Midterm Study

Managing IT

Strategic planning, organization, implementation and oversight of technology resources and systems

to achieve specific business objectives

Overview of Information Technology

focuses on technology.

encompasses hardware, software, networks, and infrastructure (that enables the processing, storage, and transmission of data and information)

Overview of Information Systems

includes IT and beyond.

encompasses technology, people, processes, and data (to achieve strategic objectives

Role of IT

IT professionals responsible for:

- designing, implementing, and managing technology solutions

- ensure hardware is functioning correctly

- network administration, software development, system maintenance, etc.

Role of Information Systems

IS professionals

- play a strategic role

- align technology with business objectives

- identify opportunities for technology-driven improvements

- manage integration of technology into business processes

- roles: business analysts, system analysts, IT project managers

Functions of Information Systems

- automation of routine tasks and improving efficiency

- providing real-time data for decision-making

- enhancing communication and collaboration

- enabling strategic planning and competitive advantage

- managing and securing data

IT management framework

Components and organization of IT management:

IT Governance

IT Funding

IT Strategy

IT Performance

IT Department

IT portfolio

Information Technology (IT) Vs. Information Systems (IS)

Difference between technology focus and broader concept

Automation of routine tasks through IS examples

e.g. customer service chatbots, robotic assembly lines, automated accounting, tableau, wordpress, cloud management systems (CMS), mailchimp

Providing real-time data for decision-making through IS

e.g. stock exchanges, medical patient monitoring systems, transportation gps systems, Tracking website traffic, user behavior, and sales

Enhancing communication and collaboration through IS

Improving methods of interaction and teamwork

e.g. slack, zoom

Enabling strategic planning and competitive advantage through IS

e.g. SWOT tools, balance score card tools

Managing and securing data through IS

e.g. MS SQL server, oracle database

First Modern Information System

Early example of automated information processing

Why is IT important?

Significance of IT in modern society

Why do businesses invest in IT?

Reasons for organizations to allocate resources to IT

Why is our growing reliance on IT increasing?

1. Efficiency, effectiveness, and productivity

2. data management

3. global connectivity

4. innovation and competitive advantage

5. customer engagement

6. cost savings

7. education and learning

8. healthcare advancements

9. communication

10. security and safety

11. environmental sustainability

12. personal convenience

13. AI

14. IoT

Challenges in Managing IT

1. rapid technological change

2. budget constraints

3. cybersecurity threats

4. data management

5. legacy systems

6. talent shortage

7. IT Governance

8. Compliance and regulations

9. vendor management

10. change management

11. scalability and capacity planning

12. interoperability

13. business continuity and disaster

14. cloud adoption

15. user expectations

Key IT Management Roles

- chief information officer (CIO)

- chief technology officer (CTO)

- IT director or IT manager

- IT security officer (ISO) or Chief Information Security Officer (CISO)

- Data Officer or Chief Data Officer (CDO)

- Project manager

- IT service manager

- cloud architect

- enterprise architect

- business analyst

- vendor and contract manager

- change management specialist

- software engineers

- network administrators

Executives

Senior leaders responsible for IT strategy

IT Project Management

Planning and overseeing IT projects

IT Operations

Management of IT infrastructure and systems

IT Staff

Employees involved in IT-related tasks

Chief Information Officer (CIO)

Executive responsible for IT strategy and operations

Cloud Architect

Professional specializing in cloud technology

Chief Technology Officer (CTO)

Executive overseeing technology initiatives

IT Director or IT Manager

Manager responsible for IT department

Business Analyst

Professional analyzing business processes and requirements

IT Security Officer (ISO) or Chief Information Security Officer (CISO)

Professional responsible for IT security

Vendor and Contract Manager

Professional managing relationships with technology suppliers

Change Management Specialist

Professional facilitating organizational change

Data Officer or Chief Data Officer (CDO)

Executive responsible for data management

Software Engineers

Professionals developing software applications

Network Administrators

Professionals managing computer networks

Project Manager

Professional overseeing IT projects

IT Service Manager

Professional managing IT service delivery

IT's Growing List of Responsibilities

Expanding role of IT in organizations

Copyright and Intellectual Property Laws

Legal protection for creative works

Cybersecurity Regulations

Laws and standards for digital security

Accessibility Laws

Regulations for inclusive technology access

Electronic Contracts and E-Signatures

Legality of digital contracts and signatures

Cybercrime Laws

Legal measures against online criminal activities

Consumer Protection

Laws to safeguard consumer rights

Ethical Hacking and Penetration Testing

Authorized testing of system vulnerabilities

Why is it hard to realize value from/create competitive advantage with IT investments

- they may not be designed to create competitive advantage

- IT departments under heavy workload

- taking care of legacy systems consumes most of IT departments time

- lack of systematic approach to IT management

- organizations do not go through a proper IT-enabled business change to leverage technology

- lack of senior management support

- complexity of IT Ecosystem

- uncertain returns on investments (ROI)

- resistance to change

ethical considerations

1. privacy

2. data security

3. transparency

4. data accuracy

5. access and equity

6. intellectual property

7. environmental responsibility

legal considerations

1. data protection laws

2. copyright and intellectual property laws

3. cybersecurity regulations

4. accessibility laws

5. electronic contracts and e-signatures

6. cybercrime laws

7. consumer protection

8. ethical hacking and penetration testing

IT Value

measurable benefits and contributions that IT assets, services, projects, and initiatives can provide to the organization

IT purpose

quantifies the positive impact of IT on organization's performance and success

How does IT create value?

IT expenditure -> IT assets -> IT impacts -> Organizational Performance

Corporate Governance definition

system of rules, practices and processes by which a company is directed and controlled

encompasses relationships among various stakeholders (including management, customers, suppliers, financiers, and the community)

Corporate Governance purpose

aims to ensure the organization's actions are consistent with its stated mission, values, and strategic definition

IT Strategy

defines how organization's demand for information & systems will be supported by tech

IT Governance definition

component of corporate governance

encompasses the policies, processes, and decision-making structures that guide how IT is managed and utilized within organization

IT Governance purpose

ensures that IT resources are used efficiently and effectively

aims to maximize value of information and technology investments

Frameworks for measuring IT Value

- IT Capability Maturity Framework

- ITIL (Information Technology Infrastructure Library)

- COBIT (Control Objectives for Information and Related Technologies)

- TOGAF (The Open Group Architecture Framework)

- Balanced Scorecard

- ISO/IEC 20000

- Val IT

- Agile Metrics and KPIs

- DevOps Metrics

- IT Cost Transparency Models

- IT Portfolio Management

IT Capability Maturity Framework

- focuses on IT's customers and services

- controls and manages cost to allow greater funding in IT investments

- manages IT assets through the value chain and developing core competencies

- involves tying IT investments to overall business benefits

ITIL (Information Technology Infrastructure Library)

- widely adopted framework for IT service management

- provides a set of best practices for managing IT services

- helps organizations measure the value of IT services by focusing on KEY PERFORMANCE INDICATORS (KPIs) and SERVICE LEVEL AGREEMENTS (SLAs)

COBIT (Control Objectives for Information and related Technology)

SPECIFICALLY designed for IT governance and control

- provides a comprehensive set of control objectives (controls, processes, and maturity models) and KPIs to assess and optimize IT value delivery

- strikes balance between risk management and information technology governance

TOGAF (The Open Group Architecture Framework)

- enterprise architecture methodology and framework used to improve business efficiency

- includes guidelines for aligning IT strategies and assets with business goals (indirectly helps measuring IT value)

Balanced Scorecard

widely used management tool that helps organizations measure performance from multiple perspectives

1. Financial Perspective

2. Customer Perspective

3. Internal Process Perspective

4. Learning and Growth perspective

ISO/IEC 20000

An international standard that defines best practices for IT service management

includes metrics and measurements to assess the value of IT services to the organization

Val IT

IT governance framework developed by ISACA

- focuses on delivering value from IT investments

- includes guidelines for value management, investment appraisal, and performance measurement

Agile Metrics and KPIs

- specific metrics and KPIs are used to measure the value delivered by Agile teams

- metrics often include velocity, cycle time, and customer satisfaction

start class 4 slides

i hate this

Business Strategy

Direction and objectives of the business

IS Strategy

Strategy that defines the organization's demand for information and systems

Information Technology Strategy Process

1. Understand business strategy

2. Identify IS strategy (what is required from IS and what are the roles IS is expected to play in the next 3-5 years)

3. Determine IT strategy (how can IT deliver expectations?)

4. Analyze IT portfolio (financial returns, risk assessment, internal efforts, external efforts, resource requirements)

5. Prepare IT strategies (roadmap)

Value Chain

Sequence of activities that create products and services for customers

Support Activities

Infrastructure, HR management, product and technology development, procurement

Primary Activities

Inbound logistics, operations, outbound logistics, sales and marketing, servicing

How can IS/IT improve performance of a value chain?

- improve performance of each activity

- link activities together to address inefficiencies or missed opportunities

- facilitate support activities to contribute the value creation process and not to hinder them

Porter's Five Forces

Framework for analyzing industry competition and identifying IS/IT opportunities

1. Threat of New Entry

2. Supplier Power

3. Threat of Substitution

4. Buyer power

Transaction Cost Theory

- when external transaction costs higher than internal, company grows (vertical integration)

- if external transaction costs lower than internal, some activities will be performed outside the firm

External Value Chain

The network of suppliers, distributors, and logistic firms that support the market

Strategic Role of Information

How you gather, manage, and use information will determine whether you win or lose -bill gates

Strategic Alignment

State in which the goals and activities of a business are in harmony with the information systems that support them

Alignment Maturity Criteria

Criteria for assessing the level of alignment between business and IT domains

- business and IT understand each other

- focusing on value

- it governance

- prescribing strategic role to IT

- IT architecture

- IT skills of business people and IT and business skills of IT people

Enablers of Strategic Alignment

- senior executive support for IT

- IT involved in strategy development

- IT understands the business

- Business & IT partenrship

- well-prioritized IT projects

- IT demonstrates leadership

Inhibitors of Strategic Alignment

- IT/business lack close relationship

- IT does not prioritize well

- IT fails to meet commitments

- IT does not understand business

- Senior executives don't support IT

- IT lacks leadership

IT Governance

The process of aligning IT strategy with business goals and objectives

Traditional Value Chain Model

Support Activities on top

Primary Activies below

Value added - cost = profit

Value Chain Stages

Supply, conversion, logistics, consumption

Examples of "the search for opportunities"

- can IT be used to reengineer core value activities?

- can IT change nature of relationships and balance of power between buyers and suppliers?

- Can IT build or reduce barrier to entry?

- can IT increase or decrease costs?

- can IT add value to existing products/services or create new ones?

Examples of "the analysis of strategic risks"

- can emerging technologies disrupt current business models?

- are we too early or too late to exploit an IT opportunity?

- does IT lower entry barriers?

- does IT trigger regulatory action?

Treacy and Wiersema's Strategy Framework

- operational excellence (best total cost)

- customer intimacy (best total solution)

- product leadership (best product)

IT Governance

Specifying the decision rights and accountability framework to encourage desirable behavior in using IT

Information and IT assets

Key assets that help firms accomplish their strategies and generate business value

Empirical Evidence

Firms with above-average IT governance following a specific strategy had more than 20% higher profit than firms with poor IT governance following the same strategy

Effective IT governance is the SINGLE MOST important predictor of the value an organization generates from IT

Corporate Governance

Providing the structure for determining organizational objectives and monitoring performance to ensure objectives are attained

Key Asset Governance

Mechanisms to govern the management and use of each key asset to help the firm accomplish its strategies and generate business value

IT Principles Decisions

Clarifying business role of IT

IT Architecture Decisions

Defining integration and standardization

IT Infrastructure Strategies

determining shared and enabling services

Business Application Needs

Specifying the business need for purchased or internally developed IT applications

IT Investment & Prioritization Decisions

Decisions about which IT initiatives to fund and how much to spend

IT Governance Maturity Levels

From most mature to least mature

1. Best Practices (formal governance processes are optimized)

2. Consistent (formal governance processes exist across enterprise)

3. Fragmented (some fragmented effort to formalize processes)

4. Ad Hoc (no formal processes/mechanisms)

Key IT Governance decisions

-IT principles

- IT architecture

- IT infrastructure

- Business applications and needs

- IT investments and prioritization

Objectives of IT governance

- IT value and alignment

- Risk management

- accountability

- performance measurement

Management v. governance

governance determines who makes decisions

management is process of making and implementing decisions