Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
IT
IT Programs
Programs Groupings
Groupings of
of projects
projects linked
linked to
to business
business goals.
goals.
IT
IT Projects
Projects Set
Set of
of activities
activities creating
creating outcomes
outcomes
to
to aa budget
budget and timetable..
and timetable.
timetable
IT
IT Activities
Activities Core
Core IT
IT capabilities
capabilities (e.g.,
(e.g., specify,
specify, code,
code, acquire,
acquire,
test,
test, manage, design, integrate, negotiate, etc.)
manage, design, integrate, negotiate, etc.)
Source:
Source: drawn
drawn from
from Weill
Weill and
and Broadbent,
Broadbent, SIM
SIM and
and CIO
CIO 4
© 2004 CISR MIT Sloan—Weill Center for Information Systems Research
Management Objectives
for Investing in IT
1. Reduce cost of doing business
- Transactional IT
2. Provide better information
- Informational IT
3. Gain competitive advantage or major innovation
- Strategic IT
4. Provide shared base IT capability
- IT Infrastructure
Any project may be a combination
Source: Weill & Broadbent “Leveraging the New Infrastructure: How market
leaders capitalize on IT,” Harvard Business School Press, 1998 5
© 2004 CISR MIT Sloan—Weill Center for Information Systems Research
Business G
Business Business
Business
Shared
Shared // Centrally
Centrally Unit
Unit 11 R
Unit
Unit 22
Coordinated
Coordinated A
V
•• Order
Order processing
processing
•• Customer
Customer portals
portals
I
•• Product
Product configuration
configuration T
•• Knowledge
Knowledge management
management Y
•• Shared
Shared && standard
standard •• Electronic
Electronic mail
mail
Firm-Wide Information applications
applications
•• Customer
•• Large
Large scale
scale processing
processing
Customer self
self serve
serve •• Shared
Shared customer
customer
Technology Infrastructure •• PC/LAN
PC/LAN service
service database
database
•• Vendors
Vendors
Publicly Available Infrastructure
•• Telecommunications
Telecommunications service
service providers
providers
(e.g. Internet, Telcos, Industry Nets) •• Industry
Industry services
services
Transactional (40)
Wholesale Information
Infrastructure (40) Financial Manu-
Retail, & All
Services facturing
Transport Services4
12% 20% 21% 12% 17% 17% 26% 11% 20% 13%
IT Investment2 14% 13% 14% 18% 13%
54% 54% 52% 45% 54%
(Number of Firms) (7) (98) (21) (14)
14 140
(140)
% of Total IT Outsourced 20012 15 16 23 13 16
Synchronize Information
Technology Portfolios to Strategy
Business Strategy
Balance Cost &
Average Firm Cost Focus Agility Focused
Agility
IT Premium
Source: P. Weill & M. Broadbent “Leveraging the New Infrastructure: How market
leaders capitalize on IT,” Harvard Business School Press, June 1998. 11
© 2004 CISR MIT Sloan—Weill Center for Information Systems Research
Source: P. Weill & M. Broadbent “Leveraging the New Infrastructure: How market
leaders capitalize on IT,” Harvard Business School Press, June 1998. 13
© 2004 CISR MIT Sloan—Weill Center for Information Systems Research
Source: P. Weill & M. Broadbent “Leveraging the New Infrastructure: How market
leaders capitalize on IT,” Harvard Business School Press, June 1998.
14
© 2004 CISR MIT Sloan—Weill Center for Information Systems Research
40 20
19 0
-1 -20
-21 -40
17
© 2004 CISR MIT Sloan—Weill Center for Information Systems Research
Supplementary Slides
19
C Dilution
Time to bring new product to mkt. BUSINESS
BUSINESS UNIT
UNIT OPERATIONAL
OPERATIONAL
of Impact
T
B
ut
Dilution
Time to implement a
Dil
BUSINESS
BUSINESS UNIT
UNIT of Impact
new application IT
IT APPLICATIONS
APPLICATIONS BV
BV
Cost to implement a
new application Information
Technology $ Dilution
A
Infrastructure availability of Impact
FIRM-WIDE
FIRM-WIDE IT
Cost per transaction IT
IT INFRASTRUCTURE
INFRASTRUCTURE BV
BV Management
Cost per workstation
Information
BV = BUSINESS VALUE
Technology $ Time
Source: P. Weill & M. Broadbent “Leveraging the New Infrastructure: How market leaders capitalize on IT,”
Harvard Business School Press, June 1998. 20
© 2004 CISR MIT Sloan—Weill Center for Information Systems Research
Strategic
Transactional
Wholesale
Infrastructure Finance, Retail, Information
Insurance Manufacturing Transport & Services All2
12% 20% 21% 12% 17% 17% 25% 11% 20% 13%
All Firms
[N=140] 14% 13% 14% 17% 13%
54% 54% 52% 47% 54%
1 MIT Sloan CISR study (Weill & Aral) based on a study of 140 firms in 2002 using data from previous 3 years. NSF Grant Number IIS-0085725.
2 Average industry adjusted portfolios of the top 1/3 performers on ROA, % Margin & Revenue Growth.
3 IT as % of Net Sales (3 year average)/Industry average IT as % of Net Sales (3 year average).
21
© 2004 CISR MIT Sloan—Weill Center for Information Systems Research
IT
IT Premium
Premium == enterprise’s
enterprise’s ability
ability to
to gain
gain above
above industry
industry average
average returns
returns from
from IT
IT by
by better
better management
management
Source: P. Weill & M. Broadbent Leverage the New Infrastructure: How market leaders capitalize on IT,
Harvard Business School Press, June 1998.
22
© 2004 CISR MIT Sloan—Weill Center for Information Systems Research