[ Mastering the three worlds of IT]

1. [ Mastering the three worlds of IT]

2. Contents Introduction 1 Building an IT model 2 Three worlds of IT 3 Managing IT 4

3. Introduction – IT adoption IT Spending has increased sharply $1500 per employee in 1987 $ 5100 in 2003 How IT Has Changed Management? Provides new ways to design organizations Creates new relationships between customers and suppliers Enables efficiencies in production and service industries Changes the basis of competition and industry structure Provides mechanisms through groupware for coordinating work and creating a knowledge base of organizational intelligence Contributes to the flexibility an productivity of knowledge workers Provides the manager with electronic alternatives

4. Attitudes Toward IT • “EXECUTIVES NEED TO STOP LOOKING AT IT PROJECTS AS TECHNOLOGY INSTALLATIONS AND START LOOKING AT THEM AS PERIODS OF ORGANZATIONAL CHANGE THAT THEY HAVE A RESPONSIBILITY TO MANAGE.” Executive arise Question about IT “Why should we bother? IT isn’t strategic, so it doesn’t matter in a competitive sense. We should be minimizing our expenditures.” “Whether IT matters or not, we shouldn’t be doing it ourselves.” “Companies are becoming virtual, and software is becoming rentable, so why do IT the old-fashioned way [of building or purchasing?”

5. Building an Effective IT model • Complements of Process General Purpose Technologies • Better skilled workers • Higher levels of teamwork • Redesigned processes • New decision rights

6. Three Varieties of IT

7. Function IT - Ducati Ducati introducing the simulation software for Enhancing experimentation capacity - engineers built thousands of engines and motocycles and compared their performance without touching a sheet of steel Increasing precision - Designers came to the trust the software so much.

8. Network IT- DKW bank In 2005, investment bank DKW introducing three network technologies : messaging software, employee blogs, and a company wiki Facilitating collaboration Allowing expressions of judgment Fostering emergence

9. Enterprise IT : CVS CVS : American retail drugstore Redesigning business processes - EIT gives managers confidence that employees will execute processes correctly Standardizing work flows - EITs can allow managers to get an accurate and up-to-date picture of what’s happening throughout the enterprise

10. Managing Three Types of IT • IT Selection • Endless supply of new application • What do we need IT to do for us? • IT Adoption • To help create the complements that will maximize IT’s value • EIT is hard to adopt comparing to FIT, NIT • IT Exploitation - Extracting the maximum benefit from the technologies once they are in place

11. IT Selection - Example

12. Conclusion Applying the IT is no more giving the benefit, executive should know the exact charateristic of IT and enterprise. Actively adopting and Exploiting the IT is also very important.