Weatherhead School of Management Case Western Reserve University MBAC 423 — Information Design and Management Summer 2005 instructor: email: office: voice: fax: web site: office hours: Fred Collopy collopy@cwru.edu 527 Peter B. Lewis Building 368-2144 368-4776 collopy.case.edu posted on web site and by appointment Objectives Today it is self-evident that information and information technology are fundamental to the practice of general management. The Management of Information Technology component of the EMBA curriculum is designed to improve your understanding of both information and the technology that supports it. Information technology supports all business functions. From their genesis as automated accounting systems, information systems have evolved to become the core of (and sometimes the impediment to) many organizations’ competitive strategies. We will study both the challenges and the opportunities that are the result of this pervasiveness. Information systems are among the most complex systems in the world. As a consequence people who have studied them have learned lessons that are applicable to other complex systems, such as economies and organizations. We will approach our understanding of information systems in a way that will keep an eye out for techniques and insights that generalize to these. We will investigate the strategic and operational use and value of information technology in organizations. More specifically we will explore the role of information technology in the strategy and management of organizations, and develop the skills to assess the opportunities and challenges that result. The course will also help you become fluent with and comfortable addressing the issues relating to the management of the IT function and its resources. Materials A CaseNotes pack containing several cases and articles is available in the bookstore. Other materials are on the course website. Grading Grading will be based equally on contributions to the classroom discussions and an essay. Classroom Contributions Much of your learning will occur as you prepare for and participate in class discussions. Most people in business are evaluated much more on what they say than on what they write. The classroom gives you the opportunity to hone your discussion and debating skills. I encourage you to work with others to get ready for each session. Your contribution will not be evaluated on what you know, but rather on what you contribute to the class. Effective participation in a discussion has much more to do with quality than quantity. In other words, using airtime without contributing to the advancement of the discussion is not rewarded. Nor is mere repetition. A great contribution is usually sensitive to the context that has developed to that point. It often takes the analysis to a new level. If you are unfamiliar with this approach to education, a good way to start is by getting involved early in a case discussion, when things are wide open and fairly fluid. Criteria for credit include attendance, punctuality, level of preparation, and professionalism. I encourage you to engage in critical thinking, to challenge without showing disrespect and to put forward your ideas for consideration. Essay By July 5th, you should turn in a brief (eight to ten page) essay in which you describe and compare two implementation projects—one successful and one unsuccessful. Ideally these will be projects that you had personal experience with, in most cases in your former employment. If possible, you should interview others who have knowledge of these projects, probably through email. Policy on Cheating or Plagiarism The Information Systems department does not tolerate cheating or plagiarism in any form. Cheating or plagiarism will, at a minimum, result in a grade of ‘F’ for this course. Ignorance will not be permitted as an excuse. If you are not sure whether or not something you plan to submit would be considered either cheating or plagiarism, please do not hesitate to ask me. 2 Schedule Tuesday June 21 J. Scott Armstrong, The systems approach (available online) Richard J. Boland, Jr., Fordley car park (available online) 1:30–3:15 Systems thinking Causal thinking teaches us a great deal about how the world works. But systems, which are often characterized by unclear boundaries, circular causal chains and delayed impacts, don’t always yield to simple causal logic. Systems thinking has been developed for such situations. 3:15–5:00 The systems approach The systems approach serves as a default technique that can be used to begin understanding and developing a response to almost any complex situation. It starts by recognizing multiple stakeholders’ objectives, proceeds through identifying measure for each, imagining alternative ways of achieving them, and only then developing effective programs. Discussion questions: How could the Fordley car park meeting have been made more productive? What are the systems that were discussed during the meeting? What systems should be considered? What would you recommend? 3 Thursday June 23 Peter Checkland & Sue Howell, The information system which won the war Edward Tufte, Visual and Statistical Thinking: Displays of Evidence for Making Decisions Using the Temperature/O-Ring Failure data provided on the course web site, use Excel or some similar business graphics package to create a graph that allows you to think about and present that data meaningfully. This work may be done in groups. 1:30–3:15 Sense-making and the soft systems approach One of the most interesting information systems that anyone has formally studied and described is the one that Checkland and Howell wrote about in this chapter. It is interesting because it played such a critical role in the defense of England during the Second World War. But it is also interesting because there were no computers involved. In reading their account of the invention and development of this important information system, we are exposed to principles that are relevant to the development of systems today—start with a careful account of the purposeful activity, work out what information is required by the people doing it, collaboratively create support for that work, and use the system as an opportunity for continuous learning. Discussion questions: What characteristics of this system made it successful? What about the way the systems were developed contributed? When is the soft systems methodology most likely to be worth using? 3:15–5:00 Gathering and presenting information One role of managers is to present information to others. Indeed, the value of any analysis, argument, or opinion can be affected by how it is presented. Sometimes, the effective presentation of information is all that stands between a good decision and a bad one. Edward Tufte has written three books on the effective display of quantitative information. We will look at what he has learned, including some lessons drawn from the Challenger disaster. Discussion questions: What is wrong with the materials that Thiokol engineers faxed to NASA? How could they be improved? What could Morton Thiokol managers have done to convince NASA not to launch? 4 Tuesday June 28 Thomas H. Davenport, Information Ecology—Chapter 4, Information Strategy Davenport, Hammer and Metsisto “How Executives Can Shape Their Company’s Information Systems,” Harvard Business Review, 1989 Consumer Products International Biogenetica San Jose ITSA Replacement After reading the Consumer Products International HR case, write a brief memorandum to the project’s sponsors with recommendations on how they can improve their proposal. Convey to them any questions, insights, or recommendations you have for their proposal. 1:30–3:15 Shaping technology strategy & the principles approach Managers can shape their organization’s technology strategy by recognizing that at the level of principles technology is not very different from anything else. Principles are clear, direct statements of an organization’s beliefs about how it wants to use technology over the long term. They can be very useful in maintaining a strategic perspective while sorting through the details of technology decisions. We’ll learn what makes good principles and how to engage managers in a process of articulating them. 3:15–5:00 Making the business case for IT As with other large projects, information technology projects must compete for limited capital resources. The criteria for evaluating them can be complex though. Sometimes the benefits of a system are spread across many business functions or projects or are required to meet competitive, legal or other pressures. 5 Thursday June 30 Michel Avital & Betty Vandenbosch, SAP Implementation at Metalica (Read ONLY Act 1, Scene 1 and the appendices) Christensen, The Innovators Dilemma, Introduction & Chapter 1 Online Music Distribution in a Post-Napster World Write a brief executive oriented memorandum that describes the potential of some currently emerging technology to be disruptive in an industry that you are familiar with. 1:30–3:15 Information technology and systems implementation Large system implementation efforts are often contentious and challenging. In addition to testing cross-functional communication, they often highlight differences in technical and managerial perspectives. Ethnodrama is used to re-create complex situations filled with emotion and discovery. This one was produced with only minimal modification to transcripts of meetings that took place during an actual SAP implementation. It should help us to understand ERP (enterprise resource planning) systems and implementation methods, to identify some of the critical success factors for implementing information systems, to recognize some of the risks to implementation as well as some of the dynamics that occur among team members, and to appreciate the repercussions that go beyond the initial system implementation. Discussion questions: How well prepared was Metallica to undertake the implementation of SAP at the outset of the case? What was different about San Diego? How would you assess a successful implementation? What are the risks involved in implementing integrated corporate systems and has Metallica guarded against them effectively? 3:15–5:00 Disruptive technologies Technologies can pose threats to whole industries. One hypothesis is that they often do this by making a lower level of performance available at a lower price to customers that needs only that. This provides a toehold from which they disrupt the industry. Discussion questions: What about peer-to-peer makes it a potentially disruptive technology? What are the pressures that account for revenue declines of the music industry? How can the relative importance of each be estimated? What kinds of business models might effectively be employed in the current record industry situation? How might these same technologies affect other industries? What are some other potentially disruptive technologies? 6 5/11/05 7