Paradigm Shift - PowerPoint PPT Presentation

About This Presentation
Title:

Paradigm Shift

Description:

Assimilating Emerging Technologies. Sourcing Policies for the IT Value Chain ... fashion. High. Low. High. Low. Figure 2-1 IT Impact: Position of Industry Leaders ... – PowerPoint PPT presentation

Number of Views:2040
Avg rating:3.0/5.0
Slides: 42
Provided by: MicrosoftS154
Category:
Tags: paradigm | shift

less

Transcript and Presenter's Notes

Title: Paradigm Shift


1
Paradigm Shift
  • I. Computing Paradigm Shift
  • II. Business Paradigm Shift

TM -1
Dr. Chen, The Challenge of the Information
Systems Technology
2
I. Computing paradigm
3
II. Business Paradigm Shift
1990s and Beyond
New Enterprise, Expert Systems BPR, Paperless
Office
  • Client/Server, Multimedia
  • Distributed Computing
  • Object-Orientation
  • Open Systems

Automated Enterprise, Back Office
Automation On-Line Transaction Processing
1980s
  • Proprietary Systems
  • Mainframes

1970s 1960s
Legacy Enterprise, Manual Back Office Manual
Front Office
4
Chapter 2Manageable Trends
  • Strategic Impact of IT
  • Integrating Changing Technology Platforms
  • Assimilating Emerging Technologies
  • Sourcing Policies for the IT Value Chain
  • Applications Development Process
  • Partnership of Three Constituencies

N
TM -4
Dr. Chen, The Trends of the Information Systems
Technology
5
Theme 1 Strategic Impact
  • Operational/manufacturing impacts
  • cost
  • coping with complexity
  • coordination
  • integration of technology into product
  • Marketing impacts
  • choice of product
  • service (e.g., order confirmation, tracking)
  • value-added information
  • product customization

TM -5
Dr. Chen, The Trends of the Information Systems
Technology
6
Figure 2-1 IT Impact Position of Industry Leaders
High
Information technology impact on operations
(cost/complexity management, coordination,
integration, etc.)
Low
Low
High
Information technology impact on marketing
(customer focus, reaction to change, provision of
differentiation. Etc.)
TM -6
Dr. Chen, The Trends of the Information Systems
Technology
7
Figure 2-2 IT Impact Position of Key Players in
Airlines and Banks
High
Information technology impact on operations
Low
Key AA - American Airlines UA - United
Airlines Citi - First National Citibank CHEM -
Chemical Bank of NY CI - Continental Illinois SW
- Southwest Airlines
Low
High
Information technology impact on marketing
(customer focus.)
TM -7
Dr. Chen, The Trends of the Information Systems
Technology
8
A Contingency Approach to IT Use
What four competitive investment strategies used
when organizations are comparing their positions
with industry leaders?
High
Figure 2-3 Targeting IT-Based Investment (as
Compared with Industry Leaders
Operations gap vs. industry leader
Low
High
Low
Marketing gap vs. industry leader
TM -8
Dr. Chen, The Trends of the Information Systems
Technology
9
A Contingency Approach to IT Management
  • What four IT environments are created by
    variation in strategic impact of existing systems
    and strategic impact of the applications
    development portfolio?

TM -9
Dr. Chen, The Trends of the Information Systems
Technology
10
How to Capitalize on the real Business
Opportunities?
Integrating ...
STRATEGIES
POLICIES
ORGANIZATION
INFORMATION TECHNOLOGY
Theme 2 Integrating Changing Technology
Platforms
TM -10
Dr. Chen, The Trends of the Information Systems
Technology
11
Who should be Involved in the Project Development?
Consists of ...
TECHNICAL PROFESSIONALS
USERS
MANAGEMENT
Dr. Chen, The Trends of the Information Systems
Technology
TM -11
12
Theme 2 Integrating Changing Technology Platforms
  • Advances in
  • Processing power
  • Data storage
  • Communications
  • Integration of
  • Computing
  • Telecommunications
  • Office support
  • Broadcasting
  • Reasons
  • Physical interconnections
  • Development involves multiple technologies
  • Opportunities for integration

Dr. Chen, The Trends of the Information Systems
Technology
TM -12
13
Theme 3 Assimilating Emerging Technologies
  • Phase 1 Technology Identification and Investment
  • Identify technology of interest
  • Pilot project (usually in IT) to test
  • Phase 2 Technological Learning and Adaptation
  • Users test technology in pilot projects
  • Will the technology make us more effective?
  • Phase 3 Rationalization / Management Control
  • Develop support systems and controls for
    efficient use of technology
  • Phase 4 Maturity / Widespread Technology
    Transfer
  • Spread technology throughout the organization

1. Innovation (Technical-oriented)
2. Learning (User-oriented)
3. Rationalization
4. Maturity
TM -13
N
Dr. Chen, The Trends of the Information Systems
Technology
14
Theme 4 Sourcing Policies for the IT Value Chain
  • What is outsourcing?
  • The phenomenon that appeared in the information
    systems field in the late 1980s was outsourcing,
    which means turning over a firm's computer
    operations, network operations, or perhaps other
    information systems functions to a vendor for a
    specified time - generally, at least for three
    years.

TM -14
Dr. Chen, The Trends of the Information Systems
Technology
15
OUTSOURCING
  • CONTRACTING
  • COMPUTER CENTER OPERATIONS
  • TELECOMMUNICATIONS NETWORKS
  • APPLICATION DEVELOPMENT
  • TO EXTERNAL VENDORS

TM -15
Dr. Chen, The Trends of the Information Systems
Technology
16
Why Outsoucing?
  • Outsourcing has become an option that most CIOs
    need to consider to satisfy their management that
    their operation is being run efficiently,
    effectively, and economically

TM -16
Dr. Chen, The Trends of the Information Systems
Technology
17
The Driving Forces Behind Outsourcing
  • Two drivers
  • focus
  • on core business
  • value
  • shareholder

TM -17
Dr. Chen, The Trends of the Information Systems
Technology
18
Outsourcing As an Economic Strategy
  • Core competencies
  • Which sources are less expensive
  • How much control is needed

TM -18
Dr. Chen, The Trends of the Information Systems
Technology
19
TM -19
Dr. Chen, The Trends of the Information Systems
Technology
20
The Expanding Scope of Vendor Options
  • To buy professional services
  • To buy a product
  • To buy a transaction
  • To use a systems integrator - project based
  • Outsourcing - time based

Quality
Products/Services
Speed
Cost
TM -20
Dr. Chen, The Trends of the Information Systems
Technology
21
The Expanding Scope of Vendor Options
  • To buy professional services
  • To buy a product
  • To buy a transaction
  • To use a systems integrator - project based
  • Outsourcing - time based

Quality
Products/Services
Speed
Cost
TM -21
Dr. Chen, The Trends of the Information Systems
Technology
22
When to Outsourcing?
  • Which IS activities are strategic to our
    company's business?
  • Will outsourcing save us at least 15 percent?
  • Does our firm have access to the needed
    technology and expertise?
  • If not, outsourcing may be the answer to
    acquiring these resources.
  • Does outsourcing increase our firm's flexibility?

TM -22
Dr. Chen, The Trends of the Information Systems
Technology
23
What Activities that Management should not
Outsource?
  • strategy
  • policy role
  • the decisions about when to introduce information
    systems into the organization
  • the management of the vendor
  • when the system (IS) department is well managed,
    and where IT is a core competency

TM -23
Dr. Chen, The Trends of the Information Systems
Technology
24
OUTSOURCING BENEFITS
  • Economy
  • Service quality
  • Predictability
  • Flexibility
  • Making fixed cost variable
  • Freeing up human resources for other projects
  • Freeing up financial capital

TM -24
Dr. Chen, The Trends of the Information Systems
Technology
25
CONS OF OUTSOURCING
  • Loss of control
  • Vulnerability of strategic information
  • Dependency

TM -25
Dr. Chen, The Trends of the Information Systems
Technology
26
Outsourcing Recommendations
  • Write shorter contracts - less than 5 years
  • Subcontract control
  • Selective outsourcing

TM -26
Dr. Chen, The Trends of the Information Systems
Technology
27
Desirable Outcomes and Implementation Issues
  • On-time
  • On-budget
  • Full functionality
  • user acceptance
  • Favorable cost-to-benefits ratio
  • Low maintenance
  • Scalability
  • Integration with other systems
  • Reusability

TM -27
Dr. Chen, The Trends of the Information Systems
Technology
28
Theme 4 Sourcing Policies for the IT Value Chain
  • Why Make?
  • Custom to needs
  • Confidentiality
  • Insulate from external vulnerability
  • Easy to adapt
  • Leading-edge competence
  • Why Buy?
  • Access to specialized skills
  • Cost
  • Staff utilized for most important products
  • Personnel costs
  • Professional management of service organization
  • Proliferation of services available

TM -28
Dr. Chen, The Trends of the Information Systems
Technology
29
Theme 5 Applications Development Process
  • SYSTEM DEVELOPMENT PROCESS LIFE CYCLE (SDLC)

TM -29
Dr. Chen, The Trends of the Information Systems
Technology
30
SYSTEM DEVELOPMENT(Life Cycle) PROCESS
  • SYSTEMS ANALYSIS
  • SYSTEM DESIGN
  • PROGRAMMING
  • TESTING
  • CONVERSION
  • PRODUCTION MAINTENANCE

TM -30
Dr. Chen, The Challenge of the Information
Systems Technology
31
SYSTEMS DEVELOPMENT
CORE ACTIVITY
DESCRIPTION
SYSTEMS ANALYSIS
IDENTIFY PROBLEM(S)
SPECIFY SOLUTIONS
ESTABLISH INFORMATION REQUIREMENTS
SYSTEMS DESIGN
CREATE LOGICAL DESIGN SPECS
CREATE PHYSICAL DESIGN SPECS
MANAGE TECHNICAL REALIZATION OF SYSTEM
PROGRAMMING
TRANSLATE DESIGN SPECS INTO
PROGRAM CODE
TM -31
Dr. Chen, The Challenge of the Information
Systems Technology
32
SYSTEMS DEVELOPMENT
CORE ACTIVITY
DESCRIPTION
TESTING
UNIT TEST
SYSTEMS TEST
ACCEPTANCE TEST
CONVERSION
PLAN CONVERSION
PREPARE DOCUMENTATION
TRAIN USERS TECHNICAL STAFF
PRODUCTION
OPERATE SYSTEM
MAINTENANCE
EVALUATE SYSTEM
MODIFY SYSTEM
TM -32
Dr. Chen, The Challenge of the Information
Systems Technology
33
Theme 5 Applications Development Process
  • Design
  • User request or IT/user proposal
  • Analysis
  • (Logical) Design
  • Construct
  • Detailed design
  • Coding
  • Documentation
  • Testing
  • Acquisition

TM -33
Dr. Chen, The Trends of the Information Systems
Technology
34
Theme 5 Applications Development Process (Cont.)
  • Implement
  • Redesign
  • Install
  • Train
  • Systems test
  • Operate
  • Acceptance test
  • Retrain
  • Maintain
  • Modernization
  • Continuous improvement

TM -34
Dr. Chen, The Trends of the Information Systems
Technology
35
Theme 6 Partnership of Three Constituencies
Consists of ...
USERS Management
IT Management
GENERAL Management
TM -35
Dr. Chen, The Challenge of the Information
Systems Technology
36
Theme 6 Partnership of Three Constituencies
  • IT Management
  • Pool of technical skills
  • Technology scan
  • Professional development
  • Process reengineering
  • User Management
  • Movement of operational responsibilities to IT
  • Availability of outside services
  • User IT sophistication and experience
  • General Management
  • Must balance IT / User issues
  • Executives balance IT/strategies

TM -36
Dr. Chen, The Trends of the Information Systems
Technology
37
SPECTRUM OF ORGANIZATIONAL CHANGE
RATIONALIZATION
AUTOMATION
ORGANIZATIONAL CHANGE
REENGINEERING
PARADIGM SHIFT
TM -37
Dr. Chen, The Trends of the Information Systems
Technology
38
SPECTRUM OF ORGANIZATIONAL CHANGE
  • AUTOMATION Using technology to perform tasks
    efficiently / effectively
  • RATIONALIZATION OF PROCEDURES Streamline SOPs
    eliminate bottlenecks
  • BUSINESS PROCESS REENGINEERING Radical redesign
    of processes to improve cost, quality, service
    maximize benefits of technology
  • PARADIGM SHIFT

TM -38
Dr. Chen, The Trends of the Information Systems
Technology
39
What is Business Process and Business
Reengineering?
  • Business process A set of logically related
    tasks performed to achieved a defined business
    outcome
  • Business reengineering means radically changing
    how people work - changing business policies and
    controls, systems and technology, organizational
    relationships and business practices, and reward
    programs.

TM -39
Dr. Chen, The Trends of the Information Systems
Technology
40
BUSINESS REENGINEERING STEPS
  • 1. Develop business vision, process objectives
  • 2. Identify process to be redesigned
  • 3. Understand, measure performance of existing
    processes
  • 4. Identify opportunities for applying
    information technology
  • 5. Build PROTOTYPE of new process

TM -40
Dr. Chen, The Trends of the Information Systems
Technology
41
TM -41
Dr. Chen, The Trends of the Information Systems
Technology
Write a Comment
User Comments (0)
About PowerShow.com