strategic management of is-it organization and resources

8/3/2019 Strategic Management of is-IT Organization and Resources

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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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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



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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?

strategic management of is-it organization and resources

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