IT Leaders: Reinventing IT as a strategic business partner

Group 5

Overview

Reliable and excellent IT service Innovative solutions to business challenges New products , services New business models Technology strategy and business strategy are now one

Overview (cont)

Automate , Innovate , Improve Within 5 years, CIOs responsible for Information as a strategic asset Business model Innovation IT duties Business processes Supporting Technology

Overview

(cont)

IT as a strategic business partner requires Structural Change Changing what people do

Transworld

Hinkl CIO Abolished title of analyst PMO Technology , Business processes 800 music stores

Overview

(cont)

PMs developed expertise in business functions Six sigma project management process Hinkl- Executive board Involved in business decisions Answer more than IT questions IT staffs 3 days in field

Overview

(cont)

ChoicePoint

Federated structure- 2 bands IT architect, BIO BIO- Aligns IT and business Impact revenue, customer service Revenue growth 5 % to 15%

Overview

(cont)

P&G

2500 person IT team restructured Information & Decision solutions Merged into Global Business Services Target- Profits, market share, volume Virtual retail shelves IT is run as business ITs value- contribution to business

Overview

(cont)

E! Entertainment
One Vice president for all operations IT involved in branding discussions Audience focus groups Flattened the formal process More person to person IT partner with business Creating products together

Overview

(cont)

Raytheon Integrated Defense Systems

CRMs+10 technical workers Techies in cross business teams 2 years for process to jell Role clarity and responsibilities were not known Once defined

High morale Highly motivated workforce

Case Question 1
What are the business and political challenges that are likely to occur as a result of the transformation of IT from a support activity to a partner role?

Business Challenges

Applying technology creatively producing goods effectively- lower cost(Raytheon Integrated Defence Systems) Highest possible profit margin(Raytheon Integrated Defence Systems) Create changes in whole business & organizational structuring(Trans world, E!, P&G)

Business Challenges (cont)

Merging processes involved in 2 different fields Single senior vice president decision making problem(E! Entertainment) Time constraints( min 2yrs integrate IT & business) (Raytheon)

Political Challenges

Dramatic Structural Change Maintaining Relevancy Issues of cost and taxes

Political Challenges (cont)

Changing the traditional work pattern Development along with advancement Possible loss of Jobs Unemployment

Case Question 2

What implications does this shift in the strategic outlook of IT have for traditional IT workers and for the educational institutions that train them? How does this change the emphasis on what knowledge and skills the IT person of the future should have?

Implications

Traditionally, IT was specific IT staff never concerned with Business Scenario changed IT staff to learn all aspects of organization Prepare for making decisions

Implications(cont)

IT no more technical field Managerial and operational function comes along Educational institutions play a major role Teaching more elaborate and practical

Knowledge and Skills

Technological and managerial skills Skill to use and analyze IT in organization Creative ideas and strategies to operate and grow Effective and efficient use of IT

Case Question 3

To what extent do you agree with the idea that technology is embedded in just about everything a company does? Provide examples, other than those included in case, of recent product introductions that could not have been possible without reliance on IT.

The Inevitable IT Support

Environmental, organizational, and technological factors are creating a highly competitive business environment in which customers are the focal point. These factors can change quickly, sometimes unpredictably.

The Inevitable IT Support

(Contd)

The most important business issues were retaining loyal customers, improving productivity, cutting costs, increasing market share, and providing timely organizational response. IT is a major enabler for dealing with these issues.

Business pressures, organizational responses and IT support

Reliance on IT:

Campusfood.com

Provided interactive menus to college students, using the power of the Internet to enhance traditional telephone ordering of meals. Launched at the University of Pennsylvania, the company has taken thousands of orders for local restaurants, bringing pizza, hoagies, and wings to the Penn community.

Reliance on IT:

Campusfood.com

Founder Michael Saunders began developing the site in 1997, while he was a junior at Penn, and with the help of some classmates, launched the site in 1998. There are more than 200 participating schools and more than 1,000 participating restaurants.

Reliance on IT:

Campusfood.com

Financed through private investors, friends, and family members, the site was built on an investment of less than $1 million. Critical response activities supported: customer service, improved cycle time, and innovative marketing method.

Reliance on IT:
Handelsbanken

Mobile Banking at

Handelsbanken of Sweden is the largest bank in Scandinavia, where more than 80 percent of the population over 15 years old carry mobile phones. The bank is trying to meet customers expectations of using their mobile phones to organize their personal and working lives while on the move.

Reliance on IT:
Handelsbanken

Mobile Banking at

Mobile banking services, including stock trading, was an opportunity for the bank to gain a competitive edge, and so the bank become the worlds first to have mobile banking applications. The bank is trying to meet customers expectations of using their mobile phones to organize their personal and working lives while on the move.

Reliance on IT:
Handelsbanken

Mobile Banking at

It opens up critical business and personal information to safe and easy access from mobile devices. This move into mobile banking is a key first step in a strategy to exploit the potential of ebusiness, while also extending the banks brand reach. Critical response activities supported: improved customer service, innovative strategic marketing methods.

References

http://media.wiley.com/product_data/excerpt /25/04717052/0471705225.pdf

THANK YOU