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IT Strategy: Issues and Practice, Edition 3.1 James D. McKeen & Heather A. Smith


Section I: Delivering Value with IT

1. Developing and Delivering on the IT Value Proposition

Peeling the Onion: Understanding IT Value 3
What Is IT Value? 3
Where Is IT Value? 4
Who Delivers IT Value? 5
When Is IT Value Realized? 5
The Three Components of the IT Value Proposition 6
Identification of Potential Value 7
Effective Conversion 8
Realizing Value 9
Five Principles for Delivering Value 10
Principle 1. Have a Clearly Defined Portfolio Value Management Process 11
Principle 2. Aim for Chunks of Value 11
Principle 3. Adopt a Holistic Orientation to Technology Value 11
Principle 4. Aim for Joint Ownership of Technology Initiatives 12
Principle 5. Experiment More Often 12
Conclusion 12 • References 13

Effective strategy development is becoming vital for organizations. As the impact of IT has grown in companies, IT strategy is finally getting the attention it deserves in business.
Nevertheless, most organizations are still at the earliest stages of learning how to develop an effective IT strategy and synchronize it with an overall business strategy. Getting
the balance right between the many different ways IT can be used to affect a business is a constant challenge for leaders and one on which they do not always agree. Although
there is, as yet, no well-developed IT strategy–development process, there appears to be general agreement on certain critical success factors and the key elements involved.
Over time, these will likely be refined and better integrated with overall business strategy development. Those who learn to do this well without locking the enterprise into inflexible technical solutions are likely to win big in our rapidly evolving business environment.

2. Developing IT Strategy for Business Value

Business and IT Strategies: Past, Present, and Future 16
Four Critical Success Factors 18
The Many Dimensions of IT Strategy 20
Toward an IT Strategy-Development Process 22
Challenges for CIOs 23
Conclusion 25 • References 25
Chapter 3 DEVELOPING AND EVOLVING A DIGITAL STRATEGY 27
What is a Digital Strategy? 28
What is the Value of a Digital Strategy? 29
Developing and Implementing a Digital Strategy 31
Supporting a Digital Strategy 33
Conclusion 36 • References 37

Effective strategy development is becoming vital for organizations. As the impact of IT has grown in companies, IT strategy is finally getting the attention it deserves in business.
Nevertheless, most organizations are still at the earliest stages of learning how to develop an effective IT strategy and synchronize it with an overall business strategy. Getting
the balance right between the many different ways IT can be used to affect a business is a constant challenge for leaders and one on which they do not always agree. Although
there is, as yet, no well-developed IT strategy–development process, there appears to be general agreement on certain critical success factors and the key elements involved.
Over time, these will likely be refined and better integrated with overall business strategy development. Those who learn to do this well without locking the enterprise into inflexible technical solutions are likely to win big in our rapidly evolving business environment.

3. Linking IT to Business Metrics

Chapter 3 DEVELOPING AND EVOLVING A DIGITAL STRATEGY 27
What is a Digital Strategy? 28
What is the Value of a Digital Strategy? 29
Developing and Implementing a Digital Strategy 31
Supporting a Digital Strategy 33
Conclusion 36 • References 37

With digital technologies, organizations have suddenly moved from an attitude that “IT doesn’t matter” to an awareness that digital business will likely disrupt every industry (Lopez 2015, Carr 2003). The radical changes required and the uncertainties involved have created a sense of unease in even well-established businesses. There is no doubt that technology will be at the center of whatever happens in a digital strategy. The question is, where will IT be? In the past, IT functions have been guilty of dragging their heels when radical changes are proposed.
Today, there is a huge opportunity for IT to demonstrate its value to the organization and to become a true business partner in leading and catalyzing the business. But IT leaders and staff must rise to the challenge with vision, education, business awareness, and significant internal change.

4. Building a Strong Relationship with the Business

The Nature of the Business–IT Relationship 39
The Foundation of a Strong Business–IT Relationship 41
Building Block #1: Competence 42
Building Block #2: Credibility 43
Building Block #3: Interpersonal Interaction 44
Building Block #4: Trust 46
Conclusion 48 • References 48
Appendix A The Five IT Value Profiles 50
Appendix B Guidelines for Building a Strong Business–IT Relationship 51

There is clearly no panacea for a strong business–IT relationship. Yet, the correlation between a good relationship and the ability to deliver value with IT makes it imperative that leaders do all they can to develop effective interpersonal and interfunctional business–IT relations. It is unfortunately still incumbent on IT leadership to take on the bulk of this task, if only because it will make IT organizations more effective. Business–IT relationships are complex, with interactions of many types, at many levels, and between both individuals and across functional and organizational entities. This chapter has not only identified and explored what a strong business–IT relationship should look like in its many dimensions but also has described the four major components needed to build it: competence, credibility, interpersonal skills, and trust. Unfortunately, business–IT relationships still leave a lot to be desired in most organizations. Recognizing that what it takes to build a strong business–IT partnership is also closely related to what is needed to deliver IT value may help to focus more attention on these mission-critical activities.

5. Communicating with Business Managers

Communication in the Business–IT Relationship 53
What Is “Good” Communication? 54
Obstacles to Effective Communication 56
“T-Level” Communication Skills for IT Staff 58
Improving Business–IT Communication 60
Conclusion 61 • References 61
Appendix A IT Communication Competencies 63

“What we have here is a failure to communicate” is a famous (and sarcastic) movie quote that is nevertheless an extraordinarily accurate description of the business–IT relationship. Although many words and documents may flow between the two groups, it is fair to say that often little true communication is occurring. This has resulted in misunderstandings, dysfunctional behavior, and, above all, a failure to deliver value to the organization. This chapter has examined the difficult and complex challenges facing
IT leaders as they attempt to improve their function’s communication with the business.
It demonstrated that good communication has both social and organizational dimensions, both of which need to be appropriately managed. It also showed that there is a “virtuous circle” of communication, which is associated with improved IT performance and perceptions of IT value. In short, good communication is important to the successful implementation of IT in business, and developing it is therefore worth more time and attention than most managers currently pay to it. This chapter has focused on the IT side of the communication equation—since it is usually held to be the culprit in the sometimes nasty war of words that ranges back and forth between the two groups.
There is much that can be done within IT to improve communication skills—without losing technology capabilities—but it nevertheless behooves business managers to explore
ways in which they can assist IT in doing this. Most important, they can make the time and effort to ensure that IT staff are well educated in how their business works. If they do, business leaders just might find that many of IT’s “communication problems” disappear.

6. Building Better IT Leaders from the Bottom Up

The Changing Role of the IT Leader 65
What Makes a Good IT Leader? 67
How to Build Better IT Leaders 70
Investing in Leadership Development: Articulating the Value Proposition 73
Conclusion 74 • References 75
MIni Cases
Delivering Business Value with IT at Hefty Hardware 76
Investing in TUFS 80
IT Planning at ModMeters 82

Leadership development in IT is something that everyone agrees is increasingly important to helping companies achieve their business goals. However, all too often it is a hit and miss exercise, depending on management whim and budget availability. It is now clear that senior IT leaders must make leadership development a priority if IT is going to contribute to business strategy and help deliver services in an increasingly competitive environment. To do this, leadership development in IT must start with the most junior
IT staff. An effective program involves more than just training. It must include the creation of a supportive work environment and the development of processes that deliver on
management’s promises. However, no leadership program should be implemented in a vacuum. There should be a clearly articulated proposition outlining its value to the organization and a set of metrics to monitor its effectiveness. Like technology itself, leadership development will be effective only if management takes a comprehensive approach that integrates culture, behavior, processes, and training to deliver real business value.

Section II: IT Governance

7. IT Shared Services

IT Shared Services: An Overview 89
IT Shared Services: Pros and Cons 92
IT Shared Services: Key Organizational Success Factors 93
Identifying Candidate Services 94
An Integrated Model of IT Shared Services 95
Recommmendations for Creating Effective IT
Shared Services 96
Conclusion 99 • References 99

In recent years, the interest in adopting a shared services model for IT has grown substantially. This interest has been driven by the desire of business for a more customer-centric and responsive IT organization and by IT organizations pursuing centralization and standardization strategies. When successful, an IT shared services model can satisfy
both goals but key challenges arise during the development and implementation of the shared service. By bringing together a number of senior IT managers with experience in building shared service organizations, this chapter has clarified what a shared service is and what it is not, identified different forms of success and failure, articulated an integrated conceptual model, and provided a number of suggestions to improve the chances of successful implementation. For those charged with developing IT shared services as well as those investi gating this emerging organizational form, this chapter provides insight and under standing for achieving successful shared services and ultimately the goal of improving overall organizational performance.

8. Delivering IT Functions: A Decision Framework

Chapter 8 a Management framework for IT Sourcing 100
A Maturity Model for IT Functions 101
IT Sourcing Options: Theory Versus Practice 105
The “Real” Decision Criteria 109
Decision Criterion #1: Flexibility 109
Decision Criterion #2: Control 109
Decision Criterion #3: Knowledge Enhancement 110
Decision Criterion #4: Business Exigency 110
A Decision Framework for Sourcing IT Functions 111
Identify Your Core IT Functions 111
Create a “Function Sourcing” Profile 111
Evolve Full-Time IT Personnel 113
Encourage Exploration of the Whole Range of Sourcing Options 114
Combine Sourcing Options Strategically 114
A Management Framework for Successful Sourcing 115
Develop a Sourcing Strategy 115
Develop a Risk Mitigation Strategy 115
Develop a Governance Strategy 116
Understand the Cost Structures 116
Conclusion 117 • References 117

Despite a steadily growing industry of third-party providers, IT organizations to date have ventured rather cautiously into this new area of IT sourcing. This chapter attempts to explain why this is so by examining the decision behavior and practices of a number of leading-edge organizations. From this analysis, four key decision criteria were identified: (1) flexibility, (2) control, (3) knowledge enhancement, and (4) business exigency.
Today IT managers have an incredible range of available options in terms of how they choose to source and deliver IT functions.
Clearly, the mistake is not to investigate the full range of these options. What has been lacking is greater direction and guidance in selecting IT sourcing options. The concept of a maturity model for IT functions was introduced as was a function-sourcing profile to map sourcing options onto core and noncore IT functions. These elements form the basis of a decision framework to guide the selection of sourcing options. Based on this framework, organizations can develop more strategic, nuanced, and methodological approaches to IT function sourcing and management.

9. The IT Budgeting Process

Key Concepts in IT Budgeting 119
The Importance of Budgets 121
The IT Planning and Budget Process 123
Corporate Processes 123
IT Processes 125
Assess Actual IT Spending 126
IT Budgeting Practices that Deliver Value 127
Conclusion 128 • References 129
MInI CaSeS
Building Shared Services at RR Communications 156
Enterprise Architecture at Nationstate Insurance 160
IT Investment at North American Financial 165

Although IT budget processes have been largely ignored by researchers, they are a critical linchpin between many different organizational stakeholders: finance and IT, business units and IT, corporate strategy and IT, and different internal IT groups. Not surprisingly, therefore, IT budgeting is much more complex and difficult to navigate than it appears. This chapter has outlined some of the challenges faced by IT managers trying to juggle the realities of dealing with both IT operations and strategic investments while meeting the differing needs of their budget stakeholders. Surprisingly, very few guidelines are available for IT managers in this area. Each organization appears to have quite different corporate financial policies, which, in turn, drive different IT budgeting practices. Nevertheless, IT managers do face many common challenges in budgeting. Although other IT practices have benefited from focused management attention in recent years (e.g., prioritization, operations rationalization), budgeting has not as yet been targeted in this way. However, as business and IT leaders begin to recognize the key role that budgets play in implementing strategy and controlling costs, it is hoped they will make a serious effort to address the budgeting issues faced by IT.

10. Managing IT-Based Risk

A Holistic View of IT-Based Risk 131
Holistic Risk Management: A Portrait 134
Developing a Risk Management Framework 135
Improving Risk Management Capabilities 138
Conclusion 139  •  References 140
Appendix A A Selection of Risk Classification Schemes 141

Organizations are more sensitized to risk than ever before. The economy, regulatory, and legal environment; business complexity; the increasing openness of business relationships; and rapidly changing technology have all combined to drive managers to seek a more comprehensive understanding of risk and its management. Whereas in the past, risk was managed in isolated pockets by such functions as IT security, internal audit, and legal, today recognition is growing that these arenas intersect and affect each other.
And IT risk is clearly involved in many types of business risk these days. Criminal activity, legal responsibilities, privacy, innovation, and operational productivity, to name just a few, all have IT risk implications. As a result, organizations need a new approach to risk—one that is more holistic in nature and that provides an integrative framework for understanding risk and making decisions associated with it. Accomplishing this is no simple task, so developing such a framework will likely be an ongoing activity, as experts in IT and others begin to grapple with how to approach such a complex and multidimensional activity. This chapter has therefore not tried to present a definitive approach to risk management. There is general agreement that organizations are not ready for this. Instead, it has tried to sketch an impression of how to approach risk management and
what an effective risk management program might look like. IT managers and others have been left to fill in the details and complete the portrait in their own organizations.

11. Information Management: The Nexus of Business and IT

Chapter 11 CREATING A DATA STRATEGY 142
Why do We Need a Data Strategy? 143
What is a Data Strategy? 145
Where Does Data Strategy Fit? 147
The Data Journey 148
Advice to Managers 149
Conclusion 150 • References 151

Developing a data strategy is not for the faint of heart. It can mean stirring up a hornet’s nest of territorialism and politics. It can also feel like a thankless task with very little support or appreciation from business. Moving down this path involves knowing where you are at present and where you want to be, and then developing a business appetite for improving data strategy through such activities as education and proof-of-concept initiatives. As with many other organizational changes over the years, IT is anticipating the future, and it’s all about data. IT’s challenge is to implement an effective data strategy that will not only deliver immediate value to the business, but also put the pieces in place to more fully enable new business strategies in the future.

توسعه یک استراتژی داده برای کمبود قلب نیست. این می‌تواند به معنای افزایش لانه‎ی هورنت از سرزمین‎ها و سیاست‎ها باشد. این همچنین می‌تواند یک وظیفه بی شرمانه با پشتیبانی یا قدردانی بسیار کمی از کسب و کار باشد. حرکت این مسیر شامل شناختن جایی است که شما می‌خواهید و سپس توسعه اشتیاق کسب و کار برای بهبود استراتژی داده‎ها از طریق فعالیت‎هایی مانند آموزش و مدرک مفهوم ابتکارات. همانند بسیاری دیگر از تغییرات سازمانی در طول سالها، فناوری اطلاعات آینده را پیش بینی می‌کند، و همه چیز در مورد داده‎ها است. چالش IT این است که یک استراتژی داده موثر داشته باشیم که نه تنها ارزش فوری را برای کسب و کار به ارمغان می‌آورد.

Mini-cases:

            Shared Services at RR Communications

            Enterprise Architecture at Nationstate Insurance

            IT Investment at North American Financial

Section III: IT-Enabled Innovation

12. Innovation with IT

The Need for Innovation: An Historical Perspective 171
The Need for Innovation Now 171
Understanding Innovation 172
The Value of Innovation 174
Innovation Essentials: Motivation, Support, and Direction 175
Challenges for IT leaders 177
Facilitating Innovation 179
Conclusion 180 • References 181

Organizations are just beginning to grasp the scope of the new world of continuous change that is being ushered in by technology, and to grapple with how it will affect their traditional processes of implementing technology for value. This new world is faster paced, with change taking place in smaller, more frequent increments that create and enable flexibility for the organization. Today, we are just at the cusp of this transition, which will result in a transformation of how both organizations and IT functions operate. Although business as usual can continue for the short term, IT leaders are well aware that their current structures and processes must adapt rapidly to this new world of change. “Innovation” is thus merely the vanguard of what is to come; but addressing it thoughtfully and intentionally is the best way to ensure that an organization is prepared for the future.

13. Big Data and Social Media

Cloud Computing: The Current Reality 183
Developing a Cloud Strategy 184
Cloud Computing Challenges 186
Cloud Vendor Selection and Management 188
Recommendations for Managers 191
Conclusion 192 • References 192
Appendix A: An Evaluation Framework for Cloud Services Providers 193

There is no question that cloud computing is a dramatically new way to deliver IT services to a company. Today’s IT managers recognize and accept its potential to both change existing cost structures and enable new business products and services that haven’t previously been possible. However, at the same time, they are leery of the “hype” surrounding cloud computing, recognizing its costs and risks as well as its opportunities. The key to the effective use of cloud computing is to carefully select where and how to use the cloud. This involves adopting internal decision-making practices to incorporate cloud services as potential options and using a rigorous assessment process to determine the appropriateness of a cloud solution and its potential benefits. Once this key decision has been made, companies should carefully evaluate cloud service providers from several perspectives, and then actively manage the creation and implementation of cloud service contracts. This will require the development of new skills and knowledge within IT as well as actively engaging existing IT and business stakeholders in all parts of the development and implementation of an effective cloud strategy.

14. Improving the Customer Experience: An IT Perspective

Customer Experience and Business Value 196
Many Dimensions of Customer Experience 197
The Role of Technology in Customer Experience 199
Customer Experience Essentials for IT 200
First Steps to Improving Customer Experience 203
Conclusion 204 • References 204
Chapter 15 BuIlDIng BuSIneSS InTellIgenCe 206
Understanding Business Intelligence 207
The Need for Business Intelligence 208
The Challenge of Business Intelligence 209
The Role of IT in Business Intelligence 211
Improving Business Intelligence 213
Conclusion 216 • References 216

Until relatively recently, customers’ experience with a company was simply a by product of whatever business strategy an organization selected. Outsourcing, IVR, online “self-service,” and complex processes apparently designed to confound the customer and save the company money were the order of the day. Consequently, when a company did appear to care about its customers’ experience, it was a breath of fresh air. Apple’s huge success is based largely on its “obsess[ion] about [customers’] experience and being dedicated to creating unique improvements to delight them . . . cobbled together in the most magical ways with the [customer] rather than the scientist at the center of the picture” (Martin 2011).
Today, customer experience is recognized by most organizations as being essential to their current and future success and, as a result, it has become a top priority for most executives. IT plays an integral part in almost all customer experience initiatives and this fact is putting new pressures on the IT function to become more customercentric and think differently about how technology is delivered to the organization. As the members of this focus group made clear, everything a company does—and especially its technology— must now be designed with the customer in mind. This is a significant shift of mind-set for IT staff in particular, but it is an essential one if technology is going to be able to deliver on its potential to delight and differentiate. For companies, the stakes are high: change to meet rising customer expectations or lose out against the competition and risk losing customer loyalty and corporate reputation.

15. Business Intelligence

Chapter 15 BuIlDIng BuSIneSS InTellIgenCe 206
Understanding Business Intelligence 207
The Need for Business Intelligence 208
The Challenge of Business Intelligence 209
The Role of IT in Business Intelligence 211
Improving Business Intelligence 213
Conclusion 216 • References 216

BI is not a new idea but it is one to which organizations keep returning on a regular basis. This time, the technologies, the data, and the perspective have changed and become broader and more complex, while at the same time enabling an infinite number of new possibilities for supporting organizations with analysis and intelligence.
This chapter has clarified some of the similarities and differences between the current pressures for BI and those of the past and outlined a holistic view of BI that incorporates both the IT foundations of data and information management and the uses to which these can be put to derive value for the organization. It is clear that organizations will need to do a better job at all three levels if BI is going to realize its promise.
While there is much theoretical value to be gained from BI, the fact remains that there are many complex organizational and behavioral challenges to be addressed before it can be realized. IT has the opportunity to take a leadership role in BI but its ability to do so is limited by how much it understands about the business and its ability to integrate
technical and business knowledge to deliver intelligence. Its success in the future will depend on how well it can develop these new capabilities.

16. Enabling Collaboration with IT

Why Collaborate? 219
Characteristics of Collaboration 222
Components of Successful Collaboration 225
The Role of IT in Collaboration 227
First Steps for Facilitating Effective Collaboration 229
Conclusion 231 • References 232
Mini Cases
Innovation at International Foods 234
Consumerization of Technology at IFG 239
CRM at Minitrex 243
Customer Service at Datatronics 246

BI is not a new idea but it is one to which organizations keep returning on a regular basis. This time, the technologies, the data, and the perspective have changed and become broader and more complex, while at the same time enabling an infinite number of new possibilities for supporting organizations with analysis and intelligence.
This chapter has clarified some of the similarities and differences between the current pressures for BI and those of the past and outlined a holistic view of BI that incorporates both the IT foundations of data and information management and the uses to which these can be put to derive value for the organization. It is clear that organizations will need to do a better job at all three levels if BI is going to realize its promise. While there is much theoretical value to be gained from BI, the fact remains that there are many complex organizational and behavioral challenges to be addressed before it can be realized. IT has the opportunity to take a leadership role in BI but its ability to do so is limited by how much it understands about the business and its ability to integrate technical and business knowledge to deliver intelligence. Its success in the future will depend on how well it can develop these new capabilities.

Mini-cases:

            Information Management at Homestyle Hotels

            Innovation at International Foods

            CRM at Minitrex

            Customer Service at Datatronics

Section IV: IT Portfolio Development and Management

17. Application Portfolio Management

The Applications Quagmire 253
The Benefits of a Portfolio Perspective 254
Making APM Happen 256
Capability 1: Strategy and Governance 258
Capability 2: Inventory Management 262
Capability 3: Reporting and Rationalization 263
Key Lessons Learned 264
Conclusion 265 • References 265
Appendix A Application Information 266

Collaboration is a complex concept with uncertain benefits and requires major organizational change. The drive to adopt collaboration is being accelerated by the possibilities enabled by information technology, which support real-time, global communication and anytime, anywhere access to information. In addition, companies are feeling considerable pressure to adopt collaboration technology because of their increasingly widespread use among individuals, many of whom are becoming their employees. There is no question that collaboration will play a major role in how we work and live in the future. However, as we move into this new era, companies are taking their time to determine how best to take advantage of what collaborative technology has to offer. This chapter has identified the major ways companies might want to collaborate and the benefits that are anticipated from each. It has also explored some of the major characteristics and components of collaboration in order to clarify concepts and to distinguish
between the work of collaboration, which is a human activity, and collaboration technology, which facilitates it. It has shown that effective collaboration will not result from
simply implementing more collaboration software. Instead, it will require a proactive and holistic strategy that integrates business goals and technology potential. At present,
all aspects of collaboration and collaboration technology are in their infancy, so it is understandable that many companies are proceeding cautiously into this new world.
Nevertheless, the speed with which both technology and practice are moving suggests strongly that it is time for managers to put some collaborative fundamentals in place. Furthermore, IT managers have an opportunity to provide business leadership around collaboration if they can clearly articulate its business potential and benefits, rather than focusing on the technology itself.

18. Managing IT Demand

Understanding IT Demand 271
The Economics of Demand Management 273
Three Tools for Demand Management 273
Key Organizational Enablers for Effective Demand
Management 274
Strategic Initiative Management 275
Application Portfolio Management 276
Enterprise Architecture 276
Business–IT Partnership 277
Governance and Transparency 279
Conclusion 281 • References 281

This chapter provides guidance to those investigating APM and/or planning to launch an APM initiative. Application portfolio management promises significant benefits to adopting organizations. Obtaining those benefits, however, requires the development of three mutually reinforcing capabilities. The first capability is the development an APM strategy buttressed with governance procedures, the second is the creation of an application inventory, and the third is a reporting capability built to align the application portfolio with the established strategy. Each of these capabilities provides standalone benefits, but together they enable an organization to optimize its IT application assets, reduce the cost and complexity of its portfolio, reduce or eliminate redundant functionality, facilitate better business decisions regarding technology, and effectively communicate the contribution of IT to the overall organization.

19. Creating and Evolving a Technology Roadmap

What is a Technology Roadmap? 284
The Benefits of a Technology Roadmap 285
External Benefits (Effectiveness) 285
Internal Benefits (Efficiency) 286
Elements of the Technology Roadmap 286
Activity #1: Guiding Principles 287
Activity #2: Assess Current Technology 288
Activity #3: Analyze Gaps 289
Activity #4: Evaluate Technology Landscape 290
Activity #5: Describe Future Technology 291
Activity #6: Outline Migration Strategy 292
Activity #7: Establish Governance 292
Practical Steps for Developing a Technology Roadmap 294
Conclusion 295 • References 295
Appendix A Principles to Guide a Migration Strategy 296

The purpose of a technology roadmap is to guide the development of technology in an organization. But as pointed out in this chapter, it serves a much greater purpose for a business. It communicates the role that technology will play in advancing business goals. It outlines the explicit assumptions on which the roadmap is based and describes how these assumptions directly affect the rate and order of attainment of goals. It suggests the impact of future technology on the set of required in-house skills for the IT department. And it provides a vehicle for explaining the logic of technology-related decisions to business managers who otherwise may interpret such decisions as overly rigid and unproductive. As such, a technology roadmap should be viewed as an important opportunity for IT to engage the business in meaningful and productive dialogue focused on furthering business goals. To limit this activity to simply forecasting technology is to miss a significant opportunity.

20. Enhancing Development Productivity

The Problem With System Development 298
Trends in System Development 299
Obstacles to Improving System Development Productivity 302
Improving System Development Productivity: What We Know That Works 304
Next Steps to Improving System Development Productivity 306
Conclusion 308 • References 308

Much has improved in the practice of system development over the past two decades and if the development environment had stayed static, it is likely that productivity would
also have been perceived to have improved dramatically. Instead, systems have become increasingly complex at every level so process improvements have barely made a dent in the dilemma of development productivity. This chapter has addressed the ongoing nature of the productivity problems facing IT managers in systems development and how
the field is changing. It has examined some of the serious systemic barriers to fundamental change in how systems are developed and documented best practices for dealing
with them. There is unfortunately no silver bullet when it comes to improving system development productivity, in spite of much effort to find one. While a few organizations
are “pushing the envelope” in an attempt to radically change how systems are delivered, for most, improvements are more likely to come as a result of persistent and iterative
analysis of what works and what doesn’t in their particular organizational context.

 

21. Information Delivery: IT’s Evolving Role

Information and IT: Why Now? 311
Delivering Value Through Information 312
Effective Information Delivery 316
New Information Skills 316 New
Information Roles 317 New
Information Practices 317 New
Information Strategies 318
The Future of Information Delivery 319
Conclusion 321 • References 322
MInI CaSeS
Project Management at MM 324
Working Smarter at Continental Furniture International 328
Managing Technology at Genex Fuels 333

Information delivery in IT is an idea whose time has finally come. IT practitioners and experts have been talking about it for years, yet only recently has the business truly begun to understand the power and the potential of information. New technologies and channels now make it possible to access and deliver information easily and cheaply. As a result, information is now being used to drive many different types of value in organizations, from business intelligence to streamlined operations to lower administrative costs to new ways to reach customers. The challenges for IT are huge. Not only does effective information delivery require IT to implement new technologies, but it also means that IT must develop new internal nontechnical and analytic capabilities. Information delivery makes IT work much more visible in the organization. Developing standard data models, integrating information into work processes, and forcing (encouraging) business managers to put the customer/employee/supplier first in their decision making involve IT practitioners in organizational and political conflicts that most would likely prefer to avoid. Clearly, IT managers are front and center of an information revolution that will completely transform how organizations operate. The changes to date are just the tip of the information iceberg. In the not-so-distant future, new streams of information will be flooding into the organization, and IT managers will be expected to be ready with plans for its use. For the first time, senior business executives are ready to hear about the value of information. IT managers should take advantage of this new openness to develop the skills and capabilities they will need to prepare for the coming deluge.

Mini-cases:

            Project Management at MM

            Managing Technology at Genex Fuels

            Working Smarter at Continental Furniture

IT Strategy: Issues and Practices, Third Edition provides a critical issues perspective that shows students how to deliver business value. As with the first two editions, this revision combines the insights of senior IT managers with academic research, bringing IT management to life and demonstrating how IT strategy plays out in contemporary business. This edition has been overhauled in order to reflect the most important issues facing IT managers today.

Designed for courses where the goal is to understand how IT delivers organizational value, this text can be used in IT Strategy and IT Management courses at the undergraduate and graduate levels. The text combines the experiences and insights of many senior IT managers from leading-edge organizations with thorough academic research to bring important issues in IT management to life and demonstrate how IT strategy is put into action in contemporary businesses.   Edition 3.1 is a new lower-priced edition with three new chapters on contemporary issues. Otherwise, it is identical to the third edition formerly published by Pearson.  The three new chapters are: Chapter 3: Developing and Evolving a Digital Strategy, Chapter 11: Creating a Data Strategy, and Chapter 13: Developing a Cloud Strategy.

Best IT Strategy Course include:

For undergraduate or graduate courses in IT Strategy or Management
IT Strategy: Issues and Practices, Third Edition provides a critical issues perspective that shows students how to deliver business value. As with the first two editions, this revision combines the insights of senior IT managers with academic research, bringing IT management to life and demonstrating how IT strategy plays out in contemporary business. This edition has been overhauled in order to reflect the most important issues facing IT managers today.
Use a program that presents a better teaching and learning experience—for you and your students.
    Focus on IT management: Because IT is an important part of successful business strategy; the text focuses management skills so a wider range of business professionals will find it useful.
    Offer real-world current context: Real-world content found in chapter mini-cases and reading materials makes the material more relevant to students and prepares them for their field.

Focus on IT management
    The focus on IT management in the book helps students know how to manage well. By focusing on IT management–rather than technical issues–the information in this text can be used by a wider range of business professionals.
    Chapters focus on critical IT management issues such as identity management, collaboration, communicating with business, improving relationships with the business, application portfolio management, managing IT-based risk, social computing and master data management.
Offer real-world current context
    Mini-cases: rather than learning concepts free of context, this text introduces students to the complex decisions facing real organisations through minicases. Twelve in all, four of which are new to this edition, these are not just abridged versions of full case studies, as they differ in two significant ways:
        A horizontal perspective takes a slice through a number of coexistent issues. Rather than looking for a solution to a specific problem, students must first identify and prioritise the issues, mimicking how real organisations would approach the same challenge.
        Highly relevant information engages students. Unlike standard cases, which intermix irrelevant information, every sentence of these cases has a purpose and reflects relevant information. As a result, students must analyse each case very carefully so as not to miss critical aspects of the situation.
    To assist instructors, extensive teaching notes are available for all mini-cases. Developed by the authors and based on “tried and true” in-class experience, these notes include:
        Case summaries
        Key issues within each case
        Ancillary information about the company/industry
        Guidelines for organising the classroom discussion
    Mini-cases offer information about delivering business value at Hefty Hardware, customer service at Datatronics, innovation at International Foods, and IT Investment at North American Financial.
    The text presents models and frameworks to use for IT decision making. This text provides extensive use of models and frameworks that students can use in their future careers.


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