Transcript IS 425 Enterprise Information Spring 2008

IS 425
Enterprise Information
Spring 2008
James Nowotarski
3 April 2008
Today’s Objectives




Understand what the course is about (i.e., course
objectives)
Understand how the course will achieve its objectives
Get acquainted
Level set:



What is enterprise information?
How do enterprises use information?
What is the role of the enterprise’s IT function in all of
this?
2
Today’s Agenda
Topic
Duration

Questionnaire & Intros
30 minutes

Role of IT
45 minutes
*** Break
15 minutes

Course overview
30 minutes

Trends & IT implications
30 minutes

Value chain framework
30 minutes

Wrap-up
3
Total WW IT Spending In 2007 = $3.006 Trillion
8%
7%
6%
5%
7.3%
4%
5.5%
5.4%
3%
4.8%
4.5%
3.6%
2%
1%
2005
v.
2006
v.
2007
v.
2008
v.
2009
v.
2010
v.
2004
2005
2006
2007
2008
2009
Comparison of Business and IT Growth in
Selected Industry Segments: 2007 vs. 2006
4.0%
Financial
Services
Government
4.5%
2.5%
3.1%
High
Technology
Insurance
Mfg.
0%
4%
3%
2004
2%
3.2%
4.3%
Healthcare/
Pharma.
Worldwide Projected IT Budget
Growth
5%
1%
2003
1.6%
2005 2006
2.5% 2.7%
2007
3.0%
0.0%
5.7%
Projected 2007
Business Growth
0.7%
Source: Global Insight
January 2007
2.9%
2.4%
Projected 2007
IT Budget Growth
4.5%
Source: Gartner EXP
2007 CIO Survey
2.9%
5%
10%
Role of IT
“Is IT central to economic competition
...
or is it simply glorified plumbing”
--- Diamond Management & Technology Consultants
6
Does IT matter?
As noted by Carr, IT is often viewed as a commodity
and, thus, not “core”
•
IT is like electric power -- a commodity that is required by
all but provides distinction to none
•
IT capability is broadly accessible and affordable
•
New or proprietary technologies offer opportunity for
companies to gain a step, but this advantage is short-lived
•
Further evidence of IT commoditization:
– overcapacity
– price drops
– vendors positioning selves as “utilities”
7
Source: Carr, N. (2003, May). IT doesn’t matter. Harvard Business Review, 81(5), 41-49.
Role of IT
Enterprises expect IT to deliver
_____________
(fill in the blank)
8
Role of IT
Performance
Decisions
Information
Hardware, Software, Communication Networks
9
Role of IT
10
Role of IT
Develop new products and services
 Generate demand
 Fulfill demand
 Serve customers
 Plan and manage the enterprise

11
Role of the IT professional

Technology provider
OR

Solution partner
12
Role of the IT professional
“Being different is easy.
Making a difference is a challenge.”
13
Today’s Agenda
Topic
Duration

Questionnaire & Intros
30 minutes

Role of IT
45 minutes
*** Break
15 minutes

Course overview
30 minutes

Trends & IT implications
30 minutes

Value chain framework
30 minutes

Wrap-up
14
Course Objectives
By the end of the course, the student will be
able to:




Analyze … business forces that influence IT usage
Analyze … business processes and information flows
Evaluate current IT conflicts
Analyze IS professional competencies
15
Course Prerequisites
IT215 – Analysis and Design Techniques or
SE325 – Software Engineering Practices
and
 MSIS Prerequisite phase

16
MSIS Program Phases
Prerequisite
IS425
CSC451
ECT425
SE430
Foundation
Advanced
Capstone
Enterprise Information
Database Design
Technical Fundamentals of Distributed Information Systems
Object Modeling
17
Competency Modules for MSIS
Level III
IT Project
Management
IT Planning
& Strategies
II
IT
Architecture
Design
Global
Systems
& Strategies
Legal
& Social
Issues
Capstone
IS 577
Level II
Database II
Information
Assurance &
Security
Enterprise
Systems
Integration
IT Project
Management
I
Wireless &
Mobile
Applications
Knowledge
Management
Advanced
Internet
Tech.
Level I
Database I
Application
Development
Data Mining
& Analytics
CSC 451
Database
Design
Network
Design
E-Business
Systems
ECT 425
Technical
Fundamentals
Of Distributed
Info Systems
HCI Methods
SE 430
Object-Oriented
Modeling
Software
Engineering
Internet
Application
Development
Foundation Phase
IS 425
Enterprise
Information
Prerequisite Phase
CSC 211
Programming
In Java I
CSC 212
Programming
in Java II
IT 215
Analysis &
Design Techniques
ECT 310
Internet
Application
Development
18
Your grade
Homework Assignments
45%
Midterm & Final
45%
(both take-home)
Participation/Discussion
10%
-------100%
19
Course Assignments
• Assignment 1 – IS Competency Analysis
• Assignment 2 – Case Study
• Assignment 3 – Current Event Report
• Assignment 4 – Issue/Trend Briefing Report
20
Course logistics

Road map:

http://facweb.cti.depaul.edu/jnowotarski/is425/
default.htm
All readings are web available
 Most readings at DePaul Online Library's
24x7 E-Books
 COLWEB is course repository



https://col.cti.depaul.edu
Office hours: Thursdays, immediately before
and after class
21
My role

Facilitate learning

Plan, prepare, and conduct lectures and learning
activities

Assess student progress and provide feedback

Relate concepts to real-world problems

Provide classroom environment conducive to learning

Clearly state expectations

Gather and implement suggestions for improving the
class
Keep it fun

22
My coordinates
email: [email protected]
 phone: 312-261-3838
 office hours: Thursdays, immediately
before and after class

23
Your role

Be proactive

Share your experience

Come to class prepared

Collaborate with other students as appropriate

Ask if you don’t understand or if I’m not clear

Provide constructive feedback (“This class would be
better if . . .”)
24
Class Participation
Subjective evaluation of participation:
A Consistently asks good questions, makes valuable
observations, and answers questions effectively
B Frequent participant, but not all questions,
answers, and observations are effective, or not
consistently active
C Participates infrequently, or questions/answers do
not reflect adequate preparation, or late to class
D Very rare participation, or questions/answers reflect
little or no preparation, or very late to class
F Displays no sign of life, or absent for entire class 25
Today’s Agenda
Topic
Duration

Questionnaire & Intros
30 minutes

Role of IT
45 minutes
*** Break
15 minutes

Course overview
30 minutes

Trends & IT implications
30 minutes

Value chain framework
30 minutes

Wrap-up
26
Holistic view
Process
People
Technology
27
Social and business trends
Volatility
in market environments

Aging population

Extreme meritocracy

Regulation, security, liability

Emerging nations, globalization


“Chindia”
Consumerization/Digital natives

“guerilla IT”
28
Implications for IT
organizations & professionals

Partner with the business

Align efforts with the business strategy

Possess business skills

Possess people skills
and

Sustain and increase mastery of
technology
29
Social and business trends
http://www.glumbert.com/media/shift
30
Gartner 2008 CIO survey
2008 Business Expectations
To what extent will each of the following be a top priority for
you in 2008?
2008
2007
2006
Improving business processes
1
1
1
Attracting and retaining new customers
2
3
3
Creating new products or services (innovation)
3
10
9
Expanding into new markets or geographies
4
9
**
Reducing enterprise costs
5
2
2
Improving enterprise workforce effectiveness.
6
4
**
Expanding current customer relationships
7
*
*
Increasing the use of information/analytics
8
7
6
Targeting customers and markets more effectively
9
*
*
10
*
*
Acquiring new companies and capabilities (M&A, etc)
* New question for 2008 ** New question for 2007
31
IT must adapt to shorter time
spans to execute projects
and to recover costs
Time to ROI
5
Implications:
3
< 1.5 years

Shorter or incremental projects

Rapid return

IT spending/recover cost cycle
is more like a business unit

Focus on cross-project,
enterprise-level value
1
1990
2000
Source: Gartner Executive Programs
Date
2010
Source: Gartner Group
32
Holistic view
Process
People
Technology
33
Today’s Agenda
Topic
Duration

Questionnaire & Intros
30 minutes

Role of IT
45 minutes
*** Break
15 minutes

Course overview
30 minutes

Trends & IT implications
30 minutes

Value chain framework
30 minutes

Wrap-up
34
Porter’s Value Chain Model
Figure 3.6: Porter's value chain model for a manufacturing firm.
(Source: Reprinted with permission of the Free Press, a Division of Simon & Schuster Inc. from Competitive Advantage:
Creating and Sustaining Superior Performance. Copyright © 1985 by Michael Porter.)
35
Porter’s Value Chain Model
Value chain model addresses the activities
that create, deliver, and support a company’s
product or service.
 Two broad categories:

Primary activities – relate directly to the value
created in a product or service.
 Support activities – make it possible for the
primary activities to exist and remain
coordinated.

The Value Chain:
Firm’s Perspective
37
Basics

Which Primary activities are categorized as Costs?
As Sales?






Input Logistics
Operations
Output Logistics
Sales
Service
Which Secondary activities are categorized as
Costs? As Sales?




Firm Infrastructure
Human Resource Management
Technology Development
Procurement
38
The Value Chain for Firms

Clarifies:




key processes
core competencies
activities
• Strengths
• Weaknesses
• Value-adding potentials
• Cost-reduction potentials
Develops:


strategy
strategic advantage
39
The Value Chain:
Industry Perspective
Supplier
OL
Manufacturer
IL
OL
Distributor
IL
OL
Suppliers
Manufacturers
Distributors
Customers
40
The Market Roles
Example: Auto Industry
Suppliers
Create
component
products or
provide
services, raw
materials or
talent
Manufacturers
Design and
build products,
services, and
solutions that
meets a
specific
customer or
market needs.
Distributors
Enable buyers
and sellers to
connect,
communicate,
and transact
business.
Customers
Consumers or
business
willing to pay
for a product,
service, or
solutions.
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Disintermediation
Channel Conflict
Distributors
Suppliers
Manufacturer
Customers
Customer Direct
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The Value Chain for Firms

Targeted Activities that improve Value Chain


Use Value Chain to analyze each
competitor’s



Find Information Systems to fill need
Strengths
Weaknesses
Use Value Chain to determine usefulness of
employing Inter-Organizational Information
Systems (IOIS), e.g., Supply Chain
Management (SCM)
Porter’s Value Chain Model
(with examples of IT apps)
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The Information Value Chain
highlights the difference
between data and information
Where and What Is My
Information?
Community
Application Silos
Communities
Web 2.0
"Power of Me"
SaaS, DaaS*
Storage as a Service
*DaaS = database as a service
Shopping
Services
Training
Work
at
Home
Corp
Apps
School
Schedule
School
Memories
RSS
E-Mail
Wi-Fi
Devices
Banking
VOIP
Broadband
LAN
Benefits Wi-Fi
Banking
Cell
Conferencing Cell
Personal
Records
Meeting
Records
Financial
Info
Comms
Personal
External Search
Tax Info
E-Gov
Corp.
Archives
Production Data
Enterprise Search
Content
Professional
Enterprise Data
Warehouse
News
Sports
Standings
Hobbies
IM
E-Mail
Financial
Medical
Home
Security
TV
Calendar
Memories
Family
Music
Gartner 2008 CIO survey
2008 CIO Technology Priorities
To what extent will each of the following
technologies be a top five priority for you in
2008?
2008
2007
2006
2008
Unweighted Average
Budget Change
Business intelligence
1
1
1
11.20%
Enterprise applications (ERP, SCM, CRM, etc)
2
2
**
8.02%
Servers & storage technologies
3
5
9
8.45%
Legacy modernization, upgrade or replacement
4
3
10
5.79%
Security Technologies
5
6
2
8.53%
Technical Infrastructure
6
8
12
4.67%
Networking, Voice and Data
7
4
8
6.83%
Collaboration technologies
8
10
4
7.75%
Document management
9
9
**
7.91%
10
7
6
6.71%
Service oriented (SOA, SOBA)
* New question for 2008 ** New question for 2007
47
Today’s Agenda
Topic
Duration

Questionnaire & Intros
30 minutes

Role of IT
45 minutes
*** Break
15 minutes

Course overview
30 minutes

Trends & IT implications
30 minutes

Value chain framework
30 minutes

Wrap-up
48
For April 10




Read assigned readings for weeks 1-2
Complete Assignment #1 – IS Competency
Analysis
Sign up for a date to present Assignment #3 –
Current Event Report
Additional items for DL students:


Submit survey in COL
Participate in discussion topic in COL (initial
and reaction postings)
49
Extra slides
50
Course Scope = IT Function
IT Function
Administration
• IT HR
• IT Finance
IS Planning
Business
Technology
• Enterprise Arch
• Advanced
Technologies
• Business analysts
• Program managers
Software
Engineering
• Developers
• Development tools
• Processes, standards
• Procurement
Data
• Data admin
• Data warehouse
Production
•
•
•
•
Operations
Network
Help desk
Application support
Value
So, to determine our value chain,
what must we have?
 Information?
 What is data?
 What is information?
 What is knowledge?

52
New Accounting Equation

Old Equation


New Equation


Assets = Liability + Equity
Data + Insight = Information
The new accounting equation forces managers to use their analytical abilities
and insights to assess value. Without insight, “untransformed” data is likely to
be of significantly less use and of substantially less value in today’s market.
Business professionals are therefore forced to reconsider the work they do
and the value they create.
Buy vs. build
IT Outsourcing
Build
Critical
Strategic
Importance
Useful
Buy
Commodity
Differential
Potential for Differentiation
54