Lecture Business management information system - Lecture 6: The top IS job. After studying this chapter you will be able to understand: Traditional functions are being nibbled away, roles, toward IS lite, the CIO’s responsibilities, four aspects of the CIO role.
The Top IS Job Lecture 2-1 Today lecture Summary Traditional Functions Are Being Nibbled Away Roles Toward IS Lite The CIO’s Responsibilities Four Aspects of the CIO role 2-2 Traditional Functions Are Being Nibbled Away • IT has become an essential piece of business strategy • Not keeping up in IT may even mean going out of business • The job has become too large for one group • While the growing importance of IT is causing the IS Department’s work to expand into new areas of responsibility, management is realizing that the traditional and more operational portions of the job not have to be performed by the IS department – Particularly ‘centralized’ 2-3 Traditional Functions Are Being Nibbled Away cont • The traditional set of responsibilities for IS has included: Managing operations of data centers, remote systems, and networks Managing corporate data Performing systems analysis and design, and constructing new systems Systems planning Identifying opportunities for new systems 2-4 Traditional Functions Are Being Nibbled Away (Figure 2-2) • The traditional functions still need to be performed but the following trends are moving their performance out of the IS department and into other parts of the organization or to other enterprises: Distributed systems – Software applications migrating to user areas Ever more knowledgeable users have taken on increased IS responsibilities 2-5 Traditional Functions Are Being Nibbled Away (Figure 2-2) conti… Better application packages – Less need for ‘armies’ of programmers, analysts etc Outsourcing 2-6 2-7 New Roles are Emerging • (Another way to look at it:) IS is not a single monolithic organization, but rather a cluster of four functions (Fig 2-3): Run operations Develop systems Develop architecture Identify business requirements 2-8 New Roles are Emerging conti • • The ‘Squeeze’ on Traditional IS Activities (Figure 2-4): – Growing External Services – Growing Capabilities of Users ‘Future’ Roles for IS (Figure 2-5): – Broker – Systems and Information Architecture 2-9 2-10 Investing: Shaping the IT Portfolio cont Prioritize Quarterly, and Apportion Your Budget Accordingly Not wise to close the approved list of projects for a long time Track projects and if significant deviations = consider project costs, risks and benefits Be Consistent 2-76 Managing: Establishing Credibility and Fostering Change CIOs are in the change business Information systems bring about change BUT – before a CIO and the IS organization will be heard as a voice for change, they must be viewed as being successful and reliable To foster change, a CIO must establish and then maintain the credibility of the IS organization 2-77 Managing: Establishing Credibility The first job of IS management is to get the “today” operation in shape Until that task is accomplished, CIOs will have little credibility with other top management Managing “today” includes: Computer operations Technical support (including networks) 2-78 Managing: Establishing Credibility conti The help desk, and Maintenance and enhancement of existing systems Delivery oriented with a high level of service Some = outsource parts Once you have “today” working well – they will listen to you re “tomorrow” 2-79 Managing: Fostering Change ‘Techies’ presume a technically elegant system is a successful one Not so Many technically sound systems have turned into implementation failures because the people side of the system was not handled correctly IT is all about managing change New systems require changing how work is done Focusing on the technical aspects is only ‘half’ the job The other job is change management 2-80 Managing: Fostering Change cont People resist change, especially technological change May react in several ways: Deny, distort or delude ODR (and others) methodology: Sponsor Change agent Target 2-81 Managing: Fostering Change cont Working across Organizational Lines CIOs now find that systems they implement affect people outside their firm Supply side = fewer suppliers but deeper relationships Customer side = need buy-in to building / using interbusiness systems 2-82 REXAM Case example: Working across organizational lines One of the world’s top consumer packaging companies and the world’s top drink can maker Rethinking Interactions with Customers Initial doubts Vs “If we can demonstrate value to them they will (use it)” Benefits of the Project Prioritization Process 2-83 REXAM Case example: Working across organizational lines Phase 1: CRM Made Simple Testing the System with Customers Phase 2: Knock Customer’s Socks Off Competitive advantage? – They’ll ‘never leave’! The CIO’s Role The Steering Committee’s Role 2-84 REXAM Case example: Working across organizational lines cont Rexam case illustrates a number of points about the CIO’s current role: CIOs are working outside as much as inside these days They are working in concert with their peers in the company in selling and implementing their visions 2-85 REXAM Case example: Working across organizational lines cont To stay ahead they need to keep their staffs experimenting with new technologies Selling the vision occurs one customer, supplier or executive at a time – Need to know how ‘IT ready’ a customer, supplier, executive, department or group is 2-86 Conclusion • IT decision making must be ‘shared’ - The main responsibility for managing the use of IT needs to pass to the line, while the management of the IT infrastructure is retained by the IS group • It is reflected in the following saying: “We used to it to them”- IS required end users to obey strict rules for getting changes made to systems, submitting job requests, etc 2-87 Conclusion Conti Next, we did it for them”-IS moved to taking a service orientation “Now, we it with them”-which reflects “partnering” “We are moving toward teaching them how to it themselves” 2-88 Conclusion cont • To achieve this transformation, CIOs must play a leadership role in their enterprise and develop partnerships with senior management, internal and external customers, and suppliers 2-89 Summary Traditional Functions Are Being Nibbled Away Roles Toward IS Lite The CIO’s Responsibilities Four Aspects of the CIO role 2-90 ... all projects business led – Moves ownership of systems to the business people 2-1 7 The CIO’s Responsibilities In line with the evolution of IS departments, the emphasis of the top job has changed... language? 2-2 7 1.B Understand the Business: Concentrate on Lines of Business Do we have a sponsor in the line of business? Do we have the attention of their management? Does the line of business. .. Informed Buyer 2-2 1 CIO Responsibilities — History cont The Web Era Started in the mid-1990s for some Arose from the emergence of the Internet, and esp the Web as a business tool Era is still