technical standards. IS STRATEGY – aligning IS development with business needs and seeking strategic advantage from IT. IM STRATEGY – aims at putting the management into IT and concerned with relationship between specialists and users and between centers and divisions or business units.

APPROACHES TO IS/IT STRATEGY DEVELOPMENT

GARRET HICKEY 4 PHASE APPROACH FOCUS

PROCESS

MAIN OUTPUT

Business Objectives IS/IT Opportunities Initial Blueprint

Confirm business objectives & IS/IT opportunities analysis

Business Objectives IS/IT Opportunities Initial Blueprint

Current IS/IT Scope of strategy

Analysis needs, assess current IS/IT & scope of strategy

Assessment of current IS/IT Review IT organization Prioritize application Scoping of IS/IT strategy

Detailed blueprint for main components assessment of IS/IT strategies

Conclusion of strategy Implementation plan Costs and benefits

Define target IS/IT architectures; determine alternative strategies

Complete IS/IT strategy; develop IS/IT implementation plan

Information Data Applications Technology Organization

IS/IT Strategy IS/IT implementation Executive summary

EARL’S MULTIPLE METHODOLOGY The “three-pronged attack” TACKLES THREE (3) MANAGEMENT ISSUES Clarification of of the the business business needs needs and strategy in information system; Evaluation of current information systems provision and use; and Innovation of new strategic opportunities afforded by IT.

EARL’S MULTIPLE METHODOLOGY The “three-pronged attack” APPROACHES

TOP DOWN DOWN APPROACH APPROACH BOTTOM-UP INSIDE-OUT

EARL’S MULTIPLE METHODOLOGY TOP-DOWN APPROACH BUSINESS PLANS IDENTIFY/AGREE BUSINESS OBJECTIVES IDENTIFY CRITICAL SUCCESS FACTORS DETERMINE IS SUPPORTING CRITICAL SUCCESS FACTORS

APPLICATION

EARL’S MULTIPLE METHODOLOGY BOTTOM - UP APPROACH APPLICATION ESTABLISH EXTENT OF RENEWAL/MODIFICATIONS IDENTIFY GAPS ESTABLISH ACTUAL POSITION/SITUATION

CURRENT SYSTEMS

EARL’S MULTIPLE METHODOLOGY INSIDE - OUT APPROACH IT OPPORTUNITIES CREATIVE TECHNIQUES PROCESS AND ENVIRONMENT BRIGHT SPARKS PRODUCT CHAMPIONS

CHAMPIONS

EARL’S MULTIPLE METHODOLOGY INSIDE - OUT APPROACH IT OPPORTUNITIES CREATIVE TECHNIQUES PROCESS AND ENVIRONMENT BRIGHT SPARKS PRODUCT CHAMPIONS

CHAMPIONS

REPONEN’S IMPLEMENTATION APPROACH

BUSINESS

Strategic Use of IT

IT MULTIPLE PARTICIPANTS

CONCEPTS

Application s Dev’t. Architecture IS Function Investment

EXPERIENCE

STRATEGY IMPLEMENTATION

EVOLUTIONAL STRATEGIC PLANNING Corporate Strategy IS/IT Industry & Business Impact

Business Unit Strategies

Corporate & Business Unit Strategies

IT Strategy (ies)

EVOLUTIONAL STRATEGIC PLANNING Assessing the need for immediate investment (1-2 years) Short/Medium Term

Appraisal of IS/IT as it relates to the business Understand industry structure and business position

Identifying potential future investment investment (1-5 years) Long Term

Consider potential IS/IT impact on products/services, etc

Interpret business objectives and strategy Analyze external value chain and information flow implications

Consider strategic potential IS/IT impact & effects on value chain

Determine CSF for company and competitors Analyze internal value chain & organizational relationships Identify Critical business processes and activities

Identify options for long term IS/IT investment – select most beneficial Assess the business contribution of existing system (SWOT)

Determine short term focus for investments

Existing Required Potential application portfolio

COMMON COMPUTER MANAGEMENT MISTAKES

COMMON MISTAKES Making generalists out of specialists. Failure to manage computers and projects. Maintaining unrealistic expectations of software. Cutting purchasing corners – hybrid of cheap hardware and software. Failure to standardize – inconsistency.

MEASURING SYSTEM SUCCESS SUCCESS

MEASURING SYSTEM SUCCESS

High Level of System Use Appropriate Nature of Use User Satisfaction-Favorable Users’ Attitude Achieved Objectives Financial Payoff

CAUSES OF SUCCESS & FAILURES User Involvement and Influence Management Support Levels of Complexity and Risk - Project Size - Project Structure - Experience with technology Management of Implementation Process

CAUSES OF SUCCESS & FAILURES "...workers spend an average of 8.3 hours a week - more than one entire workday peeking at non-work-related sites. One of every four employees reports 'feeling addicted to, or compulsive in' using the Internet. More than half of the Fortune 500, as well as roughly 17,000 companies, now run EIM [employee Internet management] software, including Cisco, McDonalds and Pepsi."

CAUSES OF SUCCESS & FAILURES INFORMATION SYSTEM PROBLEM AREAS

Design Data Cost Operation

CAUSES OF SUCCESS & FAILURES SUCCESSFUL COMPANIES

LESS SUCCESSFUL COMPANIES

USE OF IS/IT – MAIN EMPHASIS AS BUSINESS WEAPON Response to customers Improve delivery times Improve company image After sales service Improve product quality

Improve company image Reduce product price

AS MANAGERIAL TOOL Faster/better communication Data Accuracy Faster business planning Decision Support

Decision support Reduction in staff cost Control staff activities

CAUSES OF SUCCESS & FAILURES SUCCESSFUL COMPANIES

LESS SUCCESSFUL COMPANIES

MANAGEMENT OF IS/IT Better IS/IT information Development & use of IT by competitors Use multiple suppliers Learn from mistakes IS/IT policies linked to business policies Plans and Budgets for IS/IT investment Use of steering committees for projects Frame corporate strategiescustomers/products/services Top management informed about IS/IT performance Projects appraised before & after completion Separate resources for current operations from future developments High spending on education and training of all management and IS Staff.

Not interested, leave it to DP people Does not shop around for solution Repeat mistakes Finance Director sets budget and spending by DP based on user request. Priorities not clearly defined Frame strategies based on amount.

CASE STUDY

This document was created with Win2PDF available at http://www.daneprairie.com. The unregistered version of Win2PDF is for evaluation or non-commercial use only.