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MBA PT

8107 Managing IT for


Organization

Prof Sanjiva Shankar Dubey


Faculty of Management Studies
Profssdubey.fms@yahoo.com
Session 1 and 2

COURSE OBJECTIVE
 Objective: The objective of this course is to
 develop executive appreciation of the use and
management of contemporary IT tools and Data
processing systems existing in the organization.
 Build Appreciation and insight of various issues and
the concerns facing IT organizations
 Develop capability to address them and comeout
with prudent and successful strategy for It systems.
 This will be done through cases and exercises.
COURSE DESCRIPTION 1
Session Topic
number
1 Elements of Information Technology, Hardware, software, data,
telecommunication and people,
What are the challenges of IT. Why IT projects fail or deliver less

than optimal results. Has IT become a commodity?
2 BUSINESS STRATEGY: CHALLENGES AND OPPORTUNITIES FOR IT
What is Business Strategy Challenges and Opportunities .What is
Strategic IT / IT Strategy? Application Strategy, Technology
Strategy for IT, IT Management Strategy Developing IT Strategy
for Competitive Advantage , Stages of IT Strategy Development
and Implementation
3 Planning for information technology set up for an organization
IT Planning SITP Process: various Planning Approaches , Content
of SITP ,Planning Stages of IT Plan , Change Management Issues of
SITP Development and Implementation , Monitoring and Measuring
SITP Success ,Information Technology Strategy Committee

COURSE DESCRIPTION 2
Session Topic
number
4 Creation Management and maintenance of an IT facility ,
5 IT Governance, Leadership principles for IT Management
6 IT APPLICATION Management

Why Develop Applications (Either In-house or Through
Subcontracting)? COTS Package Selection Life Cycle ,Evaluation
Criteria and Selection Process ,Package Customization /
Implementation Strategy , Best Practices for Successful
Implementation Post Implementation Support and Management,
Portfolio management

7 Applications of IT in Business, Government and services sector, E


commerce and E governance , Application Portfolio development ,
latest Development of IT applications
8 DBMS, Distributed DBMS, Managerial Issues related to DBMS,
Evaluation Criteria Implementation and Maintenance issues, DBA,
DB security and disaster recovery strategies.
COURSE DESCRIPTION 3
Session Topic
number
9 Internet, Intranet and Extranet. Application of Internet technologies in Organization
10 Data Communication, LAN, WAN, ASP and ISP
11 Management of data processing systems in the organization, Software /program development
cycle, IT Sourcing Strategy and Future of outsourcing Issues in managing, Sourcing, Contracting,
 relationship and 3rd party management , Imperatives ,Motivation and Need to Outsource
,Associated Risks How to Minimize Risks , Strategic vs Generic Sourcing ,Variants of
Outsourcing ,How to Succeed with Outsourcing

12 A manager’s perspective of IT, IT Investment and Business Value analysis , PLANNING AND
MEASURING RETURNS ON Strategic IS INVESTMENT , IT Business Value Framework ,Critical
Factors for the IT Benefits Realization , Defining and Measuring Return on Investment
,Communicating and Marketing the Business Benefits

13 MANAGING IT-LED CHANGE


o IT Strategy Implementation , Issues at Business and IT Alignment Layer End-users , Issues
of IT Professional: In-house as well as Outsourced Service Providers
o Barriers of Change , Managing Change
o Driving the Change Through Steering Committee ,Acquire and Enhance New Skill Set

14 Indian Computing environment, Growth of IT sector in India, Trends of IT and ITeS sector

COURSE LEARNING OUTCOMES


 At the end of this course, students should be able to:
 Demonstrate understanding of information systems strategy,
theoretical models and frameworks and the relationship
between business and IS strategies;
 Analyse the business environment and identify opportunities
for implementing information systems;
 Demonstrate understanding of human, organisational, and
technical issues associated with implementation of
information systems;
 Equip Mangers with the role and application of functional
information technologies in Organizations.
 Demonstrate an understanding of the main IS/IT issues from
the point of view of the organisation directorate, IT/IS
managers and other managers of the organisation.
 EVALUATION
 End term Exams: There will be one End Term
examinations. This exam will cover contents covered in
Sessions 1 to 15, 3 hrs , 70%
 Internal Assessment 30% Continuous assessment
 Submit Learning pause assignments online at the end .
Marks 20
 Group Assignment (cases or articles ) presentations. 20
 Socrative test /assignments Marks 10
 Keep your mobile phone on silent /don’t take calls unless
there is an emergency, Avoid texting /Whatsapp msg
 Be punctual and regular

It is IT Class so we will use IT

 Use Fms mail id to log in Google class

 Down load google class app on your cell phone and enroll in class

id 7avpec2 for South campus

badd6c3 for north campus

 Class description NC MITO 2021


 Down load Socrative Student Version app for class test
About Faculty : Sanjiva Shankar Dubey
 Visiting Professor FMS since 2007
 Professor and Head IT Area BIMTECH, Chairperson COOLs
 Former Asia Pacific Delivery Executive IBM.
 30+ years of Management consulting and IT Services Delivery experience with IBM
and Tata Group.
 Published Twelve books, 30+ research papers, conducted 100+ consulting
assignments
 Project Executive of 2.5 B USD IBM Bharti Airtel project
 Principal and Country head of IBM consulting Group
 Visiting Faculty at IIM Lucknow, FMS Delhi University,
IIM Indore, MDI ,IMI, SPJain Dubai and Singapore
 Mentor Panel of Nasscom 10000+ start up & MEPSC Skills Council , Govt of India
 Hobbies : Poetry, newspaper columns writing . One book of Hindi Poems released in
2018 बात बहुत कह्नी है बाकी
1
Copyright © professor Sanjiva Shankar Dubey All rights reserved.
What I will teach you ?

 Fundamentals
 Methods
Classs Students
 Strategy presentations
Lecture

8107
MITO

Book and
Articles

C h a p t e r 1 Business
Strategy Challenges and
Opportunities for IT
Why do we need IT ?

WORLD ECONOMIC FORUM TIPPING POINTS


BY 2025
% likelihood
 10% of people wearing clothes connected to the internet 91.2
 1 trillion sensors connected to the internet 89.2
 The first robotic pharmacist in the US 86.5
 10% of reading glasses connected to the internet 85.5
 The first 3D-printed car in production 84.1
 The first government to replace its census with big-data sources 82.9
 The first implantable mobile phone available commercially 81.7
 The first transplant on a 3D printed liver 76.4
 30% of corporate audits performed by Al 75.4
 Tax collected for the first time by a government via a blockchain 73.1
 The first Al machine on a corporate board of directors 45.2
Understanding it management is like…

Strong Desire, clear Destination and


strong drive for results

 3 Ds
 Desire
 Destination Clarity
 Drive for results
IT can Transform your organization provided …you

Body : Create
Tusk : Unique value an innovation
EAR : Listen and proposition Ecosystem
learn from experts

Tail : Guide
others,
Collaborate
Nose : Seek and
grab new
technology
enabled
Legs : Build 4 Strong Pillars: Strategy, Structure, Systems
Opportunity
and support infrastructure

Watch two videos

 Write your name , Course ,roll number and campus on a blank


sheet of paper

 What the relevant of these videos are with out course ?

 Which of the tipping points of 2025 will impact your


business/organization?
Information System helps for business
in : 6 Cs
 Cost reduction
 Customer satisfaction/service
 Compliance management
 Competitive advantage /necessity
 Creativity : new market, new products, new
revenue stream
 Climate preservation (green IT)

Let us start with some questions

What is a system ?

What is an Information System?

What is Data, Information and knowledge ?

What is an information System?

…. Write these definitions quickly in the sheet


20

Copyright © professor Sanjiva Shankar Dubey All rights reserved.


Why do we need , IT or
Information System (IS)?

IS= IT + Business
Process+ application
Software+ data+ People
System
A system is a set of elements or components
that interact to accomplish goals, takes some
inputs and converts into some useful output

Information System:
An information system is a set of
interrelated components that collect,
manipulate, store data and disseminate
information and provide a feedback
mechanism to monitor performance.

Information System is ….

An organized combination of
people, hardware, software,
communications networks, and
data resources that collects data,
transforms it, and disseminates
information.
The Discipline of Information
Systems
 Information Systems = Information Technology +
Organizational Processes + People+ strategy + social
issues

 [IS is to CS] as [Medicine and Pharmacy is to


Chemistry]

 Pharmacists know Chemistry, but Pharmacists are


interested in “applying” the science to the practical
matter of fixing biochemical maladies.
 Similarly, IS is said to be an applied science that
focuses on solving organizational (social) problems,
thus requiring a rich understanding of organizations
and the interface between systems and
organizations.

Information systems components

Technology

Process

People

Strategy

TPPSS Society
Learning assignment 1

 Why understanding IT Management is difficult ?

 Write the TPPSS of any IT applications you are familiar


with.

 What is difference between the study of Information


Systems and Computer Science ?

Session 2

MITO FMS 2017

Understanding the relationship


between Business and IT
Business and IT Relationship

Shapes and enhances

IS/IT
Business
Applications /
Need
Implementations

DRIVES
• Used properly IT can be a tool to achieve the impossible
• Used creatively IT can be a transformational vehicle

1.3 WHAT IS BUSINESS STRATEGY?


 Mintzberg advocates five P’s to define strategy.
 • Plan or course of action
 • Patterns, company’s behaviour in the market place
 • Position (unique or valuable) that a company wants to attain
 • Perspective, i.e. organization’s fundamental way of doing things (e.g.
McDonald’s way)
 • Ploy, a specific manoeuvre intended to defeat its competition.

Strategy is a set of objectives, plans, and policies for the organization to


successfully compete in its markets. Some of its characteristics are:
 • It is long-term (3–5 years) in nature.
 • It specifies what the organization’s competitive advantage will be.
 • It focuses on a few key areas.
 • The pattern of decisions made over time is, in fact, an organization’s
business strategy.
1.3.1 Business Strategy: Challenges and
Opportunities in the Globalized,
Interconnected, Convergent World

 global competition
 operational efficiency is not enough, be different
 Explore possibilities of using IT for innovating, and
transforming the business.
 Companies are expanding their scope as well as reach
using IT ,
 Provide Information Richness and Global reach

1.4 WHAT IS IT STRATEGY?

 It is long-term view of IT
 The formulation of IT strategy is required
for two reasons.
 • Competitive necessity
 • Competitive advantage
IT strategy, is further subdivided
into the following subcomponents

 IT application strategy / Strategy for cloud adoption


 Enterprise data management strategy
 Technology management strategy for IT
 Strategy for IT program, project and portfolio management
 IT service management strategy

 Managing change, Measuring returns


 Maintaining Ethics and sustainability of the enterprise while
using IT

How IT impacts the business

J. C. Henderson, N. Venkatraman (1993) Strategic alignment: Leveraging information technology for transforming organizations
http://proquest.umi.com/pqdweb?did=547750&sid=2&Fmt=3&clientId=43454&RQT=309&VName=PQD
Learning Pause assignment 2 Time 10 mts
Write on blank page your name roll number and campus

 For any company or organization , name it


 Is it facing Globalization and other local challenges
due to changes in business environment, Govt
policies, customers preferences etc?
 What are these challenges ? Is there a role of IT in
meeting these challenges or grabbing the
opportunities ?
 Categorise them as competitive necessity and
competitive advantage .
 Find the five levels of IT interventions

IT challenges

 Fast changing technology


 Lack of Business Managers ownership of IT projects
 Lack of understanding of Business By IT professionals
 Changing workforce in IT /Outsourcing
 Hidden cost
 Project delays
 Lack of quantification of tangible benefits
Some Recent examples of IS
failure
 TOI Oct 2, 2011: MUMBAI: Millions of customers of the State Bank of India were
affected after its centralized server crashed rendering branches inoperational for
most of Saturday. All its 13,929 branches open on Sunday to make up .
 CNN IBN Jan 15, 2010: New Delhi: All flight operations at the IGI Airport in Delhi
were severely following a systems crash at the Air Traffic Controller. The entire
radar systems at the ATC collapsed between 1745 hrs IST and 1845 hrs IST. No takeoffs
or landings could take place for more than two hours following the systems crash. The
back up system also failed.
 3 Bangalore techies crippled Delhi Airport in June, Hindustan Times, Bangalore,
November 21, 2011 , In this wired era, hell hath no fury like techies scorned. The
Indira Gandhi Inter-national Airport (IGIA) found it out the hard way on June 29 when
its advanced passenger check-in services were crippled and flights delayed. Denied
higher wages, three software engineers in Bangalore including a woman used logic
bombing, a cyber attack technique, to disable the Common Use Passengers Processing
System (CUPPS) they had helped install at Terminal 3 of the IGIA. . The three have
now landed in the Central Bureau of Investigation (CBI) net.
 Airlines hit by Amadeus systems crash Wednesday, February 01, 2012 : Airlines were
hit last Monday by a major crash in systems operated by technology giant Amadeus.
Carriers including Oneworld members British Airways, Iberia, Qantas, Cathay
Pacific, Finnair and SAS were reported to have been affected by the system failure
which lasted around three hours on Monday. The failure also affected check-in at
airports as staff had to manually put in passenger details from passport

Chapter 2 Business and IT alignment


8107 Management of IT organization

Prof Sanjiva Shankar Dubey (VF)


Faculty of Management Studies
Session 2
What is a System?

Environment

Feedback Feedback
Signals Signals
Control Control by Control
Signals Signals
Management

Input of Manufacturing Output of


Raw Materials Process Finished Products
System Boundary

Other Systems

What is an Information
System?
System to Support a
Business Process
Feedback/Control

Input of Data
Output of
Data Processing
Information
Resources (Updates,
(Reports)
(Forms) Queries)

Data Storage
Information System
Components/Resources

System to Support a
Business Process

Input of Data
Output of
Data Processing
Information
Resources (Updates,
(Reports)
(Forms) Queries)

People Network
Data Storage

Data Software

Hardware

Other Systems

Typical Reaction from Business managers for


Information System
 Why should we bother ?
 IT doesn't matter, my business does!!
 Let us outsources , use cloud or virtualize !!!
Distancing from IS responsibility by Business Managers is abdicating
critical responsibility as manager

Top
Management Parent child triangle
syndrome
Don’t disturb
IT
Business
Management
Managers
No one cares
IT doesn't matter
Three roles Business Managers
must play for IT projects
 Help in Technology Selection : Key here is stating
requirements and how the technology can be used for
improving the business
 Nurture Adoption: Encouraging people to use the new
technology in the work environment
 Ensure Exploitation : Find better use of the technology
for enhanced benefits

As a CIO said“ I can fail and IT project but for its


success I will have to depend upon the Business
Managers .

1.4 So WHAT IS IS/IT STRATEGY?


 It is both
 Competitive necessity: To do business in any industry
 Competitive advantage: Developing products,
services, processes, or capabilities, giving the company
a superior position vis-à-vis competitors.
 Comprises of
 IT application strategy
 Technology management strategy for IT
 IT management strategy.

Refer Ch 1 IT Strategy and 44


Management
WHAT IS BUSINESS – IT ALIGNMENT?
 Alignment between IT and business means that IT
delivers what businesses need to their satisfaction.
 IT also plays a strategic role in shaping new
business strategy.
 Alignment must happen between four elements as
shown, spanning
 Functional integration

 Strategic fit.

Refer Ch 1 IT Strategy and Session 3-4 IT strategy


45
Management © Profssdubey@yahoo.in

5 Alignment Perspectives
Strategy Execution

Business
IT Strategy
Strategy

Org.
Strategic Fit

IT Infrastructure
Infrastructure

Functional Integration

Refer Ch 1 IT Strategy and Session 3-4 IT strategy


46
Management © Profssdubey@yahoo.in
5 perspectives of IT And Business Alignment

1. How can the current business model be reinforced
by IT : Reinforcement bar model , add flexibility and
connectivity :Strategy execution
2. Can we exploit IT potential for competitive
differentiator: Technology Transformation
perspective
3. Can IT help expanding my existing product or services
through value add: Competitive potential
perspective
4. Can we form a new execution model Outsource that
is not the core : Service Level perspective
5. Can IT lead me to new business using existing IT
infrastructure : IT as a business (separate P& L)

Session 3-4 IT strategy


47 © Profssdubey@yahoo.in

2.2 CHALLENGES OF BUSINESS AND


IT ALIGNMENT

 Absence of a well-articulated strategy


 Completeness, comprehensiveness and speed to gather the end-
users’ requirements
 Uniform and seamless communication of the strategy, objectives
and critical success factors to the entire organization.
 Alignment Inhibitors
 Leadership level congruence
 IT’s ability to identify and partner with business
 IT’s ability to deliver.
 Three levels of alignment
 Functional
 Application
 Infrastructure

Refer Chapter 2 IT Strategy and Management


2.4 HOW TO ACHIEVE BUSINESS

AND IT ALIGNMENT
2.4.1 Communication School
2.4.2 Architecture School
2.4.3 Technology School
2.4.4 People School

IT Speaks the business language , Business knows the IT


potential,

pain and possibilities

Refer Chapter 2 IT Strategy and Management

Alignment Tips
 Steering Committee
 Joint Task force group
 IT champion
 User advocate /SME
 Sabbatical for IT /User /Cross rotation
 Joint Innovation project
 IT members in Business executive committee
 Authoring of papers jointly by business and
IT
 Joint training

Refer Ch 2 IT Strategy and Management


Four Categories Of IT
IT Definition Characteristics Examples
Category
Function IT that assists Localized, brings in Simulators,
IT execution of a efficiency , easy to Spreadsheets,
discrete function or conceptualize and CAD/CAM software,
task implement Statistical Software,
OA
Enterprise IT that integrates Requires planning ERP, SCM, CRM,
IT multiple functions by and processes design , Procurement software
imposing new work user training and
structures implementation
Network IT that integrates Multi organization, E-Mail, Instant
IT multiple functions follow of standards , messaging, Wikis ,
without imposing new sprit of collaboration Collaborative
work structure implementation across
supply chain
Production It that generates Addressing Core Recharge application
IT revenue or part of Business needs, for Telcos , Financial
the revenue innovation and systems
generating stream forward thinking

Learning Pause Assignment 2

1. Identify examples of 5 Alignment perspectives of


IT as discussed in the class from your
organization.
2. You can select a bank, retail outlet,
manufacturing, hospital or government unit.

3. Present your findings as part of your learning


diary and submit in Google class

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