Information Technology Management Perspectives, Focus, and Change in the 21st century.

Information Technology Management

Perspectives, Focus, and Change in the 21st century

Paradigm shift

The models for managing IT strategy, the IT function, and IT projects are changing in the twenty-first century.

The past is inadequate for fitting the environmental turbulence .

Environmental scanning External IT fundamental changes

High computing power Network-oriented processing Wireless-oriented accessing

Organizational behavior/structure adaptation for searching fitness The computer-literate & network-

centric knowledge worker

Five eras of IT evolution First era: pioneers, penetration, and chaos (1954-

1963) (the proud age of transistor) Second era: gaining control-centralization and a

technical monopoly (1964-1976) (after the IC breakthrough against the tyranny of numbers)

Third era: letting loose-distribution and decentralization (1977-1984) (the dominant age of IBM)

Fourth era: distribution-a free market with issues of architecture and management (1985-1996) (the frog-leap of Wintel )

Fifth era: the worldwide web and anytime/anyplace computing (1997 into the 21st century) (the Internet era)

First era The first commercial computer was

installed in a General Electric Plant in 1954

Univac I machine was once a leader in the market place.

Scientific applications were dominant in the age of Cold War.

FORTRAN and COBOL did not emerge as the popular programming languages until the late of this era.

First era (Cont.) Computing: isolated machines Applications: Scientific and engineering;

machine-specific programs Management: in-house training of

technical staff Organization: unplanned, chaotic Key issues: few concerns; computing is

a mystery, scattered and hidden from top management view

Second era Technological advances:

IBM system 360 series—a modularized design ignited the dramatic growth of computer industry and brought consolidation of organizational computing resources

direct-access storage devices (DASD), telecommunication, Multiple access computing

Beyond the function of accounting: included several efficiency-enhanced transaction processing systems, e.g., inventory control, banking, airline, taxing, healthcare, etc.

Second era (Cont.) Computing: Distributed access to

mainframes; compatible product lines Applications: accounting, inventory, and

business transactions Management: standardized

programming languages, early database technology

Organization: consolidation of control within the data processing function

Key issues: rising cost, unmet user expectations

Third era Minicomputer emerges: DEC VAX series,

Wang, and equipments of Japan’s electronic firms

Increasing demands of IT processing services Focusing on the effective & efficient IS

development methods—SDLC & User involvement

Externally-developed software packages were available (the spill-over effect of IBM)

IT organization and management in a advisory, service-oriented role

IT as a source of competitive advantage in the marketplace (focus on efficiency)

Third era (Cont.) Computing: midrange computers, easy-to-use

interfaces Applications: commercial and user-developed

applications complement internal systems development efforts

Management: systems development life cycle procedures; distributed IT development

Organization: greater business unit control of IT

Key issues: coordination of centralized and business-unit IT efforts

Fourth era PC innovation and widely uses of

software packages The Wintel standard move the

computing infrastructure forward Network technologies connected the

legacy systems and the current PCs A harmonious IS settings with flexibility

Emerging inter-organizational data

exchange applications: ERP, SCM, etc.

Fourth era (Cont.) Computing: personal computers, LANs, Internet

and extranets Applications: user-friendly applications, desktop

systems followed by groupware and workflow system

Management: user-driven systems management; everyone is an IT manager; project control techniques

Organization: federated or free market approach to IT, including centralized, decentralized, and outsourced IT operations

Key issues: incompatible systems, integration difficulties, Y2K

Fifth era

This is a dotcom era contributed greatly after Netscape IPO

The business model of click-and-mortar integration

N-generation & M-generation workers

The new economics of information

Fifth era (Cont.) Computing: PDA, mobile technology,

Internet as primary platform Applications: electronic commerce

systems Management: professionalism and team

skills are paramount; flexibility is added to project control

Organization: downsizing of corporate IT, integration of business and IT operations

Key issues: embracing both old and new models of IT management

IT advantage transformation

From transaction processing to business relationship exploration

From IS scalability to IS mobility & agility

From the alignment with business strategy to the reach beyond the traditional business scopes

IT management transformation

Centralization & decentralization A total business approach around

IT In-sourcing & outsourcing (the

make-or-buy decision) Top management engagement—

active participation

Project management transformation Project management team may change

along with shifts in business needs Rapid everything and virtual many things

(the object-oriented programming project) Trust & innovation rather than control Action and risk assessment more than

system analysis (standard betting & selection) Up-to-the-minute clarity of information

Extending readings Malone, Thomas W,. Robert Laubacher, and M. S. Scott

Morton, ed., (2003), Inventing the Organizations of the 21st Century, MIT Press.

Evans, P. and T. Wurster (1997), “Strategy and the New Economics of Information,” Harvard Business Review, 75(5), Sept.-Oct., pp.71-82.

Thomas, J. Allan, and M. S. Scott Morton, ed., (1995), Information Technology and the Corporation of 1990s: Research Studies, Oxford University Press.

Scott Morton, M. J., ed., (1991), The Corporation of 1990s: Information Technology and Organizational Transformation, Oxford University Press.

Nolan, R. L. (1979), “Managing the Crisis in Data Processing,” Harvard Business Review, 57(2), pp.115-26.

Referred papers Lyytinen, Kalle and Gregory M. Rose (2003), “The Disrupti

ve Nature of Information Technology Innovations: The Case of Internet Computing in Systems Development Organizations,” MIS Quarterly, Volume 27, Number 4.

Rogers, E.M. (1995), Diffusion of Innovations, 4th ed., The Free Press, New York.

Henderson, R.M. and K.B. Clark (1990), “Architectural Innovation: The Reconfiguration of Existing Product Technologies and the Failure of Established Firms,” Administrative Science Quarterly, Vol. 35, pp.9-30.

Teece, D. J. (1986), “Profiting from Technological Innovation: Implications for Integration, Collaboration, Licensing and Public Policy,” Research Policy, 15(6), pp.285-305

Referred papers (cont.) Keil, Mark, Joan Mann, and Arun Rai (2000), “Wh

y software projects escalate: An empirical analysis and test of four theoretical models,” MIS Quarterly, Vol. 24, Iss. 4. Kahneman, D. and A. Tversky (1979), “Prospect Theor

y: An Analysis of Decision Under Risk,” Econometrica, vol.47, pp.263-291.

Jensen, M. C. & W. H. Meckling (1976), “Theory of the Firm: Managerial behavior, Agency Costs, and Ownership Structure,” Journal of Financial Economics, vol.3, pp.305-360.

Referred papers (cont.) Reich, Blaize Horner and Izak Benbasat (2000), “Factors that

influence the social dimension of alignment between business and information technology objectives,” MIS Quarterly, Vol. 24, Iss. 1.

Cohen, Wesley M. and Daniel A. Levinthal (1990), “Absorptive Capacity: A New Perspective on Learning and Innovation,” Administrative Science Quarterly, Vol. 35, pp.128-52.

Yin, R. K. (1989), Case Study Research: Design and Methods, 2nd ed., Sage, CA.

Wastell. David G. (1999), “Learning dysfunctions in information systems development: Overcoming the social defenses with transitional objects,” MIS Quarterly, Vol. 23, Iss. 4.

Argyris, C. (1990), Overcoming Organizational Defenses, Allyn & Bacon, Boston.

Beer, S. (1994), Decision and Control, Wiley, Chichester, England.