Assignment: Business Technology
Managing and Using Information Systems:
A Strategic Approach – Sixth Edition
Keri Pearlson, Carol Saunders, and Dennis Galletta
© Copyright 2016 John Wiley & Sons, Inc.
Chapter 8 The Business of IT
The Horner/Alcoa Story
• High-performing tech worker—almost dismissed as CIO
• What were the issues? • What did they expect from him? • What did he deliver at first? • What change did he make to become more
valuable to Alcoa?
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The Alcoa lesson: Business Demands
• IT offerings need to be aligned with business demands
• IT complexities should be translated to business needs
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Merlyn’s Business-IT Maturity Model
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What a Manager Can Expect From the IT Organization
A manager typically can expect some level of support in 14 core activities (Figure 8.2) – levels in parentheses
1. Developing and maintaining IS (1)
2. Managing supplier relationships (1)
3. Managing data, information, and knowledge (1, 2)
4. Managing Internet and network services (1, 2)
5. Managing human resources (1)
6. Operating the data center (1)
7. Providing general support (1)
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What a Manager Can Expect From the IT Organization (Cont.)
8. Planning for business discontinuities (1)
9. Innovating current processes (2)
10.Establishing architecture platforms and standards. (2)
11.Promoting enterprise security (2)
12.Anticipating new technologies (3)
13.Participating in setting and implementing strategic goals (3)
14.Integrating social IT (3)
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What The IT Organization Does Not Do
• Does not perform core business functions such as: • Selling • Manufacturing • Accounting.
• Does not set business strategy. • General managers must not delegate critical
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Chief Information Officer (CIO) The Senior-Most IT Executive
• Responsible for technology vision
• Leads design, development, implementation, and
management of IT initiatives
• Is a business technology strategist or strategic
• Uses technology as the core tool in
• creating competitive advantage
• aligning business and IT strategies
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• CIO’s focus has shifted:
• From efficiency to effectiveness in a constantly
• Formerly: reported to the CFO. Now: reports to
• Shift over time towards helping executive team
formulate business strategy
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CTO, CPO, and Other Roles
• CIO Can’t have all skills—can’t know everything! • Other roles are important:
• CTO: Chief Technology Officer (tracks technologies) • CKO: Chief Knowledge Officer • CDO: Chief Data Officer • CAO: Chief Analytics Officer • CTO: Chief Telecommunications Officer • CNO: Chief Network Officer • CRO: Chief Resource Officer • CISO: Chief Information Security Officer • CPO: Chief Privacy Officer • CMO: Chief Mobility Officer • CSMO: Chief Social Media Officer
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So Who Should Make the Decisions?
• Ross & Weill say • The CEO should not make those decisions alone • C-level executives should not even make those
decisions • Input is needed from both IT and the business units
alike • Steering (or Executive) Committee solution
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