2 - The Evolving Role of Information Systems and Technolo

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The Evolving Role of Information Systems

and Technology in Organizations:


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Introduction

IT is an accepted and epected tool for

supporting !usiness

IS"IT source of #ompetitive Advantage


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IS and IT: the same or different-

IS . IT/

IT )information technology+ or I#TRefers to technology )01' S1' telcom n"&or(s+/

Tangi!le )eg servers' P#s' routers' ca!les+' andIntangi!le )eg soft&are+

IS )information systems+roader' has eisted long !efore IT' may even not

include technologyPeople and organizations use IT to gather' process'

store' use and disseminate information


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A 4efinition of IS )4avis' 5666+

Eplained in terms of its various elements and in termsof the various organizational contet :A system in the organization that delivers information and

communication services needed !y the organization/ #onsists of IT infrastructure' applications systems' and

personnel that employ IT to deliver information andcommunication services for transaction processing"operationsand admin"mgmt of an organization/ the system utilizescomputers 7 communication 01"S1' manual procedures' andinternal and eternal repositories of data/ the systems apply acom!ination of automation' human actions and user*machine

interactions/4eals &ith the nature of 4ata' Information and

8no&ledge


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4ata' Information and 8no&ledge

Data:

representations of events' people' resources or

conditions Information:

result of processing data/

Knowledge:

information organized and processed to conveyunderstanding' eperience' accumulated learning'

and epertise/

provides !asis for action/


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1hy organizations fail to realize !enefits

from investments in IT

Investments made only in technology/

>ot understanding or analyzing nature of

activities the technology is to support ?strategically or operationally ? in the

organization/


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5B

0o& should the Internet !e vie&ed-

As an ena!ling technology ? a po&erful set of

tools that can !e used in almost any industry

and as part of almost any strategy/

Internet is not the !usiness strategy/

Interactive' a ne& medium ? the mar(et space/


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Early Cie&s and @odels of IS"IT in

Organisation )5"2+

Early 563Bs: use of computers in !usiness@id to late 569Bs: use !ecame more

significant &ith the development of multi*purpose mainframe computers

Datch processing of tas(s and activities inorganizations !ecame possi!le throughIncrease in processing speed

#heaper memory


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Early vie&s and models of IS"IT in

Organisation )2"2+

56Bs: @inicomputers used for a variety of

!usiness applications

ut IS"IT still vie&ed as a centralized'integrated concept derived from mainframe

;i!son and >olan )56,+ modeled evolution

of IS"IT in an organization' !ased on

Anthonys )5693+ hierarchical applicationportfolio model


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5$

Anthonys )5693+ hierarchical

application portfolio model

Structure of information system in an

organization is !ased on a stratification of

management activity into different levels:Strategic planning

@anagement control

Operational control


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Si Aspects"enchmar(s of IS"IT and its

@anagement used in the Analysis

The rate of IS"IT ependiture

The technological configuration

The applications portfolio

The 4ata Processing )4P+ or IT organization

4P"IT planning and control approaches


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Stage of evolution of IS"IT in relation to

ependiture )>olan' 566+

Integration:considera!le ependiture on integrating )via

data!ase+ eisting systems


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#ritiHue of the >olan 9 Stage @odel

1ea( and inconclusive empirical support/enchmar(s did not map consistently on to the

stages/

Too simple to reflect compleity of real &orld/Assumptions made too simplistic to !e useful/Provide little help for #IO to create successful IS

unit in an organization/

4etail of each phase pro!lematic/ET' very popular and influential' !ecause of itssimplicity


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2B

Era of 4P @anagement

@ain concern is on managing the activities)operations' programming' data collection+/

Set up a separate organizational unit )4P dept+ for avariety of types of application' over an etended life

cycle/The dept managed as a coordinated set of

resources planned to meet future reHuirements/


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Three*stage @odel of Transition from 4P

@anagement to IS @anagement)0irschheim et al., 56==+

Delivery Stage: IS issues mainly internal' ie improve a!ilityto deliver and support the IS"IT/ main o!Gective is achievingtop*mgmt credi!ility ie improving delivery performance' vsprovide &hat is needed/

Reorientation Stage: esta!lish good r"ships &ith main!usiness ftns' support !usiness demands through provisionof a variety of IS services/ issues focus etended to outsidethe 4P dept/ (ey o!G is to provide valued service to all!usiness ftns mgmt/ different areas !enefit differently&ithout regard to !usiness importance/

Reorganization Stage: Reorganization of responsi!ilitiesto achieve integration of IS investment &ith !usinessstrategy and across !usiness ftns/ (ey o!G is !est &ay tosatisfy each differing !usiness needs through coalition ofresponsi!ilities for managing IS"IT/


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4P Era )9Bs on&ards+ vs @IS Era )Bs on&ards+

DP Era MIS Era

Obe!tive Efficient transactionhandling and effectiveresource control

Effective pro!lemresolution and support fordecision ma(ing

"ife !y!le $*52 years' depending onrate of change

%rom hours to months andoccasionally recurring

Information time frame Recent history' currentand short*term future

#onsolidated history'current and etendedfuture

Information so#r!e Internal plus eternaltransaction

Internal plus eternal

JresearchK data

"ogi!al pro!esses #ser Strictly algorithmicoperators' clerical staffand first line supervisor

Professionals and middleto senior managers

$e!%nology @ainframe"mini*computercontrolled processing at&or(stations

Focal processing lin(ed toinformation resources


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,B

TPE $: Information !ased product

and service

To achieve advantages reHuire a thorough(no&ledge of product of the industry


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Success %actor in SIS )5"+

Eternal not internal focusFoo(ing at customers' competitors' suppliers'

other industries' !usinesss relationship andsimilarities &ith the outside !usiness &orld

Traditionally IS"IT has !een focus on internal

processes and issues


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3B

&n &ppli!ation Portfolio for t%e (Combined Era) *adapted

from M!+arlan,s Strategi! -rid. /0123 w%i!% represents

!ontrib#tion of IS4I$ to t%e b#siness now and in t%e f#t#re

based on its ind#stry impa!t

STRATEGIC

a##$ications

(!ic! are critica$to sustaining

)uture businessstrategy

%IG%*OTENTIA+a##$ications

(!ic! are critica$to sustaining

)uture businessstrategy

A##$ication on(!ic! t!e

organisationcurrent$y

e#ens )orsuccess,EY

O*ERATIONA+S-**ORT

A##$ication (!ic!are va$uab$e but

not critica$ tosuccess


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1hat is an IS Strategy-

IS"IT strategy composed of IS component

IT component

4efines the organizations reHuirement or demand for

information and systems to support the overall strategyof the !usiness/

%irmly grounded in the !usiness' considers !othcompetitive impact and alignment reHuirements of IS"IT/

4efines and prioritizes reH investments to achieve idealportfolio' epected !enefits' reH changes' &ithinconstraints of resources and systems interdependencies/


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1hat is an IS Strategy-

IS component4efines the organizations reHuirement or demand for

information and systems to support the overall strategy

of the !usiness/

%irmly grounded in the !usiness' considers !oth

competitive impact and alignment reHuirements of IS"IT/

4efines and prioritizes reH investments to achieve ideal

portfolio' epected !enefits' reH changes' &ithin

constraints of resources and systemsinterdependencies/


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52 # t f Ali t )F ft


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52 #omponents of Alignment )Fuftman'

2BBB+

usiness Strategy usiness Scope 4istinctive #ompetencies usiness ;overnance

Organizational Infrastructure 7 ProcessesAdministrative Structure Processes S(ills

IT Strategy Technology Scope System #ompetencies

IT governance IS Infrastructure and Processes

Architecture Processes S(ills


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2 - The Evolving Role of Information Systems and Technolo

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