Information Technology Management

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Information Technology

Management

Perspectives, Focus, and Change in the 21st century

Paradigm shift

The models for managing IT strategy, the IT function, and IT projects are changing in the twenty-first century.

The past is inadequate for fitting the environmental turbulence .

Environmental scanning

External IT fundamental changes

High computing power

Network-oriented processing

Wireless-oriented accessing

Organizational behavior/structure adaptation for searching fitness

The computer-literate & network-centric knowledge worker

Five eras of IT evolution

First era: pioneers, penetration, and chaos (1954-1963)

(the proud age of transistor)

Second era: gaining control-centralization and a technical monopoly (1964-1976) (after the IC breakthrough against the tyranny of numbers)

Third era: letting loose-distribution and decentralization

(1977-1984) (the dominant age of IBM)

Fourth era: distribution-a free market with issues of architecture and management (1985-1996) (the frogleap of Wintel )

Fifth era: the worldwide web and anytime/anyplace computing (1997 into the 21st century) (the Internet era)

First era

The first commercial computer was installed in a General Electric Plant in 1954

Univac I machine was once a leader in the market place.

Scientific applications were dominant in the age of Cold War.

FORTRAN and COBOL did not emerge as the popular programming languages until the late of this era.

First era (Cont.)

Computing: isolated machines

Applications: Scientific and engineering; machine-specific programs

Management: in-house training of technical staff

Organization: unplanned, chaotic

Key issues: few concerns; computing is a mystery, scattered and hidden from top management view

Second era

Technological advances:

IBM system 360 series — a modularized design ignited the dramatic growth of computer industry and brought consolidation of organizational computing resources

 direct-access storage devices (DASD), telecommunication, Multiple access computing

Beyond the function of accounting: included several efficiency-enhanced transaction processing systems, e.g., inventory control, banking, airline, taxing, healthcare, etc.

Second era (Cont.)

Computing: Distributed access to mainframes; compatible product lines

Applications: accounting, inventory, and business transactions

Management: standardized programming languages, early database technology

Organization: consolidation of control within the data processing function

Key issues: rising cost, unmet user expectations

Third era

Minicomputer emerges: DEC VAX series, Wang, and equipments of Japan ’ s electronic firms

Increasing demands of IT processing services

Focusing on the effective & efficient IS development methods — SDLC & User involvement

Externally-developed software packages were available (the spill-over effect of IBM)

IT organization and management in a advisory, service-oriented role

IT as a source of competitive advantage in the marketplace (focus on efficiency)

Third era (Cont.)

Computing: midrange computers, easy-to-use interfaces

Applications: commercial and user-developed applications complement internal systems development efforts

Management: systems development life cycle procedures; distributed IT development

Organization: greater business unit control of IT

Key issues: coordination of centralized and businessunit IT efforts

Fourth era

PC innovation and widely uses of software packages

The Wintel standard move the computing infrastructure forward

Network technologies connected the legacy systems and the current PCs

A harmonious IS settings with flexibility

Emerging inter-organizational data exchange applications: ERP, SCM, etc.

Fourth era (Cont.)

Computing: personal computers, LANs, Internet and extranets

Applications: user-friendly applications, desktop systems followed by groupware and workflow system

Management: user-driven systems management; everyone is an IT manager; project control techniques

Organization: federated or free market approach to IT, including centralized, decentralized, and outsourced

IT operations

Key issues: incompatible systems, integration difficulties, Y2K

Fifth era

This is a dotcom era contributed greatly after Netscape IPO

The business model of click-and-mortar integration

N-generation & M-generation workers

The new economics of information

Fifth era (Cont.)

Computing: PDA, mobile technology, Internet as primary platform

Applications: electronic commerce systems

Management: professionalism and team skills are paramount; flexibility is added to project control

Organization: downsizing of corporate IT, integration of business and IT operations

Key issues: embracing both old and new models of IT management

IT advantage transformation

From transaction processing to business relationship exploration

From IS scalability to IS mobility & agility

From the alignment with business strategy to the reach beyond the traditional business scopes

IT management transformation

Centralization & decentralization

A total business approach around IT

In-sourcing & outsourcing (the make-orbuy decision)

Top management engagement — active participation

Project management transformation

Project management team may change along with shifts in business needs

Rapid everything and virtual many things (the object-oriented programming project)

Trust & innovation rather than control

Action and risk assessment more than system analysis (standard betting & selection)

Up-to-the-minute clarity of information

Extending readings

Malone, Thomas W,. Robert Laubacher, and M. S. Scott

Morton, ed., (2003), Inventing the Organizations of the

21st Century , MIT Press.

Evans, P. and T. Wurster (1997), “ Strategy and the New

Economics of Information, ”

Sept.-Oct., pp.71-82.

Harvard Business Review , 75(5),

Thomas, J. Allan, and M. S. Scott Morton, ed., (1995),

Information Technology and the Corporation of 1990s:

Research Studies , Oxford University Press.

Scott Morton, M. J., ed., (1991), The Corporation of 1990s:

Information Technology and Organizational Transformation ,

Oxford University Press.

Nolan, R. L. (1979), “ Managing the Crisis in Data

Processing, ” Harvard Business Review , 57(2), pp.115-26.

Referred papers

Lyytinen, Kalle and Gregory M. Rose (2003), “ The Disruptive

Nature of Information Technology Innovations: The Case of

Internet Computing in Systems Development Organizations, ”

MIS Quarterly , Volume 27, Number 4.

Rogers, E.M. (1995),

New York.

Diffusion of Innovations , 4th ed., The Free Press,

Henderson, R.M. and K.B. Clark (1990), “ Architectural Innovation: The

Reconfiguration of Existing Product Technologies and the Failure of

Established Firms, ” Administrative Science Quarterly , Vol. 35, pp.9-30.

Teece, D. J. (1986), “ Profiting from Technological Innovation:

Implications for Integration, Collaboration, Licensing and Public Policy, ”

Research Policy , 15(6), pp.285-305

Referred papers (cont.)

Keil, Mark, Joan Mann, and Arun Rai (2000), “ Why software projects escalate: An empirical analysis and test of four theoretical models, ”

Vol. 24, Iss. 4.

MIS Quarterly ,

Kahneman, D. and A. Tversky (1979), “ Prospect Theory:

An Analysis of Decision Under Risk, ” vol.47, pp.263-291.

Econometrica ,

Jensen, M. C. & W. H. Meckling (1976), “ Theory of the

Firm: Managerial behavior, Agency Costs, and Ownership

Structure, ”

360.

Journal of Financial Economics , vol.3, pp.305-

Referred papers (cont.)

Reich, Blaize Horner and Izak Benbasat (2000), “ Factors that influence the social dimension of alignment between business and information technology objectives, ”

Iss. 1.

MIS Quarterly

MIS Quarterly

, Vol. 23, Iss. 4.

, Vol. 24,

Cohen, Wesley M. and Daniel A. Levinthal (1990), “ Absorptive Capacity:

A New Perspective on Learning and Innovation, ” Administrative Science

Quarterly , Vol. 35, pp.128-52.

Yin, R. K. (1989),

Sage, CA.

Case Study Research: Design and Methods , 2nd ed.,

Wastell. David G. (1999), “ Learning dysfunctions in information systems development: Overcoming the social defenses with transitional objects, ”

Argyris, C. (1990),

Boston.

Beer, S. (1994),

Overcoming Organizational Defenses , Allyn & Bacon,

Decision and Control , Wiley, Chichester, England.

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