The Roles, Roles and Relationships Concept

1
Chapter 9

• The Roles, Roles and Relationships Concept

2
Chapter 9
1. Roles, Roles, Relationship Concept and
Examples. 2. Triggers of Action. 3. Technology
Transfer Through Organizational Learning. 4.
I/S Organization as a Business within a
Business.
3
Information systems are strategic weapons, not
cost centers.
Information systems are strategic weapons, not
cost centers.
Robert F. McDermott Former USAA CEO
4
Roles, Roles and Relationships
1. What organizational leadership is necessary to
gain a competitive advantage through the use of
information systems? 2. How does an organization
determine the appropriate use of information
systems to gain a competitive advantage on an
on-going basis? 3. Does a specific event,
activity or person tend to trigger the start of a
program that emphasizes the competitive use of
information systems?
5
Roles, Roles and Relationships
4. Can an organization sustain a competitive
advantage that is built on an information system?
5. Is this a broad based approach or is the
successful use of competitive information tied to
a small number of people playing key roles? 6.
Does outsourcing the management of information
systems impact its possible use as a competitive
resource?
6
IS as a Competitive Resource?

• Business competitiveness is a top priority.
• What about Information Systems?

7
Why are some companies successful while others
are frustrated with a lack of results and
benefits from the use of information systems?
8
How Much is Based On
1. Business Leadership? 2. Information Systems
Leadership? 3. A Proven Information Systems Track
Record? 4. Business Stability? 5. Information
Content of the Business? 6. I/S Cost and Risk?
9
Roles, Roles and Relationship Concept
1. The role of information systems is focused on
competitive priorities.
2. Senior management plays a major role in
positioning and prioritizing the competitive
role of information systems.
3. There is an on-going working relationship
between senior management and the
information systems organization to sustain
the successful use of information systems to
compete.
10
Roles of Information Systems
1. Business Process Partner. 2. Provide Access to
Information. 3. Enhance Communications. 4.
Provide Decision Assist.
11
Information Systems Organization Mission
Statement
To assure that the corporation's present as
well as future demands for information,
information processes, information systems and
computer-based technologies are provided in such
a manner that the daily conduct of the business
will not be impacted and that the future business
opportunities can be capitalized on and managed
by the corporation.
12
Two Important Questions
1. Who Makes Competitive Strategy Decisions?
2. Who Makes Competitive Strategy Decisions
When the Process is Built on a Computer Base?
13
Top Executive Job Description
The primary role of the top executive is to
assure the long term viability of the business.
14
The Role of the Senior Executive
The Person that Runs the Business on a Day-To-Day
Basis

• Provide a long term vision for the future of the
  business.
• Recognize the value of information to the
  organization.
• Sponsor and participate in determining the role
  of information systems.

15

• Communicate the importance of the information
  systems role.
• Provide funding, including RD, to address the
  major requirements.
• Focus on results and benefits.
• Motivate to make things happen!

16
Role of Other Senior Management

• Understand the role of information systems within
  the organization.
• Identify and specify requirement for new
  information systems.
• Justify and fund existing and new systems.
• Sponsor their information systems on an on-going
  basis.

17
Role of IS Executive

• Function as a member of the senior management
  team.
• Provide an understanding of the realm of the
  possible, feasible, affordable and achievable
  with information systems.
• Posture information systems as a service and
  support organization in both fact and perception.

18
Using I/S to Compete
Senior Management
Users
Information Systems Organization
Functional Management
Figure 9-1
19
Roles, Roles and Relationships
Leadership in two forms
- Business Leadership - I/T Leadership
20
The Reeducation of UPS
Kent Oz Nelson ,CEO

• For decades UPS focused on managing physical
• distribution.
• Today, new IT and relaxed regulations have made
• logistics management the imperative.
• Information about a package is often as important
  as
• the package itself.
• In one decade IT has gone from a limited factor
  to a
• critical enabler.

21
Using IS to Compete
An Essential Partnership
22
Using I/S to Compete
Senior Management
I/T Leadership
Business Leadership
Information Systems Organization
Figure 9-2
23
Relationships
1. A formal structure within the organization.
2. Integral to the way that the business is run.
24
Who Should Be The Primary Initiator of Using
Information Systems to Compete?

• Senior Management?
• Functional Management?
• Information Systems Management?

25
Using I/S to CompetePrimary Responsibilities
Conceptual Approach
Specific Approach
Direction
Senior Management
7
2
1
Functional Management
2
5
4
I/S Management
1
3
5
10
10
10
Figure 9-4
26
Technology TransferThrough Organizational
Learning

• There is a direct correlation between
• the successful introduction of a new
• information system within an
• organization and the learning curve
• of the primary users.

27
Learning Curves
Information Technology
Computer-based Applications
Organization
28
Making It Happen!
Competitive Advantage
Business Leadership
Technology Leadership
Tactics
Vision
Strategy
Crisis Management
Action Initiators
Process Improvement
Executive Power
Figure 9-5
29
You manage things, but you lead people.
Grace Hopper Admiral U.S. Navy
30
More on Leadership
1. Entrepreneur Founder 2. Corporate
Managers 3. Corporate Caretakers
Bob Townsend Up the Organization
31
Board of Directors
A Business
Suppliers
Users
Products/Services
Competitors
Figure 9-6
32
Steering Committee
Information Systems Organization
Suppliers
Customers
Competitors
Figure 9-7
33
Steering Committee
Needs and Priorities
Direction
Opportunities
Wants Needs Justification Real s?
I/T Needs Real s
Information Systems Organization
Suppliers
Users
Products Services Constraints Costs
Products People
Real Dollars
Competitors
Figure 9-8
34
Outsourcing
Outsourcing is a current, major focus of many
business enterprises. It is clearly a very hot
topic.
Is the outsourcing of the management of
information systems a contradiction of its
possible strategic significance?
35
Outsourcing IS Management

• Strategically Significant?

• A Way to Save Money on a Short Term Basis?

• A Way to Avoid the Need to Manage Technical
• People in an Environment that Keeps Changing?

36
IS Organization Business
1. Designing Information Systems
2. Building Information Systems
3. Running Information Systems
37
Information Systems Objective
To help achieve organizational objectives by 1.
Supporting the decision making process. 2.
Providing necessary information. 3. Providing a
communications network. 4. Accommodating change
within the organization. 5. Approaching this
with a general managers perspective.
38
Some Basic Conclusions
1. There are common factors among companies that
have gained a competitive advantage through the
use of information systems. 2. The difference
between the good examples and the less
successful ones is getting bigger.