Strategic Information Systems Notes

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1. IT Management: IT Role, Effect and Types
(What can IT do, IT’s impact, different IS)

Role
* Enabler of E-Business
* Change Agent
* Enabler of Globalization

Role of IT – Enabler of E-Business
* Disintermediation
Elimination (by the online sources) of the traditional middleman the intermediary between the seller and the buyer (such as an agent, broker, or reseller), or between the source and the recipient of information (such as an agency, official, or gate keeper). * Reintermediation

Re-emergence of the traditional middleman the intermediary in new forms. For example, portals such as PetroChemNet bring buyers, sellers, traders, and distributors of chemicals together, and mediate as trusted third-parties between parties that are total strangers to one another. * Hypermediation

* Infomediation

Role of IT – Change Agent
* Dynamic Stability
* Enable/inhibit incremental and radical changes

Role of IT – Enabler of Globalization
* Expands business presence beyond borders
* IT maintenance of Infrastructure and Technologies

Effect of IT on competition
* Michael Porter’s industry and competitive analysis framework: 1) Industry Rivalry, 2) Potential New Entrant, 3) Threats of Substitute Products or Services, 4) Bargaining Power of Supplier, 5) Bargaining Power of Buyers * Build barriers to entry [P.72]

* Switching costs [P.74]
* Change the basis of competition, e.g. transformed business strategy [P.68] * Change the balance of power in supplier relationships [P.70] * Generate new products [P.75]

Effect of IT on Productivity
* Tangible vs intangible benefits
* Service vs manufacturing sections
* Alignment of IT to strategic goals

Effect of IT on Business Performance [P.108]
* Drive cost savings [P.106]
* Revenue growth [P.109]
* Asset efficiency [P.112]

Types of Business Information Systems
* Transaction Processing Systems
* Management Information Systems
* Decision Support Systems
* Enterprise Resources Systems
* E-commerce Systems
* Expert Systems

2. Cisco Case Study
(Implementation method, possible problems, successful factors)

Problems
* No redundancy, reliability, maintainability
* Decentralization trend
* Expected company growth

Questions in implementing new system
* How should ERP decision be made?
* How should we setup-up the ERP implementation team?
* How should we select ERP vendor
* How should we implement ERP?
* How do we cut over to ERP?
* What should we do after implementation?
* Next step?

Obstacles
* Initial “No modification” strategy {4. Management of IT Change} * Undersized technical architecture
* Immature software
* Poor testing strategy

Success Factors
* Put best people on team
* “Can-Do” team attitude
* Well communicated top management commitment
* Middle management commitment
* High priority in company
* Rapid, iterative prototype to build knowledge
* Purchase equipment on ‘promised capability’
* Tight controls on proposed modifications
* Strong vendor alliances
* ‘Seasoned’, experienced consulting support

3. Organizing IT Function
(IT infrastructure, the components, impacts, organization structure, leadership type)

IT infrastructure
* Current: Internetwork-Based Computing
* Moore’s Law
* Metcalf’s Law

Components of Internetworked Infrastructure [P.240 - 250]
* Processing Systems
* Network
* Facilities
* Key management issues

Business Implications of Internetworks [P.252 - 256]
* Real-time infrastructures
* New model of service delivery
* Broader exposure to operational threats
* Managing legacies

Impact of Internetworked Infrastructure on Organization Design * hierarchical controls -> flattened
* promotes flexibility, creativity and learning
* Eliminate layers of management
* Ensure...
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