Week 12
Monday, April 17
• Managing Infrastructure and Operations
• Leadership Issues
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
1
Random number function
Rank function
Presentation Schedule
April 24: Adam Hayashi, Paul Ward, Robin Lemoine
May 1: Julien Moua, Kewei Zhang, Shashi Ganjam
May 8: Daniel Linsley,Yan Huang, Daniel Alden
Discussants will be named on the day of the presentation.
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
2
Strategic Grid
Specifies the context in which we must perform
High
Factory
Operational IT
IT Impact on
Business
Operations
Support
Basic elements
Strategic
Strategic IT plan,
initiatives
Turnaround
Gradual adoption
Low
Low
IT Impact on Strategy
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
High
3
Governance and Leadership
Governance
Rights and responsibilities
shared between the various
corporate participants,
especially the management
and the shareholders
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
Leadership
• Leaders have followers
• Appeal to followers, showing how
following them will lead to their
(followers’) hearts' desire
• Always good with people, and have
quiet styles that give credit to others
(and takes blame on themselves)
• Are very effective at creating the
loyalty that great leaders engender
• Appeared as risk-seeking, although
they are not blind thrill-seekers
4
Subject
Leader
Manager
Essence
Change
Stability
Focus
Leading people
Managing work
Have
Followers
Subordinates
Seeks
Vision
Objectives
Detail
Sets direction
Plans detail
Power
Personal charisma
Formal authority
Appeal to
Heart
Head
Energy
Passion
Control
Dynamic
Proactive
Reactive
Persuasion
Sell
Tell
Style
Transformational
Transactional
Exchange
Excitement for work
Money for work
Risk
Takes risks
Minimizes risks
Rules
Breaks rules
Makes rules
Conflict
Uses conflict
Avoids conflict
Direction
New roads
Existing roads
Blame
Takes blame
Blames others
http://changingminds.org/disciplines/leadership/articles/manager_leader.htm
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
5
Three Rules of Leadership
• Rule 1: You must have or develop the skill, and take the
time to find out what is in the follower's mind concerning
his situation and how he perceives you
– Know what is perceives as negative
– Create and manage a system of feedback loops that keep people
in permanent touch with follower mindset
• Rule 2: To be a powerful leader, you must present your
"leaderself" to others, rather than your natural self
– Do exactly the leadership behavior called for by the situation
• Rule 3: To create an effective leaderself, you must
operate from self-awareness rather than from an
automatic mind
– Focus on the “good of the whole”
http://www.businessleader.com/bl/sep97/leadrshp.html
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
6
Four Competencies of Leadership
• Know ourselves very, very well
– Recognizing that all of us are actually three people in one: what
we are, what we think we are, and what others think we are
• Know our people—thoroughly
– Be able to motivate people with the right ideas, the right work,
and the right methods or techniques
• Highly competent on the technical and people sides of
our job if we intend to be successful
• Know the laws and principles of leadership and
management as they relate to leading ourselves and
people
– If you want to play the game, you've got to know the rules
http://www.leadershiphelp.com/introduction.cfm?show=4
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
7
IT Governance: Definitions
• A generic term which describes the ways in which rights
and responsibilities are shared between the various
corporate participants, especially the management and
the shareholders.
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
8
IT Governance
• Involves…
– Policies and procedures that specify and guide
decision making and the actions of people
– Specifying the responsibilities of management,
employees and shareholders (stakeholders), and
decision rights
– Administering the policies and procedures in daily
operations
– Adhering to the policies and procedure in short- and
long-term planning
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
9
Coordination
Management
Delegating authority
Sharing
Responsibilities
IT
Domain
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
User
Domain
10
IT Leadership
•
•
•
•
Managing the infrastructure
Managing the IT function
Strategic outsourcing
Portfolio management of IT projects
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
11
IT Leadership
Generally speaking…
Vision
Mission
Goals
Long-term aspirations
Long to medium-term purpose (can be changed)
Challenges consistent with the mission
Objectives specify what must be done to fulfill the goals
Objectives
Business model
Strategic Plan
Specifies how the goals and objectives will be met
Reflects the mission, goals and objectives
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
Plan of operation
Initiatives
Prioritizes projects
12
Strategic Positioning Choices
• Market/Channel – determines the choice of customers to
serve, the needs and expectations that will be met, and
the channels to reach those customers
• Product Positioning – determines the choice of products
and service to offer, the features of those offerings, and
the price that will be charged
• Value chain/value networking – determines the role an
organization plays and the activities it performs within an
extended network of suppliers, producers and
distributors and partners
• Boundary positioning – determines markets, products,
business NOT to be pursued
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
13
Strategic Alignment
• Alignment between the business and IT strategies
• Alignment between strategy and capabilities
Business
IT
Strategy
Strategy
Value
Capabilities
Including infrastructure
Capabilities
Including infrastructure
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
IT infrastructure
• Technology IT
infrastructure
• Human IT
infrastructure
14
Top-Down Planning Dilemma
Should change come from the strategic plan or the IT strategic plan?
Enabling
technologies
Organization Strategic
Plan
Should an IT strategic plan
precede an organizational
strategy?
?
Should the strategic plan
specify the technologies to
adopt?
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
Information Technology
Strategic Plan
Direction
15
Introducing Change: MIT90 Framework
Five Inter-Related Components
Structure
Vision and
direction
Strategy
Organization and coordination
Planning and control
Management
Processes
Individuals
and Roles
Information
Technology
Technology
Human resources
Dynamic Equilibrium: Any change to a component requires an
adjustment to the others
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
16
Porter’s Five Forces Model
Forces that Shape Strategy
Opportunities grow out of crises

How will the business
Potential
react to threats (and
Entrants
opportunities)?
Threat of new entrants
Industry
Competitors
Bargaining power of
suppliers
Customers and
Buyers
Suppliers



Bargaining power of buyers
Rivalry among
existing firms
Substitutes
R. Ching, Ph.D. • MIS Area • California State University, Sacramento

Threat of substitute products or
services
17
Strategy and Threats
Threats
Opportunities
Strategy
How does the business capitalize on its threats?
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
18
IT Resources
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
19
Emerging IT Strategic Role
IT offers the capability to redefine the boundaries of
markets and structural characteristics, alter the
fundamental rules and basis of competition, define
business scope, and provide a new set of competitive
weapons.
N. Venkatraman, 1991
(from Corporations of the 1990s)
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
20
New technologies open new opportunities
How does a business benefit from new technologies?
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
21
IT Value Framework
Value-sustaining IT
applications
Strategic differentiation and proprietary
advantage that can be measured in terms of
increased market share, improved brand
value, increased market capitalization
Value-creating
IT applications
Value-enabling infrastructure
Profitable growth through further cost
reductions and revenue generation
Lower costs, improve asset
efficiency, and create strategic
options for future growth
Initiatives
How will the business achieve this?
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
22
IT Application Framework
IT to differentiate the organization from others
Strategic
Application of
IT
Basic IT to remain competitive in industry
Reengineering
Business
Processes
Basic IT to do business
IT
Infrastructure
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
23
Architecture vs. Infrastructure
• Architecture – a blueprint that shows interrelationships
of the components of a system
– Emphasis on the whats
– Based on the business model
• IT Infrastructure – implementation of the architecture
Purpose: To deliver the right information to the right
people at the right time
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
24
Architecture
• Defines guidelines and standards
• Service Oriented Architecture (SOA)
– Emphases on accessibility of others systems to data
and functions, and reusability of programming code
– Supports the organization's agility
• Four attributes: Distributed vs. Centralized
– Location of processing
– Connectivity among processors
– Location of data repository (data storage)
– Systemwide rules (information security, accessibility,
etc.)
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
25
IT Architecture
Another View
Coordination
(information flow
and linkages)
Control
• “…defines the technical computing, information
management, and communications platform. …provides
an overall picture of the range of technical options
available to a firm, and as such, it also implies the range
of business options.”
Enables
Opportunities
Vision
What design gives the organization the best use of its information?
What technology configurations will best support the business?
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
26
Infrastructure
Delivering the right information to the right people at the right time
• Delivering IT resources to support users throughout the
organization
• Four layer infrastructure (Weill and Broadbent)
– IT components
– Human IT infrastructure
– Shared IT services – services that users can draw
upon and share to conduct business
– Shared and standard IT applications – stable
applications that change less frequently
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
27
IT Infrastructure
• Three categories:
– Network – technologies that permit exchange of
information between processing units and
organizations
– Processing systems – encompass hardware and
software that provide an organization’s ability to
handle business transactions
– Facilities – physical systems that house and protecting
computing and network devices
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
28
Leveraging the IT Infrastructure
• Two key infrastructure components:
– IT operations (data center, network, call centers, etc.)
– Supporting enterprise processes (procurement,
enterprise resource planning, finance, human
resources)
• Flexibility and efficiency in the IT infrastructure to drive
down costs, and increase IT asset productivity and
future options values
Business process
IT
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
29