The Strategic Management of

Information Technology

Chapter 1

Introduction

Before the OrganizationBefore the Organization

Individual Farms

The Traditional OrganizationThe Traditional Organization

The Organization as OneThe Organization as One

The Traditional Hierarchy/The Traditional Hierarchy/Organizational DemandsOrganizational Demands

Globalization

Economics

Process

Individual

Technological Change DriversTechnological Change DriversPoint of Purchase Displays

Scanning Devices

Networking Telecommunications

Technological Change DriversTechnological Change Drivers

Point of Purchase Displays

o Expedite Selling Practiceo Record Sales at Individual Level

Technological Change DriversTechnological Change DriversScanning Devices

o Customer Informationo Promotional Tracking

Technological Change DriversTechnological Change DriversNetworking Telecommunications

o Interneto Local Area Networkso Video Conferencing

The Organization on its HeadThe Organization on its Head

Globalization

Economics

Process

Individual

Immanuel Kant

Key Organizational Key Organizational MeasuresMeasures

o Cost, Revenue, Profit, Investment Centero Strategic Business Unito Critical Success Factorso Core Competencies

Key Organizational Key Organizational MethodsMethods

o Right Sizingo Reengineeringo Business Process Redesign

Plan Design Implement Maintain

ApproachApproach

Key MIS Trend– Organizational Rationale

– Technological Driver

StrategicMIS

Organization Technology

Inductive

Deductive

General Cases

Specific Rules

General CasesTransference

ReasoningReasoning

Sample OrganizationsSample Organizations

McDonald’s

ServiceMaster

Mrs. Field’s Cookies

WalMart

Key MIS TrendsKey MIS Trendso Standardizationo Leverageo Mass Customizationo Franchiseo Methodologyo Modularizationo Liquid Assetso Client/Servero Knowledge, Information, or Expertise Driven

The Conscious Effort to Make all Jobs Similar, Routinized, and Interchangeable

Key MIS Trends

StandardizationStandardization

Move all tasks to the lowest possible individual in terms of level and cost

Key MIS Trends

LeverageLeverage

Focus all products and services on the specific customer

Key MIS Trends

MassMass CustomizationCustomization

The Organization has become a small central office with many autonomous, but identically-structured units

Key MIS Trends

Franchise

Methodology tells the user the steps to take in the process

Key MIS Trends

MethodologyMethodology

MethodologyMethodology

Rather than be constructed at the most granular level, projects are completed using sections of code

Key MIS Trends

ModularizationModularization

Liquid vs. Fixed AssetsLiquid vs. Fixed Assets

Key MIS Trends

Focus on Liquid Assets, Reducing Fixed Assets

Client/ServerClient/Server Enables data to be stored at

organizational, group, and individual levels.

Key MIS Trends

Rather than work in a hierarchy, workers develop a particular expertise and are constantly reassembled to provide their expertise to a project

Key MIS Trends

Knowledge, Information, or Knowledge, Information, or Expertise-DrivenExpertise-Driven

Knowledge Information Expertise

Key MIS Trends

ImplicationsImplications

Organizational Architecture

Data Architecture

Communications Architecture

Programming Languages

FortranCobol C PL/1

Statistical Analysis

MinitabSPSS SAS

PowerBuilder

Visual Basic Lotus Notes

KnowledgeWare

Systems Architecture, Design, and Operations

Management Information Systems

Microsoft/Lotus Suite of ProductsUser-Directed Toolset

Internet