Information System

What is IT? –hardware, software, infrastructure& processes, people.

Why does IT not matter? –IT has become a commodity. Why? –IT is a necessary resource (like electricity). IT is ubiquitous (data processing, data storage & data transport is available and affordable for all). IT is now an infrastructural technology as opposed to a strategic technology. Proprietary IT can quickly turn from a competition advantage asset to a liability.

What do you think (IT)? As IT has become critical for operations, companies must focus more on vulnerabilities and manage for reliability and security.

What is Carr actually saying? Businesses have overestimated the strategic value of IT. They have overspent in a quest for business value. They need to think about reducing capital spending and managing it better.

What is the busin ess value of IT? Indirect effects: IT creates possibilities and options that did not exist before. IT can be a rewarding differentiator. IT can provide a platform for continuous innovation. IT can be a platform for intangible information-based innovation.

IT in organizations: The early days: Accounting/finance – back office functions. The business silo days: each division/business area had their own to support their own activities within their silo. The enterprise/ERP days: big, expensive, organizational level IT. Operating across silos and creating their own silos. The networked & virtualization days: bus. Partnerships/ cloud computing/ web 3.0

What’s the problem with enterprise/ERP level IT? Slow to respond to innovation, not focused on the changing needs of the individual bus. Units. Too controlling and restrictive, IT has become the department of NO.

According to Cramm, Put IT Where it Belongs, where does IT belong? In the bus. Units. With centralized policy and support role, support but empower the bus. Units to meet their own needs. Why? They are best able to identify needs and opportunities. They are more responsible.

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