Assignment: Business Technology

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Assignment: Business Technology

Assignment: Business Technology

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Managing and Using Information Systems:

A Strategic Approach – Sixth Edition

Keri Pearlson, Carol Saunders, and Dennis Galletta

© Copyright 2016 John Wiley & Sons, Inc.

Chapter 8 The Business of IT

The Horner/Alcoa Story

• High-performing tech worker—almost dismissed as CIO

• What were the issues? • What did they expect from him? • What did he deliver at first? • What change did he make to become more

valuable to Alcoa?

© 2016 John Wi ley & Sons, Inc. 3

The Alcoa lesson: Business Demands

• IT offerings need to be aligned with business demands

• IT complexities should be translated to business needs

© 2016 John Wi ley & Sons, Inc. 4

Merlyn’s Business-IT Maturity Model

© 2016 John Wi ley & Sons, Inc. 5

What a Manager Can Expect From the IT Organization

A manager typically can expect some level of support in 14 core activities (Figure 8.2) – levels in parentheses

1. Developing and maintaining IS (1)

2. Managing supplier relationships (1)

3. Managing data, information, and knowledge (1, 2)

4. Managing Internet and network services (1, 2)

5. Managing human resources (1)

6. Operating the data center (1)

7. Providing general support (1)

© 2016 John Wi ley & Sons, Inc. 6

What a Manager Can Expect From the IT Organization (Cont.)

8. Planning for business discontinuities (1)

9. Innovating current processes (2)

10.Establishing architecture platforms and standards. (2)

11.Promoting enterprise security (2)

12.Anticipating new technologies (3)

13.Participating in setting and implementing strategic goals (3)

14.Integrating social IT (3)

© 2016 John Wi ley & Sons, Inc. 7

What The IT Organization Does Not Do

• Does not perform core business functions such as: • Selling • Manufacturing • Accounting.

• Does not set business strategy. • General managers must not delegate critical

technology decisions.

© 2016 John Wi ley & Sons, Inc. 8

Chief Information Officer (CIO) The Senior-Most IT Executive

• Responsible for technology vision

• Leads design, development, implementation, and

management of IT initiatives

• Is a business technology strategist or strategic

business leader

• Uses technology as the core tool in

• creating competitive advantage

• aligning business and IT strategies

© 2016 John Wi ley & Sons, Inc. 9

CIO’s Focus

• CIO’s focus has shifted:

• From efficiency to effectiveness in a constantly

changing/competitive marketplace

• Formerly: reported to the CFO. Now: reports to

the CEO.

• Shift over time towards helping executive team

formulate business strategy

© 2016 John Wi ley & Sons, Inc. 10

CTO, CPO, and Other Roles

• CIO Can’t have all skills—can’t know everything! • Other roles are important:

• CTO: Chief Technology Officer (tracks technologies) • CKO: Chief Knowledge Officer • CDO: Chief Data Officer • CAO: Chief Analytics Officer • CTO: Chief Telecommunications Officer • CNO: Chief Network Officer • CRO: Chief Resource Officer • CISO: Chief Information Security Officer • CPO: Chief Privacy Officer • CMO: Chief Mobility Officer • CSMO: Chief Social Media Officer

© 2016 John Wi ley & Sons, Inc. 11

So Who Should Make the Decisions?

• Ross & Weill say • The CEO should not make those decisions alone • C-level executives should not even make those

decisions • Input is needed from both IT and the business units

alike • Steering (or Executive) Committee solution

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