Chapter 10: Leadership of the IT Function (IT的領導角色) Summarized from: Lynda Applegate, Robert D. Austin, and Deborah L. Soule, Corporate Information Strategy And Management: Text and Cases, McGraw Hill, 8th Edition, 2009. Four broad roles for IT(IT的角色) Support幫助 Factory工廠的作用 Turnaround轉機 Strategic Support幫助 The role of IT Sustaining current business operations保持當 前的業務操作and in shaping future business operations塑造未來的業務運營or strategy is relatively limited. May not be operationally dependent on IT. Support Typical role of IT in many professional services firms專業服務公司(e.g., law firms and consulting firms). Factory工廠的作用 IT systems are absolutely critical絕對關鍵to current business operations. Like the Nasdaq Stock Exchange納斯達克 交易所or PSA (PSA Peugeot Citroën, car manufacturer), where reliable, zero-defect operation of IT零缺陷的IT運作is essential for performing Core activities核心業務within the organization and Across the extended business network of customers, supplier, and partners. Turnaround轉機 View IT as a means for business transformation企業轉 型的手段. While they are not currently operationally dependent on IT, their IT projects and innovations are intended意 圖to exploit emerging strategic opportunities利用新出 現的戰略機會or transform business capabilities. Consider the case of Medtronic (world leader in medical technology世界領在醫療技術), sought to differentiate itself by offering an IT-enabled service: remote monitoring for certain pacemaker起搏器models. Pacemeaker - small device that's placed in the chest or abdomen (belly)胸部或腹部to help control abnormal heart rhythms異常心律 Strategic策略 Strategic rely intensely激烈on IT to sustain current business operations維持 目前的業務運作and enable their future transformation改造. Such as Charles Schwab嘉信理財, a discount online brokerage firm經紀公司. IT and business strategy are not just aligned一致; they are intertwined交織在 一起. Recognizing Transitions in the Role of IT Most firms start out using IT in a support role and some can remain in this pattern of use for a long time. Yet internal and external factors, such as increasing organizational familiarity and expertise with core technologies, changing IT functionality不斷變化的IT 功能, or competitive dynamics, naturally Encourage促進both further experimentation試驗and increasing integration of technology技術with core business processes. These changes trigger transitions in the role of IT from Support to Turnaround, to Factory, even to the Strategic quadrant for firms that continue to evolve their dependence on IT改進他們對IT的依賴. Turnaround Transitions Consider the consulting firm described earlier that used IT solely in a support role. The firm had begun to use IT to provide consulting advice顧問議建to its global customers全球的客戶. Consulting reports were advertised and sold on Amazon.com. Canyon Ranch酒店和溫泉浴場, provides an example of a company in which the role of IT is transitioning from Support to Turnaround to Strategic. Prior to 1996, Canyon Ranch’s only core IT system was its Computer Loading System, which was primarily used to automate routine backoffice accounting, payroll, and reservation預約activities. But within the context of increasing competition in the hospitality sector酒店業, senior executives began to explore ways to drive customer loyalty and sought to use real-time business information and analytics分析功能to improve the decision making it entailed. Thus, began the transition in the role of IT from Support to Turnaround. Factory Transitions A small manufacturing firm highlights the shift in IT role from Support to Factory. Until the 1990s, the role of IT in this small manufacturing company was strictly support—important for ensuring efficiency of back-office activities後台辦公活動like payroll and budgeting. In the mid-1990s, the company began to expand its product line擴大其產品線and entered new markets, domestically and abroad. Purchase an Enterprise Resource Planning(ERP) system designed To streamline, integrate, and coordinate all aspects of company operations, including how supplies were ordered, products were manufactured and sold, and orders were fulfilled. To gain better control of the company’s operations as it launched new products and rapidly expanded into multiple international locations. Strategic Transitions A small manufacturing firm highlights the shift in IT role from Support to Factory to Strategic Investment in a new IT application that would collect, and make available, real-time customer information that could then be integrated with information from over 60 plants工廠and two customer service call centers. As the value of IT to strategic decision making increased, the role of the IT continued its transition from Factory to Strategic. Leadership Approaches to the Role of IT (1) Support: Organizing for Low-Cost Stability and Incremental增量Improvement When IT fulfills a support role, the IT assets of a company usually can be adequately managed by a technical professional and a team of technical staff. Are unlikely to need interact directly with senior executives of the company. IT-led innovation priorities tend to be targeted toward incremental, operational improvements, such as increased process automation流程自動化, but do relatively little to change its position or power地位或權力 in its industry or business network. Leadership Approaches to the Role of IT (2) Factory: Organizing for Factory-like Efficiency and Reliability Firms in the Factory quadrant are critically dependent on their IT systems for business continuity(連續性), and thus, their leadership approach should focus on ensuring the utmost availability and reliability of these critical assets. The IT function should be led by someone who can enforce a highly disciplined approach執行高度紀律的做法to operations and development. IT department’s mission is ensuring the necessary degree of systems security, reliability, and availability and to coordinate imperative. IT developments and projects should be designed, implemented, and managed by business unit executives in partnership with IT executives由業務部門的主管與 IT管理人 員合作管理to ensure future business needs are met in conjunction with process continuity. Leadership Approaches to the Role of IT(3) Turnaround: Organizing for Experimentation and Rapid Exploitation (試 驗和快速開發) Firms in the Turnaround quadrant look to their IT function as a catalyst to transform organizational capabilities改造組 織能力and reveal new strategic avenues. New IT initiatives新的IT計劃are often defined, implemented, and managed at the top levels of the corporation, and the leadership of IT should have direct relationships with the firm’s senior executive team高層管 理團隊. An IT leader with an entreprenurial (創業者的)approach to getting things done will be a good fit at this stage. This person should have expertise in turning technologycentric ideas into business opportunities and be skilled at collaborating to leverage the cross functional expertise and resources of different parties. Leadership Approaches to the Role of IT(4) Strategic: Organizing for operational discipline and business agility The CIO is expected to drive business value by using IT to scale the business and increase market share, expand quickly into new market and products, and build emerging IT-based businesses. This person needs to possess both technical and general management expertise and have a strong focus on execution and growth . IT executives tend to be members of the executive committee. In some of firms, the head of the IT function is a member of the board of directors. IT investments focus in initiatives to accelerate and sustain the growth of the business, initiatives that are often defined, implemented, and managed at senior business levels. An important part of the Strategic IT function’s mission is to scan leading-edge technologies, and initiate explorations of their use to solve business problems or address opportunities.