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The Roles, Roles and Relationships Concept

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Title: 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.
IS Organization as a Business within a
Business. 5. Outsourcing the management of IS.
3
IS as a Competitive Resource?
  • Business competitiveness is a top priority.
  • What about Information Systems?

4
Success Can Be Elusive!
Why are some companies successful while others
are frustrated with a lack of results and
benefits from the use of information systems?
5
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?
6
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?
7
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. IS Cost and/or Risk?
8
Roles of Information Systems
1. Business Process Partner. 2. Provide Access to
Information. 3. Enhance Communications. 4.
Provide Decision Assist.
9
Information systems are strategic weapons, not
cost centers.
Information systems are strategic weapons, not
cost centers.
Robert F. McDermott Former USAA CEO
10
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.
11
Two Important Questions
1. Who Makes Competitive Strategy Decisions?
2. Who Makes Competitive Strategy Decisions
When the Process is Built on a Computer Base?
12
Top Executive Job Description
The primary role of the top executive is to
assure the long term viability of the business.
13
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.

14
  • 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!

15
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.

16
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.

17
Using IS to Compete
Senior Management
Users
Information Systems Organization
Functional Management
Figure 9-1
18
Roles, Roles and Relationships
Leadership in two forms
- Business Leadership - IT Leadership
19
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.
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 enabling resource.

21
Using Information Systems to Gain a Competitive
Advantage
An Essential Partnership
22
Using Information Systems to Compete
Senior Management
IT 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 IS 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 Business
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
  • Hiring someone whose expertise can perform a
    business function or activity better, more cost
    effectively and/or in a more timely manner than
    can be achieved in-house.

Also enables the company to focus on its core
competencies and those factors that mean the
difference between success and failure.
35
Outsourcing
Outsourcing is a current, major focus of many
business enterprises. It continues to be a
very hot topic.
36
Outsourcing
What? With Whom? Where? How Long? Risk?
  • Logical?
  • Necessary?
  • Appropriate?
  • Cost-effective?

37
The Evolution of Outsourcing
  • The concept of outsourcing is not new. For
    decades,
  • companies have outsourced a number of functions
    such as
  • cafeteria service, janitorial service, security
    guards, payroll,
  • clerical support, manufacturing and distribution.
  • Outsourcing, by the old definition, was very
    specific, targeted,
  • and often project based. The company might
    design a product,
  • then outsource the manufacture of various
    components,
  • subassemblies, even the finished product.
  • Things have evolved to where anything that is not
    a core
  • business process is a candidate to outsource.

38
Outsourcing IS Management
  • 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?
  • Strategically Significant?

UB example
39
Outsourcing Information Systems Management
Is the outsourcing of the management of
information systems a contradiction of its
possible strategic significance?
40
Information System Goals
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.
41
IS Organization Business
1. Designing Information Systems
2. Building Information Systems
3. Running Information Systems
42
IT Outsourcing Options
  • Software Development and/or Maintenance
  • Application Service Provider
  • Global Network Provider
  • Network Management
  • Management of Entire IS Function
  • IT Training
  • Consulting and Reengineering

43
Indias IT Outsourcing Industry
GOOD STUFF, CHEAP That's the reputation of
India's IT outsourcing industry, and it's both a
blessing and a curse. The blessing is that India
has finally been able to move onto the global
stage by harnessing its greatest natural
resourcepeopleand focusing on filling the
world's need for IT skills and services. India
has grown its IT exports in less than a decade
from 150 million to more than 4 billion10.5
of India's total overseas sales. Its success is
built on a solid record for developing IT talent
as well as delivering top-notch legacy system
maintenance and software applications.

44
Indias IT Outsourcing Industry
The curse is that, despite what IT outsourcing
has meant for India's economy, the country's top
IT vendors have been typecast and they all hear
the approaching footsteps of Ireland, China and
the Philippines as up-and-coming IT service
centers. Getting work is not difficult
getting the right kind of work is difficult. We
have to convince customers that they can
outsource high-value work to India."
45
Indias IT Outsourcing Industry
Nobody can beat their price! Software programming
in India costs roughly 35 per hour, as opposed
to 200 in the United Statesand their quality is
world-class. Of the 23 companies worldwide that
have been awarded the US Software Engineering
Institute's Capability Maturity Model Level 5
rating for fault-free software engineering
processes (the equivalent of a perfect 10 in
Olympic competition), 15 of those elite companies
are Indian, among them Infosys, NIIT and Wipro.
46
China Versus India for Outsourcing
Indias global advantage in IT rests on a
tripartite foundation 1) Good IT education, 2)
Competitive wages, and 3) English language
competency. On the first two, China already
competes. That leaves English. Five years ago,
very few young Chinese professionals spoke
English.
47
US Corporations
  • Most managers are used to managing internal
    resources and staff directly, and having total
    control over the decision-making process in their
    area.
  • There are some fundamental differences in
    managing an outsourced function.

48
The Corporation Today
  • A company must ensure that internal
  • resources are dedicated to core competencies
  • and that the right outside relationships are
  • established, maintained, and nurtured.

49
Chief Resource Officer (CRO)
  • New Organizational Model is Creating a New
    Management Role.
  • Outsourcing has rapidly changed and evolved --
    from vertical to virtual, tactical to strategic,
    cost-cutting to cutting-edge.
  • 1998 was a banner year for outsourcing. Some of
    the largest deals, as well as the most strategic
    were made.
  • The stakes have increased, the risks and the
    rewards have soared, yet the manner in which
    outsourcing engagements are conducted and
    supervised has remained the same.

50
Chief Resource Officer
  • The CRO is a strategic position, charged not with
  • managing corporate resources (time, money, and
  • personnel), but with managing the complex series
    of
  • relationships the modern corporation must have
    with
  • its outside resources.
  • The CRO evaluates the need for resources in each
  • function, finds the resources required outside
    the
  • company, and implements and nurtures the
  • relationship to the company's best advantage.

51
Chief Resource Manager
  • Outsourcing deals fall apart because there was
    no one in a Chief Resource Manager position to
    manage and follow-up on objectives and
    contractual agreements.
  • A CRO-type position means taking a global,
    visionary, forward-thinking role in how to use
    resources and make them effective and efficient
    for an organization.
  • There is a definite need to manage change during
    the life of an outsourcing contract.

52
CRO Skill Profile
  • 1. Experience managing different businesses
  • 2. Experience managing costs
  • 3. Project management
  • 4. Contract negotiations
  • 5. Political and cultural consciousness
  • 6. Ability to think out of the box
  • 7. Comfortable with change

53
Evaluation Criteria
It is important in considering offshore
outsourcing to address the following with a
potential vendor a) Do they have offices in US
and in proximity to them. Developing long
term products require lot of interaction with
the vendor locally. b) Get resumes of IT
professionals who will work on your project
in India and/or the US. If an offshore
vendor has experienced IT professionals working
for them for a good length of time, they
have good retaining and employee policies.

54
Evaluation Criteria
c) Understand the vendor process to develop and
deliver the project on a timely basis. d) Get
references on where they have successfully
completed similar projects. e) Clearly understand
the financial and property rights of such a
relationship. f) Make sure that you have a way
out if things do not go well or according to
schedule.
55
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56
A Well-Structured Alliance
  • Strategic Synergy. The two (or more)
    organizations
  • together can achieve a high level of benefits.
  • Clarity of purpose. The goals and benefits are
    explicit
  • and clear.
  • Growth opportunity. The relationship--and its
    benefits--
  • can be expanded.
  • Less risk. The relationship reduces the level
    of risk.
  • Excellent chemistry. There a good "fit" between
    the two
  • or more organizations.
  • Win-Win Proposition. Each party can benefit
    fairly from
  • the relationship.

57
Outsourcing Resources
  • The Outsourcing Institute
  • http//www.outsourcing.com
  • ASP Outsourcing Center
  • http//www.asp-outsourcing-center.com

58
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.
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