Transcript Information Technology Management

Information Technology
Management
Perspectives, Focus, and Change
in the 21st century
Paradigm shift
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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
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External IT fundamental changes
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High computing power
Network-oriented processing
Wireless-oriented accessing
Organizational behavior/structure
adaptation for searching fitness
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The computer-literate & network-centric
knowledge worker
Five eras of IT evolution
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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)
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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
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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.)
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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
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Technological advances:
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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.)
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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
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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.)
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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
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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.)
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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
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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.)
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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
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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
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Centralization & decentralization
A total business approach around IT
In-sourcing & outsourcing (the make-orbuy decision)
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Top management engagement—active
participation
Project management
transformation
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Project management team may change along
with shifts in business needs
Rapid everything and virtual many things (the
object-oriented programming project)
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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
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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,” Harvard Business Review,
75(5), Sept.-Oct., pp.71-82.
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
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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.
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Rogers, E.M. (1995), Diffusion of Innovations, 4th ed., The Free Press,
New York.
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.)
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Keil, Mark, Joan Mann, and Arun Rai (2000), “Why
software projects escalate: An empirical analysis
and test of four theoretical models,” MIS Quarterly,
Vol. 24, Iss. 4.
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Kahneman, D. and A. Tversky (1979), “Prospect Theory:
An Analysis of Decision Under Risk,” Econometrica,
vol.47, pp.263-291.
Jensen, M. C. & W. H. Meckling (1976), “Theory of the
Firm: Managerial behavior, Agency Costs, and Ownership
Structure,” Journal of Financial Economics, vol.3, pp.305360.
Referred papers (cont.)
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Reich, Blaize Horner and Izak Benbasat (2000), “Factors that
influence the social dimension of alignment between business
and information technology objectives,” MIS Quarterly, Vol. 24,
Iss. 1.
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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), Case Study Research: Design and Methods, 2nd ed.,
Sage, CA.
Wastell. David G. (1999), “Learning dysfunctions in information
systems development: Overcoming the social defenses with
transitional objects,” MIS Quarterly, Vol. 23, Iss. 4.
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Argyris, C. (1990), Overcoming Organizational Defenses, Allyn & Bacon,
Boston.
Beer, S. (1994), Decision and Control, Wiley, Chichester, England.