Lecture 31 - Understanding a networked world. In this chapter we will consider: Understanding a networked world, the internet mindset, where’s the value in a network? the rules of networks, moving forward, understanding users, increasing executives’ understanding of IT.
Understanding A Networked World Lecture 31 Today’s Lecture n n Understanding A Networked World ă The Internet Mindset ă Wheres the Value in a Network? ă The Rules of Networks Moving Forward ă Understanding Users ă Increasing Executives Understanding of IT Understanding A Networked World n Our networked world has different characteristics from the non-networked world many people are used to living in Understanding A Networked World The Internet Mindset Just as PCs turned the mainframe data processing mindset upside down, this new world of communications, with its multi-dimensions and interactivity, wreaks havoc with businesses unless they understand and embrace the mindset of the global online world The Internet mindset: Communication is personal, not mass market Customer contact is interactive, not broadcast The customer time frame is theirs, not yours The culture is bottom-up, not top-down Understanding A Networked World The Internet Mindset cont n n n n Communication is personal, not mass market Communication is ‘up close and personal’, not top-down mass marketing Message to traditional marketing departments = “Your ad copy is boring” Some corporate Web pages are stuck in the traditional advertising model, duplicating the printed page ă THEY ARE USING THE WRONG MINDSET: MASS MARKET RATHER THAN PERSONAL Others get it ‘right’ and give people a way to create their ‘own’ pages e.g My-Yahoo, My-CNN etc Understanding A Networked World The Internet Mindset cont n n Customer Contact is Interactive, Not Broadcast The single most important point of view to take toward the Internet is to view it as interactive, not broadcast: ă Incoming, not outgoing In essence, the Internet is a customer’s window to companies Understanding A Networked World The Internet Mindset cont n It is substantially different from TV because customers can initiate communications with a firm rather than merely react to their ads n Customer-initiated dialog supported by the Internet significantly challenges marketing departments, customer support groups and fulfillment folks Understanding A Networked World The Internet Mindset cont n n The customer time frame is theirs, not yours Customers are closer than most companies have ever experienced Being put on hold increasingly irks ă Todays consumers are busy with little patience with waiting Understanding A Networked World The Internet Mindset cont ă n As with TV remote controls, customers who not get immediate satisfaction will switch to the competition with a point and click Assess any proposed Internet business solution: ă WILL OUR FIRMS INTERNET STRATEGY TRULY HELP OUR CUSTOMERS COMMUNICATE WITH US? Understanding A Networked World The Internet Mindset cont n n The culture is bottom-up, not top-down The Internet is not the expert’s world where the few impart their knowledge to the many The message is clear for IS departments: ă IS cannot work in the top-down broadcast mode, “I’m IS and I’m the expert, so here’s your solution customer” Moving Forward Understanding Users cont n Approach = IS first needs to understand their concerns n They (may) have justifiable business fears that need to be identified and addressed before any thought of using a new technology for business purposes can be entertained Moving Forward Understanding Users cont The Technology Camel: IS Management – The ‘Bottom Line’ n IS Department (Management) need to recognize and acknowledge each cluster’s concerns about new technology, and then develop a multi-tiered approach to respond to the diverse concerns ă Eager Beavers: The Innovators and Pioneers (.5%) ă Early Adopters: The First Consumers (5%) ă Early Majority: The First Big wave (30-35%) ă Late Majority: The Technology Skeptics (40-50%) ă Technically Averse: Not On My Time You Don’t” (10-15%) Moving Forward Increasing Executives’ Understanding of IT • Leadership of IT is no longer a technical challenge; it is a challenge for all business managers CIOs need to ensure that the business managers: ă Stay abreast of the changes and new uses of IT ă Are comfortable with IT, and ă Understand its impact and potential value to the business Moving Forward Increasing Executives’ Understanding of IT cont n The dot-com boom and bust also had a “damaging” effect on collective opinions about IT because many executives and venture capitalists believe the money they spent creating Websites and funding new ebusinesses was wasted ă n New channels to the customer did not pay off As a result, many now de-emphasize the importance of e-commerce at the very time when early promise is being realized in many industries and sectors Moving Forward Increasing Executives’ Understanding of IT cont n There is an e-commerce boom taking place right now, even though the hype is gone n CIOs need to be concerned with the potential gap between what their fellow business executives believe is important about IT versus what they really need to know to effectively guide the use of IT Increasing Executives’ Understanding of IT cont Executives’ Leadership Roles n These roles include: ă Setting the tone of the enterprise toward technology ă Envisioning how IT can serve business strategy ă Governing as well as leading ă Using IT to promote business change, and ă Assessing costs and benefits Increasing Executives’ Understanding of IT cont Current, Longstanding, and Upcoming IT Issues n n n n The impact of new regulations is a current issue, with a potentially huge impact Project management is another topic of current interest Measuring the value of IT is a continuing topic of interest, as is change management and organization and control of the IS organization Cross-organizational e-processes are areas on the verge of breaking through, as is obtaining services via the Web Increasing Executives’ Understanding of IT cont Means for Executive Learning n These include: ă Learning by doing ă Learning by governing, and ¨ Learning via educational programs MIT’S IT FOR THE NON-IT EXECUTIVE PROGRAM Case Example: Executive Learning n n This two-day course is given three times a year and has 60-75 attendees The program is not about technology; rather, it presents frameworks and a vocabulary to help non-IT managers and executives understand, in business terms, what is going on with the technology Moving Forward Educating IS About the Business n n “When it comes to educating users about IT, my philosophy is that we in IS should be educating ourselves about the business environment Some options ă Train in the Business ¨ Move into the Business n Encourage direct reports to move into the business ă Include an option to come back ă Lead with the Business n Get the business to take the lead on an IT project ă Attend Business Programs n Need for education in “business speak” SIM’S STRATEGIC BUSINESS LEADERS PROGRAM Case Example: Educating IS About the Business n day program which gives senior IS leaders a place to interact with business leaders ă 1st program = “Navigating Unchartered Waters: The Global Economy and Business Strategy” n session program n business + X technology SIM’S STRATEGIC BUSINESS LEADERS PROGRAM Case Example: Educating IS About the Business ă Sessions: Informal Getting-to-Know-You activities Establishing the Framework The Business Perspective Integration with the Technology Perspective Practical Take-Aways Conclusion n We are indeed in a business revolution n With it, the use of IT is changing in kind ă It n has shifted from amplifying thinking and processing to amplifying communicating and connecting It is now much more about relationships than transactions (which happen in the background) and are becoming increasingly sophisticated Conclusion cont n Now that this shift has been made, IT becomes about business and needs to be the responsibility of the business folks, not just technology folks n The foundations of past ways of working are changing n That is the exciting exploration that is going on right now, as people grapple with creating the new work environment and the challenge it presents ... Understanding of IT Understanding A Networked World n Our networked world has different characteristics from the non -networked world many people are used to living in Understanding A Networked World. .. distributed are being pulled together and operated as a utility Understanding A Networked World Where’s the Value in a Network? cont n n Modules Software, devices, organizational capabilities, and business. .. devices Understanding A Networked World Where’s the Value in a Network? cont Common Infrastructures n Elements of any infrastructure ă n An organization, a system, a business process… That were