Chapter1: Introduction Presented by Dr.Mohamed Sammouda. ITD2031- Managing the Information Technology. Chapter Outline. Evolution of role of IT Role of IT management versus other business functions View of IT by IT executives How to better manage IT resources
Managing the Information Technology
Two interrelated elements
Increasingly IT is integrated in the organization - the issue of alignment of business strategy and IT/IS is seen as imperative, but difficult (Chan)
The CIO is recognized as a senior manager and board member.
Obviously the old focus of IT function still has to get done, but it is now seen within the overall context of alignment.
BUSINESS and I.T. VISION
Note: Project Management is assumed to be an organization-wide capability.
DESIGN of I.T. ARCHITECTURE
According to Porter, strategy is “the creation of a unique and valuable position, involving a different set of activities… different from rivals” (1996:68).
It is all about achieving sustained competitive advantage
McFarlan, McKenney and Pyburn (1983) identify three fundamental strategies for competitive advantage: low cost, product differentiation and niche market.
Luftman (2004) defines IT strategy as a set of decisions made by IT and functional senior management thateither enables or drives business strategy.
“The limited number of areas in which results, if they are satisfactory, will ensure successful competitive performance for the organization.
They are the few key areas where things must go right for the business to flourish. If results in these areas are not adequate, the organization’s efforts for the period will be less than desired.”