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Strategic Management of IS/IT:
Organization and Resources
Prof. Rushen Chahal
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Agenda
Requirements of strategic management
Roles of the IT function
IS/IT organization approaches Choice of IS/IT organization
IS/IT organization strategies
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Requirements of Strategic
Management IS/IT strategies, policies and plans reflectsbusiness objectives and strategies
Identify and explore potential business
advantages from IS/IT Ensure IS/IT strategies are viable in terms of
business risks
Establish resources and priorities
Match IS/IT management and corporate culture Monitor business critical IS/IT activities
Balance between centralization anddecentralization
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Roles of the IT Function I
by Zmud User services
Delivery services
Systems development
Support center
Information center
Architecture management
Planning
Technology diffusion
Data management
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Roles of the IT Function II
by Zmud Technology development
Research & development
General Administration
Quality assurance
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IS/IT Organization Approaches
Total centralized (monopolistic)
Total decentralized to business functions
Geographically placed data centers and
resources
Business unit control
Users
Activity
Type of resource network, computers,
software, data, etc.
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Choice of IS/IT Organization
Stage of application portfolio maturity
Geography of the enterprise
Synergy benefits of business services, products,
& information Business diversity & rate of change
Competitive pressures
Economics of resource, obtaining and deployingskills
Enterprise structure & management culture
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IS/IT organization strategies
IT (centralized) or user departments
(decentralized)
Mix Chief information officer or steering
committee
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IT or User Departments I
by McFarlan and KcKenney IT department Integration
Database
Feasibility and cost/benefit analysis Litter innovation
IS organization based on technical specialist not userneed
High maintenance (80%)
No senior management
Use frustration with secret growth of user computing
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IT or User Departments II
by McFarlan and KcKenney User department Short term problem solving
Incompatible databases & systems
Lack of quality control
Hidden maintenance overhead
Duplication problems
Little cost/benefit analysis Lack of skill technical staff
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Mix by La Belle and Nyce
Business unit responsibility
Application architecture, development, and operation
Central IT group
Telecommunication
Hardware & software architecture
Information architecture
Risk management and security
Shared services and utilities
Human resources
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Chief Information Officer or
Steering Committee - I Chief information officer (CIO)
Setting IS/IT policy & strategy
Goal oriented with business, IS/IT, &communication competency
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Chief Information Officer or
Steering Committee - II Steering committee
Executive steering group
IT planning group Service management group
Technical management group
Business IS planning group
Application management group
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Executive Steering Group
Functions Aligning business & IS/IT strategies
Establishing IS/IT priority & IS/IT
resources Ensuring strategic applications achieve
their objectives
Establishing organizational responsibilitiesand relationships
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IT Planning Group Functions
Interpreting IT trends and development for
organizational business
A
llocating resources according priority Monitoring IS/IT performance
Managing IT, specialists, & technical risks
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Service Management Group
Functions Meeting business needs with the optimum
means
Monitoring performance againstbudget/service level
Controlling quality
Satisfying evolving demand
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Technology Management Group
Functions Assessing technology against known and
potential needs
Planning and managing infrastructure Resolving technical issues/problems
Support service group
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Business IS Planning Group
Functions Identifying business needs
Interpreting CSFs
Assessing opportunities, threats, & ISimplications
Prioritizing, planning, & coordinating IS
and expenditure Ensuring the delivery of benefits
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Application Management Group
Functions Identifying special needs, changes,benefits, resources, and costs of
applications for investment & priority
evaluation
Managing developments & usage of IS
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Points to Remember
Requirements of strategic management
Roles of the IT function
IS/IT organization approaches Choice of IS/IT organization
IS/IT organization strategies
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Questions
What is a good IT strategic management
for an e-business of the banking industry
in terms of the organizational structure?
What is a good IT strategic management
for an e-business of the California State
University system in terms of the
organizational structure?