Summary of the Course Literature
Summary - Management Information System – Josef Stenten
Task 1 – Taxonomies of Information Systems
Mastering the three worlds of information technology By Mc Afee 3 roles of executives in managing IT: 1) select technologies, 2) nurture adoption, 3) ensure their exploitation Building an Effective IT Model - IT in a historical context: IT is the latest in a series of general-purpose technologies (GPTs), innovations so important that they cause jumps in an economy’s normal march of progress. - GPTs deliver greater benefits as people invent or develop complements that multiply the power, impact, and uses of GPTs. Complements are organizational innovations, or changes in the way companies get work done. Examples: o Better-skilled workers o Higher levels of teamwork o Redesigned processes o New decision rights - But: IT not with same relationship with the four organizational complements than other process GPTs have The Three Categories of IT 1) Function IT (FIT): includes technologies that make the execution of stand-alone tasks more efficient. Assists with the execution of discrete tasks. Ex.: word processors, spreadsheets, CAD systems Characteristics: Can be adopted without complements; impact increases when complements are in place Capabilities: o Enhancing experimentation capacity o Increasing precision 2) Network IT (NIT): provides a means by which people can communicate with one another. Facilitates interactions without specifying their parameters. Ex.: e-mail, instant messaging, blogs, groupware. Unlike FIT, network IT brings complements with it but allows users to implement and modify them over time. Characteristics: Doesn’t impose complements but lets them emerge over time; doesn’t specify tasks or sequences; accepts data in many formats; use is optional Capabilities: o Facilitating collaboration o Allowing expressions of judgment o Fostering emergence (the appearance of high-level patterns or information because of low-level interactions) 3) Enterprise IT (EIT): type of IT application that companies adopt to restructure interactions among groups of employees or with business partners. Ex.: CRM, SCM, electronic data interchange. EIT is implemented top-down, with disruptive character, complements can’t be created slowly Characteristics: imposes complements throughout the organization; defines tasks and sequences; mandates data formats; use is mandatory Capabilities:
Summary - Management Information System – Josef Stenten o Redesigning business processes o Standardizing work flows: Once a complementary business process is identified, it can be implemented widely and reliably along with the EIT o Monitoring activities and events efficiently Managing the Three Types of IT Across the three IT categories, executives have three tasks: 1) IT selection - Should start with the organization’s needs, not with the technology � inside-out approach - set IT priorities: FIT delivers productivity and optimization, NIT increases collaboration, EIT helps standardize and monitor work 2) IT adoption: the work of putting the technologies they have invested in to productive use - Manager’s main responsibility: help create the complements that will maximize IT’s value - FIT: challenge is to identify the right complements - NIT: easy adoption (voluntary), managers should not intervene too often - EIT: hart to adopt; resistance from employees, stronger oversight needed. Successful EIT adoption if key issues about configuration have been decided at the outset. 3) IT exploitation: extract the maximum benefit from technologies once they are in place - Companies can best exploit FIT by fine-tuning organizational complements - Exploitation often easier than adoption - exploiting EIT sometimes requires adding a new FIT on top of it IT as competitive advantage? IT becomes valuable, rare, inimitable, and non-substitutable with its successful implementation...